NICE Q4 Earnings Beat Estimates on Strong Cloud Revenues, Shares Up

Nice NICE reported adjusted earnings of $3.24 per share in the fourth quarter of 2025, which beat the Zacks Consensus Estimate by 0.84% and increased 7% year over year.

Non-GAAP revenues of $786.5 million surpassed the consensus mark by 1.01% and rose 9% year over year. The uptick was primarily driven by the continued strength in its cloud business and the ongoing AI momentum.

Revenues in the Americas were $647 million, up 5% year over year. The same in EMEA was $100 million in the reported quarter, up 38% year over year. APAC revenues increased 11% year over year to $40 million.

NICE shares have soared 13.25% at the time of writing this article.

NICE’s Top-Line Details

Cloud revenues (77.3% of revenues) of $608.3 million beat the Zacks Consensus Estimate by 1.01% and rose 13.9% year over year.

Strong cloud revenue growth fueled a solid year-over-year increase in total revenues, primarily driven by continued momentum in CX AI offerings, increasing traction in the large enterprise segment and robust performance across international markets.

Service revenues (17.9% of revenues) of $140.6 million missed the consensus mark by 2.24% and declined 6.1% year over year.

Product revenues (4.8% of revenues) of $38 million beat the consensus mark by 15.33% and declined 1.2% year over year.

NICE drives growth through its focus on cloud, particularly with the CXone Mpower platform. Its agentic AI boosts efficiency and improves customer experiences, strengthening NICE’s position in the CX market.

NICE Operating Details

On a non-GAAP basis, the gross margin contracted 210 basis points (bps) to 69.2% in the reported quarter. 

Research and development expenses, as a percentage of revenues, declined 90 bps year over year to 13.7%. Sales and marketing expenses, as a percentage of revenues, fell 240 bps year over year to 19.1%.

General and administrative expenses, as a percentage of revenues, increased 190 bps year over year to 8.1%.

On a non-GAAP basis, operating expenses, as a percentage of revenues, contracted 160 bps year over year to 38.3%.

The non-GAAP operating margin contracted 50 bps on a year-over-year basis to 31%.

The non-GAAP EBITDA margin contracted 40 bps to 34.1%.

NICE Balance Sheet & Cash Flow Statement

As of Dec. 31, 2025, NICE had cash and cash equivalents (including short-term investments) of $417.4 million compared with $455.9 million as of Sept. 30.

In the fourth quarter of 2025, $460 million of outstanding debt was fully settled in cash.

The company’s cash flow from operations in the fourth quarter was $179.7 million compared with $190.5 million in the prior quarter.

In 2025, $489 million was allocated for the repurchase of shares.

NICE Initiates Q126 and FY26 Guidance

For the first quarter of 2026, NICE projects non-GAAP revenues between $755 million and $765 million, implying 8.5% year-over-year growth at the midpoint.

Non-GAAP earnings are estimated to be between $2.45 and $2.55 per share.

For 2026, NICE projects non-GAAP revenues between $3.17 billion and $3.19 billion, implying 8% year-over-year growth at the midpoint.

Non-GAAP earnings are estimated to be between $10.85 and $11.05 per share.

NICE Zacks Rank & Stocks to Consider

Currently, NICE has a Zacks Rank #4 (Sell).

Micron Technology MU, MongoDB MDB, and Credo Technology Group CRDO are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Micron Technology shares have gained 321.1% in the past 12-month period. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19. You can see the complete list of today’s Zacks #1 Rank stocks here.

MongoDB shares have returned 30.4% in the past 12-month period. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.  
 
Credo Technology Group shares have gained 95.2% in the past 12-month period. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.

 

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This article originally published on Zacks Investment Research (zacks.com).

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