Key Highlights

  • ACI Worldwide reported second quarter 2026 revenue of $430 million, up 7 percent, with adjusted EBITDA growth of 12 percent and adjusted diluted EPS up 54 percent to $0.54.
  • The company signed its first U.S.-based ACI Connetic customer during the quarter and a second shortly after quarter end, both existing customers converting from legacy solutions.
  • Payment Software segment revenue grew 9 percent, led by 33 percent constant-currency growth in issuing and acquiring, while Biller segment revenue rose 5 percent against a difficult prior-year comparison.
  • Full-year guidance was raised to revenue of $1.895 billion to $1.925 billion and adjusted EBITDA of $545 million to $560 million, both up from prior ranges.

Issuing and Acquiring Strength Leads Payment Software Growth

ACI Worldwide (NASDAQ:ACIW) delivered second quarter revenue of $430 million, up 7 percent on a reported basis and 6 percent in constant currency, with adjusted EBITDA of $91 million and net adjusted EBITDA margin expanding to 34 percent from 32 percent even as research and development spending rose 17 percent. Net income increased to $32 million from $12 million a year earlier, and adjusted diluted EPS grew 54 percent to $0.54, aided by strong operating performance and continued share repurchases.

Within Payment Software, revenue rose 9 percent to $196 million, driven by 33 percent constant-currency growth in issuing and acquiring tied to large expansions with renewing customers, alongside modest growth in merchant and anti-fraud solutions. Real-time payments revenue declined as the number of renewal and expansion opportunities was lower than a year ago, though management said retention and expansion performance in that category remained strong and continues to reflect healthy underlying demand.

ACI Connetic Signings Mark Milestone, Pipeline Growing Fastest in Company

The company signed its first U.S.-based customer for ACI Connetic, its cloud-native payments orchestration platform, during the second quarter, with a second signing shortly after quarter end. Both wins were existing customers converting from legacy solutions to a software-as-a-service deployment, and management said the ACI Connetic pipeline continues to grow faster than any other solution set, with the platform now enabled across eight different payment rails in the U.S. focused initially on account-to-account use cases including real-time payments and high-value wire transfers.

Management said current 2026 guidance does not depend on incremental ACI Connetic revenue, framing the platform's near-term value as strategic rather than immediately material to the top line. Should the pace of conversions from legacy products to ACI Connetic accelerate faster than currently modeled, it could represent upside to guidance in future periods, though the company continues to characterize the platform's contribution as still emerging.

Biller Segment Faces Tough Comparison but Bookings Show Health

Biller segment revenue increased 5 percent to $234 million, though adjusted EBITDA declined year over year due to a difficult comparison against unusually strong prior-year volume activity and non-recurring credits, along with a one-time charge tied to a since-terminated partnership. Management said the pressure was concentrated in comparison items rather than reflecting any deterioration in underlying business health, and continues to expect upper single-digit revenue growth for the segment for the full year, supported by more than 100 customers now live on the ACI Speedpay ONE platform.

The company reiterated that net new ARR bookings and new license and services bookings are both expected to grow for the full year, even though second quarter Payment Software bookings compared against a particularly strong prior-year period, with a greater concentration of expected signings now weighted toward the second half of 2026. Should large contract signings continue to skew toward the fourth quarter as anticipated, quarterly bookings figures may remain uneven even as the full-year growth trajectory holds.

Conclusion

ACI Worldwide's guidance raise rests on a Payment Software segment that continues to convert modernization discussions into signed contracts, evidenced by early ACI Connetic traction that management describes as changing how the company is perceived in the market. The Biller segment's near-term earnings pressure appears tied to comparison dynamics rather than structural weakness, though sustained softness there would be worth monitoring given its role in the company's growth algorithm. With net leverage of just 1.2 times and continued share repurchases, the company retains flexibility to pursue further business development, including in the special situations approach management referenced without elaborating on specific targets.