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what it is
NICE sells software that runs customer service, tracks compliance, and catches fraud for big organizations.
how it gets paid
Last year Nice made $2.9B in revenue. cloud was the main engine at $2.24B, or 77% of sales.
why it's growing
Revenue grew 7.7% last year. The growth came from cloud, which rose 14% in Q4 and now represents about 77% of revenue.
what just happened
NICE posted Q4 EPS of $3.24, ahead of the $3.19 consensus, while revenue rose 9% vs. prior year.
At a glance
A balance sheet — strong enough to weather a downturn
100/100 earnings predictability — you can trust these numbers
10.0x trailing p/e — the market's not buying it — or you found a deal
21.0% return on capital — every dollar works hard here
xvary composite: 67/100 — average
What they do
NICE sells software that runs customer service, tracks compliance, and catches fraud for big organizations.
NICE wins because your call center is a nervous system, not an app. CXone is CCaaS (contact-center-as-a-service) → software that runs customer support → so what: ripping it out risks every customer interaction you have. That stickiness shows up in the mix: cloud was about 77% of revenue in 2025 and grew 14% in Q4, faster than total revenue growth of 9%.
How they make money
$2.9B
annual revenue · their business grew +7.7% last year
cloud
$2.24B
+13.0%
on-prem software
$0.43B
6.0%
professional services
$0.17B
+2.0%
maintenance and support
$0.06B
3.0%
The products that matter
customer-service software platform
Core service stack
$2.9B revenue · 37.0% operating margin
it's the whole machine. NICE generated $2.9B in revenue with a 37.0% operating margin, which tells you customers are not treating this like interchangeable software.
core earnings engine
cloud-delivered software
Cloud transition
14% last-quarter growth
this is the part the market cares about because it grew 14% in the last quarter versus 7.7% for the company overall. That's the growth spread keeping the story alive.
the growth question
installed customer base
Embedded workflows
100 / 100 predictability
earnings predictability at 100 / 100 is a clue. Customers do not usually yank out critical service software overnight. That steadiness matters when the stock is still trying to earn back trust.
stickiness signal
Key numbers
10.0x
trailing p/e
P/E → price-to-earnings ratio → so what: you are paying 10 times trailing profit for a company still expected to grow revenue about 10% a year.
21.0%
return on capital
Return on capital → profit generated from money invested in the business → so what: NICE turns every $1 invested into about $0.21 of operating profit.
100
profit steadiness
Earnings predictability → how steady profits have been over time → so what: NICE's profit history has been unusually consistent for software, which helps explain the balance sheet grade of A.
$149
18-month target
The 18-month target sits 30% above the current $114.36 price, while the downside range floor is $94, so your setup is $34.64 up versus $20.36 down.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- net profit margin 24.1% — keeps 24 cents of every dollar in revenue
- return on equity 21% — $0.21 profit for every $1 investors have put in
A with balance sheet grade and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in NICE 3 years ago → it's now worth $5,440.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
NICE posted Q4 EPS of $3.24, ahead of the $3.19 consensus, while revenue rose 9% vs. prior year.
The growth came from cloud, which rose 14% in Q4 and now represents about 77% of revenue. Gross margin stayed strong at 69.3% in Q4, backing up the argument that this is still a high-quality software business.
$786.5M
revenue
$3.24
eps
69.3%
gross margin
the number that mattered
The important number was 77%: that is the share of revenue now coming from cloud, which tells you the transition is no longer a side project.
-
nice ltd. closed out 2025 with good results.
-
fourth-quarter revenues increased 9% compared to the previous-year tally.
-
the advance was driven by continued strength from the cloud segment, which reported a 14% rise in the top line.
-
that group, which represented about 77% of total revenues, is benefiting from ai adoption and customer expansion, reflecting momentum in enterprise and cx markets.from a geographic perspective, demand has been particularly robust from the europe, middle east, and africa (emea) region.
-
december-quarter earnings per adr of $3.24 increased 7% compared to the prior-year figure.the growth was supported by the higher revenues, disciplined cost control, and benefits from ongoing stock repurchases. these factors were partially offset by ongoing investments for ai-driven customer experience solutions and the integration and scaling of the recent acquisition of cognigy.
source: company earnings report, 2026
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What could go wrong
the main risk is specific and pretty visible: the 14% cloud number stops separating itself from the 7.7% company number. If that spread fades while margins slip, the whole rerating case gets thinner fast.
med
cloud growth cools toward the company average
The cleanest growth datapoint on the page is 14% cloud growth in the last quarter. If that slows toward the company's overall 7.7% growth rate, the transition story starts looking like a mature software story with better marketing.
With the stock at $114.36 and the published long-term target midpoint at $149, a chunk of the upside case depends on cloud staying clearly better than the rest of the business.
med
margin gives back some of its shine
A 37.0% operating margin and 22.1% net margin buy management credibility. They also create a higher bar. If NICE has to spend harder to defend growth, those margins stop being the reason investors stay patient.
When growth is 7.7%, you do not want margin compression showing up at the same time. One soft number is manageable. Two starts to change the story.
med
institutions keep trimming instead of rebuilding positions
4Q2025 came in at 136 buyers versus 154 sellers, with total institutional holdings at 30.4M shares. That is not a disaster. It is a reminder that professional holders still want more proof.
If institutions keep selling into decent results, valuation support gets weaker and the stock can stay range-bound even if the business stays profitable.
med
quality stays real, but the stock stays ordinary
NICE has strong profitability, a solid balance sheet, and 100 / 100 earnings predictability. The stock still turned $10,000 into $5,440 over three years versus $13,880 for the index.
That contrast tells you the market already knows the company is good. The missing piece is proof that growth deserves a better multiple.
If cloud keeps beating the company average and margins hold near 37.0%, the thesis stays alive. If cloud slips toward 7.7% and margins head lower, the stock stops looking misunderstood and starts looking correctly discounted.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
cloud growth versus company growth
The last quarter showed 14% cloud growth versus 7.7% for the company overall. If that spread narrows, the stock loses its cleanest growth argument.
metric
operating margin near 37.0%
Margins this high are part of the thesis. If NICE keeps the 37.0% operating margin while growing, the quality case stays intact.
ownership
whether institutions stop trimming
136 buyers versus 154 sellers in 4Q2025 is a mild negative signal. You want that balance moving the other way.
risk
whether the range finally breaks
The shares sit at $114.36 inside a $95–$120 52-week range. A business with 22.1% net margins eventually needs a market verdict.
Analyst rankings
short-term outlook
average
Momentum score 3 means the stock is behaving like the broader pack. In human-speak, analysts do not see a strong short-term edge here.
risk profile
average
Stability score 3 puts NICE near the middle on risk. Not fragile. Not a bunker.
chart momentum
below average
Technical score 4 says the chart is still doing more drifting than convincing.
earnings predictability
100 / 100
Management's numbers tend to be reliable. If you miss here, it is more likely on expectations than on chaos.
source: institutional data
Institutional activity
136 buyers vs. 154 sellers in 4q2025. total institutional holdings: 30.4M shares.
source: institutional data
Price targets
3-5 year target range
$94
$204
$114
current price
$149
target midpoint · +30% from current · 3-5yr high: $280 (+145% · 25% ann'l return)
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