The revenue beat and raised EPS guidance are positive, but the sharp GAAP profit decline, margin compression, and restructuring announcement create uncertainty. Monitor the Q4 2026 earnings for restructuring charge impact and any signs of margin stabilization.
How the stock moved after the report
⚠ Clustered NEUTRAL VIEWSTOCK BELOW ENTRY AT T+1- T+0 · Nov 4 $99.59entry
- T+1 · 12h ago −3.60%α +0.80% · $96.00
- T+5 · in 5d Pending
- T+20 · in 27d Pending
- T+60 · in 3mo Pending
Price Chart
REPLAYWatch the reaction play outHow similar events traded
Executive Summary
NICE reported Q3 2026 revenue of $790.7M (+8.0% YoY) and non-GAAP EPS of $2.84, above the consensus estimate of $2.78. However, GAAP net income fell 34% YoY to $95.1M, GAAP operating margin contracted to 15.3% from 22.0%, and the company announced a 5% workforce reduction with $15-20M in restructuring charges. Full-year 2026 EPS guidance was raised to $11.12-$11.32, while revenue guidance was reiterated.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue $790.7M, +8.0% YoY (above consensus $785.7M)
- Non-GAAP diluted EPS $2.84 vs consensus $2.78 (beat by +2.2%)
- GAAP diluted EPS $1.60, down from $2.29 YoY
- GAAP net income $95.1M, down 34% from $144.9M YoY
- GAAP operating margin 15.3% vs 22.0% YoY; non-GAAP operating margin 27.0% vs 31.5% YoY
- Cloud revenue $622.7M, +10.6% YoY; AI ARR $392M, +46% YoY
- Operating cash flow $97.7M, down from $190.5M YoY; free cash flow $69.0M, down from $163.6M YoY
- Announced workforce reduction of ~5% with $15-20M restructuring charges in Q4 2026
- Full-year 2026 non-GAAP EPS guidance raised to $11.12-$11.32; revenue guidance reiterated at $3,170M-$3,190M
- Share repurchases of $72.2M in Q3; $383.4M YTD
Financial Impact
Revenue beat consensus by ~$5M; non-GAAP EPS beat by $0.06. GAAP profitability declined sharply. Restructuring charges of $15-20M in Q4 2026.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Cloud | $622.7M | +10.6% |
| Services | $128.7M | -7.2% |
| Product | $39.3M | +29.6% |
Risk Factors
- GAAP net income and operating margin declined significantly YoY, indicating cost pressures
- Operating cash flow nearly halved YoY to $97.7M from $190.5M
- Workforce reduction of 5% may signal demand softening or need for cost restructuring
- Revenue growth of 8% was partly aided by a $10M atypical customer credit; adjusted growth would have been 9.4%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001178913-26-005002 |
| Document: zk2636332.htm | 0001178913-26-005002 |
| Document: 0001178913-26-005002-index-headers.html | 0001178913-26-005002 |
| Document: 0001178913-26-005002-index.html | 0001178913-26-005002 |
| Document: 0001178913-26-005002.txt | 0001178913-26-005002 |
| Earnings Context (Synthetic; results releases only) | 0001178913-26-005002 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 5, 2026 today | SC 13G | $97.40 | awaiting T+1 | awaiting T+1 | $96.00 (−1.43%) |
Nov 5, 2026 today | 6-K | $100.50 | awaiting T+1 | awaiting T+1 | $96.00 (−4.48%) |
Nov 4, 2026 1d ago | 6-K | $99.59 $96.00 | ▼ −3.60% | ▲ +0.80% | $96.00 (−3.60%) |
Nov 2, 2026 2d ago | Institutional Cluster | $106.27 $99.59 | ▲ +6.29% | ▲ +7.94% | $96.00 (+9.66%) |
Oct 29, 2026 7d ago | 6-K | $113.76 $112.39 | ▼ −1.20% | ▼ −0.73% | $96.00 (−15.61%) |
Oct 29, 2026 7d ago | SC 13G/A | $114.99 $113.76 | ▼ −1.07% | ▲ +0.70% | $96.00 (−16.51%) |
Oct 7, 2026 29d ago | 6-K | $116.42 $117.31 | ▲ +0.76% | ▲ +1.19% | $96.00 (−17.54%) |
Sep 22, 2026 6w ago | Institutional Cluster | $118.29 $117.79 | ▼ −0.42% | ▲ +0.30% | $96.00 (−18.84%) |
Sep 9, 2026 8w ago | 6-K | $98.87 $98.04 | ▼ −0.84% | ▼ −0.24% | $96.00 (−2.90%) |
Aug 6, 2026 13w ago | 6-K | $97.11 $101.85 | ▲ +4.88% | ▲ +4.27% | $96.00 (−1.14%) |
US Market Status
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