NICE Q3 Revenue Beats Estimates as Software Giant Announces 5% Workforce Cut
NICE Systems reported strong third-quarter results, beating analyst estimates with $791 million in revenue and announcing a 5% workforce reduction as part of a restructuring plan.
NICE Systems reported its third-quarter financial results, surpassing analyst expectations and exceeding the company's own previous guidance in both revenue and net income. Alongside the earnings report, the software giant officially confirmed a 5% workforce reduction as part of an organizational restructuring.
During the third quarter, NICE posted an 8% revenue growth, reaching $791 million. Cloud revenue contributed $623 million to the total, marking a 10.6% increase. Non-GAAP earnings per share came in at $2.84, exceeding analyst estimates by six cents.
Looking ahead, NICE raised its full-year non-GAAP earnings per share guidance to a range of $11.12 to $11.32, up from its previous forecast of $11.06 to $11.26. The company left its annual revenue outlook unchanged at $3.17 billion to $3.19 billion, representing an expected annual growth rate of 8%, with cloud revenue projected to grow by 12%.
Workforce Optimization and Restructuring
The software provider announced it is streamlining its organizational structure by reducing management layers and cutting its global workforce by 5%. According to the company, these measures are designed to enhance operational efficiency while enabling continued investment in core growth areas, including CX AI innovation, customer deployment speed, and go-to-market capabilities. NICE anticipates recording pre-tax restructuring charges of $15 million to $20 million in the fourth quarter of 2026.
CEO Scott Russell highlighted the company's performance and strategic direction:
«In the third quarter, total revenue and non-GAAP earnings per share were above the high end of our guidance ranges, as we continued to advance our position in the rapidly evolving CX AI market.»
Russell added that the firm witnessed robust performance across multiple segments, noting that international revenues surged 33% year-over-year, while artificial intelligence annualized recurring revenue grew 46% to $392 million, accounting for 16% of total cloud revenue. He emphasized that the company remains in the early stages of capturing a significant growth opportunity in customer experience, driven by AI agents and unified orchestration platforms.
