Q1/F26: Strong M&A Activity Is Driving Re-Accelerating Growth

Research evidence excerpt

Q1/F26: Strong M&A Activity Is Driving Re-Accelerating Growth

Technology

Constellation Software Inc.

TD SECURITIES INC. - CANADA EARNINGS UPDATE

May 13, 2026

Price: C$2,467.53 (05/13/2026) Q1/F26: Strong M&A Activity Is Driving Re-

Price Target: C$4,200.00 (Prior C$4,100.00) Accelerating Growth

BUY (1)

ESG SCORE: 55/100

David Kwan, CFA^ THE TD COWEN INSIGHT

604 654 3455

With the stock up ~3% today, we think concerns over Q1 EBITDA/margins were allayed by

david.kwan@tdsecurities.com

CSU's commentary on the call, with investors likely focusing more on the re-acceleration in

Catherine Sung^ M&A activity and related growth. The AI overhang is likely to persist at least in the NT, but we

416 982 6833 think the stronger pace of M&A and growth could help provide some support. Focus now shifts

catherine.sung@tdsecurities.com

to the hybrid AGM this Friday.

Key Data

Symbol TSX: CSU-T See our previous note for our review of the results.

12-Month Div (Est.): $4.00

Impact: POSITIVE for the M&A outlook

Beta: 0.65

12-Month Total 70.4% Strong M&A activity despite little change in valuations. CSU indicated that there has been

Return:

no material decrease in target valuations, despite the significant decline in public software

52-Week Range: C$5,066.89-C$2,258.18

valuations over the last year due to AI-disruption concerns.

Market Cap: C$52.3B

Net Debt (MM): $3,555.9 They stated that there has been some softening for large deals, but that valuations remain

Dil. Shares Out (MM): 21.2 high, while there has been no change at the low end, where CSU is focused.

Float Shares (mm): 20.4 CSU noted that private market valuations continue to hold in, as they have not corrected

Float Cap ($mm): C$50,346 like the public markets. Our checks are consistent with this view, with broader industry