NICE Ltd. (NICE): Financial results for Q2 2026
NICE Ltd. (NICE) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 NiCE Exceeds Revenue Guidance Range, Reporting 8% Year-Over-Year Revenue Growth in Second Quarter 2026 • Total revenue growth driven by 12.6% year over year cloud revenue growth • International revenue increased 22% year over year (21% in constant currency) • Company
How this was made
The 30-second read
Why it matters
Earnings beat and raised EPS guidance suggest near‑term upside, but margin pressure warrants caution.
Market read
The earnings release is a primary market-moving event for NICE and may influence related AI/cloud software stocks.
What to watch
Margin compression and lower net income year-over-year could limit upside.
NiCE Exceeds Revenue Guidance Range, Reporting 8% Year-Over-Year Revenue Growth in Second Quarter 2026
Revenue and cloud revenue grew year over year, management reported revenue above the high end of its guidance range and raised full-year non-GAAP EPS guidance. However, GAAP and non-GAAP gross margins, operating income, net income and diluted EPS declined from the prior-year quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 2026 total revenueGAAP | $782.3 million | – | 7.6% |
| Q2 2026 total revenuenon-GAAP | $782.3 million | – | 7.6% |
| Q2 2026 gross profitGAAP | $501.0 million | – | – |
| Q2 2026 gross marginGAAP | 64.0% | – | – |
| Q2 2026 gross profitnon-GAAP | $535.4 million | – | – |
| Q2 2026 gross marginnon-GAAP | 68.4% | – | – |
| Q2 2026 operating expensesGAAP | $397.0 million | – | – |
| Q2 2026 research and development, netGAAP | $102,825 (U.S. dollars in thousands) | – | – |
| Q2 2026 selling and marketingGAAP | $200,436 (U.S. dollars in thousands) | – | – |
| Q2 2026 general and administrativeGAAP | $93,748 (U.S. dollars in thousands) | – | – |
| Q2 2026 operating expensesnon-GAAP | $337.4 million | – | – |
| Q2 2026 operating incomeGAAP | $104.0 million | – | – |
| Q2 2026 operating marginGAAP | 13.3% | – | – |
| Q2 2026 operating incomenon-GAAP | $198.0 million | – | – |
| Q2 2026 operating marginnon-GAAP | 25.3% | – | – |
| Q2 2026 financial and other income, netGAAP | $(3,606) (U.S. dollars in thousands) | – | – |
| Q2 2026 taxes on incomeGAAP | $24,379 (U.S. dollars in thousands) | – | – |
| Q2 2026 net incomeGAAP | $83.2 million | – | – |
| Q2 2026 net income marginGAAP | 10.6% | – | – |
| Q2 2026 net incomenon-GAAP | $160.5 million | – | – |
| Q2 2026 net income marginnon-GAAP | 20.5% | – | – |
| Q2 2026 basic earnings per shareGAAP | $1.41 | – | – |
| Q2 2026 diluted earnings per shareGAAP | $1.40 | – | – |
| Q2 2026 diluted earnings per sharenon-GAAP | $2.70 | – | – |
| Q2 2026 non-GAAP EBITDAnon-GAAP | $223,250 (U.S. dollars in thousands) | – | – |
| Q2 2026 operating cash flowother | $122.7 million | – | – |
| Q2 2026 free cash flow from continuing operationsnon-GAAP | $93,116 (U.S. dollars in thousands) | – | – |
| Year-to-date June 30, 2026 total revenueGAAP | $1,550,910 (U.S. dollars in thousands) | – | – |
| Year-to-date June 30, 2026 gross profitGAAP | $995,808 (U.S. dollars in thousands) | – | – |
| Year-to-date June 30, 2026 operating incomeGAAP | $230,750 (U.S. dollars in thousands) | – | – |
| Year-to-date June 30, 2026 net incomeGAAP | $130,041 (U.S. dollars in thousands) | – | – |
| Year-to-date June 30, 2026 diluted earnings per shareGAAP | $2.17 | – | – |
| Year-to-date June 30, 2026 non-GAAP net incomenon-GAAP | $320,521 (U.S. dollars in thousands) | – | – |
| Year-to-date June 30, 2026 non-GAAP diluted earnings per sharenon-GAAP | $5.34 | – | – |
| Year-to-date June 30, 2026 operating cash flowother | $301,903 (U.S. dollars in thousands) | – | – |
| Year-to-date June 30, 2026 free cash flow from continuing operationsnon-GAAP | $241,906 (U.S. dollars in thousands) | – | – |
| Year-to-date June 30, 2026 non-GAAP EBITDAnon-GAAP | $447,234 (U.S. dollars in thousands) | – | – |
| AI ARRother | $362 million | – | – |
| AI ARR as a percentage of cloud revenueother | 15% | – | – |
| International revenue growthother | 22% | – | 22% |
| International revenue growth in constant currencyother | 21% | – | 21% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CloudManagement said total revenue growth was driven by cloud revenue growth. | $609.0 million | – | 12.6% |
| ServicesNot stated. | $124,640 (U.S. dollars in thousands) | – | – |
| ProductNot stated. | $48,604 (U.S. dollars in thousands) | – | – |
Third Quarter and Full Year 2026 outlook
- NoteThird-quarter 2026 non-GAAP total revenues are expected to be in a range of $780 million to $790 million, representing 7.2% year over year growth at the midpoint.
