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ACI Worldwide
(NASDAQ:ACIW)
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Rating:70Outperform
Price Target:
$58.00
▲(9.35% Upside)
Action:Reiterated
Date:09/07/26
The score is driven primarily by solid financial performance (steady revenue growth, healthy operating margins, improved leverage, and strong positive free cash flow). Corporate news is supportive due to raised 2026 outlook and continued buybacks/low leverage. Offsetting factors are mixed technicals (negative MACD and below the 50-day average) and a moderate valuation multiple with no dividend yield provided.
Positive Factors
Revenue growth and operating margins
The multi-year revenue increase indicates sustained demand for ACI’s payment software, while healthy operating margins show meaningful earnings power. Together, these trends support continued investment in cloud platforms and provide a durable foundation for growth over the next several quarters.
Negative Factors
Recent net margin compression
The decline in net margin indicates that recent revenue growth has not translated fully into bottom-line expansion. If cost pressure or unfavorable mix persists, it could limit earnings growth, reduce reinvestment capacity, and weaken the operating leverage expected from ACI’s software model.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and operating margins
The multi-year revenue increase indicates sustained demand for ACI’s payment software, while healthy operating margins show meaningful earnings power. Together, these trends support continued investment in cloud platforms and provide a durable foundation for growth over the next several quarters.
Read all positive factors
ACI Worldwide (ACIW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.51B
Dividend YieldN/A
Average Volume (3M)730.61K
Price to Earnings (P/E)24.5
Beta (1Y)0.97
Revenue Growth7.03%
EPS Growth-8.05%
CountryUS
Employees2,930
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)2.20
Shares Outstanding100,955,240
10 Day Avg. Volume689,345
30 Day Avg. Volume730,614
Financial Highlights & Ratios
PEG Ratio1.69
Price to Book (P/B)3.27
Price to Sales (P/S)2.82
P/FCF Ratio16.04
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue3.19
Enterprise Value/Gross Profit6.50
Enterprise Value/Ebitda12.44
Forecast
1Y Price Target
$62.67Price Target Upside18.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.61
Revenue Forecast (FY)$1.91B
ACI Worldwide Business Overview & Revenue Model
Company Description
ACI Worldwide, Inc. operates as a global software enterprise, specializing in the development, distribution, implementation, and ongoing support of digital payment solutions. These sophisticated offerings cater to the diverse needs of banks, merch...
How the Company Makes Money
ACI Worldwide primarily makes money by licensing, hosting, and supporting its payments software and platforms that enable customers to authorize, route, clear, and settle electronic payments and to manage related functions such as fraud detection ...
ACI Worldwide Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive momentum: revenue, recurring revenue and ARR bookings grew, adjusted EBITDA and margins expanded, guidance was raised and the balance sheet remains strong with active share repurchases. Strategic initiatives (Kinetic, Speedpay One, AI investments) are driving pipeline, cross-sell and expansion. Key near-term weaknesses were working-capital driven lower operating cash flow, flat new license bookings, and the expected multi-year cadence for Kinetic adoption among large customers. Macro/geopolitical uncertainty was noted but management emphasized the resilience of payments infrastructure.Positive Updates
Revenue Growth and Mix
Total revenue of $426 million, up 8% year-over-year reported and up 6% in constant currency; recurring revenue $313 million, up 10% reported and up 8% in constant currency, reflecting strong software-led demand.
Negative Updates
Operating Cash Flow Timing
Cash flow from operating activities was $64 million in Q1 versus $78 million a year ago, with management attributing the decline to working capital timing and a late concentration of billings in March (expected to normalize in Q2).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Mix
Total revenue of $426 million, up 8% year-over-year reported and up 6% in constant currency; recurring revenue $313 million, up 10% reported and up 8% in constant currency, reflecting strong software-led demand.
