NICE (NICE) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $782 million, up 7.6% year-over-year, exceeding guidance, with non-GAAP EPS at $2.70, the high end of the range.

• Cloud revenue grew 12.6% year-over-year to $609 million, representing 78% of total revenue, with Cognigy contributing approximately 250 basis points.

• AI annual recurring revenue increased 52% year-over-year to $362 million, now 15% of cloud revenue, with record AI bookings and backlog growth of 72%.

• International revenue rose 22% year-over-year, with EMEA up 30% and APAC up 8%.

• Recurring revenue accounted for 89% of total revenue in Q2 2026.

Financial highlights

• Total Q2 revenue: $782 million (+7.6% year-over-year); cloud revenue: $609 million (+12.6% year-over-year).

• Non-GAAP operating income: $198 million (25.3% margin); non-GAAP net income: $160.5 million (20.5% margin); non-GAAP EPS: $2.70.

• Non-GAAP EBITDA for Q2: $223.3 million (28.5% margin).

• Free cash flow for Q2: $93.1 million; cash and short-term investments: $354.7 million as of June 30, 2026.

• Share repurchases: $58 million in Q2, $311 million year-to-date, $369 million in the last twelve months.

Outlook and guidance

• Full-year 2026 revenue guidance reiterated at $3.17–$3.19 billion (+8% at midpoint); non-GAAP EPS raised to $11.06–$11.26.

• Q3 2026 revenue expected at $780–$790 million (+7% year-over-year); Q3 EPS: $2.73–$2.83.

• Cloud revenue growth for 2026 expected at 13–15%, with Q3 growth similar to Q2.

• Affirmed $3.5 billion revenue target for 2028.