The company reported Q1 2026 total revenue of $426 million, up 8% year over year, or 6% on a constant currency basis. Recurring revenue reached $313 million, up 10% from Q1 2025. ACI also reported net income of $38 million, adjusted EBITDA of $105 million, and adjusted diluted EPS of $0.61, up 20% year over year.
For FinanceInsyte readers, the important story is not only ACI’s revenue growth. It is the direction of the payments market. Financial institutions and enterprises are moving toward faster, software-led payment infrastructure where real-time settlement, merchant payment orchestration, bill payments and transaction intelligence are becoming strategic capabilities.
Real-time payments and merchant demand stood out
ACI’s Payment Software segment generated $214 million in Q1 2026 revenue, up 6% year over year, or 2% on a constant currency basis. Within that segment, the strongest growth came from Real-Time Payments, which increased 22% on a constant currency basis, and Merchant, which increased 21% on a constant currency basis.
That is the key signal in the quarter. Real-time payments are no longer a niche infrastructure upgrade. They are becoming part of how banks, merchants and payment providers compete.
For banks, real-time payments can improve customer experience, liquidity movement and transaction visibility. For merchants, faster payment infrastructure can support better checkout experiences, quicker settlement and more flexible digital commerce models. For payment processors, it creates demand for software that can manage speed, fraud controls, routing and compliance at scale.
ACI’s SaaS revenue in Payment Software also increased 15% year over year to $50 million, or 11% on a constant currency basis. This matters because payment infrastructure is gradually shifting from traditional license-heavy models toward more recurring, cloud-connected software economics.
The biller business added steady volume growth
ACI’s Biller segment also performed well. Revenue in the segment increased 10% year over year to $212 million, driven by higher transaction volumes from existing customers and new customer wins. Biller revenue, net of interchange fees, was $66 million, up 5% from the prior-year period.
This part of the business is important because bill payments remain one of the most consistent areas of financial activity. Utilities, lenders, insurers, telecom companies and other billers need reliable digital payment systems that can handle recurring consumer transactions at scale.
The Biller segment reported adjusted EBITDA of $34 million, up 10% year over year. Its net adjusted EBITDA margin, net of interchange fees, improved to 51%, compared with 49% in Q1 2025.
For the finance industry, this shows that payment modernization is not limited to banks and fintech apps. Large billers also need better payment rails, customer payment experiences and operational efficiency.
Bookings and guidance point to stronger confidence
ACI reported $12 million in net new ARR bookings during Q1 2026, up 39% year over year. New license and services bookings were $50 million, consistent with Q1 2025.
The company also raised its full-year guidance, which is an important signal because payment infrastructure companies are closely tied to enterprise spending, transaction volume and banking technology budgets.
For full-year 2026, ACI expects revenue of $1.81 billion to $1.84 billion, adjusted EBITDA of $530 million to $550 million, and adjusted EPS of $2.70 to $2.84. The company also expects recurring revenue growth of 8% to 10% and adjusted EBITDA growth of 8% to 12%.
That outlook suggests management sees continued demand across its core markets, especially where customers are investing in payment speed, automation and recurring software platforms.
Balance sheet remains controlled
ACI ended Q1 2026 with $162 million in cash and $812 million in debt, representing a net debt leverage ratio of 1.3x adjusted EBITDA. The company also had total cash and available liquidity of $560 million under its credit facility.
Operating cash flow was $64 million, compared with $78 million in Q1 2025. ACI said the decrease reflected a higher concentration of contract signings late in the quarter. The company also repurchased 1.5 million shares for $84 million during the quarter.
For investors, this gives the company a more balanced profile: moderate revenue growth, strong margins, recurring revenue expansion and a manageable leverage position.
Why this matters
ACI Worldwide’s results show that payments infrastructure is becoming one of the most durable areas of financial technology spending.
Banks want faster and more flexible payment systems. Merchants want better payment acceptance and routing. Billers want smoother recurring payment experiences. Consumers and businesses increasingly expect money movement to be instant, transparent and reliable.
This is where companies like ACI become important. They are not always visible to end users, but they provide the software layer that helps financial institutions and enterprises process payments securely at scale.
For FinanceInsyte, the key takeaway is clear: real-time payments are moving from innovation to infrastructure. ACI’s Q1 results show that this shift is creating measurable growth across payment software, merchant systems and biller solutions. The companies that can support speed, compliance, reliability and recurring revenue models may be well positioned as financial services continue to modernize.
Source link: Businesswire