Read all positive updates
Company Guidance
Management raised full‑year 2026 guidance, now expecting revenue growth of 7–9% to $1.89–$1.92 billion (both Payment Software and Biller in the upper single digits), Q2 revenue of $420–$440 million (≈7% growth at the midpoint), an approximate 40/60 split between Q3 and Q4 (Q4 weighted), and full‑year adjusted EBITDA of $540–$555 million (up from $530–$550), implying 7–10% EBITDA growth; Q2 adjusted EBITDA is guided to $85–$95 million. The raise was driven by operational performance with minimal FX changes versus the February guide; Payment Software licenses are expected to be a primary second‑half driver while Biller accelerates later. Balance sheet and capital‑return metrics cited include cash $162 million, total debt $812 million (net leverage 1.3x), total liquidity $560 million, and continued capital return with management targeting 50–60% of operating cash flow for share repurchases in 2026 (Q1 repurchases: 1.5 million shares for ≈$65 million; ~5.7 million shares repurchased since start of 2025; $391 million remaining authorization).ACI Worldwide Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.82B | 1.76B | 1.59B | 1.45B | 1.42B | 1.37B |
| Gross Profit | 893.35M | 862.13M | 802.50M | 733.37M | 725.83M | 731.73M |
| EBITDA | 467.02M | 475.39M | 443.55M | 360.11M | 398.19M | 364.03M |
| Net Income | 225.69M | 226.66M | 203.12M | 121.51M | 142.18M | 127.79M |
Balance Sheet | ||||||
| Total Assets | 3.10B | 3.10B | 3.03B | 3.44B | 3.21B | 3.16B |
| Cash, Cash Equivalents and Short-Term Investments | 167.40M | 196.46M | 216.39M | 164.24M | 124.98M | 122.06M |
| Total Debt | 849.46M | 871.68M | 956.43M | 1.08B | 1.14B | 1.12B |
| Total Liabilities | 1.60B | 1.59B | 1.60B | 2.12B | 2.02B | 1.91B |
| Stockholders Equity | 1.50B | 1.52B | 1.42B | 1.32B | 1.19B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 354.65M | 309.92M | 343.35M | 130.74M | 103.49M | 175.10M |
| Operating Cash Flow | 394.10M | 322.83M | 358.75M | 168.52M | 143.38M | 220.47M |
| Investing Cash Flow | -65.07M | 7.22M | -45.05M | -37.78M | 60.25M | -45.37M |
| Financing Cash Flow | -407.51M | -336.65M | -288.20M | -111.55M | -171.06M | -256.88M |
ACI Worldwide Technical Analysis
Positive
53.04
Price Trends
51.61
Positive
51.55
Positive
46.89
Positive
Market Momentum
0.56
Negative
63.68
Neutral
79.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACIW, the sentiment is Positive. The current price of 53.04 is above the 20-day moving average (MA) of 50.96, above the 50-day MA of 51.61, and above the 200-day MA of 46.89, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 63.68 is Neutral, neither overbought nor oversold. The STOCH value of 79.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACIW.
ACI Worldwide Risk Analysis
ACI Worldwide disclosed 45 risk factors in its most recent earnings report. ACI Worldwide reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ACI Worldwide Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.28B | 21.96 | 37.65% | 1.30% | 57.03% | 38.31% | |
71 Outperform | $1.90B | 20.95 | 15.04% | 0.62% | 12.36% | -28.24% | |
70 Outperform | $5.51B | 24.48 | 15.06% | ― | 7.03% | -8.05% | |
66 Neutral | $2.47B | 9.09 | 23.02% | ― | 5.76% | -3.78% | |
66 Neutral | $3.12B | 62.14 | 5.65% | ― | 32.44% | -78.82% | |
63 Neutral | $6.31B | 18.44 | 28.22% | ― | 7.46% | 27.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ACIW
ACI Worldwide
53.86
3.84
7.68%
EEFT
Euronet Worldwide
65.92
-17.52
-21.00%
WEX
WEX
187.54
27.48
17.17%
EVTC
Evertec
32.27
1.45
4.69%
FOUR
Shift4 Payments
39.51
-36.48
-48.01%
DLO
DLocal
15.15
0.20
1.35%
ACI Worldwide Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
ACI Worldwide Raises 2026 Outlook on Strong Quarter
Positive
Aug 6, 2026
ACI Worldwide reported strong results for the quarter ended June 30, 2026, with revenue rising 7% year on year to $430 million and GAAP net income jumping to $32 million, while adjusted EBITDA increased 12% and margins improved. The company highli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.