NICE (NICE) AI Stock Analysis

• Market Cap: $6.46B
• Dividend Yield: N/A
• Average Volume (3M): 933.57K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.32
• Revenue Growth: 9.46%
• EPS Growth: 34.09%
• Country: US
• Employees: 8,726
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.18
• Shares Outstanding: 61,743,477
• 10 Day Avg. Volume: 1,780,024
• 30 Day Avg. Volume: 933,567
• PEG Ratio: 0.79
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 3.94
• P/FCF Ratio: 14.71
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 10.76
• 1Y Price Target: $162.14
• Price Target Upside: 54.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 12.27
• Revenue Forecast (FY): $2.94B

• Rating: 71 Outperform
• Price Target: $117.00 ▲(11.19% Upside)

NICE's overall stock score is driven by its strong financial performance and positive earnings call, indicating robust growth potential and strategic success. However, technical analysis points to bearish momentum, which tempers the overall score. The valuation suggests potential undervaluation, but the lack of a dividend yield may deter some investors.

Positive Factors

Cloud Revenue Growth

The strong growth in cloud revenue indicates robust demand for NICE's SaaS offerings, positioning the company well for sustained long-term growth in the cloud computing space.

AI and Self-Service Expansion

The rapid growth in AI and self-service solutions highlights NICE's competitive edge in AI-driven customer engagement, enhancing its market position and future revenue potential.

International Revenue Growth

Strong international revenue growth demonstrates NICE's successful global expansion strategy, diversifying its revenue streams and reducing reliance on any single market.

Negative Factors

Operating Margin Contraction

The anticipated contraction in operating margins could pressure profitability, potentially impacting NICE's ability to invest in growth initiatives and maintain competitive pricing.

Decline in Services Revenue

The decline in services revenue reflects a shift in customer preferences, which may require NICE to adapt its service offerings to sustain its revenue base.

Leadership Change

The appointment of a new COO could lead to strategic shifts and operational changes, potentially disrupting established processes and impacting short-term performance.

NICE Business Overview & Revenue Model

Company Description

NICE is a global software company that specializes in providing solutions for customer engagement, financial crime and compliance, and public safety. Established in 1986, NICE operates primarily in the sectors of cloud-based analytics, artificial intelligence, and data-driven decision-making. The company's core products include advanced contact center software, workforce optimization solutions, and analytics tools designed to improve customer experiences and operational efficiency across various industries.

How the Company Makes Money

NICE generates revenue through a subscription-based model, primarily from its cloud offerings, which include software as a service (SaaS) solutions. Key revenue streams include recurring subscription fees from its customer engagement and financial crime and compliance solutions, as well as professional services such as consulting and implementation. Significant partnerships with technology firms and integration with other enterprise software platforms enhance its service offerings, contributing to customer retention and new client acquisition. Additionally, NICE benefits from a growing demand for analytics and AI-driven solutions, further bolstering its revenue growth.

NICE Financial Statement Overview

Summary

NICE displays a robust financial performance with strong revenue and profit growth, efficient cost management, and prudent leverage. Cash flow generation is solid, supporting future growth and investment. Overall, NICE is well-positioned in the Software - Application industry with a stable and profitable financial foundation.

Income Statement

NICE has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.48% and consistent annual growth. The gross profit margin remains robust at 67.03% TTM, indicating efficient cost management. Net profit margin improved to 18.92% TTM, reflecting enhanced profitability. EBIT and EBITDA margins also show healthy operational efficiency, with TTM figures at 23.37% and 30.06%, respectively.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.14 TTM, indicating prudent leverage management. Return on equity has improved to 14.93% TTM, showcasing effective utilization of shareholder funds. The equity ratio stands at a healthy level, reflecting strong asset backing by equity.

Cash Flow

NICE exhibits strong cash flow generation with a TTM free cash flow growth rate of 7.80%. The operating cash flow to net income ratio is 0.55 TTM, indicating good cash conversion efficiency. The free cash flow to net income ratio is 0.87 TTM, highlighting effective cash management and reinvestment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.88B	2.74B	2.38B	2.18B	1.92B	1.65B
Gross Profit	1.93B	1.83B	1.61B	1.50B	1.30B	1.09B
EBITDA	815.65M	754.14M	628.76M	525.59M	440.48M	436.63M
Net Income	561.06M	442.59M	338.30M	265.94M	199.22M	196.35M
Balance Sheet
Total Assets	5.15B	5.30B	5.12B	4.85B	4.71B	4.23B
Cash, Cash Equivalents and Short-Term Investments	455.89M	1.62B	1.41B	1.57B	1.42B	1.46B
Total Debt	86.85M	563.60M	782.97M	777.46M	925.91M	795.89M
Total Liabilities	1.29B	1.69B	1.76B	1.80B	1.87B	1.64B
Stockholders Equity	3.86B	3.59B	3.34B	3.04B	2.83B	2.56B
Cash Flow
Free Cash Flow	711.62M	732.87M	477.25M	397.82M	394.61M	417.02M
Operating Cash Flow	786.41M	832.64M	561.43M	479.71M	461.82M	480.31M
Investing Cash Flow	-153.69M	-397.40M	-293.58M	-152.35M	-261.50M	-465.07M
Financing Cash Flow	-877.48M	-456.60M	-290.27M	-164.50M	-261.82M	196.84M

