According to logisticsviewpoints.com, Kinaxis reported second-quarter fiscal 2026 revenue of $158.8 million, up 16 percent year over year, and raised its full-year revenue outlook to $625M–$640M from a prior range of $620M–$635M.
SaaS Growth and Recurring Revenue Expansion
SaaS revenue served as the primary growth engine, rising 20 percent to $106.5 million and accounting for 67 percent of total revenue. Annual recurring revenue increased 19 percent to $465.6 million, while remaining performance obligations grew 18 percent to $983.5 million — enhancing visibility into contracted future revenue.
The company’s profitability also strengthened: net profit rose 15 percent to $21.2 million, diluted earnings per share reached $0.76, and adjusted EBITDA climbed 23 percent to $41.4 million. Adjusted EBITDA margin improved to 26 percent, despite ongoing cloud migration and product investment costs.
Subscription software margin dipped slightly from 80 percent to 78 percent due to duplicate operating expenses tied to migrating customers from private data centers to public cloud infrastructure.
Customer Expansion and Partner-Led Implementation
Expansion within the installed base accelerated significantly: annual contract value bookings from existing customers surged more than 70 percent year over year. Platform utilization also rose, with multi-scenario planning activity in July up 30 percent year-on-year compared to April’s sequential increase.
Professional services revenue grew 12 percent to $42.1 million, and services gross margin improved to 32 percent. However, management expects services revenue to moderate in the second half of fiscal 2026 as deployment work shifts toward independent systems integrators.
This transition supports a more scalable, software-led business model — contingent on continued partner enablement and implementation quality oversight.
Agentic AI Enters Commercial Deployment
Kinaxis advanced its Maestro platform with agentic AI capabilities, including Maestro Agents and Maestro Agent Studio. Approximately 10 percent of the installed base is now in paid or trial subscriptions for these generative AI modules, and nearly all major new customer agreements include agent capabilities.
The company is establishing a forward-deployed engineering organization across North America, Europe, and India to help large accounts integrate data engineering and machine learning workflows. The company expects to exit its legacy European private data centers by the end of 2026, with North American migration continuing into late 2027.
Management reaffirmed its adjusted EBITDA margin guidance at 25%–26% while raising SaaS revenue growth expectations to 18%–20% — approximately $427M–$434M — reflecting confidence in recurring-revenue scalability and disciplined execution.
Source: logisticsviewpoints.com
Compiled from international media by the SCI.AI editorial team.