- NoteThird-quarter 2026 non-GAAP fully diluted earnings per share are expected to be in a range of $2.73 to $2.83.
- NoteFull-year 2026 non-GAAP total revenues are reiterated and expected to be in a range of $3,170 million to $3,190 million, representing 8.0% year over year growth at the midpoint.
- NoteFull-year 2026 non-GAAP fully diluted earnings per share is now expected to be in a range of $11.06 to $11.26.
- NoteFull-year 2026 guidance continues to include the expectation of 13%-15% year over year growth in cloud revenue.
Capital returns
- $58.0 million was used for share repurchases in the second quarter of 2026.
- Purchase of treasury shares was $57,954 (U.S. dollars in thousands) in the second quarter of 2026, compared to $30,839 (U.S. dollars in thousands) in the second quarter of 2025.
- Purchase of treasury shares was $311,204 (U.S. dollars in thousands) year to date June 30, 2026, compared to $283,168 (U.S. dollars in thousands) year to date June 30, 2025.
What drove it
- Cloud revenue was $609.0 million and increased 12.6% year over year.
- International revenue increased 22% year over year, or 21% in constant currency.
- Management said the company had a record second quarter for new cloud ACV bookings and an all-time record quarter for AI bookings, with strong momentum at NiCE Cognigy.
- AI ARR reached $362 million and represented 15% of cloud revenue.
- Management cited increasing consolidation of customer engagement needs on its AI-native CXone platform and native integration of Cognigy into CXone.
Concerns
- GAAP gross margin was 64.0%, compared to 66.8% in the second quarter of 2025; non-GAAP gross margin was 68.4%, compared to 69.3%.
- GAAP operating income was $104.0 million, compared to $160.6 million; non-GAAP operating income was $198.0 million, compared to $219.7 million.
- GAAP net income was $83.2 million, compared to $187.4 million, and GAAP diluted EPS was $1.40, compared to $2.96.
- Non-GAAP net income was $160.5 million, compared to $190.3 million, and non-GAAP diluted EPS was $2.70, compared to $3.01.
- Services revenue was $124,640 (U.S. dollars in thousands), compared to $140,480 (U.S. dollars in thousands).
What to watch
- Third-quarter 2026 non-GAAP revenue guidance of $780 million to $790 million and non-GAAP diluted EPS guidance of $2.73 to $2.83.
- Execution against the full-year expectation of 13%-15% year over year cloud revenue growth.
- Progress of AI ARR, which reached $362 million and represented 15% of cloud revenue.
- Whether GAAP and non-GAAP gross margins and operating margins stabilize after their year-over-year declines.
- New cloud ACV bookings, AI bookings, and momentum at NiCE Cognigy.
Balance sheet and cash flow
- As of June 30, 2026, total cash and cash equivalents, and short-term investments were $354.7 million, with no outstanding debt.
- Cash and cash equivalents were $315,384 (U.S. dollars in thousands) as of June 30, 2026, compared to $379,388 (U.S. dollars in thousands) as of December 31, 2025.
- Short-term investments were $39,306 (U.S. dollars in thousands) as of June 30, 2026, compared to $38,010 (U.S. dollars in thousands) as of December 31, 2025.
- Total assets were $5,121,438 (U.S. dollars in thousands) as of June 30, 2026, compared to $5,106,030 (U.S. dollars in thousands) as of December 31, 2025.
- Deferred revenues and advances from customers were $351,756 (U.S. dollars in thousands) current and $48,547 (U.S. dollars in thousands) long-term as of June 30, 2026.
- Net cash provided by operating activities was $122,657 (U.S. dollars in thousands) in the second quarter of 2026, compared to $61,322 (U.S. dollars in thousands) in the second quarter of 2025.
