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NICE Ltd (IL:NICE)
:NICE
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Nice
(NICE)
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Rating:76Outperform
Price Target:
38,646.00
▲(4.59% Upside)
Action:ReiteratedDate:02/20/26
Strong fundamentals drive the score, led by improving profitability, robust cash generation, and a significantly de-risked balance sheet with very low leverage. Valuation is supportive with a low P/E. The main offset is technical weakness, as the stock remains below key medium/long-term moving averages with negative MACD, indicating subdued momentum.
Positive Factors
Recurring SaaS revenue
A structural shift toward cloud and SaaS increases revenue predictability and retention, strengthening recurring cashflow. Over 2–6 months this reduces exposure to one-time license swings, supports higher lifetime value per customer and underpins scalable margin expansion as subscriptions scale.
Multi-year revenue growth
Consistent multi-year top-line expansion demonstrates sustained market demand and successful product adoption across segments. This durable growth supports reinvestment, product development and scale economies, making future revenue and profit trajectories less dependent on short-term market swings.
Very conservative balance sheet
Sharply reduced leverage and a stronger equity base materially raise financial flexibility for M&A, R&D or shareholder returns. Low debt lowers refinancing and solvency risk, making the company more resilient to macro shocks and enabling durable capital allocation choices over coming quarters.
Negative Factors
Cash conversion volatility
Operating cash conversion below parity indicates working-capital timing and collection variability. Over a 2–6 month horizon this can constrain free cash flow availability for investments or returns and introduces execution risk if receivables or payables cycles lengthen.
Margin variability
Intermittent margin erosion signals exposure to cost pressures or mix shifts that could recur. Sustaining mid-to-high gross margins and expanding operating margins depends on disciplined cost control and pricing power; variability raises the risk that margins may compress in adverse conditions.
Slight asset contraction
A modest decline in total assets may reflect reduced investment or divestitures, which could limit capacity to scale new offerings. Over several months this could constrain growth initiatives or signal strategic reallocation that needs monitoring to ensure it doesn't impair long-term revenue momentum.
Nice (NICE) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪22.62B
Dividend YieldN/A
Average Volume (3M)211.77K
Price to Earnings (P/E)10.6
Beta (1Y)0.24
Revenue Growth4.34%
EPS Growth27.35%
CountryIL
Employees8,726
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1013.60
Shares Outstanding61,743,477
10 Day Avg. Volume352,262
30 Day Avg. Volume211,770
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.80
Price to Sales (P/S)2.19
P/FCF Ratio9.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nice Business Overview & Revenue Model
Company DescriptionNICE Ltd., together with its subsidiaries, provides cloud platforms for AI-driven digital business solutions worldwide. It offers CXone, a cloud native open platform that supports contact centers ranging from small single sites to distributed remote agents and enterprises; Enlighten, an AI engine for CX that discovers automation opportunities for self-service; digital-entry points solutions that enable organizations to address consumers' needs; and journey orchestration solutions that empower organizations to connect and route customers to deal with the customer's request, and connecting them using real time AI-based routing. The company also provides smart self service solutions that empower organizations to build intelligent automated conversations based on data; and prepared agent solutions and tools enable contact center agents to guide and alert them in real time so they can provide resolutions; complete performance solutions that help organizations to record structured and unstructured customer interaction and transaction data; and NICE Evidencentral, an digital evidence management platform for public safety emergency communications, law enforcement, and criminal justice helps agencies. In addition, it offers X-Sight, is an open and flexible AI-cloud platform for financial crime and compliance; Xceed, a cloud platform for comprehensive AML and fraud prevention for small and mid-sized organizations; data intelligence solutions that enable organizations to turn raw data into comprehensive actionable intelligence to prevent and detect financial crimes; AI and analytics technologies to detect and prevent financial crimes in real-time; money laundering and fraud prevention solutions that help organizations adhere to capital markets compliance and anti-money laundering compliance regulations; intelligent investigations solutions; and self-service solutions that provide organizations with customization and self-development capabilities. The company was formerly known as NICE-Systems Ltd. and changed its name to NICE Ltd. in June 2016. NICE Ltd. was founded in 1986 and is based in Ra'anana, Israel.
How the Company Makes MoneyNICE generates revenue through a combination of software licensing, subscription services, and professional services. The company offers both on-premise and cloud-based solutions, with a growing emphasis on SaaS (Software as a Service) offerings that provide recurring revenue streams. Key revenue streams include sales of software licenses, monthly or annual subscription fees for cloud services, and consulting and implementation services that help clients adopt and integrate NICE’s solutions. Additionally, NICE benefits from strategic partnerships with technology providers and system integrators, which enhance its market reach and contribute to its revenue through collaborative projects and joint solutions.
Nice Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call reflects a generally strong performance with revenue and earnings exceeding expectations, driven by significant growth in AI and international markets. However, the underperformance of LiveVox and cloud margin pressures present challenges. Strategic partnerships and international expansion provide optimism for future growth.Q2-2025 Updates
Positive Updates
Strong Revenue and Earnings Performance
Total revenue for Q2 2025 reached $727 million, exceeding guidance with a 9% year-over-year increase. Earnings per share also came in at the high end of the guidance range.
AI and Self-Service ARR Growth
AI and self-service ARR grew by 42% year-over-year to $238 million, demonstrating strong momentum in AI solutions like Autopilot, Copilot, and self-service offerings.
Significant International Wins
Secured large deals internationally, including a $100 million contract with the UK's Department of Work and Pensions and a 7-figure ACV win with German health insurer AOK PLUS.
