ACI Worldwide (NASDAQ:ACIW) Releases Quarterly Earnings Results, Misses Estimates By $0.15 EPS

ACI Worldwide (NASDAQ:ACIW) issued its quarterly earnings data on Thursday. The technology company reported $0.90 earnings per share for the quarter, missing analysts’ consensus estimates of $1.05 by ($0.15), Briefing.com reports. ACI Worldwide had a net margin of 15.07% and a return on equity of 18.97%. The firm had revenue of $481.60 million during the quarter, compared to analyst estimates of $465.20 million. During the same period in the previous year, the firm posted $1.08 earnings per share. The company’s quarterly revenue was up 6.3% compared to the same quarter last year.

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

• Financial performance: ACI reported strong 2025 results with total revenue of $1.76 billion (+10%), adjusted EBITDA of $506 million (+9%) and an expanded adjusted EBITDA margin to 42%, ending the year with $196 million cash and net leverage of 1.2x.
• Connetic traction: The cloud-native Connetic platform signed its second major customer in 2025 (a large European bank), is the fastest-growing part of the pipeline, and will soon add card capabilities while targeting mid-tier banks.
• AI-first strategy: Management is deploying generative AI across engineering, operations (e.g., contract analysis) and products — notably AI-driven exception handling in Connetic — to improve productivity, reduce costs, and enhance customer outcomes.
• 2026 guidance shows moderation: Management guided 2026 revenue growth of 7–9% (down from 2025’s 10%) and adjusted EBITDA of $530–550 million, with an H2-weighted cadence and noted reinvestments that could limit near-term margin expansion.
• Capital allocation & optionality: ACI repurchased $203 million of shares in 2025, retains about $456 million of buyback authority, plans to return 50–60% of operating cash flow to repurchases in 2026, and has capacity for disciplined M&A while targeting leverage around 2x.

ACI Worldwide Stock Down 0.3%

NASDAQ ACIW traded down $0.12 during trading on Friday, reaching $39.68. 1,381,403 shares of the company’s stock were exchanged, compared to its average volume of 868,874. The company has a 50 day moving average price of $43.92 and a two-hundred day moving average price of $47.17. The stock has a market cap of $4.09 billion, a P/E ratio of 16.00 and a beta of 1.05. ACI Worldwide has a 1 year low of $38.05 and a 1 year high of $58.14. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.58 and a current ratio of 1.58.

Wall Street Analyst Weigh In

Separately, Weiss Ratings lowered shares of ACI Worldwide from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, February 18th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $60.00.

Hedge Funds Weigh In On ACI Worldwide

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP raised its holdings in ACI Worldwide by 93.5% during the third quarter. Allworth Financial LP now owns 532 shares of the technology company’s stock worth $28,000 after purchasing an additional 257 shares in the last quarter. State of Wyoming purchased a new position in shares of ACI Worldwide in the 2nd quarter valued at $37,000. Geneos Wealth Management Inc. raised its stake in ACI Worldwide by 73.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 872 shares of the technology company’s stock worth $48,000 after acquiring an additional 370 shares in the last quarter. Measured Wealth Private Client Group LLC purchased a new stake in ACI Worldwide in the third quarter valued at $46,000. Finally, EverSource Wealth Advisors LLC boosted its stake in ACI Worldwide by 122.1% in the second quarter. EverSource Wealth Advisors LLC now owns 944 shares of the technology company’s stock valued at $43,000 after acquiring an additional 519 shares in the last quarter. 94.73% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting ACI Worldwide

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

• Positive Sentiment: Reported double‑digit full‑year revenue growth and reiterated momentum for FY‑2026, underscoring the company’s multi‑year growth trajectory and value‑creation strategy. ACI Worldwide, Inc. Reports Double-Digit Revenue Growth
• Positive Sentiment: Management guided FY‑2026 revenue growth of roughly 7%–9% and emphasized product investment (Connetic platform) and AI initiatives aimed at sustaining subscription and cloud momentum—positive for longer‑term revenue mix and recurring revenue. ACI Worldwide outlines 7%-9% 2026 revenue growth
• Neutral Sentiment: Board succession and governance updates were announced as part of planned changes — relevant for longer‑term leadership continuity but not an immediate earnings driver. ACI Worldwide posts strong 2025 results and outlook
• Neutral Sentiment: Full Q4 earnings call slides and transcript are available for details on product roadmaps, margin drivers and subscription conversion metrics — useful for investors doing deeper diligence. Q4 Results – Earnings Call Presentation
• Negative Sentiment: GAAP/adjusted EPS missed estimates: $0.90 vs. consensus ~$1.05, and EPS fell year‑over‑year — a clear near‑term negative that pressured the stock. ACI Worldwide (ACIW) Misses Q4 Earnings Estimates
• Negative Sentiment: First‑quarter revenue guidance came in well below consensus (company gave roughly $405M–$415M vs. Street ~$466M), creating short‑term downside risk as investors re‑price near‑term growth expectations. Press Release / Slide Deck
• Neutral Sentiment: Reported trading activity was above average on the release — volume spike indicates the market is actively re‑rating the story (both profit‑taking and repositioning by investors). Q4 Earnings Call Highlights

ACI Worldwide Company Profile

ACI Worldwide (NASDAQ:ACIW) is a global software company that provides electronic payment and banking solutions to financial institutions, merchants and billers. The company’s platforms enable real-time processing of credit, debit, ACH, bill payments, faster payments and money transfers, as well as integrated fraud prevention services. Headquartered in Naples, Florida, ACI serves clients across banking, payments and commerce sectors worldwide.

ACI’s modular suite of applications can be deployed on-premise, in the cloud or in hybrid environments to meet diverse operational needs.