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 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%

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

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

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

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)

)

(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

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

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

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

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

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.