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Nice (NICE) AI Stock Analysis
Nice
(TASE:NICE)
NICE earns a solid score driven primarily by its strong financial fundamentals — near-debt-free balance sheet, consistent mid-teens revenue growth, expanding margins, and robust cash generation. The attractive P/E of 11.3x for a high-quality software company with AI-driven growth tailwinds adds significant support. The latest earnings call reinforces the positive narrative with revenue/EPS beats, record bookings, 52% AI ARR growth, and raised EPS guidance. The primary drag on the score is the technical picture: the stock trades ~12% below its 200-day moving average, indicating a sustained downtrend despite neutral short-term momentum indicators. TTM cash flow softening and slight gross margin compression are secondary concerns but do not materially undermine the investment thesis.
Nice (NICE) vs. iShares MSCI Israel ETF (EIS)
- Market Cap
- ILS 20.68B
- Dividend Yield
- ―
- Average Volume (3M)
- 138.28K
- Price to Earnings (P/E)
- 16.2
- Beta (1Y)
- 0.10
- Revenue Growth
- -6.11%
- EPS Growth
- -27.82%
- 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 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.
Q2-2026 Updates
Positive Updates
Negative 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
NICE demonstrates strong revenue growth (~16.6% YoY to $3.19B in 2025), expanding net margins (10.4% to 20.8%), and a near-debt-free balance sheet (debt-to-equity 0.023). The balance sheet score of 85 is a standout, reflecting aggressive deleveraging and growing equity. Cash flow generation is solid with high earnings-to-cash conversion, though TTM operating and free cash flow show some softening. Slight gross margin compression (from ~68.7% to ~65.1% TTM) and TTM cash flow dips temper the otherwise excellent financial profile. Blending the income statement (78), balance sheet (85), and cash flow (74) scores yields a strong but not exceptional composite.
Income Statement
78PositiveBalance Sheet
85Very PositiveCash Flow
74Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.08B | 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 | 816.04M | 907.87M | 810.00M | 628.76M | 525.59M | 440.48M |
| Net Income | 428.43M | 662.58M | 442.59M | 338.30M | 265.94M | 199.22M |
Balance Sheet | ||||||
| Total Assets | 5.12B | 5.11B | 5.30B | 5.12B | 4.86B | 4.66B |
| Cash, Cash Equivalents and Short-Term Investments | 354.69M | 417.48M | 1.62B | 1.41B | 1.57B | 1.42B |
| Total Debt | 88.22M | 88.80M | 563.60M | 782.97M | 777.46M | 878.52M |
| Total Liabilities | 1.34B | 1.23B | 1.69B | 1.76B | 1.80B | 1.83B |
| Stockholders Equity | 3.78B | 3.88B | 3.59B | 3.34B | 3.04B | 2.83B |
Cash Flow | ||||||
| Free Cash Flow | 625.68M | 755.16M | 732.87M | 477.25M | 397.82M | 394.61M |
| Operating Cash Flow | 675.20M | 775.64M | 832.64M | 561.43M | 479.71M | 461.82M |
| Investing Cash Flow | 112.71M | 173.15M | -397.40M | -293.58M | -152.35M | -261.50M |
| Financing Cash Flow | -1.00B | -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 Neutral. The current price of 35940.00 is above the 20-day moving average (MA) of 35789.00, above the 50-day MA of 33396.60, and above the 200-day MA of 31988.10, indicating a neutral trend. The MACD of 780.83 indicates Positive momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 42.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:NICE.
Nice Peers Comparison
Overall Rating
- IL:NICE73Outperform
IL:MTRX72Outperform
IL:IDMO38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IL:NICE | 73Outperform | ILS 20.68B | 16.17 | 15.11% | ― | -6.11% | -27.82% |
| IL:MTRX | 72Outperform | ILS 9.98B | 21.05 | ― | 3.40% | 29.32% | 15.21% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IL:IDMO | 38Underperform | ILS 76.27M | -3.87 | ― | ― | -13.27% | 29.76% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IL:NICE | NICE | 35390.00 | -8860.00 | -20.02% | |
| IL:SNEL | Synel M.L.L. Payway Limited | 1604.00 | -426.00 | -20.99% | |
| IL:MTRX | Matrix IT Ltd. | 10780.00 | -1263.39 | -10.49% | |
| IL:IDMO | Idomoo Ltd. | 425.60 | 90.30 | 26.93% |
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: Aug 10, 2026