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NICE (NICE)
NASDAQ:NICE
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NICE (NICE) AI Stock Analysis

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NICE

NICE

(NASDAQ:NICE)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$167.00
▲(14.56% Upside)
NICE's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust growth in AI and strategic partnerships are significant strengths. Technical analysis suggests a neutral trend, while valuation indicates the stock is reasonably priced. Challenges in cloud margins and specific business segments are areas to monitor.
Positive Factors
AI and Self-Service Growth
The significant growth in AI and self-service indicates strong demand for automation solutions, enhancing NICE's competitive edge and long-term revenue potential.
Strategic Partnerships
Strategic partnerships with leading tech firms enhance NICE's market reach and integration capabilities, supporting sustainable growth and innovation.
Acquisition of Cognigy
The acquisition of Cognigy bolsters NICE's AI offerings, positioning it as a leader in AI-driven customer experiences, which is crucial for future growth.
Negative Factors
Cloud Gross Margin Decline
The decline in cloud gross margins could pressure profitability, impacting NICE's ability to invest in growth and maintain competitive pricing.
LiveVox Performance Issues
Underperformance in LiveVox may affect overall cloud growth, highlighting potential challenges in product integration or market fit.
Free Cash Flow Decline
A decline in free cash flow growth could limit NICE's ability to fund new initiatives or manage debt, impacting long-term financial flexibility.

NICE (NICE) vs. SPDR S&P 500 ETF (SPY)

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 diversified model that includes software licensing, subscription services, and professional services. The company offers a range of products under its NICE CXone platform, which provides cloud-based customer engagement solutions, primarily on a subscription basis, allowing for recurring revenue streams. Additionally, NICE earns from software licenses for on-premises installations and from professional services that include implementation, training, and consulting. Significant partnerships with cloud service providers and integrations with leading CRM systems enhance their market reach and contribute to revenue growth. Furthermore, NICE has been actively expanding its product offerings and entering new markets, which supports its earnings potential.

NICE Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call for Q2 2025 demonstrated strong financial performance, driven by significant growth in AI and international markets. Strategic partnerships and major AI-driven deals further highlight positive momentum. However, challenges with LiveVox performance and cloud gross margins present areas for improvement.
Q2-2025 Updates
Positive Updates
Strong Overall Financial Performance
Total revenue for Q2 2025 reached $727 million, exceeding the high end of the guidance range. Earnings per share were also at the high end of the range.
Significant Growth in AI and Self-Service
AI and self-service ARR grew 42% year-over-year to $238 million, reflecting strong demand for AI automation solutions.
International Market Expansion
International revenue increased 13% year-over-year, with strong traction in EMEA and APAC regions.
Successful Strategic Partnerships
New alliances with ServiceNow, AWS, Snowflake, and a renewed partnership with Salesforce highlight strategic growth efforts.
Major Wins in AI-Driven Deals
Secured multiple seven-figure ACV AI-driven deals with major companies, including a leading global medical device company and a financial services provider.
Record Cloud Revenue
Cloud revenue increased 12% year-over-year, contributing $541 million and representing 74% of total revenue.
Negative Updates
LiveVox Performance Issues
LiveVox business underperformed expectations, contributing to some pressure on overall cloud growth.
Sub-70% Cloud Gross Margin
Cloud gross margin fell below 70% due to increased cloud spend, impacting profitability.
Potential Fourth Quarter Revenue Challenges
Higher baseline for comparison in Q4 2024 could impact growth expectations for the same period in 2025.
Company Guidance
During the second quarter of 2025, NICE reported strong financial results, with total revenue reaching $727 million, exceeding the high end of their guidance range. The cloud business showed a robust 12% year-over-year growth, contributing $541 million, or 74% of total revenue. AI and self-service ARR experienced exceptional growth, increasing 42% to $238 million, now representing 11% of cloud revenue. The company achieved an NRR of 111%, indicating strong customer retention and cross-sell momentum. Operating income rose by 9% to $220 million, with an operating margin of 30.2%. Earnings per share increased by 14% to $3.01. For the third quarter, NICE expects total revenue between $722 million and $732 million and EPS between $3.12 and $3.22. Full-year revenue guidance remains in the range of $2.918 billion to $2.938 billion, with a projected 12% growth in cloud revenue and a 50 basis point increase in non-GAAP operating margin.

