NICE Beats Third Quarter Estimates and Raises Full Year Earnings Guidance Amid 46% AI ARR Growth

NICE exceeded analyst expectations for the third quarter 2026, driven by continued cloud adoption and rapid expansion in its AI portfolio. Total revenue reached $790.7 million, representing 8% year-over-year growth, or 9.4% when excluding an atypical $10 million customer credit. The company announced a strategic workforce reduction of approximately 5% to streamline operations and leverage internal AI efficiencies. Following the results, management reiterated full year revenue guidance and raised the bottom-line earnings outlook.

Key Highlights

• AI-driven Annual Recurring Revenue (ARR) reached $392 million, increasing 46% year-over-year and now accounting for 16% of total cloud revenue.
• Cloud revenue grew 10.6% to $622.7 million, despite an $9 million impact from the aforementioned customer credit recorded against non-CXone cloud revenue.
• Non-GAAP operating margin contracted to 27.0% from 31.5% in the prior-year period as the company invests in CX AI innovation and infrastructure.
• Full year 2026 non-GAAP EPS guidance was raised to a range of $11.12 to $11.32, up from previous projections, while revenue targets were maintained.