NiCE (NASDAQ:NICE) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• NiCE beat quarterly estimates: EPS was $2.84 versus $2.78 expected, while revenue reached $790.7 million, up 8% year over year. The company raised its full-year EPS outlook.
• Growth outlook has mixed signals: AI ARR rose 46% to $392 million, but management expects full-year cloud growth of about 12% and cited slower AI revenue ramps and delayed customer migrations.
• NiCE plans to cut its workforce by about 5% and lowered its 2026 free-cash-flow margin outlook; shares fell 5.8% during Wednesday trading.

NiCE (NASDAQ:NICE - Get Free Report) posted its quarterly earnings results on Wednesday. The technology company reported $2.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.78 by $0.06, FiscalAI reports. The company had revenue of $790.70 million for the quarter, compared to the consensus estimate of $785.75 million. NiCE had a net margin of 13.86% and a return on equity of 15.46%. The company's revenue for the quarter was up 8.0% on a year-over-year basis. During the same period last year, the firm posted $3.18 EPS.

Here are the key takeaways from NiCE's conference call:

• NICE reported Q3 revenue of $791 million, up 8%, and adjusted EPS of $2.84, both above the high end of guidance. It raised its full-year EPS outlook to $11.12–$11.32 and expects operating margin to finish slightly above its prior 25%–26% range.
• Cloud revenue grew 10.6% in Q3, or 12.2% excluding a one-time $10 million customer credit; NICE now expects full-year cloud growth of approximately 12%. Management cited slower AI revenue ramps, weaker growth in standalone workforce management and connectivity, delayed financial-crime cloud migrations, and a softer-than-usual Q4 seasonal uplift.
• AI ARR grew 46% year over year to $392 million, while CXone backlog increased 27%; management also highlighted major enterprise wins and Cognigy’s strongest quarter of the year for deal volume and new customers. However, executives said converting AI demand and backlog into revenue is taking time as large enterprises prioritize security, governance, and deployment at scale.
• International revenue grew 33% year over year, with international cloud revenue up 50% on a constant-currency basis, supported by partner momentum and new Cognigy wins. NICE said international markets and its partner ecosystem remain important growth opportunities.
• NICE plans to reduce its global workforce by approximately 5%, with $15 million–$20 million in restructuring charges expected, primarily in Q4. It also lowered its 2026 free-cash-flow margin outlook to 10%–12% reported, citing non-recurring costs, partner investment, and higher cash taxes.

NiCE Trading Down 5.8%

Shares of NICE traded down $6.12 during mid-day trading on Wednesday, hitting $100.15. 980,731 shares of the company traded hands, compared to its average volume of 683,526. The business has a 50-day moving average of $111.02 and a 200 day moving average of $105.04. NiCE has a one year low of $83.10 and a one year high of $136.52. The stock has a market capitalization of $5.85 billion, a price-to-earnings ratio of 14.57, a PEG ratio of 1.23 and a beta of 0.77.

Insider Transactions at NiCE

In other NiCE news, VP Udi Dayan sold 500 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $100.00, for a total transaction of $50,000.00. Following the transaction, the vice president directly owned 500 shares in the company, valued at approximately $50,000. This represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.02% of the company's stock.

NiCE News Summary

Here are the key news stories impacting NiCE this week:

• Positive Sentiment: Third-quarter revenue rose 8% to $790.7 million, topping estimates; cloud revenue grew 10.6%. Reported EPS also exceeded consensus, and NiCE said results surpassed its guidance ranges. NiCE third-quarter results
• Neutral Sentiment: NiCE is expanding its AI customer-service push in EMEA beyond enterprise pilots. The initiative supports its AI growth strategy, though the report provides no financial outlook or expected near-term impact. NiCE EMEA AI expansion
• Negative Sentiment: Non-GAAP earnings declined year over year, tempering the positive revenue growth and helping explain investor caution despite the quarterly beat. NiCE non-GAAP earnings and revenue
• Negative Sentiment: The company plans to reduce its workforce by about 5%—roughly 500 employees. While this may lower costs, the scale of the cuts can raise concerns about execution and business conditions. NiCE workforce-reduction announcement

Wall Street Analyst Weigh In

Several equities research analysts have commented on NICE shares. DA Davidson boosted their price target on shares of NiCE from $110.00 to $115.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Rosenblatt Securities restated a "buy" rating and set a $130.00 price target on shares of NiCE in a report on Thursday, August 6th. Weiss Ratings upgraded shares of NiCE from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, October 2nd. Yorkville Ives assumed coverage on NiCE in a research note on Monday, October 5th. They issued an "in-line" rating and a $125.00 price objective on the stock. Finally, Citigroup reaffirmed a "neutral" rating on shares of NiCE in a report on Thursday, August 6th. Eight research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $131.71.

About NiCE

NICE Ltd. NASDAQ: NICE is a technology company that provides cloud-based software and artificial intelligence solutions for customer experience, employee engagement, and business operations. Its platforms help organizations manage customer interactions across voice, digital, and other communication channels while using analytics and automation to improve service and operational performance.

The company's portfolio includes NICE CXone, a cloud customer experience platform that supports contact-center operations, workforce management, analytics, and digital engagement.

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