NICE Ltd.

Total revenue for Q2 2026 was $782 million, up 8% year over year. Non-GAAP EPS was $2.70, and operating margin was 25.3% on operating income of $198 million. Cloud revenue was $609 million, up 12.6% year over year, and CX AI and Self-Service ARR was $362 million, up 52% year over year. Gross margin was 68.4%, with cloud gross margin at 69%, up 40 basis points year over year. Services revenue was $125 million, down 11% year over year, and product revenue was $49 million, up 7% year over year. For guidance, NICE expects full-year 2026 revenue of $3.170 billion to $3.190 billion, cloud revenue growth of 13% to 15%, Q3 revenue of $780 million to $790 million, and Q3 EPS of $2.73 to $2.83. Full-year EPS is now expected to be $11.06 to $11.26, and the company still expects to finish the year at the higher end of its 18% to 19% free cash flow margin range.

Scott Russell framed the quarter as evidence that NICE is strengthening its leadership in CX AI, saying the company is still in the early stages of a larger growth opportunity. His message centered on a single, natively integrated CX AI platform, with Cognigy now fully native to CXone ahead of schedule and AI increasingly embedded in enterprise deals. He sounded confident and upbeat, emphasizing record bookings, strong partner momentum, and what he called durable differentiation in mission-critical, production-scale deployments.

Beth Gaspich focused on execution against the plan and highlighted that Q2 revenue and EPS came in at the high end of expectations. She pointed to gross margin of 68.4%, cloud gross margin of 69%, operating cash flow of $123 million, free cash flow of $93 million, and $355 million in cash and short-term investments. She also noted $58 million of share repurchases in the quarter and $311 million repurchased year to date, while reiterating confidence in full-year free cash flow margins at the higher end of the 18% to 19% range.

Analysts focused on the gap between strong bookings and slower near-term revenue/ARR conversion, especially in AI, and management said that timing reflects customer preparation for production deployments rather than demand weakness. Scott Russell said the strategic renewals and discounts were targeted commercial decisions, not a broad change in approach, and Beth Gaspich said the modest NRR change to 106% was expected. Questions also pushed on competition from AI-native vendors and the role of partners like RingCentral and GSIs; management argued NICE wins by combining AI, CCaaS, and workforce capabilities on one platform, while still interoperating with other systems. Beth Gaspich confirmed the company is still standing with the medium-term targets previously communicated, including the $3.5 billion 2028 top-line expectation referenced by an analyst.