NiCE Exceeds Revenue Guidance Range, Reporting 8% Year-Over-Year Revenue Growth in Second Quarter 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*	*Non-GAAP*
Total revenue was $782.3 million and increased 7.6%	Total revenue was $782.3 million and increased 7.6%
Cloud revenue was $609.0 million and increased 12.6%	Cloud revenue was $609.0 million and increased 12.6%
Operating income was $104.0 million with operating margin of 13.3%	Operating income was $198.0 million with operating margin of 25.3%
Diluted EPS was $1.40	Diluted EPS was $2.70
Net cash provided by operating activities was $122.7 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 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 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.”

Mr. Russell continued, “Enterprises are moving beyond AI 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 AI 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.”

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.

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.

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

		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


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


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


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


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


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

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.

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