Business · Companies · 2 hrs ago
Totvs reports higher third-quarter profit and expands AI investment
Brazilian software company Totvs reported higher third-quarter profit, with adjusted net income rising 8.8% from a year earlier to 237.2 million reais.
Revenue grew 13.2% to nearly 2 billion reais, while the company's shares fell 2.49% in the next trading session.
Totvs increased its provisions for possible losses, but CEO Dennis Herszkowicz said this reflected weaker payment prospects across the economy, not a rise in late payments among Totvs customers.
He called artificial intelligence a major growth opportunity and said Totvs has increased its AI investment over at least the past two years.
The company is developing AI agents for work such as accounting and payroll, a new service layer it calls Tarefa como Serviço, or TaaS.
Totvs also recently launched Cortem, which aims to connect its business software, cloud services and AI task offerings.
Herszkowicz said sales and customer renewals remain healthy, and the company expects no major change to its capital spending profile.
Totvs reported adjusted net income of R$237.2 million for the third quarter of 2026, up 8.8% from a year earlier.
The Brazilian software company said it had expanded investment in artificial intelligence over at least the past two years.
Net revenue reached nearly R$2 billion, a 13.2% year-on-year increase, while adjusted EBITDA rose 16.9% to nearly R$501 million.
CEO Dennis Herszkowicz described AI as a major growth opportunity and said the company is developing agents that can perform tasks such as accounting and payroll processing.
Totvs said higher provisions reflected a broader deterioration in payment propensity, not a concrete increase in late payments among its customers.
- Who
- Totvs, a Brazilian software company, and its CEO, Dennis Herszkowicz.
- What
- Totvs reported higher third-quarter profit and expanded its investment in artificial intelligence.
- When
- The results were for the third quarter of 2026 and were published on November 6, 2026.
- Where
- Brazil. The report does not state a more specific location.
- Why
- The company sees AI as a major growth opportunity and is developing AI agents and new services.
This story does not have two clearly opposing sides.
Totvs recorded adjusted net income of R$237.2 million, up 8.8% year on year.
Totvs had expanded its investment in artificial intelligence.
CNN Brasil published the report on the company’s results and AI investment.
Totvs shares fell 2.49% to R$32.57 in the next trading session.
- Adjusted net income
- R$237.2 million; up 8.8% year on year
- Net revenue
- Nearly R$2 billion; up 13.2% year on year
- Adjusted EBITDA
- Nearly R$501 million; up 16.9% year on year
- Provisions
- A little over 1.8% of net revenue
- Share price
- Fell 2.49% to R$32.57 in the following trading session
- AI services model
- TaaS, or “Task as a Service
What people are saying
A IA é uma das maiores oportunidades que a Totvs teve nessa longa história dela
É um aumento de mercado endereçável gigantesco
Ainda não vemos um impacto concreto em nível de atraso nessa nossa base de clientes
Essa é uma oportunidade gigantesca, possivelmente a maior oportunidade dos últimos anos