NICE Ltd. Q3 2026 Earnings Recap

NiCE shares fell 9.7% after earnings, as investors appeared to focus on cloud growth that management acknowledged is “not where it needs to be,” despite Q3 revenue and EPS topping the company’s guidance range. Cloud revenue grew 10.6% (12.2% excluding an atypical customer credit), with slower growth in several businesses outside CXone and AI weighing on the outlook for faster growth.

Key Takeaways

• Q3 revenue was $791 million and adjusted EPS was $2.84; both were above the high end of the company’s guidance ranges.
• Cloud revenue grew 10.6%, or 12.2% excluding an atypical customer credit. Management said organic cloud growth improved slightly from Q2 but remains below where it needs to be.
• Management cited slower growth in stand-alone hosted Workforce Management, Network Connectivity, and Financial Crime and Compliance; it said these businesses continue to grow, but more slowly than CXone and AI.
• AI ARR grew 46% year over year and reached 16% of cloud revenue. Management said enterprise adoption is measured, particularly for security, governance, and mission-critical workflows.
• Workforce Management within the CXone platform continues to perform well, according to management, contrasting with slower growth in stand-alone hosted Workforce Management.