NCR Atleos Q3 revenue falls on hardware weakness

Overview

• U.S. self-service banking provider's Q3 revenue declined 2% yr/yr and missed analyst expectations

• Adjusted EPS for Q3 rose 24% yr/yr

• Company expects Brink's merger to close in early January 2027

Outlook

• Company is not providing a financial outlook due to pending Brink’s transaction

• Company expects Brink’s transaction to close in early January 2027

• Company says some customers are delaying purchases ahead of Brink’s merger

Result Drivers

• HARDWARE WEAKNESS - Q3 Self-Service Banking revenue fell due to lower hardware volumes in some markets, partly offset by growth in Software and Services

• ATMaaS AND PRODUCTIVITY - Profitability in Self-Service Banking improved, driven by ATMaaS, Software, and productivity initiatives, offsetting higher memory and fuel costs

• CRYPTO TRANSACTION DEMAND - Network revenue declined due to lower demand for crypto transactions

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy."

• Wall Street's median 12-month price target for NCR Atleos Corporation is $50.40, about 8.1% above its November 3 closing price of $46.64

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)