2Q26 Results – Preaching Patience

研报英文原文证据摘录

2Q26 Results – Preaching Patience

oicing to ramp further and help accelerate subscription revenue in H2. Adj.

Q3 0.17 0.18 0.19 0.25 0.26

EBITDA margin of 25% beat consensus and FY26 guidance was raised by the beat to Q4 0.16 0.21 0.18 0.28 0.25

25.1%. However, total NNARR was down -13% YoY as ARR slowed for the fifth e = Morgan Stanley Research estimates, a = Actual Company reported data

consecutive quarter, FY26 total revenue guidance of 10.6% was unchanged at the

mid-point, and FY26 cloud revenue guidance was reduced from 25% to 18%.

Management attributed the lower cloud guide to slower cloud migrations as deals

have seen some elongation as large organizations try to manage the highly complex

future of their technology stacks.

AI Disclosures Paint a Clearer Picture. While many companies point to the high-

level benefits they are seeing from adopting AI internally, Vertex shared more

concrete evidence of this: active use of core AI tools have increased to 89% from

68% in January, 34% improvement in engineering efficiency, e-invoicing onboarding

time has been reduced by 50%. Management was also quite candid on the progress

they are making around delivering AI solutions to customers, framing the

opportunity there as still early and not a material contributor to revenue today.

Management pointed to 2027 as a better time frame of when AI solutions can start

becoming more meaningful contributors to revenue.

What To Do With the Stock? While the reduction to cloud guidance was not great

Morgan Stanley does and seeks to do business with

news, this is not lost revenue and is just a timing factor that should eventually companies covered in Morgan Stanley Research. As a result,

convert into future cloud revenue.