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Nice
(TASE:NICE)
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Rating:78Outperform
Price Target:
32,980.00
▲(15.68% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial performance (high profitability and a very low-leverage balance sheet) and a constructive earnings update (EPS guidance raised, strong cloud/AI momentum and bookings). These positives are partially offset by softer recent cash-flow momentum and a mixed technical picture with the stock still below key longer-term moving averages.
Positive Factors
Very low leverage / strong balance sheet
Extremely low leverage gives NICE durable financial flexibility: it can invest in product development, execute buybacks or M&A, and weather downturns without stressing liquidity. A conservatively financed balance sheet supports multi-year cloud/AI investments and capital allocation optionality.
Negative Factors
Weakened cash flow conversion
A meaningful decline in free cash flow and lower OCF-to-EBITDA coverage signals weaker near-term cash conversion. Persisting conversion pressure would constrain capital deployment for R&D, M&A, and buybacks, reducing financial flexibility if not reversed over subsequent quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Extremely low leverage gives NICE durable financial flexibility: it can invest in product development, execute buybacks or M&A, and weather downturns without stressing liquidity. A conservatively financed balance sheet supports multi-year cloud/AI investments and capital allocation optionality.
Read all positive factors
Nice (NICE) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪17.26B
Dividend YieldN/A
Average Volume (3M)211.77K
Price to Earnings (P/E)11.4
Beta (1Y)0.09
Revenue Growth-6.11%
EPS Growth-27.82%
CountryIL
Employees9,626
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)8.61
Shares Outstanding58,442,986
10 Day Avg. Volume352,262
30 Day Avg. Volume211,770
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.80
Price to Sales (P/S)2.19
P/FCF Ratio9.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)33.02
Revenue Forecast (FY)₪9.48B
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...
How the Company Makes Money
NICE primarily makes money by selling enterprise software and cloud services, with revenue largely derived from subscription-based and usage-based cloud offerings, alongside professional services and legacy/on-premises software arrangements.
Key ...
Nice Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and commercial positives: revenue and EPS beat, double-digit cloud growth, rapid AI ARR expansion (52% YoY), record bookings and backlog expansion, major enterprise deals (including HMRC), strong international momentum, improving cloud margins, solid cash generation, active buybacks, and meaningful product/platform innovations (Cognigy native to CXone, NICE Labs). The primary negatives were timing and mix dynamics: services decline, temporary lag converting bookings into revenue as large customers stage AI deployments, targeted renewal structuring that can compress near-term metrics, and some sequential variability in AI ARR additions. Management reiterated full-year revenue guidance and raised EPS guidance, expressing confidence in medium-term targets. Overall, the positives are materially stronger than the operational caveats and timing issues.Positive Updates
Revenue Beat and EPS at High End
Total revenue $782M, up 8% year-over-year, above the high end of guidance; non-GAAP EPS $2.70 delivered at the high end of the range.
Negative Updates
Services Revenue Decline
Services revenue $125M, down 11% year-over-year, reflecting migration from on-premise to cloud which reduces legacy services activity.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and EPS at High End
Total revenue $782M, up 8% year-over-year, above the high end of guidance; non-GAAP EPS $2.70 delivered at the high end of the range.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 revenue guidance of $3.170–$3.190 billion (≈+8% at the midpoint), raised full‑year diluted EPS to $11.06–$11.26 reflecting an expected operating margin at the higher end of the 25%–26% range, and maintained cloud revenue growth guidance of 13%–15% for 2026 (noting Q3 cloud growth should be similar to Q2); Q3 guidance is $780–$790 million total revenue (≈+7% YoY at the midpoint) and EPS of $2.73–$2.83, they expect to finish the year at the higher end of an 18%–19% free cash flow margin range, and noted they remain on track for their previously communicated medium‑term targets.Nice Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.03B | 3.19B | 2.74B | 2.38B | 2.18B | 1.92B |
| Gross Profit | 1.99B | 2.12B | 1.83B | 1.61B | 1.50B | 1.30B |
| EBITDA | 854.87M | 924.29M | 810.00M | 628.76M | 525.59M | 440.48M |
| Net Income | 532.61M | 662.58M | 442.59M | 338.30M | 265.94M | 199.22M |
Balance Sheet | ||||||
| Total Assets | 4.98B | 5.11B | 5.30B | 5.12B | 4.86B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 313.23M | 417.48M | 1.62B | 1.41B | 1.57B | 1.42B |
| Total Debt | 86.08M | 88.80M | 563.60M | 782.97M | 777.46M | 878.52M |
| Total Liabilities | 1.31B | 1.23B | 1.69B | 1.76B | 1.80B | 1.83B |
| Stockholders Equity | 3.68B | 3.88B | 3.59B | 3.34B | 3.04B | 2.83B |
Cash Flow | ||||||
| Free Cash Flow | 571.17M | 755.16M | 732.87M | 477.25M | 397.82M | 394.61M |
| Operating Cash Flow | 613.87M | 775.64M | 832.64M | 561.43M | 479.71M | 461.82M |
| Investing Cash Flow | 163.98M | 173.15M | -397.40M | -293.58M | -152.35M | -261.50M |
| Financing Cash Flow | -987.90M | -1.07B | -456.60M | -290.27M | -164.50M | -261.82M |
Nice Peers Comparison
UnderperformOutperform
Sector (55)
IL:NICE
Nice
29,300.00
-20,830.00
-41.55%
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8,800.00
-2,818.76
-24.26%
IL:IDMO
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437.90
37.10
9.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.