NICE Q4 cloud revenue rises on strong demand for AI-native platform, sets share repurchase program

Reuters
02/19
NICE Q4 cloud revenue rises on strong demand for AI-native platform, sets share repurchase program

Overview

  • AI platform firm's Q4 cloud revenue grew 14% yr/yr

  • Q4 diluted EPS increased 57% yr/yr

  • Company announces new $600 mln share repurchase program

Outlook

  • NICE expects full-year 2026 cloud revenue growth of 14.5%-15.0%

  • NICE forecasts Q1 2026 non-gaap total revenue between $755 mln and $765 mln

  • NICE anticipates full-year 2026 non-gaap total revenue between $3,170 mln and $3,190 mln

Result Drivers

  • AI DEMAND - Q4 AI ARR increased 66% yr/yr, highlighting strong enterprise demand for AI-native platform

  • CLOUD BACKLOG - Year-end ’25 cloud backlog growth accelerates to 25% yr/yr, driven by strong bookings momentum

  • INTERNATIONAL GROWTH - Expanding international markets contributed to cloud revenue growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

$786.50 mln

Q4 Adjusted EPS

$3.24

Q4 Net Income

$150.60 mln

Q4 Gross Margin

65.30%

Q4 Gross Profit

$513.90 mln

Q4 Operating Income

$176.20 mln

Q4 Operating Margin

22.40%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Nice Ltd is $160.00, about 62.4% above its February 18 closing price of $98.50

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw5TKfCBa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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