NICE Financial Statement Overview

Summary
NICE demonstrates strong financial performance with excellent profitability and operational efficiency. The company maintains a solid balance sheet with conservative leverage and a strong equity position. Cash flow generation is robust, although slightly declining, yet indicates sufficient liquidity. Overall, NICE is well-positioned for sustainable growth and financial stability.
Income Statement
85
Very Positive
NICE demonstrates strong profitability with a consistent increase in revenue over the years. The TTM gross profit margin stands at 66.88% and net profit margin at 16.77%, indicating efficient cost management and robust profitability. The revenue growth rate from the last annual report to the TTM is healthy at 1.49%. The EBIT and EBITDA margins are also strong at 20.62% and 27.73%, respectively, signaling excellent operational efficiency.
Balance Sheet
78
Positive
The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.15 in the TTM, indicating conservative leverage and financial stability. The return on equity (ROE) is 13.30%, showcasing effective use of equity to generate profits. The equity ratio stands at 66.89%, highlighting a strong equity base relative to assets.
Cash Flow
70
Positive
NICE's cash flow statement reveals a robust free cash flow with a TTM growth rate of -3.54%, which is slightly negative but indicates resilience. The operating cash flow to net income ratio is 1.85, and free cash flow to net income ratio is 1.65, both suggesting strong cash generation capabilities relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.84B2.74B2.38B2.18B1.92B1.65B
Gross Profit1.90B1.83B1.61B1.50B1.30B1.09B
EBITDA791.63M754.14M633.23M511.77M449.76M425.79M
Net Income537.12M442.59M338.30M265.94M199.22M196.35M
Balance Sheet
Total Assets5.31B5.30B5.12B4.86B4.66B4.23B
Cash, Cash Equivalents and Short-Term Investments1.63B1.62B1.41B1.57B1.42B1.46B
Total Debt539.03M563.60M782.97M777.46M878.52M795.89M
Total Liabilities1.58B1.69B1.76B1.80B1.83B1.64B
Stockholders Equity3.73B3.59B3.34B3.04B2.83B2.56B
Cash Flow
Free Cash Flow660.11M797.68M477.25M397.82M394.61M417.02M
Operating Cash Flow754.88M832.64M561.43M479.71M461.82M480.31M
Investing Cash Flow-499.25M-397.40M-293.58M-152.35M-261.50M-465.07M
Financing Cash Flow-463.36M-456.60M-290.27M-164.50M-261.82M196.84M

NICE Technical Analysis

Technical Analysis Sentiment
Negative
Last Price145.78
Price Trends
50DMA
147.26
Negative
100DMA
156.47
Negative
200DMA
158.87
Negative
Market Momentum
MACD
1.08
Negative
RSI
49.40
Neutral
STOCH
57.40
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 145.78 is above the 20-day moving average (MA) of 144.65, below the 50-day MA of 147.26, and below the 200-day MA of 158.87, indicating a neutral trend. The MACD of 1.08 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 57.40 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
8.46B106.0722.23%21.62%-53.99%
77
Outperform
$9.29B17.2615.07%11.72%37.05%
71
Outperform
10.04B50.7435.26%0.13%12.47%65.19%
68
Neutral
10.49B278.723.35%30.24%-6.69%
65
Neutral
9.13B-107.64-8.60%17.42%-228.98%
61
Neutral
7.92B-1,412.80-0.82%28.97%98.96%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NICE
NICE
145.78
-27.89
-16.06%
CVLT
CommVault Systems
190.30
36.45
23.69%
PEGA
Pegasystems
58.66
22.18
60.80%
ESTC
Elastic
85.95
9.19
11.97%
MNDY
Monday.com
206.59
-71.18
-25.63%
GTLB
Gitlab
47.47
-4.07
-7.90%

NICE Corporate Events

NICE Ltd. and RingCentral Extend AI Partnership to Enhance Customer Engagement
Sep 10, 2025

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
Sep 8, 2025

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.

