Nice AI Stock Analysis
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Nice (NICE) AI Stock Analysis
Nice
(TASE:NICE)
The score is driven primarily by strong underlying financial quality (high margins, consistently positive free cash flow, and an exceptionally low-debt balance sheet) and a constructive earnings update (beat/raise dynamics, strong backlog and AI ARR growth). These positives are tempered by weak near-term technical momentum (price below key short-term moving averages with subdued RSI) and operational watch-outs highlighted in the call, including cloud-growth acceleration needs and near-term free cash flow pressure. Valuation appears reasonable at a mid-teens P/E.
Nice (NICE) vs. iShares MSCI Israel ETF (EIS)
- Market Cap
- ILS 17.42B
- Dividend Yield
- ―
- Average Volume (3M)
- 131.83K
- Price to Earnings (P/E)
- 15.0
- Beta (1Y)
- 0.16
- Revenue Growth
- -5.91%
- EPS Growth
- -38.75%
- Country
- Israel
- Employees
- 9,626
- Sector
- General
- Sector Strength
- 55
- Industry
- Software - Application
Nice Business Overview & Revenue Model
Company Description
NICE Ltd., an Israeli enterprise founded in 1986 and headquartered in Ra'anana, delivers cutting-edge, AI-powered cloud platforms for digital business solutions to clients worldwide. The company, which rebranded from NICE-Systems Ltd. in June 2016, o...
How the Company Makes Money
NICE makes money primarily by selling software and cloud services to enterprises, with revenue generated through (1) subscription-based fees for its cloud platforms (notably its CX/CCaaS and related AI/analytics capabilities), typically contracted on...
Nice Earnings Call Summary
The call was broadly positive, supported by revenue and EPS above guidance, strong CXone backlog and enterprise wins, rapid CX AI ARR growth, international momentum, partner expansion, healthy operating margins and a strong balance sheet. However, management acknowledged that cloud growth remains below its desired pace, AI deployments are ramping more slowly than anticipated, several non-core cloud streams are slowing, and the company is undertaking a 5% workforce reduction with restructuring charges. The highlights significantly outweigh the lowlights, but the call emphasized execution and cloud-growth acceleration as key priorities.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For full year 2026, total revenue is expected to be in the range of $3.170 billion to $3.190 billion, representing growth of 8% at the midpoint; cloud revenue growth is expected to be approximately 12%, excluding the impact of the customer credit; fully diluted earnings per share are expected to be in the range of $11.12 to $11.32; free cash flow margin is expected to be in a range of approximately 10% to 12% on a reported basis or approximately 12% to 14%, excluding nonrecurring items related to acquisition, divestiture and restructuring; operating margin is expected to finish the year slightly above the high end of the 25% to 26% operating margin range; restructuring charges are expected to be approximately $15 million to $20 million, primarily in Q4 2026; and the company expects to achieve an operating margin of 27% in 2028.
Nice Financial Statement Overview
Summary
Overall financials are strong: high gross margins (~65–69%), solid operating profitability (EBITDA margins typically mid‑20%), and consistently positive free cash flow. The balance sheet is a standout with very low leverage (debt-to-equity ~0.02 in 2025 and TTM). The main risk is the TTM slowdown in revenue growth alongside a meaningful step-down in net income/margins and weaker recent free cash flow momentum.
Income Statement
84Very PositiveBalance Sheet
92Very PositiveCash Flow
77Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.14B | 3.19B | 2.74B | 2.38B | 2.18B | 1.92B |
| Gross Profit | 2.01B | 2.12B | 1.83B | 1.61B | 1.50B | 1.30B |
| EBITDA | 782.08M | 907.87M | 810.00M | 628.76M | 525.59M | 440.48M |
| Net Income | 377.64M | 662.58M | 442.59M | 338.30M | 265.94M | 199.22M |
Balance Sheet | ||||||
| Total Assets | 5.26B | 5.11B | 5.30B | 5.12B | 4.86B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 358.11M | 417.40M | 1.62B | 1.41B | 1.57B | 1.42B |
| Total Debt | 84.60M | 88.80M | 563.60M | 782.97M | 777.46M | 878.52M |
| Total Liabilities | 1.37B | 1.23B | 1.69B | 1.76B | 1.80B | 1.83B |
| Stockholders Equity | 3.89B | 3.88B | 3.59B | 3.34B | 3.04B | 2.83B |
Cash Flow | ||||||
| Free Cash Flow | 534.68M | 755.16M | 732.87M | 477.25M | 397.82M | 394.61M |
| Operating Cash Flow | 584.39M | 775.64M | 832.64M | 561.43M | 479.71M | 461.82M |
| Investing Cash Flow | -111.78M | 173.15M | -397.40M | -293.58M | -152.35M | -261.50M |
| Financing Cash Flow | -577.58M | -1.07B | -456.60M | -290.27M | -164.50M | -261.82M |
Nice Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NICE, the sentiment is Negative. The current price of 29870.00 is below the 20-day moving average (MA) of 34306.50, below the 50-day MA of 33677.20, and below the 200-day MA of 31793.85, indicating a bearish trend. The MACD of -1015.23 indicates Positive momentum. The RSI at 31.89 is Neutral, neither overbought nor oversold. The STOCH value of 19.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:NICE.
Nice Peers Comparison
Overall Rating
- IL:NICE74Outperform
IL:MTRX72Outperform
IL:IDMO38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IL:NICE | 74Outperform | ILS 17.24B | 15.03 | 15.11% | ― | -5.91% | -38.75% |
| IL:MTRX | 72Outperform | ILS 10.17B | 21.46 | ― | 3.29% | 29.32% | 15.21% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IL:IDMO | 38Underperform | ILS 82.22M | -3.90 | ― | ― | -13.27% | 29.76% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IL:NICE | NICE | 29870.00 | -12550.00 | -29.59% | |
| IL:SNEL | Synel M.L.L. Payway Limited | 1744.00 | -293.00 | -14.38% | |
| IL:MTRX | Matrix IT Ltd. | 11120.00 | -2031.38 | -15.45% | |
| IL:IDMO | Idomoo Ltd. | 455.90 | 137.50 | 43.18% |
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.
Date of analysis: Nov 05, 2026