Earnings release
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NiCE 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 raises full - year 2026 EPS guidance Hoboken , New Jersey , August 5 , 2026 - NICE ( NASDAQ : NICE ) today announced results for the second quarter ended June 30 , 2026 , as compared to the corresponding period of the previous year . Second Quarter 2026 Financial Highlights * GAAP Total revenue was $ 782.3 million and increased 7.6 % Cloud revenue was $ 609.0 million and increased 12.6 % Operating income was $ 104.0 million with operating margin of 13.3 % Diluted EPS was $ 1.40 Net cash provided by operating activities was $ 122.7 million Non - GAAP Total revenue was $ 782.3 million and increased 7.6 % Cloud revenue was $ 609.0 million and increased 12.6 % Operating income was $ 198.0 million with operating margin of 25.3 % Diluted EPS was $ 2.70 * For all periods presented , there were no adjustments to the GAAP revenue , and thus the non - GAAP revenue is equal to the GAAP revenue presented . " 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 , " said 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 Al - native CXone platform . This drove a record second quarter for new cloud ACV bookings , including an all - time record quarter for Al bookings with strong momentum at NICE Cognigy . Al 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 Al adoption cycle across our customer base . " Mr. Russell continued , “ Enterprises are moving beyond Al experimentation and increasingly focusing on platforms that quickly deliver measurable outcomes in production environments . By embedding Cognigy natively into CXone , we're combining leading agentic Al with decades of CX expertise and data to deliver better enterprise outcomes . Through this native integration , we are accelerating innovation across our platform , growing partner engagement , and increasing adoption among large enterprises globally . NICE remains strongly positioned to extend our leadership in CX AI and capture the significant opportunity ahead . "
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GAAP Financial Highlights for the Second Quarter Ended June 30: Revenues: Second quarter 2026 total revenues increased 7.6% year over year to $782.3 million compared to $726.7 million for the second quarter of 2025. Gross Profit: Second quarter 2026 gross profit was $501.0 million compared to $485.1 million for the second quarter of 2025. Second quarter 2026 gross margin was 64.0% compared to 66.8% for the second quarter of 2025. Operating Income: Second quarter 2026 operating income was $104.0 million compared to $160.6 million for the second quarter of 2025. Second quarter 2026 operating margin was 13.3% compared to 22.1% for the second quarter of 2025. Net Income: Second quarter 2026 net income was $83.2 million compared to $187.4 million for the second quarter of 2025. Second quarter 2026 net income margin was 10.6% compared to 25.8% for the second quarter of 2025. Fully Diluted Earnings Per Share: Fully diluted earnings per share for the second quarter of 2026 was $1.40 compared to $2.96 in the second quarter of 2025. Cash Flow and Cash Balance: Second quarter 2026 operating cash flow was $122.7 million. In the second quarter of 2026, $58.0 million was used for share repurchases. As of June 30, 2026, total cash and cash equivalents, and short-term investments were $354.7 million, with no outstanding debt. Non-GAAP Financial Highlights for the Second Quarter Ended June 30: Revenues: Second quarter 2026 non-GAAP total revenues increased 7.6% year over year to $782.3 million compared to $726.7 million for the second quarter of 2025. Gross Profit: Second quarter 2026 non-GAAP gross profit was $535.4 million compared to $503.9 million for the second quarter of 2025. Second quarter 2026 non-GAAP gross margin was 68.4% compared to 69.3% for the second quarter of 2025. Operating Income: Second quarter 2026 non-GAAP operating income was $198.0 million compared to $219.7 million for the second quarter of 2025. Second quarter 2026 non-GAAP operating margin was 25.3% compared to 30.2% for the second quarter of 2025. Net Income: Second quarter 2026 non-GAAP net income was $160.5 million compared to $190.3 million for the second quarter of 2025. Second quarter 2026 non-GAAP net income margin totaled 20.5% compared to 26.2% for the second quarter of 2025. Fully Diluted Earnings Per Share: Second quarter 2026 non-GAAP fully diluted earnings per share was $2.70 compared to $3.01 for the second quarter of 2025.
