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NICE
(NASDAQ:NICE)
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Rating:80Outperform
Price Target:
$117.00
▲(29.63% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by strong financial quality (high margins, very low leverage, and solid free cash flow) and an upbeat earnings outlook (EPS guidance raised with accelerating cloud/AI backlog and ARR indicators). Technicals are supportive in the near term but still mixed versus the 200-day trend, and valuation looks reasonable on a ~13.9 P/E.
Positive Factors
Robust margins and cash generation
Sustained software-like gross and operating margins combined with strong trailing‑12‑month operating cash flow and free cash flow underpin durable self‑funding of R&D, AI investment, buybacks and strategic initiatives, supporting multi‑year margin resiliency and capital allocation flexibility.
Negative Factors
Conversion lag from bookings to revenue
Structural timing risk: enterprises often require extended data readiness, governance and ops changes to scale AI, so record bookings and backlog may convert to revenue slowly. That delays cash realization and clouds near‑term revenue visibility despite long‑term demand, affecting quarterly cadence.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust margins and cash generation
Sustained software-like gross and operating margins combined with strong trailing‑12‑month operating cash flow and free cash flow underpin durable self‑funding of R&D, AI investment, buybacks and strategic initiatives, supporting multi‑year margin resiliency and capital allocation flexibility.
Read all positive factors
NICE (NICE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.86B
Dividend YieldN/A
Average Volume (3M)560.27K
Price to Earnings (P/E)14.3
Beta (1Y)1.05
Revenue Growth8.08%
EPS Growth-18.39%
CountryUS
Employees9,626
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)6.95
Shares Outstanding58,442,986
10 Day Avg. Volume594,347
30 Day Avg. Volume560,270
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)1.82
Price to Sales (P/S)2.39
P/FCF Ratio10.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$118.78Price Target Upside31.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)11.09
Revenue Forecast (FY)$3.18B
NICE Business Overview & Revenue Model
Company Description
NICE Ltd., together with its subsidiaries, provides AI-powered cloud platforms for customer engagement, and financial crime and compliance in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Cu...
How the Company Makes Money
NICE makes money primarily by selling software and cloud services to enterprises and public-sector organizations, with revenue generally derived from (1) subscriptions to its cloud platforms and SaaS products (including contact center/CX and relat...
NICE Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution and strategic momentum: revenue and EPS outperformed guidance, cloud and AI bookings/backlog showed material acceleration, large strategic deals and international expansion reinforced the go-to-market progress, and product/platform innovation (Cognigy native integration, NICE Labs) supports long-term differentiation. The principal near-term headwinds are timing and conversion lags from bookings to revenue as customers take measured approaches to scale AI, a decline in services tied to cloud migration, and some quarter-to-quarter ARR variability. Management reiterated full-year revenue guidance and raised EPS, signaling confidence in the medium-term outlook.Positive Updates
Revenue Beat and EPS at High End
Total revenue of $782 million in Q2, up 8% year-over-year and above the high end of guidance; non-GAAP EPS of $2.70 delivered at the high end of the range.
Negative Updates
Timing Lag Between Bookings and Revenue
Management emphasized a conversion lag as many customers are still preparing data, governance and operating models before scaling AI in production — strong bookings and backlog may take time to convert into revenue, creating short-term timing variability.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and EPS at High End
Total revenue of $782 million in Q2, up 8% year-over-year and above the high end of guidance; non-GAAP EPS of $2.70 delivered at the high end of the range.
