NCR Atleos 2025 Q2 Earnings Strong Performance as Net Income Surges 51.7%

NCR Atleos (NATL) reported its fiscal 2025 Q2 earnings on August 7, 2025. The company delivered results that exceeded expectations across key metrics, with earnings per share rising significantly and revenue showing modest growth. NCR Atleos reaffirmed its full-year 2025 guidance and outlined a share repurchase program, underscoring its confidence in its financial position and long-term outlook.

Revenue for NCR Atleos in the second quarter of 2025 totaled $1.10 billion, representing a 2.2% increase compared to $1.08 billion in the same period of the prior year. Self-service banking remained the largest revenue contributor, generating $733 million. This was followed by service revenue, which accounted for $838 million, reflecting the company's strength in its service-led business model. Product revenue stood at $266 million, while network revenue reached $320 million. Additional revenue streams included T&T with $41 million and a $10 million contribution from other segments. These figures highlight the company’s diversified revenue base and the continued emphasis on recurring service revenue.

NCR Atleos’s earnings performance in Q2 2025 was equally impressive, with net income rising to $44 million, a 51.7% increase from $29 million in Q2 2024. The company’s earnings per share (EPS) surged 45.2% year-over-year to $0.61, significantly outpacing the previous year’s $0.42. These results underscore a strong earnings trajectory and improved profitability, supported by operational efficiencies and margin expansion.

The stock price of NCR Atleos has shown strong upward momentum, with a 9.62% gain during the latest trading day, a 22.16% increase over the past full trading week, and a robust 25.90% rise month-to-date. Given the company's revenue beat and positive earnings surprise of +9.41%, a buy-and-hold strategy for 30 days appears promising. The upcoming earnings call on August 11 will provide further insight into the company’s forward outlook. While consensus estimates for the next quarter remain stable, the projected earnings growth of 200% year-over-year suggests strong potential. NCR Atleos’ strategic initiatives, including its partnership with Lloyds Banking Group and expansion in ATM services, position it well for continued service revenue growth. However, investors should remain mindful of potential structural risks, such as declining cash and ATM demand, which could impact future performance.

NCR Atleos’ CEO, Timothy Oliver, emphasized the company’s strong Q2 performance, highlighting robust hardware revenue, accelerated growth in outsourced services, and margin expansion driven by productivity and cost leverage. He noted a 9% growth in the self-service banking segment and a record $177 million in ATM as a Service bookings. Oliver reiterated the company’s commitment to product innovation, service excellence, and operational efficiency, including AI-driven optimization. Looking ahead, he expressed confidence in the company's backlog, free cash flow ramp, and declining net leverage, projecting leverage below 3x by Q3 2025.

For the full year 2025, NCR Atleos expects mid-single-digit growth in consolidated core revenue, with self-service banking revenue anticipated to rise in the mid- to high-single-digit range and network revenue remaining flat year-over-year. Adjusted EBITDA is forecasted to fall between $210 million and $225 million, with adjusted EPS guidance of $0.95 to $1.10. Free cash flow is expected to see a meaningful increase in the third and fourth quarters, with an estimated 40/60 split between the two periods. The company also announced a $200 million share repurchase program over two years, reflecting its confidence in valuation and cash flow generation.

Additional News
Among the notable non-earnings developments within the three weeks following August 7, 2025, the most significant event was NCR Atleos' announcement of a $200 million share repurchase program over two years. This strategic move demonstrated strong confidence in the company's valuation and free cash flow potential. Another key development involved discussions between NCR Atleos and the Abuja Technology Village Free Zone amid concerns over potential land use revocation, as NEPZA entered the fray to mediate. Lastly, the company’s leadership emphasized continued investment in service excellence through its Service First initiative, which has already improved customer satisfaction by 160 basis points year-over-year.