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Third Quarter and Full Year 2026 Guidance: Third-Quarter 2026: Third-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. Third-quarter 2026 non-GAAP fully diluted earnings per share are expected to be in a range of $2.73 to $2.83. Full-Year 2026: Full-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. We are raising full-year 2026 non-GAAP fully diluted earnings per share which is now expected to be in a range of $11.06 to $11.26. The above full year 2026 guidance continues to include the expectation of 13%-15% year over year growth in cloud revenue. Quarterly Results Conference Call NiCE management will host its earnings conference call today, August 5, 2026, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: https://www.nice.com/company/investors/ir-events. Explanation of Non-GAAP measures Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition and divestiture related expenses, gains on intercompany foreign currency transactions, amortization of deferred financing costs, amortization of discount on debt, the tax effect of the Non-GAAP adjustments, and the tax rate impact resulting from the non-U.S. intercompany transaction. The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the ongoing financial performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non -GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non - GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non -GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort. About NiCE NiCE (NASDAQ: NICE) is transforming the world with AI that puts people first. Our purpose -built AI-powered platforms automate engagements into proactive, safe, intelligent actions, empowering individuals and organizations to innovate and act, from interaction to resolution. Trusted by organizations throughout 150+ countries worldwide, NiCE’s platforms are widely adopted across industries connecting people, systems, and workflows to work smarter at scale, elevating performance across the organization, delivering proven measurable outcomes. Investor Relations Contact Ryan Gilligan, +1-551-417-2531, ir@nice.com, ET Omri Arens, +972 3 763-0127, ir@nice.com, CET Corporate Media Contact Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET Trademark Note: NiCE and the NiCE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NiCE trademarks, please see: http://www.nice.com/nice-trademarks.
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Forward-Looking Statements This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe”, “expect”, “seek”, “may”, “will”, “intend”, “should”, “project”, “anticipate”, “plan”, and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business. Forward looking statements are inherently subject to significant uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward -looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third -party cloud computing platform providers, hosting facilities and service partners, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications , loss of market share, cyber security attacks or other security incidents, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards on the Company and our products , and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20 -F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law. ###
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NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands June 30, December 31, 2026 2025 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 315,384 $ 379,388 Short-term investments 39,306 38,010 Trade receivables 836,588 737,954 Prepaid expenses and other current assets 277,168 223,780 Total current assets 1,468,446 1,379,132 LONG-TERM ASSETS: Property and equipment, net 197,616 189,395 Deferred tax assets 173,258 198,213 Other intangible assets, net 515,880 587,599 Operating lease right-of-use assets 81,084 78,064 Goodwill 2,438,776 2,440,532 Prepaid expenses and other long-term assets 246,378 233,095 Total long-term assets 3,652,992 3,726,898 TOTAL ASSETS $ 5,121,438 $ 5,106,030 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 104,095 $ 100,782 Deferred revenues and advances from customers 351,756 303,911 Current maturities of operating leases 14,032 13,742 Accrued expenses and other liabilities 635,019 469,192 Total current liabilities 1,104,902 887,627 LONG-TERM LIABILITIES: Deferred revenues and advances from customers 48,547 61,392 Operating leases 74,187 75,059 Deferred tax liabilities 17,595 109,993 Other long-term liabilities 98,202 95,431 Total long-term liabilities 238,531 341,875 SHAREHOLDERS' EQUITY Nice Ltd's equity 3,778,005 3,876,528 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,121,438 $ 5,106,030
