ACI Worldwide (NASDAQ:ACIW) Releases Quarterly Earnings Results, Beats Expectations By $0.17 EPS

ACI Worldwide (NASDAQ:ACIW) announced 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 revenue for the quarter was down 11.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.09 EPS.

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 Stock Performance

Shares of ACIW stock opened at $60.02 on Friday. The company’s fifty day simple moving average is $52.68 and its 200-day simple moving average is $47.61. The firm has a market cap of $6.06 billion, a PE ratio of 37.05 and a beta of 1.00. The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 0.52. ACI Worldwide has a 12 month low of $38.05 and a 12 month high of $63.10.

Analyst Ratings Changes

ACIW has been the topic of several research analyst reports. Weiss Ratings upgraded shares of ACI Worldwide from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, October 23rd. DA Davidson reaffirmed a “buy” rating and set a $66.00 price target on shares of ACI Worldwide in a report on Wednesday, September 2nd. Wall Street Zen lowered shares of ACI Worldwide from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Needham & Company LLC reaffirmed a “hold” rating on shares of ACI Worldwide in a research note on Friday. Finally, Stephens began coverage on ACI Worldwide in a research note on Friday, October 16th. They issued an “equal weight” rating and a $56.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, ACI Worldwide presently has an average rating of “Moderate Buy” and a consensus price target of $61.00.

Key Headlines Impacting ACI Worldwide

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

• Positive Sentiment: ACI reported Q3 revenue of about $426.8 million, ahead of estimates of roughly $421.9 million, and raised its full-year adjusted EBITDA outlook. ACI Worldwide reports lower Q3 revenue but raises full-year adjusted EBITDA outlook
• Neutral Sentiment: Needham reiterated its Hold rating, signaling no change in its view of the shares. Needham Reiterates Hold Rating on ACI Worldwide
• Neutral Sentiment: The company also announced a strategic acquisition, but the provided coverage does 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 was $0.54 versus $1.09 a year earlier. Earnings-estimate comparisons are mixed across reports: one cites a beat against $0.37 consensus, while Zacks says results missed its $0.67 estimate. ACI Worldwide Q3 Earnings Lag Estimates

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.