Strategic Partnerships
Expanded alliances with AWS, Snowflake, and Salesforce, and renewed partnership with RingCentral, enhancing the integration and market reach of NICE's solutions.
Negative Updates
LiveVox Performance Issues
The LiveVox business underperformed, creating pressure on cloud growth expectations, attributed to larger-than-expected churn and some customers building in-house solutions.
Cloud Gross Margin Decline
Cloud gross margin fell below 70% due to increased cloud investments, impacting overall profitability.
Company Guidance
The guidance provided in the call for NICE's third quarter and full year 2025 highlights continued confidence in achieving strong financial performance. For Q3 2025, NICE expects total revenue to be in the range of $722 million to $732 million, implying a 5% year-over-year growth at the midpoint, with fully diluted earnings per share (EPS) projected between $3.12 and $3.22, marking a 10% increase. For the full year, the company reaffirms its total revenue guidance of $2.918 billion to $2.938 billion, representing a 7% increase at the midpoint, while maintaining an expectation of 12% year-over-year cloud revenue growth. Furthermore, NICE anticipates a 50 basis point increase in its non-GAAP operating margin year-over-year, with non-GAAP EPS guidance raised to $12.33 to $12.53, reflecting a 12% increase at the midpoint. The guidance excludes potential impacts from the planned Cognigy acquisition, which is expected to close in Q4 2025.Nice Financial Statement Overview
Summary
Strong, consistent revenue growth (2021–2025 up from ~1.92B to ~3.19B) with improving profitability (net margin ~20.8% in 2025; EBIT margin ~22% in 2024–2025). Balance sheet is a major strength with sharply reduced debt (~879M to ~164M) and low leverage (debt/equity ~0.04). Cash flow is solid (~755M FCF in 2025) but cash conversion has been somewhat uneven (OCF to net income ~0.87 in 2025).Income Statement
Revenue growth remains solid and consistent over time (2021–2025 annual revenue rising from ~1.92B to ~3.19B, with 2025 growth at ~10.7%). Profitability is a key strength: gross margin is steady in the mid-to-high 60% range, while net margin has expanded meaningfully (to ~20.8% in 2025 vs ~16.2% in 2024). Operating profitability is also strong with EBIT margin holding around ~22% in 2024–2025. Main weakness: margin progression is not perfectly linear year-to-year (e.g., EBITDA margin dipped slightly in 2025 vs 2024), suggesting some cost pressure even as earnings improved.86
Very Positive
Balance Sheet
The balance sheet looks very conservative and improving: debt has been reduced sharply (from ~879M in 2021 to ~164M in 2025), driving debt relative to equity down to ~0.04 in 2025. Equity has steadily grown (~2.83B to ~3.88B from 2021 to 2025), supporting financial flexibility. Returns to shareholders are also improving (return on equity rising to ~17.1% in 2025). The main watch item is that total assets were slightly lower in 2025 vs 2024, but the overall leverage and capital strength remain standout positives.92
Very Positive
Cash Flow
Cash generation is strong with high free cash flow in absolute dollars (~755M in 2025) and free cash flow closely matching reported earnings (free cash flow to net income ~0.97 in 2025). Free cash flow growth was positive in 2025 (~6.1%), though not consistently strong across all years (including a decline in 2021). A key weakness is that operating cash flow has at times lagged earnings (operating cash flow to net income below 1.0 across the period, improving to ~0.87 in 2025), indicating working-capital timing or cash conversion volatility even though overall cash generation remains healthy.82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.19B | 2.74B | 2.38B | 2.18B | 1.92B |
| Gross Profit | 2.12B | 1.83B | 1.61B | 1.50B | 1.30B |
| EBITDA | 924.29M | 810.00M | 628.76M | 525.59M | 440.48M |
| Net Income | 662.58M | 442.59M | 338.30M | 265.94M | 199.22M |
Balance Sheet | |||||
| Total Assets | 5.11B | 5.30B | 5.12B | 4.86B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 417.48M | 1.62B | 1.41B | 1.57B | 1.42B |
| Total Debt | 163.89M | 563.60M | 782.97M | 777.46M | 878.52M |
| Total Liabilities | 1.23B | 1.69B | 1.76B | 1.80B | 1.83B |
| Stockholders Equity | 3.88B | 3.59B | 3.34B | 3.04B | 2.83B |
Cash Flow | |||||
| Free Cash Flow | 755.16M | 732.87M | 477.25M | 397.82M | 394.61M |
| Operating Cash Flow | 775.64M | 832.64M | 561.43M | 479.71M | 461.82M |
| Investing Cash Flow | 173.15M | -397.40M | -293.58M | -152.35M | -261.50M |
| Financing Cash Flow | -1.07B | -456.60M | -290.27M | -164.50M | -261.82M |
Nice Technical Analysis
Positive
36950.00
Price Trends
35015.40
Positive
37558.10
Negative
45686.95
Negative
Market Momentum
-148.27
Negative
55.25
Neutral
88.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NICE, the sentiment is Positive. The current price of 36950 is above the 20-day moving average (MA) of 33625.00, above the 50-day MA of 35015.40, and below the 200-day MA of 45686.95, indicating a neutral trend. The MACD of -148.27 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 88.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:NICE.
Nice Peers Comparison
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Sector (61)
IL:NICE
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35,590.00
-20,220.00
-36.23%
IL:ONE
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IL:MTRX
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12.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.