NiCE Exceeds Revenue and EPS Guidance Ranges, Reporting 8% Year-Over-Year Revenue Growth in Third Quarter 2026

Higher revenue and raised adjusted EPS guidance accompanied lower quarterly earnings, weaker cash generation and planned workforce reductions.

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• AI ARR reached $392 million, increasing 46% year over year
• NiCE raises full-year 2026 EPS guidance
• NiCE to streamline its operating model and drive greater efficiency by leveraging AI, reducing workforce by approximately 5%

HOBOKEN, N.J.--(BUSINESS WIRE)-- NiCE (NASDAQ: NICE) today announced results for the third quarter ended September 30, 2026, as compared to the corresponding period of the previous year.

Third Quarter 2026 Financial Highlights

GAAP	Non-GAAP
Total revenue was $790.7 million and increased 8.0%*	Total revenue was $790.7 million and increased 8.0%*
Cloud revenue was $622.7 million and increased 10.6%*	Cloud revenue was $622.7 million and increased 10.6%*
Operating income was $120.6 million with operating margin of 15.3%	Operating income was $213.8 million with operating margin of 27.0%
Diluted EPS was $1.60	Diluted EPS was $2.84
Net cash provided by operating activities was $97.7 million

*Third-quarter 2026 total revenue and cloud revenue would have increased 9.4% and 12.2%, respectively, excluding an atypical $10 million customer credit, of which approximately $9 million was recorded against non-CXone cloud revenue.

“In the third quarter, we delivered total revenue and non-GAAP EPS above the high end of our guidance ranges, while continuing to advance our position in the rapidly evolving CX AI market,” said Scott Russell, CEO of NiCE. “We saw strong performance in several important areas of our business, including international markets, where revenue increased 33% year over year and AI ARR increased 46% to $392 million reaching 16% of cloud revenue.

Additionally, today we announced a plan to further leverage AI to execute with greater speed and efficiency while focusing on our areas of greatest opportunity.”

Mr. Russell continued, “We are still in the early stages of a significant growth opportunity in customer experience. Personal AI agents have the potential to multiply customer interactions at an unprecedented scale, increasing the importance of a unified CX AI platform that can orchestrate every experience across human and AI. NiCE has the platform, strategy and customer relationships to lead this next phase of CX AI. Together with the actions we're taking to streamline the business, these advantages give me confidence in our ability to deliver sustainable, long-term value for our shareholders.”

GAAP Financial Highlights for the Third Quarter Ended September 30:

Revenues:
Third quarter 2026 total revenues increased 8.0% year over year to $790.7 million compared to $732.0 million for the third quarter of 2025.

Gross Profit:
Third quarter 2026 gross profit was $493.2 million compared to $489.1 million for the third quarter of 2025. Third quarter 2026 gross margin was 62.4% compared to 66.8% for the third quarter of 2025.

Operating Income:
Third quarter 2026 operating income was $120.6 million compared to $160.8 million for the third quarter of 2025.
Third quarter 2026 operating margin was 15.3% compared to 22.0% for the third quarter of 2025.

Net Income:
Third quarter 2026 net income was $95.1 million compared to $144.9 million for the third quarter of 2025.
Third quarter 2026 net income margin was 12.0% compared to 19.8% for the third quarter of 2025.

Fully Diluted Earnings Per Share:
Fully diluted earnings per share for the third quarter of 2026 was $1.60 compared to $2.29 in the third quarter of 2025.

Cash Flow and Cash Balance:
Third quarter 2026 operating cash flow was $97.7 million. In the third quarter of 2026, $72.2 million was used for share repurchases. As of September 30, 2026, total cash and cash equivalents, and short-term investments were $350.9 million, with no outstanding debt.

Non-GAAP Financial Highlights for the Third Quarter Ended September 30:

Revenues:
Third quarter 2026 non-GAAP total revenues increased 8.0% year over year to $790.7 million compared to $732.0 million for the third quarter of 2025.