- Net cash used in investing activities was $22,249 (U.S. dollars in thousands) in the second quarter of 2026, compared to net cash provided by investing activities of $29,013 (U.S. dollars in thousands) in the second quarter of 2025.
- Net cash used in financing activities was $47,254 (U.S. dollars in thousands) in the second quarter of 2026, compared to $30,506 (U.S. dollars in thousands) in the second quarter of 2025.
Analysis
NICE reported second-quarter GAAP and non-GAAP revenue of $782.3 million, up 7.6% from $726.7 million. Cloud revenue was $609.0 million, up 12.6%, and management identified cloud as the driver of total growth. International revenue increased 22% year over year, or 21% in constant currency. Management also described record second-quarter new cloud ACV bookings and an all-time record AI bookings quarter, while AI ARR reached $362 million and represented 15% of cloud revenue.
The revenue mix showed contrasting trends in the reported line items. Cloud revenue was $609,049 (U.S. dollars in thousands), compared with $540,822 (U.S. dollars in thousands), while services revenue was $124,640 (U.S. dollars in thousands), compared with $140,480 (U.S. dollars in thousands). Product revenue was $48,604 (U.S. dollars in thousands), compared with $45,410 (U.S. dollars in thousands). The release did not provide year-over-year percentage changes for services or product revenue.
Profitability was lower than the prior-year quarter on both reported bases. GAAP gross margin was 64.0%, compared with 66.8%, and non-GAAP gross margin was 68.4%, compared with 69.3%. GAAP operating income was $104.0 million with a 13.3% operating margin, compared with $160.6 million and 22.1%. Non-GAAP operating income was $198.0 million with a 25.3% operating margin, compared with $219.7 million and 30.2%. GAAP net income was $83.2 million and GAAP diluted EPS was $1.40, versus $187.4 million and $2.96; non-GAAP diluted EPS was $2.70, versus $3.01.
Cash generation improved in the quarter despite lower earnings. Operating cash flow was $122.7 million, compared with $61.3 million, and free cash flow from continuing operations was $93,116 (U.S. dollars in thousands), compared with $38,606 (U.S. dollars in thousands). The company used $58.0 million for share repurchases in the quarter. At June 30, 2026, cash and cash equivalents plus short-term investments were $354.7 million, and the company reported no outstanding debt.
For the outlook, NICE guided third-quarter non-GAAP revenue to $780 million to $790 million and non-GAAP diluted EPS to $2.73 to $2.83. It reiterated full-year non-GAAP revenue guidance of $3,170 million to $3,190 million and retained its expectation for 13%-15% cloud revenue growth. The company raised full-year non-GAAP diluted EPS guidance to $11.06 to $11.26. The filing does not provide the prior full-year EPS range or the prior-quarter outlook, so the magnitude of the EPS guidance increase and a formal comparison of reported results with earlier guidance cannot be established from the supplied documents.
Management, verbatim
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.
Scott Russell, CEO of NiCE
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.
Scott Russell, CEO of NiCE
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.
Scott Russell, CEO of NiCE
Not in the filing
stated, not guessed- Prior-quarter comparisons for revenue, segment revenue, gross profit, margins, operating income, net income, EPS, cash flow and free cash flow.
- Prior guidance ranges and the exact prior full-year non-GAAP EPS range needed to quantify the stated guidance increase.
- GAAP guidance and a GAAP-to-non-GAAP guidance reconciliation.
- Forward guidance for gross margin, operating expenses and tax rate.
- A reported revenue dollar amount for international revenue.
- Year-over-year percentage changes for services revenue and product revenue.
- Dividend declaration or dividend payment information.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
NICE is a provider of cloud‑based customer engagement and AI solutions, reporting its Q2 2026 results via SEC Form 6‑K.
Ticker impact
NICE reported Q2 2026 earnings with revenue up 7.6% YoY and raised full-year non-GAAP EPS guidance.
Potential short-term price rally on earnings beat and guidance raise.
First disclosure of earnings and guidance, material numbers for a mid-cap listed on NASDAQ.
Market effects
Strong cloud revenue growth highlights AI adoption trends in the enterprise software sector.
Positive earnings may boost US tech sector sentiment.
AI-driven revenue growth could influence global enterprise software valuations.
Counterpoint
If guidance raise is already priced in, the stock may face a pullback.
Key entities
- ExecutiveScott Russell
CEO of NICE, provided commentary on AI and cloud growth.
