NICE (NICE) investor relations material

Executive summary

• Q3 revenue was $790.7M, up 8.0% YoY, and non-GAAP EPS of $2.84 exceeded the high end of guidance.

• AI ARR grew 46% YoY to $392M, equal to 16% of cloud revenue; management is focused on accelerating CXAI adoption and improving operating efficiency.

Financial highlights

• Cloud revenue was $622.7M, up 10.6% YoY; excluding the $10M customer credit, cloud growth was 12.2% and total revenue growth was 9.4%.

• Non-GAAP operating income was $213.8M, down from $230.9M; operating margin was 27.0%, down from 31.5%, and diluted EPS was $2.84 versus $3.18.

• GAAP net income was $95.1M versus $144.9M, and diluted EPS was $1.60 versus $2.29.

• Operating cash flow was $97.7M and free cash flow was $69.0M, versus $163.6M in Q3 2025.

Outlook and guidance

• FY26 non-GAAP revenue guidance was reiterated at $3.17B–$3.19B, representing 8.0% growth at the midpoint; cloud growth is expected to be ~12% excluding the customer credit.

• FY26 non-GAAP diluted EPS guidance was raised to $11.12–$11.32; operating margin is expected to finish slightly above the high end of the 25%–26% range.

• FY26 free cash flow margin is forecast at 10%–12% reported, or 12%–14% excluding acquisition, divestiture, and restructuring items.

• Management expressed confidence in cloud growth acceleration in 2027–2028 and reaching a 27% operating margin target in 2028.