ACI Worldwide (NASDAQ:ACIW) Issues Earnings Results

Key Points

• ACI beat quarterly estimates: EPS was $0.54 versus consensus of $0.37, and revenue of $426.8 million topped forecasts. However, revenue fell 11.5% year over year, while EPS declined from $1.09 a year earlier.
• Full-year outlook points to a stronger finish: ACI reaffirmed 2026 revenue guidance of $1.895 billion–$1.925 billion and raised its adjusted EBITDA forecast to $550 million–$565 million. Management expects a Q4 rebound as payment-software renewals shift into the quarter.
• New ARR bookings rose 86% year over year in Q3 to about $24 million, though trailing-12-month bookings were down 3%. ACI said more customers are choosing hosted, consumption-based contracts, which can delay upfront revenue but support recurring sales over time.

ACI Worldwide (NASDAQ:ACIW - Get Free Report) issued its earnings results on Thursday. The technology company reported $0.54 earnings per share for the quarter, topping analysts' consensus estimates of $0.37 by $0.17, FiscalAI reports. The firm had revenue of $426.81 million during the quarter, compared to analyst estimates of $421.91 million. ACI Worldwide had a net margin of 12.40% and a return on equity of 17.62%. The company's quarterly revenue was down 11.5% on a year-over-year basis. During the same quarter last year, the business earned $1.09 earnings per share.

Here are the key takeaways from ACI Worldwide's conference call:

• ACI reaffirmed 2026 revenue guidance of $1.895 billion–$1.925 billion and raised its adjusted EBITDA outlook to $550 million–$565 million. Management expects a strong Q4 rebound as license renewals shift into the quarter, and said more than 95% of the revenue outlook is contracted or tied to renewals scheduled by year-end.
• Q3 revenue fell 12% year over year to $427 million and adjusted EBITDA declined 43% to $98 million, with margin down to 35% from 49%. Management attributed the declines primarily to the timing of high-margin Payment Software renewals, but the results make delivery of the heavily weighted Q4 more important.
• New ARR bookings rose 86% year over year to about $24 million in Q3, while trailing-12-month ARR bookings declined 3% and license and services bookings fell 21% in the quarter. ACI said more customers are choosing hosted, consumption-based contracts, which produce less upfront revenue but can build recurring revenue as customers go live.
• ACI reported its first live ACI Connetic customer, additional signings, and expanded platform capabilities; it expects several signed customers to go live next year. Connetic revenue is currently small and expected to ramp over time, so its strategic progress has yet to translate into a material near-term contribution.
• The Biller segment grew Q3 revenue 6% to $210 million, and management said its sales team exceeded its full-year target before the end of Q3, citing Speedpay ONE adoption and improved sales execution. Operating cash flow rose 63% to $119 million, while year-to-date share repurchases reached $157 million.

ACI Worldwide Price Performance

Shares of ACI Worldwide stock traded up $0.33 on Thursday, reaching $59.52. The stock had a trading volume of 2,188,722 shares, compared to its average volume of 872,550. The business's 50 day moving average is $52.44 and its two-hundred day moving average is $47.44. The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 0.52. ACI Worldwide has a 1 year low of $38.05 and a 1 year high of $63.10. The company has a market cap of $6.01 billion, a P/E ratio of 27.30 and a beta of 1.00.

Key Headlines Impacting ACI Worldwide

Here are the key news stories impacting ACI Worldwide this week:

• Positive Sentiment: Q3 revenue was $426.8 million, ahead of the roughly $421.9 million forecast. ACI also raised its full-year adjusted EBITDA outlook, a favorable signal for profitability. ACI Worldwide reports lower Q3 revenue but raises full-year adjusted EBITDA outlook
• Neutral Sentiment: ACI reported Q3 EPS of $0.54, but earnings comparisons with analyst expectations were mixed: one report showed a beat, while Zacks reported a miss versus its consensus estimate. The company also announced a strategic acquisition, though the provided reports do not detail its expected financial impact. ACI Worldwide Reports Third-Quarter Results and Strategic Acquisition
• Negative Sentiment: Revenue fell about 12% year over year, and EPS declined from $1.09 in the same quarter last year to $0.54. That year-over-year weakness may limit the impact of the forecast beat and higher EBITDA outlook. ACI Worldwide Q3 Earnings Lag Estimates

Analyst Ratings Changes

ACIW has been the topic of a number of recent research reports. Stephens started coverage on shares of ACI Worldwide in a research note on Friday, October 16th. They set an "equal weight" rating and a $56.00 price target on the stock. Zacks Research upgraded shares of ACI Worldwide from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 20th. Wall Street Zen cut shares of ACI Worldwide from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Weiss Ratings upgraded ACI Worldwide from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, October 23rd. Finally, DA Davidson reaffirmed a "buy" rating and issued a $66.00 price target on shares of ACI Worldwide in a report on Wednesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $61.00.

ACI Worldwide Company Profile

ACI Worldwide, Inc NASDAQ: ACIW develops and provides electronic payment software and services for merchants, banks, financial institutions, billers and other organizations. Its technology is designed to support payment acceptance, transaction processing, fraud prevention and the movement of money across digital and traditional channels.

The company's offerings include payment orchestration and acquiring solutions, real-time payments, bill payment and electronic bill presentment, fraud management, and software for retail and enterprise payment operations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.