ACI Worldwide earnings missed by $0.04, revenue topped estimates

Needham kept a Hold rating on ACI Worldwide (NASDAQ:ACIW) after its Q3 results. Revenue and EBITDA beat expectations but declined year-over-year due to license renewal timing. The company reaffirmed its 2026 revenue outlook and raised EBITDA guidance. Q4 guidance bracketed consensus. Shares are up 38% over six months, trading at $59.52. New annual recurring revenue bookings grew sharply, while license and services bookings declined.

ACI Worldwide reported a Q3 2026 revenue decline due to timing of license renewals. The company is transitioning to payments orchestration, with ACI Kinetic gaining its first live customer, Solaris, and signing a large African bank. Management is confident in meeting full-year targets, with 95% of revenue already secured. They expect meaningful revenue from Kinetic in 2027 and anticipate long-term growth driven by global payments complexity.

ACI Worldwide (ACIW) raised its FY2026 adjusted EBITDA outlook to $550M-$565M, while reiterating revenue guidance of $1.895B-$1.925B. CEO Thomas Warsop noted Q3 results exceeded expectations, though year-over-year declines were anticipated due to renewal timing.

ACI Worldwide (ACIW) reported Q3 EPS of $0.32, missing estimates, with revenue at $426.81M, slightly above consensus. Payment Software revenue dropped 24%, impacting margins. Adjusted EBITDA fell 43% to $98M. However, net new ARR bookings rose 86% and operating cash flow increased 63%. Management raised adjusted EBITDA guidance for the third time. Shares are up 24% from their September low, with Q4 performance critical for meeting full-year targets.

ACI Worldwide (ACIW) reported Q3 earnings, noting a shift to cloud-based contracts and early revenue from its Connetic platform. Payment Software revenue fell 24% to $216M, while Biller revenue rose 6% to $210M. The company acquired Cranium Ventures to enhance card payments and repurchased $50M in shares.

ACI Worldwide reported 3Q 2026 revenue of $426.81M, down 11.5% YoY, and net income of $32.53M, down 64.4% YoY. The decline was driven by lower license revenue, while SaaS and PaaS revenue rose 5%. Operating expenses increased, including R&D and administrative costs. The 60-month backlog grew to $7.374B.