NICE stock raises 2026 EPS outlook after Q3 revenue beat

Published on 11/05/2026 at 12:42 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

NICE stock follows a quarterly beat with stronger AI momentum and a planned workforce reduction. Management raised its 2026 adjusted EPS outlook.

NICE combines AI growth with restructuring

Third-quarter revenue rose 8% year over year, while non-GAAP earnings exceeded the high end of management's guidance.
AI annual recurring revenue increased 46% to USD 392 million, and international revenue grew 33%.
NICE reiterated its revenue outlook and raised adjusted earnings guidance for 2026.

NICE, US6536561086, Illustration mit AI erstellt.

NICE reported third-quarter results above the high end of its guidance on Wednesday, November 4, 2026, as the customer-experience software company continued to expand its artificial-intelligence business while preparing to reduce costs. In its earnings release, NICE said quarterly revenue increased 8.0% year over year to USD 790.7 million.

Non-GAAP diluted earnings per share reached USD 2.84, above the company's guidance range of USD 2.73 to USD 2.83. Cloud revenue rose 10.6% to USD 622.7 million and represented 79% of total revenue. NICE said the quarter included an atypical USD 10 million customer credit; excluding that item, total revenue growth would have been 9.4% and cloud growth 12.2%.

AI momentum meets slower profitability

AI annual recurring revenue increased 46% from a year earlier to USD 392 million, equal to 16% of cloud revenue. International revenue grew 33%, supporting management's argument that demand for AI-enabled customer engagement and financial-crime compliance products is broadening beyond the Americas.

Profitability was more mixed. GAAP operating income fell to USD 120.6 million from USD 160.8 million a year earlier, while GAAP diluted earnings per share declined to USD 1.60 from USD 2.29. On a non-GAAP basis, operating income was USD 213.8 million and the operating margin was 27.0%, below 31.5% in the prior-year quarter.

NICE also announced plans to reduce its global workforce by approximately 5% as it streamlines management layers and shifts more activity toward cloud delivery. The company expects pretax restructuring charges of USD 15 million to USD 20 million, primarily in the fourth quarter of 2026. That action could support efficiency, but it also highlights the pressure to convert AI demand into faster, more profitable growth.

Guidance points to higher earnings

For the full year, NICE reiterated revenue guidance of USD 3.17 billion to USD 3.19 billion, implying 8% growth at the midpoint. It raised non-GAAP diluted EPS guidance to USD 11.12 to USD 11.32 and expects cloud revenue growth of approximately 12%, excluding the customer credit. Management also expects the full-year operating margin to finish slightly above its previous 25% to 26% target range.

NICE stock traded at 89.75 euros on Lang & Schwarz at 12:35 CET on Thursday, November 5, 2026. The real-time quote of NICE stock tracks the euro listing separately from the company's Nasdaq American Depositary Receipts.