NICE changes
Pick any two versions below to diff them.
- Price
- $112.17 → $113.76(+1.4%)
- Next earnings
- Nov 5, 2026 → Nov 4, 2026
- Next earnings is estimate
- Yes → No
- Thesis
- The market prices NiCE for the fear that AI agents will reduce the number of human contact center agents, and so the number of seats that companies pay for in CXone. Revenue growth slowed to 7.6% in Q2 2026 from 9.8% in Q1, and cloud revenue growth slowed to 12.6% from 14.6%. The non-GAAP operating margin fell to 25.3% from 30.2% a year earlier, as NiCE invests in AI and in Cognigy. Investors are not yet sure that AI revenue can replace the seat revenue that AI can remove. For the gap to close, three things must be true. Cloud revenue must grow 13% to 15% in 2026, as the guidance says. AI annual recurring revenue (ARR), which was $362 million or 15% of cloud revenue in Q2 2026, must keep growing fast. The operating margin must stop falling, so that NiCE reaches its 2026 non-GAAP EPS guidance of $11.06 to $11.26. The Q3 2026 report, removed: estimated for about added: on November removed: 5, added: 4, 2026, gives the next test with the Q3 guidance of $780 million to $790 million of revenue. The 2027 guidance in February 2027 shows whether growth holds. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a faster fall in contact center seats than the growth in AI revenue.
- Checkpoints
- Nov removed: 5, 2026 (estimate): added: 4, 2026: Q3 2026 earnings: cloud growth and AI ARR. Pending. Watch: Revenue within the guidance of $780 million to $790 million, cloud growth of 13% or more and higher AI ARR pass; revenue below the range or slower cloud growth fails. Feb 2027 (estimate): 2026 results and 2027 guidance. Pending. Watch: 2026 non-GAAP EPS within $11.06 to $11.26 and 2027 guidance for cloud growth near 13% pass; lower EPS or a weaker cloud outlook fails.