NICE Q1 Earnings Beat Estimates on Strong Cloud Revenues, Stock Rises

NICE NICE reported adjusted earnings of $2.87 per share in the first quarter of 2025, beating the Zacks Consensus Estimate by 1.06% and increasing 11% year over year.

Non-GAAP revenues of $700.2 million surpassed the consensus mark by 0.12% and rose 6% year over year. The uptick was primarily driven by the continued strength of its cloud business and the ongoing expansion of its customer base.

Revenues in the Americas were $590 million, up 6% year over year. The same in EMEA was $74 million in the reported quarter, up 10% year over year. APAC revenues increased 9% year over year to $36 million.

Following the results, NICE shares experienced a modest after-hours increase of 4.38%, reaching $168.16 on March 16, 2025. This uptick was likely driven by strong revenue growth, the success of its cloud business and ongoing product innovation.

Nice Price, Consensus and EPS Surprise

Nice price-consensus-eps-surprise-chart | Nice Quote

NICE’s Top-Line Details

Cloud revenues (75.2% of revenues) of $526.3 million missed the Zacks Consensus Estimate by 0.22% but rose 12% year over year.

Strong cloud revenue growth fueled a solid year-over-year increase in total revenues, driven by the growth in adoption of CXone Mpower by customers. 

Service revenues (20% of revenues) of $140.2 million missed the consensus mark by 0.44% and moved down 5.8% year over year.

Product revenues (4.8% of revenues) of $33.7 million beat the consensus mark by 8.31% and decreased 19.8% year over year.

Both Service and Product revenues declined as large enterprises continued transitioning from on-premise to the cloud platform.

NICE is driving growth through its cloud focus, especially 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 100 basis points (bps) to 69.9% in the reported quarter. 

Research and development expenses, as a percentage of revenues, were down 60 bps year over year to 12.7%. Sales and marketing expenses, as a percentage of revenues, contracted 40 bps year over year to 23.1%.

General and administrative expenses, as a percentage of revenues, decreased 110 bps on a year-over-year basis to 9.9%.

On a non-GAAP basis, operating expenses, as a percentage of revenues, contracted 120 bps year over year to 39.4%.

The non-GAAP operating margin expanded 20 bps on a year-over-year basis to 30.5%.

The non-GAAP EBITDA margin expanded 30 bps to 33.6%.

NICE Balance Sheet & Cash Flow Statement

As of March 31, 2025, NICE had cash and cash equivalents (including short-term investments) of $1.61 billion compared with $1.62 billion as of Dec. 31, 2024.

Long-term debt, as of March 31, 2025, was $459.2 million compared with $458.8 million as of Dec. 31, 2024.

The company’s cash flow from operations in the first quarter was $285.1 million compared with $249.5 in the year-ago quarter.

In the first quarter of 2025, $500 million was allocated for the repurchase of shares.

NICE Provides Q2 and Full Year Guidance

For the second quarter of 2025, the company expects non-GAAP revenues of $709-$719 million, indicating 7% year-over-year growth at the mid-point.

Non-GAAP earnings are estimated to be $2.93-$3.03 per share, suggesting 13% year-over-year growth at the mid-point.

For 2025, NICE projects non-GAAP revenues between $2.92 billion and $2.94 billion, implying 7% year-over-year growth at the midpoint.

Non-GAAP earnings are estimated to be $12.28-12.48 per share, suggesting 11% year-over-year growth at the midpoint. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

NICE Zacks Rank & Stocks to Consider

Currently, NICE has a Zacks Rank #3 (Hold).

Advance Auto Parts AAP, PagerDuty PD and Canada Goose GOOS are some better-ranked stocks that investors can consider in the broader sector. While AAP sports a Zacks Rank #1 (Strong Buy), PD and GOOS presently carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advance Auto Parts shares have lost 25.5% year to date. AAP is set to report its first-quarter 2025 results on May 22.

PagerDuty shares have lost 8.2% year to date. PD is set to report its first-quarter fiscal 2026 results on May 29.

Canada Goose shares have lost 9.6% year to date. GOOS is set to report its fourth-quarter fiscal 2025 results on May 21.

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