NICE stock faces an efficiency test after AI-led Q3 beat
Published on 11/10/2026 at 12:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAI growth meets efficiency measures
- Third-quarter revenue rose 8.0 percent year over year to 790.7 million US dollars, while non-GAAP EPS reached 2.84 US dollars.
- AI ARR increased 46 percent to 392 million US dollars and represented 16 percent of cloud revenue.
- NICE raised its 2026 non-GAAP EPS outlook to 11.12 to 11.32 US dollars while keeping revenue guidance at 3.17 billion to 3.19 billion US dollars.
NICE reported stronger-than-guided third-quarter results on November 4, 2026, while announcing a restructuring plan that will reduce its global workforce by approximately 5 percent. The company said in its NiCE press release that both revenue and non-GAAP earnings per share exceeded the high end of its guidance ranges.
Quarterly growth and margin pressure
Revenue for the quarter ended September 30 increased 8.0 percent year over year to 790.7 million US dollars from 732.0 million US dollars. Cloud revenue grew 10.6 percent, while the company said total and cloud revenue growth would have been 9.4 percent and 12.2 percent, respectively, excluding an atypical 10 million US dollar customer credit.
GAAP operating income fell to 120.6 million US dollars from 160.8 million US dollars, and GAAP diluted EPS declined to 1.60 US dollars from 2.29 US dollars. On a non-GAAP basis, operating income was 213.8 million US dollars, producing a 27.0 percent margin, compared with 230.9 million US dollars and a 31.5 percent margin a year earlier. Non-GAAP diluted EPS was 2.84 US dollars, down from 3.18 US dollars but above the upper end of the company's guidance range.
AI momentum remains central
AI annual recurring revenue rose 46 percent year over year to 392 million US dollars, equal to 16 percent of cloud revenue. International revenue increased 33 percent, adding support to management's view that AI-enabled customer experience products remain a key growth opportunity.
Chief Executive Officer Scott Russell said the company is still in the early stages of a significant customer-experience opportunity. Management plans to reduce organizational layers and simplify decision-making while continuing to invest in CX AI innovation, customer delivery and go-to-market capabilities.
Higher earnings outlook, unchanged sales range
NICE reiterated full-year 2026 non-GAAP revenue guidance of 3.17 billion to 3.19 billion US dollars, equivalent to 8.0 percent growth at the midpoint. It raised full-year non-GAAP diluted EPS guidance to 11.12 to 11.32 US dollars and expects cloud revenue to grow approximately 12 percent.
The workforce plan is expected to generate pre-tax restructuring charges of 15 million to 20 million US dollars, primarily in the fourth quarter. NICE said those charges will be excluded from non-GAAP results, making the effect on reported earnings an important item for investors to monitor.
NICE stock traded at 86.50 euros on Lang & Schwarz at 11:50 CET on Tuesday, November 10, 2026.
NICE company facts
- Company: NICE Ltd.
- ISIN: US6536561086
- Ticker: NICE
- Home exchange: Nasdaq
- Lang & Schwarz quote: 86.50 euros on November 10, 2026 at 11:50 CET
- Third-quarter revenue: 790.7 million US dollars, up 8.0 percent year over year
- AI ARR: 392 million US dollars, up 46 percent year over year
- 2026 non-GAAP EPS guidance: 11.12 to 11.32 US dollars
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