NICE published its second-quarter report on 5 August 2026. We are writing about it today, 6 August.
What was reported
| Quarter | Change | |
|---|---|---|
| Total revenue | 782.3 | +7.6% |
| Cloud revenue | 609.0 | +12.6% |
| International revenue | +22% |
In millions of dollars. International growth in constant currency: 21%.
And revenue exceeded the guidance range the company itself had given.
The number that explains the company
Cloud is 78% of revenue
$609 million out of $782.3 million - roughly 78% of revenue comes from cloud.
And that is the line growing faster: 12.6% against 7.6% overall.
The arithmetic is clear: if the large part grows faster than the average, the small part - on-premise licensing and traditional services - is shrinking.
And that is exactly what should happen at a software company moving to cloud: one-off licence revenue is replaced by recurring subscription revenue. In the short term that slows reported growth. In the long term it produces predictable revenue.
NICE is at an advanced stage of that transition - 78% is no longer an interim point.
The international side
Revenue outside the home market rose 22%, and 21% in constant currency.
So the growth is not a currency effect - it is real. And at almost three times the overall growth rate, it says the international market is the primary growth engine right now.
And the guidance
The company raised its full-year 2026 EPS guidance.
Worth noting the nuance: NICE raised its earnings outlook, not necessarily its revenue outlook. A company raising profit without raising revenue is saying it is becoming more efficient, not that it is selling more.
My Angle
A personal opinion of Ilan Abramov - not advice, not a recommendation
NICE is a good example of how a reported growth rate can mislead to the downside.
7.6% growth sounds mediocre for a large Israeli software company. But looking inside shows that the part making up 78% of revenue is growing 12.6% - and the drag is the old business shrinking.
And that is a good position, not a bad one. The smaller the old part becomes, the less it pulls down. Within a few quarters reported growth will converge toward cloud growth.
And what interests me is the international line: plus 22%, and plus 21% in constant currency. That is not currency noise. A company whose international market grows at three times the average is finding demand in new places.
And what I flag: the guidance raised was for EPS. That is an improvement in the bottom line and it is welcome - but it is not the same as raising the revenue outlook. The growth engine is measured on the top line.
