ACI Worldwide (NASDAQ:ACIW) Issues Quarterly Earnings Results

ACI Worldwide (NASDAQ:ACIW) announced its quarterly earnings data on Thursday. The technology company reported $0.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.17, FiscalAI reports. ACI Worldwide had a return on equity of 17.62% and a net margin of 12.40%. The business had revenue of $426.81 million during the quarter, compared to analyst estimates of $421.91 million. During the same period last year, the company earned $1.09 earnings per share. ACI Worldwide’s quarterly revenue was down 11.5% compared to the same quarter last year.

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 Trading Up 1.1%

NASDAQ:ACIW traded up $0.66 during mid-day trading on Friday, hitting $60.18. 747,984 shares of the company’s stock were exchanged, compared to its average volume of 873,754. 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 fifty-two week low of $38.05 and a fifty-two week high of $63.10. The firm has a market capitalization of $6.08 billion, a P/E ratio of 27.62 and a beta of 1.00. The company has a 50 day simple moving average of $52.57 and a 200-day simple moving average of $47.52.

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, above the cited $421.9 million forecast, and raised its full-year adjusted EBITDA outlook. Article: ACI Worldwide reports lower Q3 revenue but raises full-year adjusted EBITDA outlook
• Neutral Sentiment: Quarterly EPS was $0.54, but estimates differed: it beat the $0.37 consensus cited in one report while missing Zacks’ $0.67 estimate. The mixed comparison may leave investors focused on the company’s outlook and the coming quarter. Article: ACI Worldwide Q3 Earnings Lag Estimates
• Neutral Sentiment: ACI announced a strategic acquisition alongside its results. The news could offer growth opportunities, but the reports provided do not detail its expected financial contribution. Article: ACI Worldwide Reports Third-Quarter Results and Strategic Acquisition
• Negative Sentiment: Revenue declined about 12% year over year, and EPS was down from $1.09 in the year-ago quarter. The contraction in sales and earnings is a headwind despite the revenue beat against the cited forecast. Article: ACI Worldwide reports $427 million in Q3 revenue, above forecast
• Neutral Sentiment: Needham reiterated its Hold rating, signaling no change in its stance on the shares. Article: Needham Reiterates Hold Rating on ACI Worldwide

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the stock. Zacks Research upgraded shares of ACI Worldwide from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 20th. Needham & Company LLC reaffirmed a “hold” rating on shares of ACI Worldwide in a research report on Friday. DA Davidson restated a “buy” rating and issued a $66.00 price objective on shares of ACI Worldwide in a report on Wednesday, September 2nd. Wall Street Zen cut ACI Worldwide from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Stephens began coverage on ACI Worldwide in a report on Friday, October 16th. They set an “equal weight” rating and a $56.00 price target for the company. One 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’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price 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.