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NICE
(NASDAQ:NICE)
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Rating:67Neutral
Price Target:
$114.00
▲(26.30% Upside)
Action:Downgraded
Date:06/06/26
Strong financial quality (high margins, improved profitability, and very low leverage) is the primary positive, supported by a relatively low P/E. The overall score is held back by weak technicals (below key moving averages with negative MACD) and softer recent cash-flow momentum.
Positive Factors
Very low leverage
NICE’s exceptionally low debt-to-equity (~0.02) and sizeable equity base provide durable financial flexibility. This conservatively levered balance sheet supports continued R&D, M&A optionality, share repurchases or resilience through downturns without stressing liquidity or raising refinancing risk.
Negative Factors
Free cash flow decline
Although FCF still tracks earnings (FCF/net income ~0.93), a ~14% TTM drop in free cash flow curtails near-term reinvestment headroom. If negative FCF momentum persists, it could limit organic investment pacing, opportunistic M&A or shareholder returns without drawing on balance sheet flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
NICE’s exceptionally low debt-to-equity (~0.02) and sizeable equity base provide durable financial flexibility. This conservatively levered balance sheet supports continued R&D, M&A optionality, share repurchases or resilience through downturns without stressing liquidity or raising refinancing risk.
Read all positive factors
NICE (NICE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.68B
Dividend YieldN/A
Average Volume (3M)560.27K
Price to Earnings (P/E)11.3
Beta (1Y)1.13
Revenue Growth9.29%
EPS Growth18.05%
CountryUS
Employees9,626
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)8.56
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
$125.08Price Target Upside38.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
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:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 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
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.01B | 2.95B | 2.74B | 2.38B | 2.18B | 1.92B |
| Gross Profit | 1.98B | 1.96B | 1.83B | 1.61B | 1.50B | 1.30B |
| EBITDA | 902.95M | 903.06M | 754.14M | 628.76M | 525.59M | 440.48M |
| Net Income | 529.50M | 612.10M | 442.59M | 338.30M | 265.94M | 199.22M |
Balance Sheet | ||||||
| Total Assets | 4.98B | 5.11B | 5.30B | 5.12B | 4.85B | 4.71B |
| Cash, Cash Equivalents and Short-Term Investments | 310.24M | 417.39M | 1.62B | 1.41B | 1.57B | 1.42B |
| Total Debt | 86.08M | 163.86M | 563.60M | 782.97M | 777.46M | 925.91M |
| Total Liabilities | 1.31B | 1.23B | 1.69B | 1.76B | 1.80B | 1.87B |
| Stockholders Equity | 3.68B | 3.88B | 3.59B | 3.34B | 3.04B | 2.83B |
Cash Flow | ||||||
| Free Cash Flow | 527.57M | 703.16M | 732.87M | 477.25M | 397.82M | 394.61M |
| Operating Cash Flow | 610.24M | 722.23M | 832.64M | 561.43M | 479.71M | 461.82M |
| Investing Cash Flow | 132.58M | 161.23M | -397.40M | -293.58M | -152.35M | -261.50M |
| Financing Cash Flow | -951.12M | -992.08M | -456.60M | -290.27M | -164.50M | -261.82M |
NICE Technical Analysis
Neutral
90.26
Price Trends
93.76
Positive
100.07
Negative
108.15
Negative
Market Momentum
-0.19
Positive
42.61
Neutral
9.79
Positive
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 97.94, below the 50-day MA of 93.76, and below the 200-day MA of 108.15, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 9.79 is Positive, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.84B | 18.56 | 37.43% | ― | 17.26% | ― | |
71 Outperform | $3.68B | 37.23 | 10.69% | ― | 25.42% | 125.90% | |
69 Neutral | $4.88B | 74.56 | 56.13% | ― | 15.47% | -13.79% | |
68 Neutral | $5.02B | 16.08 | 48.90% | 0.45% | 3.60% | 48.92% | |
68 Neutral | $5.83B | -228.69 | -2.66% | ― | 24.90% | -233.01% | |
67 Neutral | $5.68B | 11.30 | 14.07% | ― | 9.29% | 18.05% | |
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 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...
NICE Highlights April 2026 String of AI, CX and Fraud-Prevention Milestones in New SEC Filing
May 7, 2026
In April 2026, NICE Ltd. filed a Form 6-K detailing a string of product, partnership and recognition announcements that underscore its expanding role in AI-driven customer experience and risk management. The filings highlight its focus on cloud-ba...
NICE Lifts 2026 EPS Outlook as AI and Cloud Drive First-Quarter Growth
May 6, 2026
NICE reported first-quarter 2026 results on May 6, 2026, with total revenue rising 9.8% year on year to $768.6 million, driven by 14.6% growth in cloud revenue to $603.4 million and a 66% surge in AI annual recurring revenue. The AI-native CX plat...
NICE Reschedules Special Shareholders’ Meeting to June 2, 2026
Apr 30, 2026
NICE Ltd. announced on April 30, 2026, that it has rescheduled its previously reported special general meeting of shareholders from May 28, 2026, to June 2, 2026, keeping the time and location at its Ra’anana headquarters unchanged. The reco...
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.