By Eric Auchard

FRANKFURT, July 21 (Reuters) - Swiss banking software maker Temenos Group AG posted solid second-quarter results after weak recent financial reports, led by renewed European investment and wins at two major U.S. banks, it said on Tuesday.

Temenos reported operating income, excluding one-time items, of $31.7 million, compared with $22.5 million in the year-ago quarter. The analysts' consensus estimate was 29.3 million, based on 11 forecasts.

Executives said the results and strong deal flow heading into 2015's second half bolstered the company's confidence it can meet its targets, including for full-year revenue of between $526 million to $548 million (503-524 million Swiss francs).

"Overall conditions are definitely improving and it bodes well for the medium-term," Temenos Chief Executive David Arnott said on a conference call to discuss the results.

"Europe is definitely coming back," he said, pointing to demand from core banking customers, wealth managers and newer Internet and mobile banking channels. "We are seeing a great deal more willingness to make spending decisions," he said.

Revenue rose 18 percent to $132.4 million, or 25 percent in constant currency terms that strip out the effects of a stronger U.S. dollar on its global business. Analysts had predicted mean revenue of $126.48 million, according to Thomson Reuters data.

Software licensing for its core banking software packages as well as newer software as a service (SaaS) rose 15 percent to $48.4 million, on a like-for-like basis, excluding the impact of recent acquisitions.

That reversed a five-quarter drop in its classic software business that fell from 20 percent growth in the first quarter of 2014 to a 30 percent decline in 2015's first three months.

Cloud-based SaaS software now accounts for just under a quarter of licensing revenue, up from negligible amounts in 2013, Chief Financial Officer Max Chuard said in a phone interview.

Europe accounts for 51 percent software license revenue, while it is making strides in the United States, the world's top financial market, which accounts for another 20 percent. The remainder is split between Asia and the Middle East, it said.

(1 Swiss franc = $1.0452) (Reporting by Eric Auchard; Editing by Tom Heneghan)