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NiCE Reports 10% Year-Over-Year Revenue Growth Driven by 14.6% Cloud Revenue Growth in First Quarter 2026

NiCE Reports 10% Year-Over-Year Revenue Growth Driven by 14.6% Cloud Revenue Growth in First Quarter 2026

  • Q1 2026 AI ARR increased 66% year over year

  • Share repurchases in Q1 2026 of $253 million

  • Company raises full-year 2026 EPS guidance

HOBOKEN, N.J.–(BUSINESS WIRE)–NiCE (NASDAQ: NICE) today announced results for the first quarter ended March 31, 2026, as compared to the corresponding period of the previous year.

First Quarter 2026 Financial Highlights*

GAAP

Non-GAAP

Total revenue was $768.6 million and increased 9.8%

Total revenue was $768.6 million and increased 9.8%

Cloud revenue was $603.4 million and increased 14.6%

Cloud revenue was $603.4 million and increased 14.6%

Operating income was $126.8 million with operating margin of 16.5%

Operating income was $199.7 million with operating margin of 26.0%

Diluted EPS was $0.77

Diluted EPS was $2.64

Net cash provided by operating activities was $179.2 million

 
 

*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 delivered a solid start to 2026, reflecting disciplined execution and strong momentum across our AI‑native CX platform,” said Scott Russell, CEO of NiCE. “In the first quarter, we exceeded the high end of our guidance on both revenue and non-GAAP EPS, and delivered cloud revenue growth of 14.6% year over year. AI remains a powerful growth driver, with AI ARR increasing 66% year over year and included in 100% of our CXone enterprise deals, highlighting the growing adoption of our AI solutions at scale. International markets were another area of strength, with 30% revenue growth as we continue to expand large enterprise deployments globally.”

Mr. Russell continued, “Eight months after closing Cognigy, integration is ahead of plan and execution is accelerating. Together, NiCE and Cognigy offer the only fully AI‑native CX platform that unifies voice, digital, and agentic AI at enterprise scale, delivering measurable outcomes for customers in production environments. AI is expanding our market opportunity beyond the contact center, and with strong bookings momentum, and increasing partner contribution, we are well positioned to extend our leadership in CX AI and drive sustained growth in 2026 and beyond.”

GAAP Financial Highlights for the First Quarter Ended March 31:

Revenues:

First quarter 2026 total revenues increased 9.8% year over year to $768.6 million compared to $700.2 million for the first quarter of 2025.

Gross Profit:

First quarter 2026 gross profit was $494.8 million compared to $468.1 million for the first quarter of 2025. First quarter 2026 gross margin was 64.4% compared to 66.9% for the first quarter of 2025.

Operating Income:

First quarter 2026 operating income was $126.8 million compared to $148.2 million for the first quarter of 2025. First quarter 2026 operating margin was 16.5% compared to 21.2% for the first quarter of 2025.

Net Income:

First quarter 2026 net income was $46.8 million compared to $129.3 million for the first quarter of 2025. First quarter 2026 net income margin was 6.1% compared to 18.5% for the first quarter of 2025.

Fully Diluted Earnings Per Share:

Fully diluted earnings per share for the first quarter of 2026 was $0.77 compared to $2.01 in the first quarter of 2025.

Cash Flow and Cash Balance:

First quarter 2026 operating cash flow was $179.2 million. In the first quarter of 2026, $253.3 million was used for share repurchases. As of March 31, 2026, total cash and cash equivalents, and short-term investments were $304.1 million, with no outstanding debt.

Non-GAAP Financial Highlights for the First Quarter Ended March 31:

Revenues:

First quarter 2026 non-GAAP total revenues increased 9.8% year over year to $768.6 million compared to $700.2 million for the first quarter of 2025.

Gross Profit:

First quarter 2026 non-GAAP gross profit was $525.5 million compared to $489.2 million for the first quarter of 2025. First quarter 2026 non-GAAP gross margin was 68.4% compared to 69.9% for the first quarter of 2025.

Operating Income:

First quarter 2026 non-GAAP operating income was $199.7 million compared to $213.6 million for the first quarter of 2025. First quarter 2026 non-GAAP operating margin was 26.0% compared to 30.5% for the first quarter of 2025.

