On May 12, 2026, Constellation Software Inc CNSWF announced its Q1 results, revealing a GAAP EPS of $17.32 and revenue of $3.18 billion, marking a 20.0% increase year-over-year. The revenue exceeded expectations by $40 million. Additionally, cash flows from operations rose to $897 million, up 9% from the previous year, while free cash flow available to shareholders surged by 44% to $733 million, compared to $510 million in the same quarter of 2025.
- Market Cap: $36.98 billion
- GF Scoreā¢: 82/100, indicating strong fundamentals and growth potential
- Financial Strength: The company has a solid Altman Z-score of 3.12, suggesting a strong financial position.
What's Behind the News?
The recent announcement of Constellation Software's Q1 results highlights the company's robust performance in the software industry. The reported revenue growth of 20% year-over-year is a significant indicator of the company's ability to expand its market share and optimize its business operations. This growth is particularly noteworthy given the competitive landscape of the technology sector, where companies are constantly innovating and adapting to changing market demands.
Constellation Software operates as an acquirer, manager, and developer of vertical market software (VMS) businesses globally. With a market cap of approximately $36.98 billion, the company has established itself as a leader in providing mission-critical solutions tailored to specific industries. As of 2026, Constellation consists of over 1,000 individual businesses, each operating independently while contributing to the overall growth and profitability of the organization.
How Is CNSWF Valued?
Currently, GF Valueā¢ data is not available for Constellation Software. However, the company's P/E ratio stands at 75.71x, which is relatively high compared to historical averages. This elevated P/E ratio may suggest that the market has high expectations for the company's future growth potential. Investors should consider this valuation in the context of the company's strong revenue growth and operational cash flow performance. For more detailed financial metrics, visit the CNSWF stock page.
What Does CNSWF's GF Scoreā¢ Tell Us?
The GF Scoreā¢ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Scoreā¢ values have been found to generate higher long-term returns (backtested 2006-2021).
| Metric | Rating |
|---|---|
| GF Scoreā¢ | 82 |
| Financial Strength | 6/10 |
| Profitability | 10/10 |
| Growth | 10/10 |
Constellation Software's strengths lie in its exceptional profitability and growth rankings, both rated at 10/10. This indicates that the company has maintained strong profit margins and has a solid track record of revenue growth. However, the financial strength rating of 6/10 suggests that while the company is in a good position, there are areas for improvement, particularly in managing its debt levels. For further insights, visit the CNSWF stock page.
What Are Insiders Doing with CNSWF Stock?
There has been no insider buying or selling activity reported for Constellation Software in the last three months or the last year. This lack of insider activity may indicate that executives and board members are confident in the company's current trajectory and future prospects.
What This Means for Investors
Overall, Constellation Software Inc presents a compelling case for investors, with a strong GF Scoreā¢ of 82/100 and impressive profitability and growth metrics. However, potential investors should remain cautious due to the high P/E ratio and the company's financial strength rating. It is crucial to weigh these factors against the company's operational performance and market position before making investment decisions. For the complete analysis, visit the CNSWF stock page. You can also use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is CNSWF's GF Scoreā¢?
CNSWF has a GF Scoreā¢ of 82/100, indicating strong fundamentals and potential for long-term growth.
How is CNSWF valued?
The company has a P/E ratio of 75.71x, which is relatively high and suggests that the market expects significant future growth.
What is CNSWF's P/E ratio compared to historical?
The current P/E ratio of 75.71x is elevated compared to historical averages, indicating that investors have high expectations for the company's future performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
