Nuance Communications, Inc. (NUAN) Thursday reported a turn to profit in the first quarter helped by an income tax benefit compared to a charge last year. Adjusted net income, excluding non-operational charges, improved from last year on a 20 percent revenue growth driven by strength in healthcare, mobile and consumer, and imaging business markets. Nevertheless, both earnings and revenues for the quarter fell short of Street estimates, pulling the company's stock down from a 52-week high in extended trade.
Nuance Communications' net income for the first quarter was $9.3 million or $0.03 per share, compared to a loss marginally below breakeven or $0.00 per share in the year-ago quarter.
Results include certain transition, integration and other acquisition-related expense items, primarily from Equitrac, eCopy and Loquendo, which totaled $14.6 million for the quarter versus $3.0 million last year. They also exclude acquisition-related revenues of $21.4 million versus $13.4 million last year.
Adjusted net income for the quarter was $108.5 million or $0.34 per share, up from $86.1 million or $0.28 per share in the year-ago quarter. On average, 19 analysts polled by Thomson Reuters expected earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.
The net result for the quarter included a tax benefit of $9.4 million versus a provision of $6.0 million last year.
Revenue for the quarter grew 18.7 percent to $360.6 million from $303.8 million in the year-ago quarter. Including revenue lost to accounting treatment in conjunction with acquisitions from both periods, revenue grew 20.4 percent to $382.0 million from $317.3 million last year. Nineteen Street analysts had a consensus revenue estimate of $391.6 million for the quarter.
Healthcare solution revenues increased 23.3 percent for the quarter, with new bookings from large eScription, Dragon Medical and radiology contracts.
Mobile and consumer solution revenues grew 23.7 percent with new bookings or design wins in the quarter. Enterprise solutions revenues for the quarter grew 4.6 percent, while document imaging solutions revenues grew 33.3 percent to $52.4 million from last year.
Adjusted operating margin for the quarter rose to 32.5 percent from 30.5 percent last year.
NUAN closed Thursday's regular trade at $30.45, up $1.12 or 3.82%, on the Nasdaq. In after-hours, the stock lost $3.96 or 13.00%. The stock hit a 52-week high of $31.15 in regular session. Over the past year, the stock traded in a range of $15.56 - $29.96.
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