Net Income:

First quarter 2026 non-GAAP net income was $160.1 million compared to $185.0 million for the first quarter of 2025. First quarter 2026 non-GAAP net income margin totaled 20.8% compared to 26.4% for the first quarter of 2025.

Fully Diluted Earnings Per Share:

First quarter 2026 non-GAAP fully diluted earnings per share was $2.64 compared to $2.87 for the first quarter of 2025.

Second Quarter and Full Year 2026 Guidance:

Second-Quarter 2026:

Second-quarter 2026 non-GAAP total revenues are expected to be in a range of $761 million to $771 million, representing 5.5% year over year growth at the midpoint.

Second-quarter 2026 non-GAAP fully diluted earnings per share are expected to be in a range of $2.60 to $2.70.

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.

Full-year 2026 non-GAAP fully diluted earnings per share are now expected to be in a range of $10.98 to $11.18.

The above full year 2026 guidance includes the updated expectation of 13%-15% year over year growth in cloud revenue.

Quarterly Results Conference Call

NiCE management will host its earnings conference call today, May 6, 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/investor-relations/upcoming-event.

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 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.

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.

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.

###

NICE LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands
 

March 31,

December 31,

2026

2025

Unaudited

Audited
 

ASSETS
 

CURRENT ASSETS:

Cash and cash equivalents

$

257,539

$

379,388

Short-term investments

 

46,528

 

38,010

Trade receivables

 

767,275

 

737,954

Prepaid expenses and other current assets

 

230,404

 

223,780

 

 

Total current assets

 

1,301,746

 

1,379,132
 

LONG-TERM ASSETS:

Property and equipment, net

 

194,095

 

189,395

Deferred tax assets

 

178,867

 

198,213

Other intangible assets, net

 

551,482

 

587,599

Operating lease right-of-use assets

 

75,850

 

78,064

Goodwill

 

2,437,484

 

2,440,532

Prepaid expenses and other long-term assets

 

243,121

 

233,095

 

 

Total long-term assets

 

3,680,899

 

3,726,898
 

TOTAL ASSETS

$

4,982,645

$

5,106,030
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 

CURRENT LIABILITIES:

Trade payables

$

101,917

$

100,782

Deferred revenues and advances from customers

 

356,096

 

303,911

Current maturities of operating leases

 

13,591

 

13,742

Accrued expenses and other liabilities

 

591,244

 

469,192
 

Total current liabilities

 

1,062,848

 

887,627
 

LONG-TERM LIABILITIES:

Deferred revenues and advances from customers

 

57,479

 

61,392

Operating leases

 

72,485

 

75,059

Deferred tax liabilities

 

16,454

 

109,993

Other long-term liabilities

 

96,999

 

95,431
 

Total long-term liabilities

 

243,417

 

341,875
 

SHAREHOLDERS’ EQUITY

Nice Ltd’s equity

 

3,676,380

 

3,876,528
 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

4,982,645

$

5,106,030

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)
 

Quarter ended

March 31,

2026

2025

Unaudited

Unaudited
 

Revenue:

Cloud

$

603,365

 

$

526,323

 

Services

 

123,968

 

 

140,203

 

Product

 

41,284

 

 

33,666

 

Total revenue

 

768,617

 

 

700,192

 
 

Cost of revenue:

Cloud

 

219,410

 

 

179,474

 

Services

 

48,270

 

 

46,243

 

Product

 

6,138

 

 

6,363

 

Total cost of revenue

 

273,818

 

 

232,080

 
 

Gross profit

 

494,799

 

 

468,112

 
 

Operating expenses:

Research and development, net

 

97,476

 

 

89,102

 

Selling and marketing

 

185,106

 

 

161,434

 

General and administrative

 

85,467

 

 

69,407

 

Total operating expenses

 

368,049

 

 

319,943

 
 

Operating income

 

126,750

 

 

148,169

 
 

Financial and other income, net

 

(19,318

)

 

(15,850

)
 

Income before tax

 

146,068

 

 

164,019

 

Taxes on income

 

99,254

 

 

34,729

 

Net income

$

46,814

 