NICE Ltd. Announces 2025 Annual General Meeting
Aug 21, 2025

On August 21, 2025, NICE Ltd. announced its 2025 Annual General Meeting of Shareholders, scheduled for September 30, 2025, in Ra’anana, Israel. The meeting will address the election of directors, amendments to the Articles of Association, adoption of an Employee Share Purchase Plan, reappointment of auditors, and discussion of the 2024 financial statements. This meeting is crucial for stakeholders as it involves decisions on corporate governance and strategic initiatives that could influence NICE’s market positioning and operational strategies.

NiCE Reports Strong Q2 2025 Cloud Revenue Growth and Raises EPS Guidance
Aug 14, 2025

On August 14, 2025, NiCE reported a 12% year-over-year increase in cloud revenue for the second quarter of 2025, surpassing their revenue guidance. The company also raised its full-year 2025 EPS guidance. This growth is attributed to the rising demand for AI and self-service solutions, with annual recurring revenue in this sector increasing by 42%. NiCE’s strategic focus on AI is set to further strengthen with the planned acquisition of Cognigy, enhancing their capabilities in delivering AI-first customer experiences. The company also reported significant financial growth with a 9% increase in total revenue and a 69% rise in diluted EPS compared to the previous year.

NICE Ltd. Partners with TalkTalk to Transform Customer Experience with AI Platform
Aug 8, 2025

In July 2025, NICE Ltd. announced several strategic collaborations and achievements. TalkTalk, a major UK connectivity provider, partnered with NICE to implement the AI-driven CXone Mpower platform to revolutionize its customer service, aiming for faster response times and seamless customer experiences. Additionally, NICE’s Evidencentral platform reached a milestone of supporting over 37 million active criminal cases, highlighting its significant role in the legal sector. These developments underscore NICE’s impact on the telecom and legal industries, enhancing its market positioning and offering stakeholders innovative solutions.

NICE Ltd. to Acquire Cognigy, Enhancing AI Customer Experience
Jul 28, 2025

On July 28, 2025, NICE Ltd. announced a definitive agreement to acquire Cognigy, a leader in conversational and agentic AI. This strategic acquisition aims to integrate Cognigy’s capabilities with NICE’s CXone Mpower platform, accelerating AI adoption in customer service and expanding NICE’s market reach. The acquisition, valued at approximately $955 million, is expected to close in the fourth quarter of 2025, subject to regulatory approvals. This move is anticipated to set a new standard for AI-first customer experience, benefiting stakeholders by enhancing service delivery and expanding global market presence.

NICE Ltd. Acquires Cognigy to Enhance AI-Driven Customer Experience
Jul 28, 2025

On July 28, 2025, NICE Ltd. announced its acquisition of Cognigy, a leader in conversational and agentic AI, to enhance its CXone Mpower platform. This strategic move aims to accelerate AI adoption in customer service, uniting AI agents across front and back offices. The acquisition, valued at approximately $955 million, is expected to close in the fourth quarter of 2025, with NICE’s board unanimously approving the deal. This acquisition is anticipated to expand NICE’s market reach and create significant value for stakeholders by advancing AI-first customer experiences.

NICE Ltd. Showcases CX Innovations at Interactions 2025
Jul 7, 2025

NICE Ltd. recently announced a series of significant developments at their Interactions 2025 event, held in June. The company highlighted its collaboration with major brands like Disney, H&R Block, ALG Vacations, Charles Schwab, and Carnival UK, showcasing how their CXone Mpower platform is transforming customer service through AI and automation. These partnerships are setting new industry benchmarks by enhancing customer experiences, optimizing operations, and driving innovation at scale. The announcements underline NICE’s strategic focus on expanding its global reach and strengthening its position in the customer experience industry.

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.Date of analysis: Sep 26, 2025