NiCE (NASDAQ:NICE) Announces Earnings Results

Key Points

• NiCE exceeded second-quarter expectations, reporting adjusted EPS of $2.70 versus the $2.63 consensus and revenue of $782.3 million versus $766.3 million. Revenue increased about 8% year over year, led by 12.6% cloud growth.
• AI and cloud momentum remained strong: AI annual recurring revenue rose 52%, AI backlog increased 72%, and cloud backlog grew 19%. Management cited record AI bookings and major enterprise wins, though revenue conversion may lag as customers prepare for deployments.
• NiCE raised full-year 2026 adjusted EPS guidance to $11.06–$11.26, above analyst expectations, but its third-quarter revenue outlook of $780–$790 million fell below consensus. Shares declined 4.1% following the results.

NiCE (NASDAQ:NICE - Get Free Report) posted its quarterly earnings data on Wednesday. The technology company reported $2.70 EPS for the quarter, topping the consensus estimate of $2.63 by $0.07, FiscalAI reports. The business had revenue of $782.29 million during the quarter, compared to the consensus estimate of $766.27 million. NiCE had a net margin of 17.57% and a return on equity of 17.42%. The business's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.01 earnings per share. NiCE updated its FY 2026 guidance to 11.060-11.260 EPS and its Q3 2026 guidance to 2.730-2.830 EPS.

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

• Q2 revenue exceeded expectations at $782 million, up 8% year over year, while non-GAAP EPS of $2.70 reached the high end of guidance.
• Cloud and AI momentum remained strong, with cloud revenue up 12.6%, AI ARR up 52%, cloud backlog up 19%, and AI backlog up 72%; the company also reported record AI bookings and major eight-figure enterprise wins, including HMRC.
• NICE reiterated its full-year revenue outlook and raised 2026 EPS guidance to $11.06-$11.26, reflecting expectations for operating margins at the high end of the previously stated 25%-26% range. Management also reaffirmed its medium-term growth targets.
• Management acknowledged a lag between strong AI bookings and revenue recognition as large customers take time to prepare data governance and operating models for production deployments. Cloud net revenue retention was 106%, reflecting the impact of targeted strategic renewals and some customer migration dynamics.
• International revenue was a major growth driver, particularly in EMEIA, while legacy services revenue declined 11% as customers migrate from on-premise deployments to the cloud; stronger-than-expected on-premise demand in some non-CX businesses may create near-term mix and timing variability.

NiCE Stock Down 4.1%

Shares of NiCE stock traded down $4.18 on Wednesday, reaching $99.11. The company's stock had a trading volume of 838,553 shares, compared to its average volume of 742,956. The company has a market capitalization of $5.79 billion, a P/E ratio of 11.76, a PEG ratio of 1.04 and a beta of 0.74. The stock has a 50-day moving average price of $93.92 and a 200-day moving average price of $103.20. NiCE has a 52-week low of $83.10 and a 52-week high of $156.37.

NiCE News Summary

Here are the key news stories impacting NiCE this week:

• Positive Sentiment: NiCE reported second-quarter revenue of $782.3 million, up 7.6% year over year and above the $766.3 million consensus estimate. Cloud revenue was particularly strong, rising 12.6% to $609.0 million, while adjusted EPS of $2.70 exceeded expectations by $0.07. NiCE Second-Quarter 2026 Results
• Positive Sentiment: Full-year 2026 adjusted EPS guidance of $11.06-$11.26 is above the $10.69 analyst consensus, suggesting management expects earnings to outperform current estimates. Full-year revenue guidance of approximately $3.2 billion is broadly in line with expectations. NiCE Earnings Report
• Positive Sentiment: NiCE’s customer-experience technology received external validation after Concentrix and Currys won the company’s 2026 International CX Excellence Award for using intelligent orchestration and personalized engagement. The award may support NiCE’s brand and enterprise sales efforts, although it does not directly affect near-term financial results. Concentrix and Currys Win NiCE CX Award
• Neutral Sentiment: Analyst-focused Zacks coverage highlighted NiCE’s valuation, positive earnings-estimate revisions and an average price target implying approximately 26% potential upside. These are sentiment indicators rather than new company-specific developments. NiCE Analyst Price Target Coverage
• Negative Sentiment: Third-quarter revenue guidance of $780 million-$790 million is below the $795.3 million consensus estimate, potentially raising concerns about near-term growth momentum. Although EPS guidance of $2.73-$2.83 is above expectations, quarterly earnings were down from $3.01 a year earlier, adding to investor caution.

Analyst Ratings Changes

A number of research analysts have recently weighed in on NICE shares. Citigroup reissued a "market outperform" rating on shares of NiCE in a report on Thursday, June 11th. Wedbush reduced their price target on shares of NiCE from $120.00 to $100.00 and set a "neutral" rating for the company in a research report on Wednesday, June 10th. Citizens Jmp decreased their price objective on shares of NiCE from $200.00 to $170.00 and set a "market outperform" rating for the company in a research note on Thursday, May 7th. Cantor Fitzgerald reiterated a "neutral" rating and issued a $104.00 price objective on shares of NiCE in a research note on Wednesday, June 10th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $155.00 price target on shares of NiCE in a report on Wednesday, June 10th. Eight analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $131.17.

Institutional Investors Weigh In On NiCE

Several large investors have recently bought and sold shares of NICE. FIL Ltd boosted its stake in shares of NiCE by 0.7% in the fourth quarter. FIL Ltd now owns 1,732,137 shares of the technology company's stock worth $195,801,000 after acquiring an additional 11,433 shares during the last quarter. Neuberger Berman Group LLC raised its position in shares of NiCE by 13.7% in the fourth quarter. Neuberger Berman Group LLC now owns 961,146 shares of the technology company's stock valued at $108,648,000 after buying an additional 115,526 shares during the last quarter. Lazard Asset Management LLC lifted its stake in shares of NiCE by 32.0% in the fourth quarter. Lazard Asset Management LLC now owns 897,445 shares of the technology company's stock worth $101,447,000 after buying an additional 217,673 shares in the last quarter. RPD Fund Management LLC acquired a new position in NiCE during the fourth quarter worth about $100,154,000. Finally, Alliancebernstein L.P. grew its stake in NiCE by 6.6% during the 2nd quarter. Alliancebernstein L.P. now owns 819,140 shares of the technology company's stock valued at $138,361,000 after acquiring an additional 50,403 shares in the last quarter. 63.34% of the stock is currently owned by hedge funds and other institutional investors.

About NiCE

NiCE Ltd is a global software provider specializing in solutions for customer engagement, financial crime prevention, public safety, workforce optimization and border security. Its product offerings include cloud-native and on-premises platforms that leverage advanced analytics, artificial intelligence and automation to help organizations enhance customer experiences, streamline operations and ensure regulatory compliance. NiCE’s portfolio addresses the needs of contact centers, financial institutions, government agencies and enterprises across a broad range of industries.

In customer engagement, NiCE delivers tools for omnichannel interaction management, real-time and historical analytics, workforce management, and quality management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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