ACI Worldwide (ACIW)
NASDAQ:ACIW
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ACI Worldwide
(NASDAQ:ACIW)
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Rating:71Outperform
Price Target:
$46.00
▲(11.54% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by solid fundamentals (profitability and improving leverage) and a constructive earnings outlook with continued capital returns. These positives are tempered by weaker technical trend signals and questions around free-cash-flow consistency and booking timing.
Positive Factors
Recurring Revenue Strength
A $1.21B recurring base (up 11%) signals a durable SaaS/managed-services mix that increases revenue predictability and reduces reliance on one-time deals. That recurring stream supports steadier margins, easier forecasting, and higher lifetime customer value across multiple years.
Negative Factors
Volatile Free Cash Flow
FCF volatility—despite FCF roughly near net income—introduces uncertainty into capital return plans and M&A. Working-capital timing can materially swing cash generation, constraining predictable deployment of cash to buybacks or strategic investments over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Strength
A $1.21B recurring base (up 11%) signals a durable SaaS/managed-services mix that increases revenue predictability and reduces reliance on one-time deals. That recurring stream supports steadier margins, easier forecasting, and higher lifetime customer value across multiple years.
Read all positive factors
ACI Worldwide (ACIW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.06B
Dividend YieldN/A
Average Volume (3M)712.39K
Price to Earnings (P/E)21.9
Beta (1Y)0.93
Revenue Growth7.01%
EPS Growth17.48%
CountryUS
Employees3,103
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.62
Shares Outstanding101,719,980
10 Day Avg. Volume562,199
30 Day Avg. Volume712,390
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 Cap1.22
Enterprise Value/Revenue2.81
Enterprise Value/Gross Profit5.74
Enterprise Value/Ebitda10.72
Forecast
1Y Price Target
$64.00Price Target Upside55.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.56
Revenue Forecast (FY)$1.89B
ACI Worldwide Business Overview & Revenue Model
Company Description
ACI Worldwide, Inc., a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments to banks, merchants, and billers worldwide. The company offers ACI Acquiring, a merchan...
How the Company Makes Money
ACI Worldwide generates revenue primarily through the sale of its software solutions and services, which include licensing fees, transaction-based fees, and maintenance and support services. Key revenue streams include software licenses for paymen...
ACI Worldwide Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported strong top-line growth (10% revenue increase), expanded margins (adjusted EBITDA up 9% and margin at 42%), durable recurring revenue and a healthy balance sheet enabled sizable share repurchases. Segment performance was solid (Payment Software and Biller both grew, with SaaS adoption accelerating) and management articulated a clear AI-first strategy and growing Connetic pipeline. The primary negatives were a decline in new license & services bookings (timing-driven), a modest drop in operating cash flow due to working capital timing, long sales/implementation cycles (impacting revenue phasing), and the fact that some investments in Connetic and Speedpay One could slightly compress near-term margin expansion. Overall the positive operational and financial trends materially outweigh the limited near-term execution and timing headwinds.Positive Updates
Full-Year Revenue Growth
Total revenue of $1.76 billion for FY2025, up 10% year-over-year, marking a second consecutive year of double-digit revenue growth.
Negative Updates
Decline in New License & Services Bookings
New license and services bookings were $255 million for FY2025, down 12% year-over-year, with management citing timing of contract signings as the primary cause.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
Total revenue of $1.76 billion for FY2025, up 10% year-over-year, marking a second consecutive year of double-digit revenue growth.
Read all positive updates
Company Guidance
ACI guided 2026 revenue of $1.88–$1.91 billion (up 7–9% on a constant‑currency basis) with Q1 revenue of $405–$415 million and a seasonal split of ~44% of full‑year revenue in H1 / 56% in H2; adjusted EBITDA of $530–$550 million (Q1 $88–$93 million); below‑EBITDA assumptions of ~ $30 million net interest expense, ~$90 million depreciation & amortization, $65–$75 million non‑cash compensation and an effective tax rate of ~25%; capital expenditures of ~ $45 million and cash taxes of $80–$90 million; diluted shares expected at ~105 million (ex‑repurchases); management expects to allocate ~50–60% of operating cash flow to share repurchases (while preserving capacity for disciplined M&A within a ~2x target leverage range) — noting 2025 operating cash flow was $323 million, year‑end cash was $196 million, total debt $823 million and net leverage ~1.2x.ACI Worldwide Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.76B | 1.59B | 1.45B | 1.42B | 1.37B |
| Gross Profit | 862.13M | 802.50M | 733.37M | 725.83M | 731.73M |
| EBITDA | 461.41M | 443.55M | 360.11M | 398.19M | 364.03M |
| Net Income | 226.66M | 203.12M | 121.51M | 142.18M | 127.79M |
Balance Sheet | |||||
| Total Assets | 3.10B | 3.03B | 3.44B | 3.21B | 3.16B |
| Cash, Cash Equivalents and Short-Term Investments | 196.46M | 216.39M | 164.24M | 124.98M | 122.06M |
| Total Debt | 871.68M | 956.43M | 1.08B | 1.14B | 1.12B |
| Total Liabilities | 1.59B | 1.60B | 2.12B | 2.02B | 1.91B |
| Stockholders Equity | 1.52B | 1.42B | 1.32B | 1.19B | 1.24B |
Cash Flow | |||||
| Free Cash Flow | 309.92M | 343.35M | 130.74M | 103.49M | 175.10M |
| Operating Cash Flow | 322.83M | 358.75M | 168.52M | 143.38M | 220.47M |
| Investing Cash Flow | 7.22M | -45.05M | -37.78M | 60.25M | -45.37M |
| Financing Cash Flow | -336.65M | -288.20M | -111.55M | -171.06M | -256.88M |
ACI Worldwide Technical Analysis
Positive
41.24
Price Trends
40.78
Positive
43.52
Negative
45.78
Negative
Market Momentum
-0.04
Negative
52.57
Neutral
45.51
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 41.24 is above the 20-day moving average (MA) of 40.40, above the 50-day MA of 40.78, and below the 200-day MA of 45.78, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 45.51 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.06B | 21.93 | 15.43% | ― | 7.01% | 17.48% | |
68 Neutral | $2.70B | 11.26 | 23.78% | ― | 7.25% | -1.12% | |
68 Neutral | $823.22M | 20.65 | 30.38% | ― | 25.80% | 10.73% | |
66 Neutral | $5.47B | 17.39 | 29.38% | ― | -1.15% | -2.52% | |
64 Neutral | $1.72B | 12.96 | 23.21% | 0.68% | 9.67% | 75.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $3.81B | 9.31 | 19.98% | ― | -25.51% | -139.31% |
* Technology Sector Average
ACIW
ACI Worldwide
41.24
-10.98
-21.03%
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ACI Worldwide Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
ACI Worldwide posts strong 2025 results and outlook
Positive
Feb 26, 2026
On February 23, 2026, ACI Worldwide announced board changes as part of a planned succession, with long-serving directors Janet Estep and Charles Peters resigning, while affirming that their departures did not stem from any disputes with the compan...
Business Operations and StrategyExecutive/Board Changes
ACI Worldwide consolidates technology leadership after CTO departure
Neutral
Jan 14, 2026
On January 13, 2026, ACI Worldwide, Inc. announced that Chief Technology Officer Abe Kuruvilla will leave the company, with his employment ending on January 15, 2026, and he will receive severance and medical continuation benefits under the compan...
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.