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NICE LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands (except per share amounts) Quarter ended Year to date June 30, June 30, 2026 2025 2026 2025 Unaudited Unaudited Unaudited Unaudited Revenue: Cloud $ 609,049 $ 540,822 $1,212,414 $ 1,067,145 Services 124,640 140,480 248,608 280,683 Product 48,604 45,410 89,888 79,076 Total revenue 782,293 726,712 1,550,910 1,426,904 Cost of revenue: Cloud 219,629 185,971 439,039 365,445 Services 55,129 48,254 103,399 94,497 Product 6,526 7,376 12,664 13,739 Total cost of revenue 281,284 241,601 555,102 473,681 Gross profit 501,009 485,111 995,808 953,223 Operating expenses: Research and development, net 102,825 89,762 200,301 178,864 Selling and marketing 200,436 169,799 385,542 331,233 General and administrative 93,748 64,958 179,215 134,365 Total operating expenses 397,009 324,519 765,058 644,462 Operating income 104,000 160,592 230,750 308,761 Financial and other income, net (3,606) (14,820) (22,924) (30,670) Income before tax 107,606 175,412 253,674 339,431 Taxes on income 24,379 (11,992) 123,633 22,737 Net income $ 83,227 $ 187,404 $ 130,041 $ 316,694 Earnings per share: Basic $ 1.41 $ 3.01 $ 2.19 $ 5.05 Diluted $ 1.40 $ 2.96 $ 2.17 $ 4.97 Weighted average shares outstanding: Basic 58,818 62,160 59,366 62,754 Diluted 59,394 63,210 59,996 63,785
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NICE LTD. AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENTS U.S. dollars in thousands Quarter ended Year to date June 30, June 30, 2026 2025 2026 2025 Unaudited Unaudited Unaudited Unaudited Operating Activities Net income $ 83,227 $ 187,404 $ 130,041 $ 316,694 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 62,374 44,612 124,216 88,053 Share-based compensation 52,668 37,310 88,060 80,647 Amortization of premium and discount and accrued interest on marketable securities (90) (2,029) (199) (4,304) Deferred taxes, net 6,456 (3,757) (67,605) (25,294) Changes in operating assets and liabilities: Trade Receivables, net (69,242) (30,742) (99,383) (26,064) Prepaid expenses and other current assets 3,659 (14,846) 12,849 13,709 Operating lease right-of-use assets 3,295 2,929 6,255 8,826 Trade payables 2,581 21,884 4,872 (31,407) Accrued expenses and other current liabilities (3,351) (158,979) 92,746 (109,461) Deferred revenue (13,144) (19,719) 36,282 49,855 Operating lease liabilities (6,398) (746) (9,841) (10,935) Amortization of discount on debt - 428 - 849 Gains on intercompany foreign currency transactions - - (17,835) - Other 622 (2,427) 1,445 (4,775) Net cash provided by operating activities 122,657 61,322 301,903 346,393 Investing Activities Purchase of property and equipment (7,838) (4,579) (17,214) (8,246) Purchase of Investments (5,399) (24,687) (21,147) (74,141) Proceeds from sales of marketable investments 12,691 76,416 19,883 134,774 Capitalization of internal use software costs (21,703) (18,137) (42,783) (34,903) Payments for business acquisitions, net of cash acquired - - - (36,466) Net cash used in investing activities (22,249) 29,013 (61,261) (18,982) Financing Activities Proceeds from employee stock plans 11,533 333 11,590 1,008 Purchase of treasury shares (57,954) (30,839) (311,204) (283,168) Payment of deferred financing costs (833) - (3,303) - Net cash used in financing activities (47,254) (30,506) (302,917) (282,160) Effect of exchange rates on cash and cash equivalents 2,308 5,139 (562) 6,286 Net change in cash, cash equivalents and restricted cash 55,462 64,968 (62,837) 51,537 Cash, cash equivalents and restricted cash, beginning of period $ 263,708 $ 471,601 $ 382,007 $ 485,032 Cash, cash equivalents and restricted cash, end of period $ 319,170 $ 536,569 $ 319,170 $ 536,569 Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: Cash and cash equivalents $ 315,384 $ 535,050 $ 315,384 $ 535,050 Restricted cash included in other current assets $ 3,786 $ 1,519 $ 3,786 $ 1,519 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 319,170 $ 536,569 $ 319,170 $ 536,569