Read all positive updates
Company Guidance
NICE reiterated full‑year 2026 revenue guidance of $3.170–$3.190 billion (midpoint ≈+8% YoY) and raised full‑year non‑GAAP EPS to $11.06–$11.26, while expecting cloud revenue growth of 13–15% and an operating margin at the higher end of the 25–26% range; Q3 revenue was guided to $780–$790 million (~+7% YoY at the midpoint) with Q3 non‑GAAP EPS of $2.73–$2.83 and Q3 cloud growth expected to be similar to Q2’s 12.6% YoY. Management said it remains confident in the outlook supported by strong leading indicators — cloud backlog +19% YoY, AI backlog +72% YoY, CX AI & Self‑Service ARR of $362 million (+52% YoY, AI = 15% of cloud revenue) — and reiterated it expects to finish 2026 at the higher end of an 18–19% free cash flow margin; quarter‑end cash/short‑term investments were $355 million, shares outstanding ≈58.1 million (−6% YoY), and repurchases totaled $58 million in Q2 ($311 million YTD, ~5% of market cap).NICE Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.08B | 2.95B | 2.74B | 2.38B | 2.18B | 1.92B |
| Gross Profit | 2.01B | 1.96B | 1.83B | 1.61B | 1.50B | 1.30B |
| EBITDA | 856.43M | 903.06M | 754.14M | 628.76M | 525.59M | 440.48M |
| Net Income | 426.75M | 612.10M | 442.59M | 338.30M | 265.94M | 199.22M |
Balance Sheet | ||||||
| Total Assets | 5.12B | 5.11B | 5.30B | 5.12B | 4.85B | 4.71B |
| Cash, Cash Equivalents and Short-Term Investments | 358.47M | 417.39M | 1.62B | 1.41B | 1.57B | 1.42B |
| Total Debt | 88.22M | 163.86M | 563.60M | 782.97M | 777.46M | 925.91M |
| Total Liabilities | 1.34B | 1.23B | 1.69B | 1.76B | 1.80B | 1.87B |
| Stockholders Equity | 3.78B | 3.88B | 3.59B | 3.34B | 3.04B | 2.83B |
Cash Flow | ||||||
| Free Cash Flow | 606.22M | 703.16M | 732.87M | 477.25M | 397.82M | 394.61M |
| Operating Cash Flow | 674.15M | 722.23M | 832.64M | 561.43M | 479.71M | 461.82M |
| Investing Cash Flow | 80.79M | 161.23M | -397.40M | -293.58M | -152.35M | -261.50M |
| Financing Cash Flow | -970.66M | -992.08M | -456.60M | -290.27M | -164.50M | -261.82M |
NICE Technical Analysis
Neutral
90.26
Price Trends
96.02
Positive
97.85
Positive
105.73
Negative
Market Momentum
1.02
Positive
51.52
Neutral
33.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NICE, the sentiment is Neutral. The current price of 90.26 is below the 20-day moving average (MA) of 100.53, below the 50-day MA of 96.02, and below the 200-day MA of 105.73, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 33.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.86B | 14.34 | 11.28% | ― | 8.08% | -18.39% | |
80 Outperform | $5.52B | 17.66 | 48.90% | 0.45% | 3.60% | 48.92% | |
79 Outperform | $8.93B | 24.25 | 37.43% | ― | 17.26% | ― | |
73 Outperform | $3.84B | 37.98 | 12.46% | ― | 24.21% | 206.42% | |
69 Neutral | $7.04B | -276.14 | -2.66% | ― | 24.90% | -233.01% | |
66 Neutral | $5.55B | 84.69 | 56.13% | ― | 15.47% | -13.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
NICE
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NICE Corporate Events
NICE Extends AI CX Platform to AWS European Sovereign Cloud for Regulated EU Markets
Aug 6, 2026
On July 1, 2026, NICE’s NiCE unit was named a launch partner for Amazon Web Services’ new European Sovereign Cloud, extending its agentic AI-powered customer experience platform to an independent EU-based cloud infrastructure. The move...
NICE Beats Q2 Revenue Guidance and Raises 2026 EPS Outlook on Strong Cloud and AI Growth
Aug 5, 2026
NICE Ltd., a global provider of AI-native customer experience platforms including its CXone cloud offering and Cognigy AI solutions, focuses on helping enterprises automate and enhance customer engagement at scale. Operating in more than 150 count...
NICE World 2026 Puts Agentic AI at Center of Global CX Strategy
Jul 8, 2026
NICE announced on June 1, 2026 that it will host NICE World 2026 from June 8–10 at the Walt Disney World Swan and Dolphin in Orlando, targeting enterprises that are moving from AI experimentation to large-scale execution in customer experien...
NICE Shareholders Approve All Proposals at June 9 Special Meeting
Jun 9, 2026
NICE Ltd. reported the results of a special general meeting of shareholders held on June 9, 2026, in Ra’anana, Israel. At this meeting, shareholders approved all proposals that had been put forward, which were previously detailed in proxy ma...
NICE Launches AI-First ServiceNow Integration to Unify Customer Engagement and Enterprise Workflows
Jun 9, 2026
On May 7, 2026, NICE announced a joint solution with ServiceNow that links its CXone AI customer engagement platform with ServiceNow’s Customer Service Management and workflow tools to close the gap between front-office interactions and back...
NICE Revises Executive Pay Policy and Delays June 2026 Special Meeting
May 18, 2026
NICE Ltd. announced on May 18, 2026 that it has replaced its previously proposed compensation policy for executive officers and directors with a revised version, reflecting feedback from investors and aligning with Israeli corporate law and global...
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.