Gross Profit:
Third quarter 2026 non-GAAP gross profit was $526.2 million compared to $511.6 million for the third quarter of 2025. Third quarter 2026 non-GAAP gross margin was 66.5% compared to 69.9% for the third quarter of 2025.

Operating Income:
Third quarter 2026 non-GAAP operating income was $213.8 million compared to $230.9 million for the third quarter of 2025. Third quarter 2026 non-GAAP operating margin was 27.0% compared to 31.5% for the third quarter of 2025.

Net Income:
Third quarter 2026 non-GAAP net income was $168.2 million compared to $200.8 million for the third quarter of 2025. Third quarter 2026 non-GAAP net income margin totaled 21.3% compared to 27.4% for the third quarter of 2025.

Fully Diluted Earnings Per Share:
Third quarter 2026 non-GAAP fully diluted earnings per share was $2.84 compared to $3.18 for the third quarter of 2025.

Restructuring Plan

NiCE is streamlining its organization, reducing management layers and simplifying decision-making, while strengthening its partner-led go-to-market and delivery capabilities. As part of this effort, NiCE expects to reduce its global workforce by approximately 5%. These actions will drive greater efficiency across the business while enabling continued investment in key growth priorities, including CX AI innovation, customer delivery and go-to-market capabilities.

NiCE expects to record pre-tax restructuring charges of approximately $15–20 million, primarily in the fourth quarter of 2026. These charges will be excluded from non-GAAP results.

Full Year 2026 Guidance:

Full-year 2026 non-GAAP total revenues are reiterated and expected to be in a range of $3,170 million to $3,190 million, representing 8.0% year-over-year growth at the midpoint.

We are raising full-year 2026 non-GAAP fully diluted earnings per share which is now expected to be in a range of $11.12 to $11.32.

The above full-year 2026 guidance includes the expectation of approximately 12% year-over-year growth in cloud revenue.

Quarterly Results Conference Call

NiCE management will host its earnings conference call today, November 4, 2026, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: https://www.nice.com/company/investors/ir-events.

Explanation of Non-GAAP measures
Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition and divestiture related expenses, gains on intercompany foreign currency transactions, amortization of deferred financing costs, amortization of discount on debt, the tax effect of the Non-GAAP adjustments, and the tax rate impact resulting from the non-U.S. intercompany transaction.

The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the ongoing financial performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.

About NiCE
NiCE (NASDAQ: NICE) is transforming the world with AI that puts people first. Our purpose-built AI-powered platforms automate engagements into proactive, safe, intelligent actions, empowering individuals and organizations to innovate and act, from interaction to resolution. Trusted by organizations throughout 150+ countries worldwide, NiCE’s platforms are widely adopted across industries connecting people, systems, and workflows to work smarter at scale, elevating performance across the organization, delivering proven measurable outcomes.

Trademark Note: NiCE and the NiCE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NiCE trademarks, please see: http://www.nice.com/nice-trademarks.

Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe”, “expect”, “seek”, “may”, “will”, “intend”, “should”, “project”, “anticipate”, “plan”, and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.

Forward looking statements are inherently subject to significant uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications, loss of market share, cyber security attacks or other security incidents, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards on the Company and our products, and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”).

You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.

