NCR Atleos Reports $1.04 Billion Revenue in Q1 2026, Plans Merger with The Brink's Company

NCR Atleos Corporation reported a total revenue of $1.04 billion for the first quarter of 2026, marking a 7% increase from $979 million in the same period last year. This growth was primarily driven by a 12% rise in the Self-Service Banking segment, which generated $697 million, bolstered by increased hardware sales and the expansion of its ATM as a Service (ATMaaS) offerings. Service revenue also saw a notable increase, reaching $822 million compared to $790 million in the prior year. However, the company's gross margin decreased to 22.4%, down from 23.7% a year earlier, attributed to higher tariffs and increased costs for certain manufacturing components.

In terms of profitability, NCR Atleos reported a net income of $22 million, or $0.30 per share, a significant increase from $14 million, or $0.19 per share, in the previous year. The income before income taxes rose to $33 million, up from $22 million, largely due to a gain on the divestiture of a non-core business and lower interest expenses. The company’s operating income, however, decreased by 10% to $84 million, reflecting costs associated with workforce optimization and strategic initiatives.

Strategically, NCR Atleos is in the process of merging with The Brink’s Company, with the merger expected to close in the first quarter of 2027, pending regulatory and shareholder approvals. The merger agreement includes provisions that will allow Atleos to merge into Brink’s, with shareholders receiving $30 in cash and shares of Brink’s common stock. This strategic move is anticipated to enhance the company's market position and operational capabilities.

Operationally, NCR Atleos reported a slight increase in its customer base, with the number of Network Managed Units reaching 77.7 thousand, up from 77.2 thousand. The company also noted a 29% increase in revenue from ATMaaS arrangements, reflecting its ongoing efforts to transition customers to recurring revenue models. However, the Telecommunications & Technology segment experienced a decline in revenue, falling to $40 million from $43 million, primarily due to reduced customer projects.

Looking ahead, NCR Atleos anticipates continued challenges from macroeconomic factors, including elevated component costs and potential geopolitical tensions that could impact product delivery and transportation costs. The company is actively managing its liquidity, with cash and cash equivalents totaling $433 million as of March 31, 2026, and a borrowing capacity of $366 million under its revolving credit facility. The outlook remains cautious, with expectations of ongoing cost pressures and the need for strategic investments to support growth initiatives.