NICE (NICE) AI Stock Analysis

• Market Cap: $5.94B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 12.6
• 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): 3.24
• Shares Outstanding: 61,743,477
• 10 Day Avg. Volume: 1,338,659
• 30 Day Avg. Volume: 1,005,019
• PEG Ratio: 0.27
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 8.10
• 1Y Price Target: $144.78
• Price Target Upside: 23.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $126.00 ▲(7.06% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by strong fundamentals (high profitability, improving returns, and low leverage) and a supportive earnings outlook for revenue/cloud growth and AI momentum. These positives are tempered by near-term EPS/margin pressure signaled in guidance and a mixed technical picture with the stock still below longer-term moving averages.

Positive Factors

De-risked balance sheet and low leverage

Material debt reduction and a near-zero leverage ratio give the company durable financial flexibility. Low leverage supports continued buybacks, M&A and R&D funding with limited interest burden, improving resilience to macro shocks and enabling multi-quarter strategic investments without stressing solvency.

High recurring cloud revenue with strong retention

A subscription-first cloud business with 109% net revenue retention and sizable backlog provides durable revenue visibility and upsell economics. High cloud mix (77%) and backlog growth underpin predictable recurring cash flows and support steady mid-teens cloud growth over the next several quarters.

AI-led product momentum and enterprise adoption

Rapid AI ARR growth and consistent inclusion of AI in large deals signals product differentiation and expanded addressable market. Durable enterprise adoption suggests structural demand for AI-native CX platforms, improving pricing power, higher ACV deal sizes and longer lifecycle value across customer relationships.

Negative Factors

Planned 2026 investment-driven margin pressure

Management's deliberate H1 investments in COGS, R&D and go-to-market will compress operating margins and non-GAAP EPS through mid-2026. This reduces near-term profitability and free cash flow, limiting distributable cash and potentially slowing buybacks or discretionary spends until H2 margin recovery materializes.

Large cash outflow for Cognigy reduces financial income

Using substantial cash to fund the acquisition and debt paydown materially lowers interest/financial income and liquidity buffers. Though strategically accretive, the reduction in cash limits near-term optionality, raises dependency on credit facilities for opportunistic moves, and magnifies importance of integration success.

Underperformance in Financial Crime & conversion/backlog risk

A slow-growing Actimize segment reduces diversification and exposes overall growth to CX cloud cycles. Combined with non-linear backlog conversion and some lumpy quarter benefits, this elevates execution risk: consistent high single-digit total growth depends on converting backlog and stabilizing underperforming segments.

NICE Business Overview & Revenue Model

Company Description

NICE 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 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

Strong and improving profitability with meaningful revenue scale-up, a notably de-risked balance sheet (very low leverage), and solid free cash flow generation. Offsetting factors include softer recent operating/free cash flow momentum and uncertainty around the unusually high TTM revenue growth rate.

Income Statement

Revenue has scaled meaningfully over the period (from ~$1.65B in 2020 to ~$2.95B in TTM (Trailing-Twelve-Months)), with a sharp re-acceleration in TTM (RevenueGrowthRate: 2.423). Profitability is strong and improving: TTM gross margin is ~66% and operating profitability expanded steadily (EBIT margin ~22% and EBITDA margin ~29% in TTM versus ~13%/23% in 2021). Net profitability also strengthened to ~21% in TTM (up from ~10% in 2021). Key watch-outs are that TTM growth appears unusually high versus prior years (suggesting potential non-linear drivers) and gross margin has drifted slightly lower than the 2021–2022 peak.

Balance Sheet

The balance sheet is conservatively levered and trending stronger. Total debt has come down sharply (from ~$926M in 2021 to ~$164M in TTM (Trailing-Twelve-Months)), driving debt-to-equity down to ~0.04 (from ~0.33 in 2021). Equity has grown consistently, and returns on equity improved to ~15% in TTM (up from ~7% in 2021), indicating improving capital efficiency alongside rising profitability. A minor negative is that total assets dipped versus 2024, but overall leverage and equity strength more than offset this.

Cash Flow

Cash generation is solid with consistently positive free cash flow, including ~$665M in TTM (Trailing-Twelve-Months). Free cash flow remains well-aligned with earnings (TTM free cash flow is ~93% of net income), supporting earnings quality. However, cash flow momentum softened in TTM with free cash flow down ~6.6% year over year, and TTM operating cash flow was lower than the prior year. This suggests near-term conversion/working-capital volatility even as underlying profitability is strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.97B	2.74B	2.38B	2.18B	1.92B
Gross Profit	1.97B	1.83B	1.61B	1.50B	1.30B
EBITDA	860.64M	754.14M	628.76M	525.59M	440.48M
Net Income	616.96M	442.59M	338.30M	265.94M	199.22M
Balance Sheet
Total Assets	5.11B	5.30B	5.12B	4.85B	4.71B
Cash, Cash Equivalents and Short-Term Investments	417.39M	1.62B	1.41B	1.57B	1.42B
Total Debt	163.86M	563.60M	782.97M	777.46M	925.91M
Total Liabilities	1.23B	1.69B	1.76B	1.80B	1.87B
Stockholders Equity	3.88B	3.59B	3.34B	3.04B	2.83B
Cash Flow
Free Cash Flow	703.16M	732.87M	477.25M	397.82M	394.61M
Operating Cash Flow	722.23M	832.64M	561.43M	479.71M	461.82M
Investing Cash Flow	161.23M	-397.40M	-293.58M	-152.35M	-261.50M
Financing Cash Flow	-992.08M	-456.60M	-290.27M	-164.50M	-261.82M

NICE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.69
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NICE, the sentiment is Positive. The current price of 117.69 is above the 20-day moving average (MA) of 109.58, above the 50-day MA of 111.22, and below the 200-day MA of 137.36, indicating a neutral trend. The MACD of -1.30 indicates Negative momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 65.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NICE.

