Shares of NICE Ltd (NICE) plummeted 14.18% in Thursday's trading session, significantly extending the pre-market decline following the company's release of its second-quarter earnings report and third-quarter guidance. While the company posted better-than-expected Q2 results, investors appear to be focusing heavily on the disappointing revenue outlook for the upcoming quarter.

NICE Ltd reported Q2 adjusted earnings of $3.01 per share, up from $2.64 a year earlier, narrowly missing analysts' expectations by just a penny. Revenue for the quarter came in at $726.7 million, surpassing the consensus estimate of $713.7 million and marking a 9.38% increase from the same period last year. Despite these solid results, the stock's sharp decline suggests that investors are more concerned about future performance.

The primary driver behind the stock's dramatic fall seems to be the company's Q3 guidance. NICE Ltd expects Q3 revenue between $722 million and $732 million, falling short of analysts' projections of $736 million. The earnings guidance for Q3, set at $3.12 to $3.22 per share, also has a midpoint slightly below the $3.19 expected by analysts. This conservative outlook appears to have overshadowed the company's solid Q2 performance and raised full-year earnings guidance. Adding to investor concerns, DA Davidson lowered its price target on NICE from $195 to $150, maintaining a Neutral rating on the shares following the Q2 results, noting that the reiteration of guidance underwhelmed expectations.