NICE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NICE, the sentiment is Negative. The current price of 105.23 is below the 20-day moving average (MA) of 120.38, below the 50-day MA of 131.27, and below the 200-day MA of 149.48, indicating a bearish trend. The MACD of -8.29 indicates Positive momentum. The RSI at 33.29 is Neutral, neither overbought nor oversold. The STOCH value of 15.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NICE.

NICE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICE	71 Outperform	$6.46B	11.85	15.23%	―	9.46%	34.09%
PEGA	69 Neutral	$9.22B	36.81	51.96%	0.17%	17.00%	120.21%
MNDY	66 Neutral	$7.36B	118.24	5.81%	―	28.62%	186.67%
CVLT	62 Neutral	$5.44B	69.44	32.87%	―	22.02%	-55.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ESTC	61 Neutral	$7.37B	―	-12.84%	―	16.98%	-265.85%
GTLB	60 Neutral	$6.77B	―	-0.63%	―	28.97%	98.96%

NICE Corporate Events

NICE Ltd. Reports Strong Q3 2025 Results with 13% Cloud Revenue Growth

NICE Ltd. reported a 13% year-over-year increase in cloud revenue for the third quarter of 2025, with total revenues reaching $732 million, marking a 6% rise from the previous year. The company also completed the acquisition of Cognigy, a leader in conversational and agentic AI, which contributed to a 49% increase in AI annual recurring revenue. This strategic move, along with the integration of Cognigy, positions NICE at the forefront of the AI transformation in customer experience, as reflected in their raised full-year revenue guidance.

NICE Ltd. Celebrates CX AI Successes During Customer Service Week

In October 2025, NICE Ltd. announced significant advancements in customer experience (CX) AI adoption, highlighting successful implementations by global brands such as PayPal, Fairstone, and Bamboo Insurance. These organizations have leveraged NICE’s CX AI technology to reduce wait times, improve service quality, and enhance customer and employee experiences. Notably, during Customer Service Week, NICE celebrated these achievements, emphasizing the transformative impact of their AI solutions in setting new standards for service excellence across industries.

NICE Ltd. Maintains Leadership in 2025 Gartner Magic Quadrant

NICE Ltd. has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Contact Center as a Service (CCaaS) for the eleventh consecutive year, achieving the highest rating for its Ability to Execute and Completeness of Vision. This recognition is attributed to its CXone Mpower AI platform, which integrates workflow automation, self-service, and AI-powered agent assistance into a scalable ecosystem, enhancing customer experiences. Additionally, NICE announced a partnership with PGA Tour star JJ Spaun as a brand ambassador and appointed Jeff Comstock as President of CX Product & Technology in September 2025.

NICE Ltd. and RingCentral Extend AI Partnership to Enhance Customer Engagement

NICE Ltd. announced an extension of its partnership with RingCentral, Inc., a leader in AI-powered business communications, on August 5, 2025. The renewed collaboration focuses on strengthening integrated AI-powered UCaaS and CCaaS solutions to enhance customer engagement. This partnership, which has been in place since 2015, aims to transform customer and employee experiences by leveraging AI technology. The extension is expected to re-energize the channel partner ecosystem and continue the successful integration of their solutions, benefiting enterprise customers and enhancing the companies’ positions as leaders in their respective fields.

NICE Ltd. Completes Acquisition of Cognigy to Enhance AI Customer Experience

On September 8, 2025, NICE Ltd. announced the completion of its acquisition of Cognigy, a leader in enterprise-grade conversational AI. This acquisition aims to enhance NICE’s AI capabilities by integrating Cognigy’s conversational AI with NICE’s CXone Mpower platform, thereby transforming customer experiences across various touchpoints. The merger of these two AI leaders is expected to accelerate AI adoption in customer experience and provide organizations with more intelligent and seamless customer interactions. This strategic move is anticipated to strengthen NICE’s market position and expand its reach in delivering AI-first customer experiences.