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NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS U.S. dollars in thousands (except per share amounts) Quarter ended Year to date June 30, June 30, 2026 2025 2026 2025 GAAP revenues $ 782,293 $ 726,712 $ 1,550,910 $ 1,426,904 Non-GAAP revenues $ 782,293 $ 726,712 $ 1,550,910 $ 1,426,904 GAAP cost of revenue $ 281,284 $ 241,601 $ 555,102 $ 473,681 Amortization of acquired intangible assets on cost of cloud (26,468) (13,202) (53,410) (28,605) Cost of cloud revenue adjustment (1) (4,618) (3,293) (7,009) (6,471) Cost of services revenue adjustment (1) (3,249) (2,241) (4,569) (4,696) Cost of product revenue adjustment (1) (7) (21) (16) (43) Non-GAAP cost of revenue $ 246,942 $ 222,844 $ 490,098 $ 433,866 GAAP gross profit $ 501,009 $ 485,111 $ 995,808 $ 953,223 Gross profit adjustments 34,342 18,757 65,004 39,815 Non-GAAP gross profit $ 535,351 $ 503,868 $ 1,060,812 $ 993,038 GAAP operating expenses $ 397,009 $ 324,519 $ 765,058 $ 644,462 Research and development (1) (7,852) (3,178) (11,134) (7,871) Sales and marketing (1) (12,928) (13,258) (23,216) (28,672) General and administrative (1,2) (29,681) (16,924) (49,266) (36,482) Amortization of acquired intangible assets (9,153) (6,956) (18,308) (11,649) Non-GAAP operating expenses $ 337,395 $ 284,203 $ 663,134 $ 559,788 GAAP financial and other income, net $ (3,606) $ (14,820) $ (22,924) $ (30,670) Amortization of discount on debt - (428) - (849) Amortization of deferred financing costs (275) - (403) - Gains on intercompany foreign currency transactions - - 17,835 - Non-GAAP financial and other income, net $ (3,881) $ (15,248) $ (5,492) $ (31,519) GAAP taxes on income $ 24,379 $ (11,992) $ 123,633 $ 22,737 Tax adjustments re non-GAAP adjustments 16,997 56,627 (40,984) 66,720 Non-GAAP taxes on income $ 41,376 $ 44,635 $ 82,649 $ 89,457 GAAP net income $ 83,227 $ 187,404 $ 130,041 $ 316,694 Amortization of acquired intangible assets 35,621 20,158 71,718 40,254 Share-based compensation (1) 54,127 38,915 91,002 83,840 Acquisition and divestiture related expenses (2) 4,208 - 4,208 395 Amortization of discount on debt - 428 - 849 Amortization of deferred financing costs 275 - 403 - Gains on intercompany foreign currency transactions - - (17,835) - Tax adjustments re non-GAAP adjustments (16,997) (56,627) 40,984 (66,720) Non-GAAP net income $ 160,461 $ 190,278 $ 320,521 $ 375,312 GAAP diluted earnings per share $ 1.40 $ 2.96 $ 2.17 $ 4.97 Non-GAAP diluted earnings per share $ 2.70 $ 3.01 $ 5.34 $ 5.88 Shares used in computing GAAP diluted earnings per share 59,394 63,210 59,996 63,785 Shares used in computing non-GAAP diluted earnings per share 59,394 63,210 59,996 63,785
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NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued) U.S. dollars in thousands (1) Share-based compensation Quarter ended Year to date June 30, June 30, 2026 2025 2026 2025 Cost of cloud revenue $ 4,618 $ 3,293 $ 7,009 $ 6,471 Cost of services revenue 3,249 2,241 4,569 4,696 Cost of product revenue 7 21 16 43 Research and development 7,852 3,178 11,134 7,871 Sales and marketing 12,928 13,258 23,216 28,672 General and administrative 25,473 16,924 45,058 36,087 $ 54,127 $ 38,915 $ 91,002 $ 83,840 (2) Acquisition and divestiture related expenses Quarter ended Year to date June 30, June 30, 2026 2025 2026 2025 General and administrative $ 4,208 $ - $ 4,208 $ 395 $ 4,208 $ - $ 4,208 $ 395
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NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA U.S. dollars in thousands Quarter ended Year to date June 30, June 30, 2026 2025 2026 2025 Unaudited Unaudited Unaudited Unaudited GAAP net income $ 83,227 $ 187,404 $ 130,041 $ 316,694 Non-GAAP adjustments: Depreciation and amortization 62,374 44,612 124,216 88,053 Share-based compensation 52,668 37,310 88,060 80,647 Financial and other income, net (3,606) (14,820) (22,924) (30,670) Acquisition and divestiture related expenses 4,208 - 4,208 395 Taxes on income 24,379 (11,992) 123,633 22,737 Non-GAAP EBITDA $ 223,250 $ 242,514 $ 447,234 $ 477,856
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NICE LTD. AND SUBSIDIARIES NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS U.S. dollars in thousands Quarter ended Year to date June 30, June 30, 2026 2025 2026 2025 Unaudited Unaudited Unaudited Unaudited Net cash provided by operating activities $ 122,657 $ 61,322 $ 301,903 $ 346,393 Purchase of property and equipment (7,838) (4,579) (17,214) (8,246) Capitalization of internal use software costs (21,703) (18,137) (42,783) (34,903) Free Cash Flow (a) $ 93,116 $ 38,606 $ 241,906 $ 303,244 (a) Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software costs.