Customer experience software maker NICE slightly beats Q3 revenue on AI growth, raises FY outlook

Overview

• Israel-based customer experience AI platform's Q3 revenue rose 8%, slightly beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company to cut about 5% of workforce to drive efficiency with AI

Outlook

• NICE raises full-year 2026 non-GAAP EPS guidance to $11.12–$11.32

• Company reiterates full-year 2026 non-GAAP revenue guidance of $3.17 bln to $3.19 bln

• NICE expects about 12% yr-over-yr growth in 2026 cloud revenue

Result Drivers

• AI GROWTH - Co said AI annual recurring revenue rose 46% year over year to $392 mln, reaching 16% of cloud revenue

• INTERNATIONAL MARKETS - Co said international revenue grew 33% year over year

• RESTRUCTURING PLAN - Co announced plan to streamline operations and reduce workforce by about 5% to improve efficiency and focus on growth priorities

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Nov 2 - Israel's Check Point Software Q3 revenue slightly misses estimates

• Nov 3 - Arista Networks Q3 revenue beats estimates on strong momentum across customer sectors

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)