ACI Worldwide Inc (NASDAQ:ACIW) Exceeds Q3 2025 Earnings and Revenue Estimates, Raises Full-Year Guidance

ACI Worldwide Inc (NASDAQ:ACIW) reported financial results for the third quarter of 2025, delivering a performance that exceeded analyst expectations on the top and bottom lines. The company's earnings release highlighted strong growth across its business segments and prompted an upward revision to its full-year guidance, signaling confidence in its operational trajectory.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter results demonstrated robust financial health, with both revenue and earnings per share coming in ahead of market forecasts.

• Revenue: The company reported Q3 2025 revenue of $482.4 million, surpassing the analyst consensus estimate of $474.6 million.
• Earnings Per Share (EPS): Non-GAAP EPS for the quarter was $1.09, significantly higher than the estimated $0.82.

This double beat underscores the company's ability to not only grow its sales but also convert that growth into profitability more efficiently than anticipated. The performance reflects what management described as "positive momentum" and "strong revenue, adjusted EBITDA and bookings growth."

Market Reaction and Price Action

Following the earnings announcement, the market's immediate reaction was muted. In pre-market trading, ACIW shares experienced a slight decline of approximately 1.24%. This tepid response could be attributed to profit-taking after recent gains or potentially a "sell-the-news" event, where the positive results were already priced into the stock. Over the past month, the stock has declined by about 8.8%, which may have set a lower bar for a positive surprise. The lack of a significant post-earnings surge suggests that while the results were solid, they may have been largely in line with or only slightly better than the most optimistic investor expectations already reflected in the recent trading pattern.

Key Highlights from the Quarterly Report

Beyond the headline earnings and revenue figures, the press release contained several positive indicators about the company's fundamental health and future prospects.

• Strong Segment Growth: Both the Payment Software and Biller segments reported a 12% increase in revenue year-to-date.
• Recurring Revenue Expansion: Recurring revenue grew 10% year-over-year in Q3 to $298 million, now representing 62% of total revenue, which provides greater visibility and stability for future earnings.
• Robust Bookings: The company reported a 14% increase in net new annual recurring revenue (ARR) bookings and a 21% increase in new license and services bookings for the quarter, indicating strong future demand.
• Increased Share Repurchase Authorization: The Board of Directors approved a new $500 million stock repurchase program, reflecting a commitment to returning capital to shareholders and confidence in the company's financial position.

Updated Financial Outlook and Analyst Estimates

Bolstered by its year-to-date performance, ACI Worldwide raised its full-year 2025 outlook. The company now expects:

• Revenue: Between $1.730 billion and $1.754 billion, up from prior guidance of $1.710 billion to $1.740 billion.
• Adjusted EBITDA: Between $495 million and $510 million, increased from the previous range of $490 million to $505 million.

This upgraded guidance positions the company's expectations at the high end of, or slightly above, the current analyst consensus estimate for full-year 2025 sales of $1.763 billion. For the upcoming fourth quarter, analysts are projecting revenue of $476.2 million and an EPS of $0.85. The company's raised outlook suggests management is confident in its ability to meet or exceed these targets, entering 2026 on a strong footing.

For a detailed breakdown of historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in the stock mentioned. All investments involve risk, and readers should conduct their own research before making any investment decisions.