ACI Worldwide 2025 Q3 Earnings Beats Expectations with 12.1% Net Income Growth

ACI Worldwide (ACIW) reported fiscal 2025 Q3 earnings on November 6, 2025, with total revenue rising 6.8% year-over-year to $482.36 million. The company exceeded analyst estimates for both revenue and earnings, prompting a raised full-year guidance range to $1.73–$1.754 billion and $495–$510 million in adjusted EBITDA.

Revenue

ACI’s Payment Software segment drove growth, generating $284.0 million in revenue, while the Biller segment contributed $198.3 million. The U.S. remained the largest market, accounting for $253.4 million, with international markets adding $228.9 million. Recurring revenue, representing 62% of total revenue, climbed 10% to $298.0 million, reflecting strong customer retention and pricing strategies.

Earnings/Net Income

Earnings per share (EPS) surged 12.8% to $0.88, outpacing the $0.78 in 2024 Q3. Net income reached $91.25 million, up 12.1% from $81.43 million a year ago. The 12.8% EPS increase and 12.1% net income growth underscored the company’s improved profitability and operational efficiency.

Post-Earnings Price Action Review

ACI’s stock gained 2.91% in the latest trading day, 7.20% over the week, but fell 3.91% month-to-date. Analysts cited the Zacks Rank #4 (Sell) rating due to unfavorable earnings estimate revisions, though the raised guidance and $500 million buyback authorization signaled confidence in long-term growth. The stock traded at 19 times forward earnings, with a median price target of $60.00, implying potential upside.

CEO Commentary

Thomas Warsop highlighted Q3’s 7% revenue growth, 10% recurring revenue increase, and 14% net new ARR bookings growth. He emphasized the launch of ACI Connetic’s first client, Solaris, and strategic acquisitions like Payment Components to bolster AI initiatives. CFO Robert Leibrock noted $500 million in share repurchases and disciplined capital allocation as drivers of shareholder value.

Guidance

ACI raised 2025 revenue guidance to $1.73–$1.754 billion and adjusted EBITDA guidance to $495–$510 million. The company also authorized a $500 million share repurchase program, replacing prior remaining amounts, reflecting confidence in sustained growth and operational execution.

Additional News

ACI acquired Payment Components, a European fintech, to accelerate ACI Connetic’s AI-driven development. The board appointed Todd Ford and Didier Lamouche as independent directors, enhancing governance. A $500 million buyback program was announced, with 3.1 million shares repurchased year-to-date. The company also partnered with BitPay to expand cryptocurrency and stablecoin payment capabilities, aligning with industry trends.

Earnings Call Insights

CEO Thomas Warsop emphasized the company’s momentum, citing 12% year-to-date revenue growth in both segments and the success of Payments Unleashed, a summit on real-time payments and stablecoins. The board’s $500 million buyback authorization and strategic focus on recurring revenue underscored confidence in long-term value creation.

Market Outlook

ACI’s stock underperformed the S&P 500 by 22.7% year-to-date but gained analyst optimism following the results. With a 19.6% price target premium and strong recurring revenue trends, investors remain cautiously bullish. The Zacks Rank upgrade to #3 (Hold) in early November reflected improved earnings estimate revisions post-earnings release.