NICE (NICE)
NASDAQ:NICE
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NICE
(NASDAQ:NICE)
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Rating:76Outperform
Price Target:
$126.00
▲(15.74% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
NICE (NICE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.93B
Dividend YieldN/A
Average Volume (3M)574.94K
Price to Earnings (P/E)11.5
Beta (1Y)1.24
Revenue Growth9.46%
EPS Growth34.09%
CountryUS
Employees8,726
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)3.24
Shares Outstanding60,427,563
10 Day Avg. Volume479,596
30 Day Avg. Volume574,938
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)1.82
Price to Sales (P/S)2.37
P/FCF Ratio10.02
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue2.33
Enterprise Value/Gross Profit3.50
Enterprise Value/Ebitda7.97
Forecast
1Y Price Target
$146.45Price Target Upside34.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)10.95
Revenue Forecast (FY)$3.18B
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 remo...
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...
NICE Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution and multiple concrete growth drivers — meeting full-year targets, accelerating cloud and AI ARR growth, meaningful international traction, a strengthened balance sheet (debt-free), and active capital returns. Management also laid out targeted investments in 2026 to accelerate AI integration and go-to-market capabilities, which will pressure near-term margins and EPS. While there are clear near-term headwinds (cash reduction from the Cognigy acquisition, planned investment-driven margin cadence, and slower growth in the Financial Crime & Compliance segment), the highlights (AI momentum, backlog growth, international acceleration, and balance sheet actions) materially outweigh the lowlights, supporting a positive outlook with execution risks to monitor.Positive Updates
Met Full-Year Targets with Strong Financial Results
Full year 2025 total revenue of $2.945B, up 8% year-over-year; full year cloud revenue up 13% YoY (12% excluding Cognigy); delivered non-GAAP EPS of $12.30 at the high end of guidance; free cash flow margin of 21% exceeded guidance.
Negative Updates
EPS Guidance Below Prior-Year Non-GAAP EPS
Full year 2026 non-GAAP EPS guidance of $10.85–$11.05 compares to 2025 non-GAAP EPS of $12.30, implying a year-over-year decline in EPS (~11–12% at midpoint).
Read all updates
Q4-2025 Updates
Positive
Negative
Met Full-Year Targets with Strong Financial Results
Full year 2025 total revenue of $2.945B, up 8% year-over-year; full year cloud revenue up 13% YoY (12% excluding Cognigy); delivered non-GAAP EPS of $12.30 at the high end of guidance; free cash flow margin of 21% exceeded guidance.
Read all positive updates
Company Guidance
The company guided full-year 2026 total revenue of $3.170B–$3.190B (≈+8% at the midpoint), cloud revenue growth of 14.5%–15.0% (with Cognigy contributing ~200 bps), full‑year diluted EPS of $10.85–$11.05, and an effective tax rate of 20.5%–21.0%; Q1 2026 revenue was guided to $755M–$765M (≈+8.5% YoY at midpoint) with Q1 EPS of $2.45–$2.55. Management said incremental margin investments will be weighted to H1 2026 with operating margins improving in H2 to exit the year near the upper end of a 25%–26% range, expects Cognigy to be accretive within ~18 months, and cited supporting metrics behind the outlook including a 25% cloud backlog increase (22% ex‑Cognigy) and 109% cloud net revenue retention.NICE Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
89
Very Positive
Cash Flow
78
Positive
| 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 | 910.22M | 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
Negative
108.86
Price Trends
113.64
Negative
112.65
Negative
129.24
Negative
Market Momentum
-1.57
Positive
40.17
Neutral
59.38
Neutral
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 108.86 is below the 20-day moving average (MA) of 113.93, below the 50-day MA of 113.64, and below the 200-day MA of 129.24, indicating a bearish trend. The MACD of -1.57 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 59.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NICE.
NICE Risk Analysis
NICE disclosed 42 risk factors in its most recent earnings report. NICE reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NICE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.93B | 11.53 | 16.44% | ― | 9.46% | 34.09% | |
71 Outperform | $6.96B | 25.92 | 60.07% | 0.16% | 17.00% | 120.21% | |
67 Neutral | $3.36B | 63.93 | 9.88% | ― | 28.62% | 186.67% | |
65 Neutral | $3.63B | -103.64 | -6.24% | ― | 27.35% | 18.18% | |
63 Neutral | $5.04B | 224.68 | -9.44% | ― | 16.98% | -265.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $3.48B | 77.74 | 31.15% | ― | 22.02% | -55.25% |
* Technology Sector Average
NICE
NICE
108.86
-44.58
-29.05%
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NICE Corporate Events
NICE Posts Double-Digit Cloud and AI Growth for 2025, Adds $600 Million Buyback and New Credit Line
Feb 19, 2026
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 a...
NICE Actimize Named APAC Enterprise Fraud Leader as NICE Showcases January AI Milestones
Feb 9, 2026
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 ...
NICE Highlights ESG Gains with 2024 Sustainability and Governance Report
Jan 7, 2026
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 E...
NICE Ltd. Announces Key Developments and Industry Recognition in November 2025
Dec 8, 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 t...
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.