$

129,290

 
 
 

Earnings per share:

Basic

$

0.78

 

$

2.04

 

Diluted

$

0.77

 

$

2.01

 
 

Weighted average shares outstanding:

Basic

 

59,920

 

 

63,354

 

Diluted

60,603

 

64,368

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED CASH FLOW STATEMENTS

U.S. dollars in thousands

Quarter ended

March 31,

2026

2025

Unaudited

Unaudited
 

Operating Activities
 

Net income

$

46,814

 

$

129,290

 

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

 

61,842

 

 

43,441

 

Share-based compensation

 

35,392

 

 

43,337

 

Amortization of premium and discount and accrued interest on marketable securities

 

(109

)

 

(2,275

)

Deferred taxes, net

 

(74,061

)

 

(21,537

)

Changes in operating assets and liabilities:

Trade Receivables, net

 

(30,141

)

 

4,678

 

Prepaid expenses and other current assets

 

9,190

 

 

28,555

 

Operating lease right-of-use assets

 

2,960

 

 

5,897

 

Trade payables

 

2,291

 

 

(53,291

)

Accrued expenses and other current liabilities

 

96,097

 

 

49,518

 

Deferred revenue

 

49,426

 

 

69,574

 

Operating lease liabilities

 

(3,443

)

 

(10,189

)

Amortization of discount on debt

 

–

 

 

421

 

Gains on intercompany foreign currency transactions

 

(17,835

)

 

–

 

Other

 

823

 

 

(2,348

)

Net cash provided by operating activities

 

179,246

 

 

285,071

 
 

Investing Activities
 

Purchase of property and equipment

 

(9,376

)

 

(3,667

)

Purchase of Investments

 

(15,748

)

 

(49,454

)

Proceeds from sales of marketable investments

 

7,192

 

 

58,358

 

Capitalization of internal use software costs

 

(21,080

)

 

(16,766

)

Payments for business acquisitions, net of cash acquired

 

–

 

 

(36,466

)

Net cash used in investing activities

 

(39,012

)

 

(47,995

)
 

Financing Activities
 

Proceeds from issuance of shares upon exercise of options

 

57

 

 

675

 

Purchase of treasury shares

 

(253,250

)

 

(252,329

)

Payment of deferred financing costs

 

(2,470

)

 

–

 

Net cash used in financing activities

 

(255,663

)

 

(251,654

)
 

Effect of exchange rates on cash and cash equivalents

 

(2,870

)

 

1,147

 
 

Net change in cash, cash equivalents and restricted cash

 

(118,299

)

 

(13,431

)

Cash, cash equivalents and restricted cash, beginning of period

$

382,007

 

$

485,032

 
 

Cash, cash equivalents and restricted cash, end of period

$

263,708

 

$

471,601

 
 

Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:

Cash and cash equivalents

$

257,539

 

$

469,532

 

Restricted cash included in other current assets

$

6,169

 

$

2,069

 

Total cash, cash equivalents and restricted cash shown in the statement of cash flows

$

263,708

 

$

471,601

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share amounts)
 

Quarter ended

March 31,

2026

2025

GAAP revenues

$

768,617

 

$

700,192

 

Non-GAAP revenues

$

768,617

 

$

700,192

 
 
 

GAAP cost of revenue

$

273,818

 

$

232,080

 

Amortization of acquired intangible assets on cost of cloud

 

(26,942

)

 

(15,403

)

Cost of cloud revenue adjustment (1)

 

(2,391

)

 

(3,178

)

Cost of services revenue adjustment (1)

 

(1,320

)

 

(2,455

)

Cost of product revenue adjustment (1)

 

(9

)

 

(22

)

Non-GAAP cost of revenue

$

243,156

 

$

211,022

 
 
 

GAAP gross profit

$

494,799

 

$

468,112

 

Gross profit adjustments

 

30,662

 

 

21,058

 

Non-GAAP gross profit

$

525,461

 

$

489,170

 
 
 

GAAP operating expenses

$

368,049

 

$

319,943

 

Research and development (1)

 

(3,282

)

 

(4,693

)

Sales and marketing (1)

 

(10,288

)

 

(15,414

)

General and administrative (1,2)

