NICE (NICE) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $769 million, up 9.8% year-over-year, exceeding guidance, with non-GAAP EPS of $2.64 and cloud revenue up 14.6% year-over-year; AI ARR grew 66% and is now 14% of cloud revenue, included in all enterprise deals.

• International revenue grew 30%, with strong enterprise deployments and partner-driven multi-million dollar deals.

• Integration of Cognigy is ahead of schedule, driving platform innovation and enabling larger, strategic enterprise wins.

• Financial Crime & Compliance and Public Safety remain strong, with ongoing portfolio review for maximizing shareholder value.

Financial highlights

• Total Q1 revenue: $769 million, up 10% year-over-year; cloud revenue: $603 million, 79% of total, up 14.6% year-over-year (12% excluding Cognigy).

• CXAi and self-service ARR: $345 million, up 66% year-over-year, now 14% of cloud revenue.

• Cloud net revenue retention: 107%; recurring revenue: ~90% of total.

• Gross margin: 68.4% (non-GAAP); operating income: $200 million (26% margin, non-GAAP); free cash flow: $149 million.

• Record $253 million in share repurchases, reducing shares outstanding by 5% year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance: $3.17–$3.19 billion (8% growth at midpoint); cloud revenue growth: 13–15%.

• Full-year EPS guidance raised to $10.98–$11.18; operating margin expected at high end of 25–26% range.

• Q2 2026 revenue guidance: $761–$771 million (5.5% growth at midpoint); EPS: $2.60–$2.70.

• Q2 cloud revenue growth expected slightly below full-year range due to renewal-specific commercial actions, with acceleration in Q3.

• Free cash flow margin expected at high end of 18–19% range.