NICE Surpasses Revenue Forecasts as AI Business Drives Growth

NICE reported its first-quarter results, exceeding Wall Street revenue expectations with a 7.6% increase to $782.3 million, above the $767 million analyst forecast. The growth was primarily driven by a 12.6% surge in cloud revenues, reaching $609 million, and a 22% rise in international market activity. The company raised its annual non-GAAP earnings per share forecast but maintained its 2026 revenue guidance, anticipating continued cloud revenue growth of 13% to 15%. A key highlight for investors was the expansion of NICE's artificial intelligence segment, with annual recurring revenue from AI reaching $362 million, accounting for about 15% of the company’s cloud revenues.

Despite revenue growth, NICE's profitability declined. GAAP net income fell to $83.2 million from $187.4 million in the same quarter last year, and GAAP earnings per share dropped to $1.40 from $2.96. On a non-GAAP basis, earnings per share were $2.70 compared to $3.01 the previous year. The company ended the quarter with $354.7 million in cash and no debt, and repurchased $58 million of its shares during the period. CEO Scott Russell noted that organizations are moving from AI experimentation to broad implementation in production environments, boosting demand for NICE’s CXone platform and AI solutions.