ACI Worldwide, Inc. (ACIW)
NASDAQ:ACIW
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ACI Worldwide
(NASDAQ:ACIW)
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Rating:74Outperform
Price Target:
$48.00
▲(7.94% Upside)
Action:ReiteratedDate:05/07/26
The score is driven by solid fundamentals (strong margins and improving balance-sheet leverage) and a constructive earnings update with raised 2026 revenue/EBITDA guidance and recurring/ARR momentum. Offsetting this are mixed technicals (still below the 200-day moving average) and valuation that looks reasonable rather than clearly discounted, while recent free-cash-flow weakness adds a key monitoring point.
Positive Factors
Recurring revenue & ARR momentum
A 39% surge in net new ARR and double-digit recurring revenue growth improve revenue visibility and customer retention. The growing SaaS/recurring mix supports predictable cash flows, easier cross-sell, and durable margin expansion as volumes scale over the next 2–6 months.
Negative Factors
Free cash flow volatility
A sharp decline and variability in trailing free cash flow reduce consistency in internal funding. This heightens execution risk for sustained buybacks or M&A, and means working-capital swings can materially affect available cash in coming quarters despite solid accounting earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & ARR momentum
A 39% surge in net new ARR and double-digit recurring revenue growth improve revenue visibility and customer retention. The growing SaaS/recurring mix supports predictable cash flows, easier cross-sell, and durable margin expansion as volumes scale over the next 2–6 months.
Read all positive factors
ACI Worldwide (ACIW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.39B
Dividend YieldN/A
Average Volume (3M)716.42K
Price to Earnings (P/E)19.1
Beta (1Y)1.00
Revenue Growth10.38%
EPS Growth12.89%
CountryUS
Employees3,103
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)2.19
Shares Outstanding101,349,930
10 Day Avg. Volume731,690
30 Day Avg. Volume716,422
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 Cap1.23
Enterprise Value/Revenue3.07
Enterprise Value/Gross Profit6.26
Enterprise Value/Ebitda11.69
Forecast
1Y Price Target
$63.00Price Target Upside41.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.45
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 primarily makes money by licensing and operating payment software and platforms for financial institutions, billers, and merchants, and by charging for the processing volume and services that run through those systems.
Key revenue s...
ACI Worldwide Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 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
Capital Allocation and Share Repurchases
Repurchased 1.5 million shares (~$65 million) in Q1; total repurchases since start of 2025 ~5.7 million shares (>5% of shares outstanding). Company committed to allocate 50%-60% of operating cash flow to buybacks in 2026 and has $391 million remaining under current authorization.
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
Capital Allocation and Share Repurchases
Repurchased 1.5 million shares (~$65 million) in Q1; total repurchases since start of 2025 ~5.7 million shares (>5% of shares outstanding). Company committed to allocate 50%-60% of operating cash flow to buybacks in 2026 and has $391 million remaining under current authorization.
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
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
44.47
Price Trends
40.86
Positive
43.39
Positive
45.72
Negative
Market Momentum
0.50
Negative
66.98
Neutral
90.24
Negative
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 44.47 is above the 20-day moving average (MA) of 41.05, above the 50-day MA of 40.86, and below the 200-day MA of 45.72, indicating a neutral trend. The MACD of 0.50 indicates Negative momentum. The RSI at 66.98 is Neutral, neither overbought nor oversold. The STOCH value of 90.24 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.39B | 19.11 | 15.43% | ― | 10.38% | 12.89% | |
71 Outperform | $2.65B | 20.79 | 28.47% | ― | 7.22% | ― | |
68 Neutral | $1.74B | 0.02 | 12.43% | 0.68% | 10.21% | 26.57% | |
68 Neutral | $845.88M | 98.15 | 30.38% | ― | 25.16% | 10.96% | |
62 Neutral | $4.99B | 16.99 | 26.96% | ― | 3.29% | 14.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $3.08B | 9.31 | 19.98% | ― | -30.31% | ― |
* Technology Sector Average
ACIW
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ACI Worldwide Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
ACI Worldwide Raises 2026 Outlook After Strong Q1
Positive
May 7, 2026
On May 7, 2026, ACI Worldwide reported first-quarter 2026 revenue of $426 million, up 8% year on year, with recurring revenue rising 10% and adjusted EBITDA increasing 12% to $105 million, while adjusted EPS climbed 20%. The company highlighted st...
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...
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.