NICE (NICE) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $782.3 million, up 7.6% year-over-year, exceeding the high end of guidance, with non-GAAP EPS at $2.70.

• 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; Agentic AI solutions grew even faster.

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

• Record Q2 for new cloud ACV bookings and all-time record for AI bookings.

Financial highlights

• Non-GAAP operating income was $198 million (25.3% margin); non-GAAP net income was $160 million; non-GAAP EBITDA was $223 million (28.5% margin).

• Gross margin was 68.4% (non-GAAP 69%); cloud gross margin improved 40 bps to 69%.

• Free cash flow for Q2 was $93.1 million, up from $38.6 million year-over-year; free cash flow margin expected at high end of 18–19% for full year.

• Services revenue declined 11% year-over-year to $125 million due to cloud migration; product revenue increased 7% to $49 million.

• Shares outstanding declined 6% year-over-year to 58.1 million.

Outlook and guidance

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

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

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

• Confident in achieving $3.5 billion revenue target for 2028.