The sharp GAAP earnings decline and margin compression (operating margin down ~470bps GAAP, ~450bps non-GAAP) overshadow the solid top-line growth. With Q2 guidance implying only 5.5% revenue growth, the deceleration trend warrants watching. Monitor upcoming quarters for margin stabilization and whether cloud revenue growth can sustain above 13%.
Price Chart
Executive Summary
NICE Ltd. reported Q1 2026 results with total revenue of $768.6M (+9.8% YoY) and cloud revenue of $603.4M (+14.6% YoY), while GAAP net income fell sharply to $46.8M from $129.3M and GAAP EPS dropped to $0.77 from $2.01. The company raised full-year 2026 non-GAAP EPS guidance to $10.98-$11.18 but reiterated revenue guidance at $3,170M-$3,190M, implying decelerating growth.
Key Facts
- Q1 2026 total revenue $768.6M, +9.8% YoY vs $700.2M
- Cloud revenue $603.4M, +14.6% YoY
- GAAP net income $46.8M vs $129.3M YoY, a decline of 63.8%
- GAAP diluted EPS $0.77 vs $2.01 YoY
- Non-GAAP diluted EPS $2.64 vs $2.87 YoY, a decline of 8.0%
- GAAP operating income $126.8M vs $148.2M YoY, margin 16.5% vs 21.2%
- Non-GAAP operating income $199.7M vs $213.6M YoY, margin 26.0% vs 30.5%
- Operating cash flow $179.2M vs $285.1M YoY, a decline of 37.1%
- Free cash flow $148.8M vs $264.6M YoY
- Share repurchases of $253.3M in Q1 2026
- AI ARR increased 66% YoY
- Full-year 2026 non-GAAP EPS guidance raised to $10.98-$11.18
- Full-year 2026 revenue guidance reiterated at $3,170M-$3,190M (8.0% YoY growth at midpoint)
- Q2 2026 revenue guidance $761M-$771M (5.5% YoY growth at midpoint)
- Cash and short-term investments $304.1M, no outstanding debt
Financial Impact
Revenue grew 9.8% to $768.6M, but GAAP net income collapsed 63.8% to $46.8M and non-GAAP EPS fell 8.0% to $2.64. Operating cash flow dropped 37.1% to $179.2M. Guidance implies further deceleration to 5.5% revenue growth in Q2.
Risk Factors
- GAAP net income down 63.8% YoY signals significant cost pressure from amortization and integration of Cognigy
- Revenue growth decelerating from 9.8% in Q1 to guided ~5.5% in Q2
- Non-GAAP operating margin contracted 450bps YoY, indicating rising cost structure
- Operating cash flow down 37.1% YoY despite higher revenue
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001178913-26-002406 |
| Document: zk2635209.htm | 0001178913-26-002406 |
| Document: 0001178913-26-002406-index-headers.html | 0001178913-26-002406 |
| Document: 0001178913-26-002406-index.html | 0001178913-26-002406 |
| Document: 0001178913-26-002406.txt | 0001178913-26-002406 |
Track record builds as more directional reports settle.
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| Type | Now | ||||
|---|---|---|---|---|---|
Jun 9, 2026 20w ago | 6-K | $90.25 $99.09 | ▲ +9.79% | ▲ +5.71% | $114.25 (+26.59%) |
Jun 9, 2026 20w ago | 6-K | $90.25 $99.09 | ▲ +9.79% | ▲ +5.71% | $114.25 (+26.59%) |
May 6, 2026 24w ago | 6-K | $97.42 $95.96 | ▼ −1.50% | ▼ −3.56% | $114.25 (+17.28%) |
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Apr 9, 2026 28w ago | 6-K | $109.00 $88.72 | ▼ −18.61% | ▼ −29.39% | $114.25 (+4.82%) |
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