ACI Worldwide (NASDAQ:ACIW) reported third-quarter revenue above analysts’ expectations on Thursday, although sales declined from the previous year as the payments technology provider cited the timing of software licence renewals. The company also increased its full-year adjusted EBITDA guidance while maintaining its annual revenue forecast.
ACI reported adjusted earnings of $0.54 per share, compared with the analyst consensus estimate of $0.36. Revenue reached $427 million, exceeding expectations of $421.76 million but declining 12% from $482 million in the third quarter of 2025.
The company’s shares were little changed in after-hours trading following the announcement.
ACI Worldwide generated revenue of $427 million during the third quarter, representing a 12% decrease from the corresponding period last year.
The result exceeded analysts’ revenue expectations of $421.76 million by approximately $5.24 million.
The company attributed the year-over-year decline primarily to the timing of software licence renewals, which are concentrated in the fourth quarter of 2026.
Recurring revenue increased 4% year over year to $309 million, providing a different growth trend from total quarterly revenue.
Adjusted earnings per share reached $0.54, exceeding the consensus forecast of $0.36 by $0.18 per share.
Although the original earnings announcement characterized the results as an earnings miss, the reported adjusted EPS of $0.54 was above the stated analyst estimate of $0.36.
ACI Worldwide reported recurring revenue of $309 million, up 4% from the previous year.
The increase came despite the decline in consolidated revenue, which the company linked to the scheduling of software licence renewals.
According to management, a greater concentration of licence renewals is expected during the fourth quarter of 2026.
This timing contributed to the difference between third-quarter revenue and the corresponding period last year.
ACI provides payment software and technology services to financial institutions, merchants and other organizations involved in electronic payments.
The company’s recurring revenue performance reflects ongoing customer relationships, while licence renewal timing can affect reported revenue between quarters.
Following the third-quarter results, ACI Worldwide increased its adjusted EBITDA forecast for 2026.
The company now expects adjusted EBITDA between $550 million and $565 million, compared with its previous guidance of $545 million to $560 million.
The revision raises both ends of the forecast range by $5 million.
ACI maintained its full-year revenue outlook of $1.895 billion to $1.925 billion.
The midpoint of the revenue guidance, $1.91 billion, is consistent with the analyst consensus estimate of $1.91 billion.
The revised adjusted EBITDA forecast indicates a higher expected level of adjusted operating profitability, while the company’s annual revenue expectations remain unchanged.
For the fourth quarter of 2026, ACI Worldwide projected revenue between $612 million and $642 million.
The midpoint of the guidance range is $627 million, slightly below the analyst consensus estimate of $628.4 million.
The company expects a concentration of software licence renewals during the final quarter of the year.
This anticipated renewal activity follows the timing-related revenue decline reported in the third quarter.
ACI did not provide fourth-quarter adjusted earnings per share guidance in the information released.
ACI reported an 86% year-over-year increase in net new annual recurring revenue (ARR) bookings, which reached $24 million during the third quarter.
The company said demand contributed to bookings across both its Payment Software and Biller business segments.
Annual recurring revenue bookings provide an indication of newly contracted recurring business, although they do not necessarily translate into an equivalent amount of revenue during the reporting quarter.
The increase in net new ARR bookings accompanied the 4% growth in reported recurring revenue.
ACI also reported progress in the commercial deployment of its ACI Connetic platform.
During the quarter, ACI Worldwide completed the first customer go-live for ACI Connetic.
The company also announced two additional customer wins for the platform.
The developments represent progress in the rollout of ACI Connetic as part of ACI’s payment technology portfolio.
The announcement did not disclose the identities of the new customers, the financial value of the contracts or the expected revenue contribution from the deployments.
The company identified these developments alongside its increase in net new ARR bookings.
ACI reported operating cash flow of $254 million for the first nine months of 2026, representing a 26% increase from the corresponding period last year.
During the same period, the company repurchased 3.4 million shares for a total of $157 million.
ACI said it remains on track to allocate between 50% and 60% of its full-year operating cash flow to share repurchases.
The programme forms part of the company’s capital allocation strategy.
The final amount allocated to repurchases will depend on full-year operating cash flow and the company’s execution of its stated plans.
Thomas Warsop, President and Chief Executive Officer of ACI Worldwide, commented on the company’s quarterly results and strategic progress.
“ACI executed well in the third quarter, delivering results ahead of expectations, demonstrating the significant progress we have achieved against our key strategic priorities,” Warsop said.
The company highlighted recurring revenue growth, increased net new ARR bookings and the initial deployment of ACI Connetic among its quarterly developments.
Management also raised adjusted EBITDA guidance while maintaining its full-year revenue outlook.
ACI Worldwide reported third-quarter revenue of $427 million, exceeding analysts’ expectations but declining 12% year over year because of the timing of software licence renewals.
Adjusted earnings of $0.54 per share were above the stated consensus estimate of $0.36, while recurring revenue increased 4% to $309 million.
The company raised its full-year adjusted EBITDA forecast to between $550 million and $565 million and maintained revenue guidance of $1.895 billion to $1.925 billion.
Fourth-quarter revenue is expected to range from $612 million to $642 million, reflecting the anticipated concentration of licence renewals toward the end of 2026.
Investors will continue to assess the timing of licence revenue, recurring revenue growth, new customer bookings and the company’s cash generation as it completes the financial year.
ACI Worldwide stock price
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