 

(19,585

)

 

(19,558

)

Amortization of acquired intangible assets

 

(9,155

)

 

(4,693

)

Non-GAAP operating expenses

$

325,739

 

$

275,585

 
 
 

GAAP financial and other income, net

$

(19,318

)

$

(15,850

)

Amortization of discount on debt

 

–

 

 

(421

)

Amortization of deferred financing costs

 

(128

)

 

–

 

Gains on intercompany foreign currency transactions

 

17,835

 

 

–

 

Non-GAAP financial and other income, net

$

(1,611

)

$

(16,271

)
 
 

GAAP taxes on income

$

99,254

 

$

34,729

 

Tax adjustments re non-GAAP adjustments

 

(57,981

)

 

10,093

 

Non-GAAP taxes on income

$

41,273

 

$

44,822

 
 
 

GAAP net income

$

46,814

 

$

129,290

 

Amortization of acquired intangible assets

 

36,097

 

 

20,096

 

Share-based compensation (1)

 

36,875

 

 

44,925

 

Acquisition related expenses (2)

 

–

 

 

395

 

Amortization of discount on debt

 

–

 

 

421

 

Amortization of deferred financing costs

 

128

 

 

–

 

Gains on intercompany foreign currency transactions

 

(17,835

)

 

–

 

Tax adjustments re non-GAAP adjustments

 

57,981

 

 

(10,093

)

Non-GAAP net income

$

160,060

 

$

185,034

 
 
 

GAAP diluted earnings per share

$

0.77

 

$

2.01

 
 

Non-GAAP diluted earnings per share

$

2.64

 

$

2.87

 
 

Shares used in computing GAAP diluted earnings per share

 

60,603

 

 

64,368

 
 

Shares used in computing non-GAAP diluted earnings per share

 

60,603

 

 

64,368

 
NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)

U.S. dollars in thousands
 
 

(1)

Share-based compensation

Quarter ended

March 31,

2026

2025
 

Cost of cloud revenue

$

2,391

$

3,178

Cost of services revenue

 

1,320

 

2,455

Cost of product revenue

 

9

 

22

Research and development

 

3,282

 

4,693

Sales and marketing

 

10,288

 

15,414

General and administrative

 

19,585

 

19,163

$

36,875

$

44,925
 
 
 

(2)

Acquisition related expenses

Quarter ended

March 31,

2026

2025
 

Cost of cloud revenue

$

–

$

–

Research and development

 

–

 

–

Sales and marketing

 

–

 

–

General and administrative

 

–

 

395

$

–

$

395

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA

U.S. dollars in thousands
 
 

Quarter ended

March 31,

2026

2025

Unaudited

Unaudited
 

GAAP net income

$

46,814

 

$

129,290

 

Non-GAAP adjustments:

Depreciation and amortization

 

61,842

 

 

43,441

 

Share-based compensation

 

35,392

 

 

43,337

 

Financial and other income, net

 

(19,318

)

 

(15,850

)

Acquisition related expenses

 

–

 

 

395

 

Taxes on income

 

99,254

 

 

34,729

 

Non-GAAP EBITDA

$

223,984

 

 $

235,342

NICE LTD. AND SUBSIDIARIES

NON-GAAP RECONCILIATION – FREE CASH FLOW FROM CONTINUING OPERATIONS

U.S. dollars in thousands
 
 

Quarter ended

March 31,

2026

2025

Unaudited

Unaudited
 

Net cash provided by operating activities

$

179,246

 

$

285,071

 
 

Purchase of property and equipment

 

(9,376

)

 

(3,667

)

Capitalization of internal use software costs

 

(21,080

)

 

(16,766

)
 

Free Cash Flow (a)

$

148,790

 

$

264,638

 
 

(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.

 

Investor Relations Contact

Ryan Gilligan, +1-551-417-2531, [email protected], ET

Omri Arens, +972 3 763-0127, [email protected], CET

Corporate Media Contact

Christopher Irwin-Dudek, +1 201 561 4442, [email protected], ET

KEYWORDS: New Jersey United States North America

INDUSTRY KEYWORDS: Networks Data Management Technology Artificial Intelligence Software

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