###

NICE LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
		September 30,			December 31,
		2026			2025
		Unaudited			Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	312,307		$	379,388
Short-term investments			38,629			38,010
Trade receivables			896,932			737,954
Prepaid expenses and other current assets			293,985			223,780
Total current assets			1,541,853			1,379,132
LONG-TERM ASSETS:
Property and equipment, net			207,406			189,395
Deferred tax assets			180,156			198,213
Other intangible assets, net			481,223			587,599
Operating lease right-of-use assets			78,310			78,064
Goodwill			2,437,880			2,440,532
Prepaid expenses and other long-term assets			275,733			233,095
Total long-term assets			3,660,708			3,726,898
TOTAL ASSETS		$	5,202,561		$	5,106,030
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	131,614		$	100,782
Deferred revenues and advances from customers			326,233			303,911
Current maturities of operating leases			13,188			13,742
Accrued expenses and other liabilities			669,550			469,192
Total current liabilities			1,140,585			887,627
LONG-TERM LIABILITIES:
Deferred revenues and advances from customers			43,623			61,392
Operating leases			70,561			75,059
Deferred tax liabilities			4,325			109,993
Other long-term liabilities			97,173			95,431
Total long-term liabilities			215,682			341,875
SHAREHOLDERS' EQUITY
Nice Ltd's equity			3,846,294			3,876,528
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	5,202,561		$	5,106,030

NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)
	Quarter ended						Year to date
	September 30,						September 30,
	2026			2025			2026			2025
	Unaudited			Unaudited			Unaudited			Unaudited
Revenue:
Cloud	$	622,669		$	562,942		$	1,835,083		$	1,630,087
Services		128,747			138,706			377,355			419,389
Product		39,325			30,351			129,213			109,427
Total revenue		790,741			731,999			2,341,651			2,158,903
Cost of revenue:
Cloud		230,523			189,661			669,562			555,106
Services		60,107			47,218			163,506			141,715
Product		6,906			6,051			19,570			19,790
Total cost of revenue		297,536			242,930			852,638			716,611
Gross profit		493,205			489,069			1,489,013			1,442,292
Operating expenses:
Research and development, net		101,462			90,463			301,763			269,327
Selling and marketing		197,371			161,864			582,913			493,097
General and administrative		73,775			75,968			252,990			210,333
Total operating expenses		372,608			328,295			1,137,666			972,757
Operating income		120,597			160,774			351,347			469,535
Financial and other expense (income), net		1,117			(21,136)			(21,807)			(51,806)
Income before tax		119,480			181,910			373,154			521,341
Taxes on income		24,405			37,057			148,038			59,794
Net income	$	95,075		$	144,853		$	225,116		$	461,547
Earnings per share:
Basic	$	1.63		$	2.33		$	3.82		$	7.38
Diluted	$	1.60		$	2.29		$	3.77		$	7.26
Weighted average shares outstanding:
Basic		58,209			62,036			58,976			62,512
Diluted		59,306			63,161			59,762			63,574

NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS
U.S. dollars in thousands
	Quarter ended						Year to date
	September 30,						September 30,
	2026			2025			2026			2025
	Unaudited				Unaudited			Unaudited			Unaudited
Operating Activities
Net income	$	95,075		$	144,853		$	225,116		$	461,547
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		59,871			48,918			184,087			136,971
Share-based compensation and ESPP		52,445			35,834			140,505			116,481
Amortization of premium and discount and accrued interest on marketable securities		(174)			5,838			(373)			1,534
Deferred taxes, net		(19,856)			15,997			(87,461)			(9,297)
Changes in operating assets and liabilities:
Trade Receivables, net		(60,627)			(26,621)			(160,010)			(52,685)
Prepaid expenses and other current assets		2,241			19,681			15,090			33,390
Operating lease right-of-use assets		3,181			2,309			9,436			11,135
Trade payables		22,957			11,596			27,829			(19,811)
Accrued expenses and other current liabilities		(21,363)			(35,295)			71,383			(144,756)
Deferred revenue		(30,856)			(30,806)			5,426			19,049
Realized gain on marketable securities, net		-			(4,463)			-			(4,463)
Operating lease liabilities		(4,867)			(2,643)			(14,708)			(13,578)
Amortization of discount on debt		-			361			-			1,210
Gains on intercompany foreign currency transactions		-			-			(17,835)			-
Other		(299)			4,941			1,146			166
Net cash provided by operating activities		97,728			190,500			399,631			536,893
Investing Activities
Purchase of property and equipment		(7,295)			(7,258)			(24,509)			(15,504)
Purchase of Investments		(6,507)			(14,903)			(27,654)			(89,044)
Proceeds from sales of marketable investments		7,066			1,064,132			26,949			1,198,906
Capitalization of internal use software costs		(21,419)			(19,663)			(64,202)			(54,566)
Payments for business acquisitions, net of cash acquired		-			(826,583)			-			(863,049)
Net cash provided by (used in) investing activities		(28,155)			195,725			(89,416)			176,743
Financing Activities
Proceeds from employee stock plans		24			15			11,614			1,023
Purchase of treasury shares		(72,191)			(40,551)			(383,395)			(323,719)
Payment of deferred financing costs		-			-			(3,303)			-
Repayment of debt		-			(460,000)			-			(460,000)
Net cash used in financing activities		(72,167)			(500,536)			(375,084)			(782,696)
Effect of exchange rates on cash and cash equivalents		(683)			(2,087)			(1,245)			4,199
Net change in cash, cash equivalents and restricted cash		(3,277)			(116,398)			(66,114)			(64,861)
Cash, cash equivalents and restricted cash, beginning of period	$	319,170		$	536,569		$	382,007		$	485,032
Cash, cash equivalents and restricted cash, end of period	$	315,893		$	420,171		$	315,893		$	420,171
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
Cash and cash equivalents	$	312,307		$	418,052		$	312,307		$	418,052
Restricted cash included in other current assets	$	3,586		$	2,119		$	3,586		$	2,119
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	315,893		$	420,171		$	315,893		$	420,171

NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)
		Quarter ended						Year to date
		September 30,						September 30,
		2026			2025			2026			2025
GAAP revenues		$	790,741		$	731,999		$	2,341,651		$	2,158,903
Non-GAAP revenues		$	790,741		$	731,999		$	2,341,651		$	2,158,903
GAAP cost of revenue		$	297,536		$	242,930		$	852,638		$	716,611
Amortization of acquired intangible assets on cost of cloud			(25,592)			(17,177)			(79,002)			(45,782)
Cost of cloud revenue adjustment (1,2)			(3,948)			(2,910)			(10,957)			(9,381)
Cost of services revenue adjustment (1)			(3,428)			(2,431)			(7,997)			(7,127)
Cost of product revenue adjustment (1)			-			(22)			(16)			(65)
Non-GAAP cost of revenue		$	264,568		$	220,390		$	754,666		$	654,256
GAAP gross profit		$	493,205		$	489,069		$	1,489,013		$	1,442,292
Gross profit adjustments			32,968			22,540			97,972			62,355
Non-GAAP gross profit		$	526,173		$	511,609		$	1,586,985		$	1,504,647
GAAP operating expenses		$	372,608		$	328,295		$	1,137,666		$	972,757
Research and development (1,2)			(7,069)			(4,762)			(18,203)			(12,633)
Sales and marketing (1,2)			(21,412)			(13,457)			(44,628)			(42,129)
General and administrative (1,2)			(22,643)			(22,469)			(71,909)			(58,951)
Amortization of acquired intangible assets			(9,064)			(6,859)			(27,372)			(18,508)
Non-GAAP operating expenses		$	312,420		$	280,748		$	975,554		$	840,536
GAAP financial and other expense (income), net		$	1,117		$	(21,136)		$	(21,807)		$	(51,806)
Amortization of discount on debt			-			(361)			-			(1,210)
Amortization of deferred financing costs			(275)			-			(678)			-
Realized gain on marketable securities, net			-			4,463			-			4,463
Gains on intercompany foreign currency transactions			-			-			17,835			-
Non-GAAP financial and other expense (income), net		$	842		$	(17,034)		$	(4,650)		$	(48,553)
GAAP taxes on income		$	24,405		$	37,057		$	148,038		$	59,794
Tax adjustments re non-GAAP adjustments			20,306			10,043			(20,678)			76,763
Non-GAAP taxes on income		$	44,711		$	47,100		$	127,360		$	136,557
GAAP net income		$	95,075		$	144,853		$	225,116		$	461,547
Amortization of acquired intangible assets			34,656			24,036			106,374			64,290
Share-based compensation (1)			53,723			37,380			144,725			121,220
Acquisition and divestiture related expenses (2)			4,777			8,671			8,985			9,066
Amortization of discount on debt			-			361			-			1,210
Amortization of deferred financing costs			275			-			678			-
Realized gain on marketable securities, net			-			(4,463)			-			(4,463)
Gains on intercompany foreign currency transactions			-			-			(17,835)			-
Tax adjustments re non-GAAP adjustments			(20,306)			(10,043)			20,678			(76,763)
Non-GAAP net income		$	168,200		$	200,795		$	488,721		$	576,107
GAAP diluted earnings per share		$	1.60		$	2.29		$	3.77		$	7.26
Non-GAAP diluted earnings per share		$	2.84		$	3.18		$	8.18		$	9.06
Shares used in computing GAAP diluted earnings per share			59,306			63,161			59,762			63,574
Shares used in computing non-GAAP diluted earnings per share			59,306			63,161			59,762			63,574

NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
U.S. dollars in thousands
(1)	Share-based compensation
		Quarter ended						Year to date
		September 30,						September 30,
		2026			2025			2026			2025
	Cost of cloud revenue	$	3,770		$	2,910		$	10,779		$	9,381
	Cost of services revenue		3,428			2,431			7,997			7,127
	Cost of product revenue		-			22			16			65
	Research and development		6,955			4,762			18,089			12,633
	Sales and marketing		21,170			13,447			44,386			42,119
	General and administrative		18,400			13,808			63,458			49,895
		$	53,723		$	37,380		$	144,725		$	121,220
(2)	Acquisition and divestiture related expenses
		Quarter ended						Year to date
		September 30,						September 30,
		2026			2025			2026			2025
	Cost of cloud revenue	$	178		$	-		$	178		$	-
	Research and development		114			-			114			-
	Sales and marketing		242			10			242			10
	General and administrative		4,243			8,661			8,451			9,056
		$	4,777		$	8,671		$	8,985		$	9,066

NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA
U.S. dollars in thousands
	Quarter ended						Year to date
	September 30,						September 30,
	2026			2025			2026			2025
	Unaudited			Unaudited			Unaudited			Unaudited
GAAP net income	$	95,075		$	144,853		$	225,116		$	461,547
Non-GAAP adjustments:
Depreciation and amortization		59,871			48,918			184,087			136,971
Share-based compensation		52,445			35,834			140,505			116,481
Financial and other expense (income), net		1,117			(21,136)			(21,807)			(51,806)
Acquisition and divestiture related expenses		4,777			8,671			8,985			9,066
Taxes on income		24,405			37,057			148,038			59,794
Non-GAAP EBITDA	$	237,690		$	254,197		$	684,924		$	732,053

NICE LTD. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS
U.S. dollars in thousands
	Quarter ended						Year to date
	September 30,						September 30,
	2026			2025			2026			2025
	Unaudited			Unaudited			Unaudited			Unaudited
Net cash provided by operating activities	$	97,728		$	190,500		$	399,631		$	536,893
Purchase of property and equipment		(7,295)			(7,258)			(24,509)			(15,504)
Capitalization of internal use software costs		(21,419)			(19,663)			(64,202)			(54,566)
Free Cash Flow (a)	$	69,014		$	163,579		$	310,920		$	466,823
(a) Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software costs.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261104629389/en/

Investor Relations
Ryan Gilligan, +1-551-417-2531, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET

Corporate Media
Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET

Source: NiCE

Key Terms

arr financial

ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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diluted eps financial

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.