-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
NICE reported Q1 non-GAAP EPS of $2.64, beating consensus by $0.12 but declining 8% Y/Y from $2.87. Total revenues of $768.6M grew 10% Y/Y, exceeding guidance and consensus, with cloud revenue of $603.4M up 14.6% Y/Y. AI annual recurring revenue surged 66% Y/Y, with AI included in 100% of CXone enterprise deals, demonstrating strong adoption of NICE's AI-native platform. However, non-GAAP operating margin compressed 450 bps Y/Y to 26.0%, reflecting higher operating expenses from strategic AI investments and Cognigy integration costs. We believe the margin pressure is temporary as NICE invests in its AI capabilities, and strong cash generation of $179.2M supported $253M in share repurchases, demonstrating management's commitment to capital returns during this investment phase. Management raised full-year 2026 EPS guidance to $10.98-$11.18 from $10.85-$11.05, above the beat, while reiterating revenue guidance of $3,170M-$3,190M. NICE also lowered its cloud growth expectations to 13%-15% Y/Y (from 14.5%-15%).