ACI Worldwide 2025 Q3 Earnings Beats Estimates with 12.8% EPS Growth and Raised Guidance

ACI Worldwide (ACIW) reported fiscal 2025 Q3 earnings on November 6, 2025, exceeding analyst expectations. The company raised full-year revenue and adjusted EBITDA guidance following strong performance across key segments.

Revenue

The total revenue of ACI Worldwide increased by 6.8% to $482.36 million in 2025 Q3, up from $451.75 million in 2024 Q3. Payment Software drove growth with $284.0 million in revenue, while the Biller segment contributed $198.3 million. The United States remained the largest market, generating $253.4 million, with international markets adding $228.9 million. Recurring revenue, accounting for 62% of total revenue, rose 10% year-over-year to $298 million.

Earnings/Net Income

ACI Worldwide’s EPS rose 12.8% to $0.88 in 2025 Q3 from $0.78 in 2024 Q3, marking continued earnings growth. Meanwhile, the company’s profitability strengthened with net income of $91.25 million in 2025 Q3, marking 12.1% growth from $81.43 million in 2024 Q3. The 12.8% EPS increase and 12.1% net income growth underscored the company’s strong profitability and operational efficiency.

Price Action

The stock price of ACI Worldwide has edged up 2.91% during the latest trading day, has climbed 7.20% during the most recent full trading week, and has dropped 3.91% month-to-date.

Post-Earnings Price Action Review

Following the earnings release, the stock’s immediate price movement reflected mixed sentiment. While the 2.91% daily gain and 7.20% weekly rise signaled short-term optimism, the 3.91% monthly decline highlighted broader market concerns. Analysts noted that the Zacks Rank #4 (Sell) rating, driven by unfavorable earnings estimate revisions, suggested potential underperformance in the near term.

CEO Commentary

Thomas Warsop, President and CEO, highlighted Q3’s 7% revenue growth and 10% recurring revenue increase, driven by 12% year-to-date (YTD) growth in both Payment Software and Biller segments. He emphasized the first ACI Connetic customer and strong demand for the cloud-native platform, alongside the success of Payments Unleashed, a summit on industry trends like stablecoins and real-time payments. Warsop expressed optimism about the industry outlook and shareholder value through operational excellence. Robert Leibrock, CFO, noted 12% YTD revenue and adjusted EBITDA growth, with progress on ACI Connetic and Speedpay driving innovation. The $500 million share repurchase authorization underscored disciplined capital allocation, with confidence in achieving 2025 guidance and entering 2026 with growth aligned to long-term models.

Guidance

ACI raised 2025 full-year revenue guidance to $1.730–$1.754 billion (previously $1.710–$1.740 billion) and adjusted EBITDA to $495–$510 million (previously $490–$505 million), reflecting 12% YTD revenue growth and 12% adjusted EBITDA growth. The $500 million share repurchase authorization replaced prior remaining amounts, aligning with capital allocation priorities. Management expressed confidence in achieving updated 2025 targets and entering 2026 with growth consistent with long-term models, citing operational execution and innovation in cloud-native solutions like ACI Connetic.

Additional News

ACI Worldwide announced a $500 million share repurchase program, replacing prior buyback authorizations, and signed its first customer for the cloud-native ACI Connetic platform. The company also emphasized progress in real-time payment adoption, particularly in Asia Pacific and Latin America. Analysts highlighted the stock’s 19x forward P/E ratio and $60 median price target as indicators of bullish sentiment, despite the Zacks Rank #4 rating.