NICE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICE	76 Outperform	$5.94B	12.56	16.53%	―	9.46%	34.09%
PEGA	71 Outperform	$7.55B	20.95	57.32%	0.16%	17.00%	120.21%
GTLB	68 Neutral	$4.88B	-110.71	-5.17%	―	27.35%	18.18%
MNDY	67 Neutral	$3.91B	33.92	10.43%	―	28.62%	186.67%
ESTC	65 Neutral	$6.43B	―	-12.84%	―	16.98%	-265.85%
CVLT	64 Neutral	$4.01B	47.85	34.48%	―	22.02%	-55.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

NICE Corporate Events

NICE Posts Double-Digit Cloud and AI Growth for 2025, Adds $600 Million Buyback and New Credit Line

On February 19, 2026, NICE reported that for the fourth quarter of 2025 total revenue rose 9% year over year to $786.5 million, with cloud revenue up 14% to $608.3 million and GAAP diluted EPS jumping 57% to $2.41, supported by a 66% surge in AI annual recurring revenue to $328 million and broad adoption of AI in large CXone deals. For full-year 2025, revenue increased 8% to $2.95 billion, cloud revenue grew 13% to $2.24 billion, GAAP net income climbed to $612.1 million with stronger margins and $716.5 million in operating cash flow, while the company added a $300 million revolving credit facility and a new $600 million share repurchase authorization, bringing total buyback capacity to about $1 billion and underscoring management’s confidence in its AI-led cloud growth trajectory and balance sheet strength.

NICE also highlighted that year-end 2025 cloud backlog grew 25% year over year, signalling durable demand that could support its targeted mid-teens cloud revenue growth for 2026, even as gross margins eased modestly. The combination of accelerating AI momentum, particularly in enterprise CX, robust international performance and expanded financial flexibility through the new credit line and indefinite-term repurchase program reinforces the company’s positioning as a leading AI-native CX platform provider and may prove supportive for shareholders focused on both growth and capital returns.

The most recent analyst rating on (NICE) stock is a Buy with a $128.00 price target. To see the full list of analyst forecasts on NICE stock, see the NICE Stock Forecast page.

NICE Actimize Named APAC Enterprise Fraud Leader as NICE Showcases January AI Milestones

In January 2026, NICE Ltd. reported a series of developments underscoring its push in AI-driven fraud prevention and customer experience platforms. The company highlighted growing global adoption across regulated industries and large member-based organizations, reinforcing its position as a key provider of cloud and analytics technology for risk, compliance and customer engagement.

On January 6, 2026, its NICE Actimize unit was named a Leader in enterprise fraud management solutions for Asia Pacific by Forrester, earning top scores in areas such as digital channel fraud, analyst investigations and model explainability and governance. The recognition, together with other January product launches and rankings referenced in the filing, signals NICE’s strengthening competitive footing in anti-fraud technology and supports its strategy of expanding AI-based platforms for financial crime prevention and large-scale customer service operations.

The most recent analyst rating on (NICE) stock is a Buy with a $128.00 price target. To see the full list of analyst forecasts on NICE stock, see the NICE Stock Forecast page.

NICE Highlights ESG Gains with 2024 Sustainability and Governance Report

On December 8, 2025, NiCE released its 2024 Governance (ESG) Report, highlighting measurable gains in sustainability, governance and people-focused innovation across its global operations. The company reported an 8‑point improvement in its EcoVadis rating to a Bronze Medal level, an 11% reduction in Scope 1 and 2 greenhouse gas intensity, and the start of migrating its Israeli data center to the cloud as part of its decarbonization and efficiency efforts. Governance metrics included 100% completion of employee ethics training and strengthened board‑level ESG oversight in 2025, while on the social and innovation fronts NiCE reinvested 14% of its 2024 revenue into R&D, supported by more than 3,300 professionals, expanded leadership development programs, and mobilized staff for over 40,000 volunteer hours and more than $900,000 in community donations. The report underscores NiCE’s bid to position itself as an ESG leader in the AI and customer‑experience technology space, tying environmental and governance improvements to long‑term innovation capacity and talent development, which is likely to be closely watched by investors and enterprise customers increasingly scrutinizing sustainability and ethical practices in technology vendors.

The most recent analyst rating on (NICE) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on NICE stock, see the NICE Stock Forecast page.

NICE Ltd. Announces Key Developments and Industry Recognition in November 2025

NICE Ltd. announced several strategic developments in November 2025, including the appointment of Arun Chandra as Chief Operating Officer to lead the newly formed Global Customer Operations. Additionally, NICE and IGT Solutions are collaborating to accelerate AI-first customer experience transformation for global brands with the CXone Mpower platform. Furthermore, NICE was recognized as a leader in the IDC MarketScape European Contact Center-as-a-Service Vendor Assessment 2025, highlighting its strong positioning in the industry.

The most recent analyst rating on (NICE) stock is a Buy with a $189.00 price target. To see the full list of analyst forecasts on NICE stock, see the NICE Stock Forecast page.