NICE Ltd
Q2 2026 Earnings
Market Reaction
Did NICE Beat Earnings? Q2 2026 Results
NICE Ltd. delivered a clean beat across the board in Q2 2026, with revenue of $782.29 million growing 7.7% year over year and non-GAAP diluted EPS of $2.70 clearing the $2.64 consensus by 2.26%, extending the company's streak of beating EPS estimates to five consecutive quarters. The primary engine behind the top-line strength was cloud, where $609.05 million in revenue grew 12.6% year over year, fueled by what management described as record new cloud ACV bookings and accelerating AI adoption; AI annualized recurring revenue reached $362.00 million, now representing 15% of cloud revenue as enterprises shift from experimentation to live production deployments of the company's agentic AI capabilities. Operating cash flow more than doubled to $122.66 million from $61.32 million a year ago, offering a counterweight to margin pressure that pushed non-GAAP operating margin to 25.3% from 30.2%. Analysts covering the stock have maintained a bullish tilt, with price targets reaching as high as $131.08. Looking ahead, NICE guided Q3 revenue to $780.00 million to $790.00 million and raised full-year non-GAAP EPS guidance to $11.06 to $11.26, while reiterating full-year revenue of $3.17 billion to $3.19 billion.
- 12.6% YoY cloud revenue growth driving overall revenue increase
- International revenue increased 22% YoY (21% in constant currency)
- Record Q2 for new cloud ACV bookings
- All-time record quarter for AI bookings
- AI ARR reached $362 million, representing 15% of cloud revenue
“We executed well in the second quarter, delivering revenue above the high-end of our guidance range and reaching the high-end of our non-GAAP EPS range. Underlying demand trends across our business continued to gain momentum during the second quarter as organizations increasingly consolidate their customer engagement needs on our AI-native CXone platform. This drove a record second quarter for new cloud ACV bookings, including an all-time record quarter for AI bookings with strong momentum at NiCE Cognigy. AI continues to become a more meaningful contributor to our business, with AI ARR reaching $362 million and now representing 15% of our cloud revenue. We are still in the early stages of a much broader AI adoption cycle across our customer base.”
NICE CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2026, NiCE expects non-GAAP total revenues of $780M–$790M (7.2% YoY growth at midpoint) and non-GAAP diluted EPS of $2.73–$2.83. For full-year 2026, the company reiterated revenue guidance of $3,170M–$3,190M (approximately 8% YoY growth at midpoint) and raised non-GAAP diluted EPS guidance to $11.06–$11.26. Full-year cloud revenue growth is expected at 13%–15% YoY.
NICE YoY Financials
NICE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.