NiCE (NASDAQ:NICE) Issues Earnings Results

NiCE (NASDAQ:NICE) released its earnings results on Wednesday. The technology company reported $2.64 earnings per share for the quarter, beating analysts’ consensus estimates of $2.52 by $0.12, FiscalAI reports. NiCE had a net margin of 20.78% and a return on equity of 18.26%. The firm had revenue of $768.62 million for the quarter, compared to analysts’ expectations of $760.94 million. During the same period in the previous year, the company earned $2.87 earnings per share. The company’s quarterly revenue was up 9.8% on a year-over-year basis. NiCE updated its FY 2026 guidance to 10.980-11.180 EPS and its Q2 2026 guidance to 2.600-2.700 EPS.

Here are the key takeaways from NiCE’s conference call:

• Q1 beat: NICE reported revenue of $769 million and non‑GAAP EPS of $2.64, both above guidance, with cloud revenue up 14.6% YoY and AI ARR growing 66% (now ~14% of cloud revenue) alongside record cloud ACV bookings and a 24%–27% cloud backlog increase.
• Cognigy integration ahead of schedule: Cognigy is tightly integrated into CXone enabling Automated Insights and production‑grade agentic AI, driving AI backlog growth of 78% YoY and large enterprise wins (e.g., Openreach and Lufthansa) with demonstrable cost and CX improvements.
• Guidance variability and near‑term revenue phasing — NICE widened its cloud range (13%–15%) and guided a softer Q2 (about 5.5% YoY) after taking deliberate commercial concessions (renewal pricing/term actions) to lock long‑term AI commitments, creating short‑term ARR/NRR pressure and timing volatility.
• Strong cash generation and capital return — operating cash flow of $179 million, free cash flow of $149 million, a record $253 million of share repurchases in Q1 (3.5% of market cap) with $745 million remaining authorization, and a commitment to repurchase >50% of FCF.

NiCE Stock Down 22.5%

NICE traded down $28.16 during trading on Wednesday, reaching $96.85. 2,746,478 shares of the company were exchanged, compared to its average volume of 612,648. The company has a market cap of $5.85 billion, a price-to-earnings ratio of 10.02, a P/E/G ratio of 1.46 and a beta of 0.82. NiCE has a 12-month low of $94.65 and a 12-month high of $180.61. The company’s 50-day moving average is $111.66 and its two-hundred day moving average is $113.79.

NiCE announced that its board has initiated a share repurchase plan on Thursday, February 19th that authorizes the company to buyback $600.00 million in outstanding shares. This buyback authorization authorizes the technology company to repurchase up to 9.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on NICE shares. Jefferies Financial Group reiterated a “hold” rating on shares of NiCE in a research note on Thursday, February 19th. Piper Sandler restated a “neutral” rating and issued a $124.00 target price on shares of NiCE in a research note on Monday, February 23rd. Rosenblatt Securities reaffirmed a “buy” rating and set a $155.00 price target on shares of NiCE in a research report on Friday, February 20th. Weiss Ratings reiterated a “sell (d+)” rating on shares of NiCE in a research note on Friday, March 27th. Finally, Citigroup lowered NiCE from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $184.00 to $119.00 in a report on Friday, April 10th. Six research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $144.17.

NiCE News Roundup

Here are the key news stories impacting NiCE this week:

• Positive Sentiment: Q1 beat and cloud strength: NICE reported Q1 revenue of $768.6M (+9.8% YoY) and EPS that beat consensus; cloud revenue grew ~14.6%, showing continued demand for cloud CX products. NiCE Q1 results press release
• Positive Sentiment: Raised full‑year EPS view: NICE raised FY2026 non‑GAAP EPS guidance above consensus (10.98–11.18), signaling management’s confidence in full‑year profitability despite near‑term pressure. Earnings release & guidance
• Neutral Sentiment: Earnings call and materials available: Management discussed drivers, integration costs and margin trajectory on the Q1 call — the transcript and slide deck provide detail for modeling near‑term expenses. Q1 2026 earnings call transcript
• Neutral Sentiment: Mixed analyst/institutional backdrop: Analysts still show predominantly positive ratings and varied price targets; recent 13F/hedge‑fund moves are mixed, so analyst views may provide support but aren’t unanimous. QuiverQuant roundup
• Negative Sentiment: Margin pressure and weaker GAAP results: Both GAAP and non‑GAAP margins declined YoY; GAAP net income and GAAP EPS fell materially (affected by amortization and other items), flagging near‑term profitability headwinds. Margin pressure analysis
• Negative Sentiment: Q2 revenue guidance below consensus: Q2 revenue guidance ($761M–$771M) was below street estimates while Q2 EPS guidance was slightly ahead — the revenue comparison and implied slowdown prompted concerns about growth momentum. Guidance details
• Negative Sentiment: Market reaction focused on timing of margin recovery: Investors appear concerned that integration costs and investment for CX AI will delay margin recovery, making near‑term cash/earnings weaker even if long‑term opportunities remain. Investor reaction analysis
• Negative Sentiment: Heavy intraday selling and volume: Trading has been well above average, indicating active repositioning by investors reacting to the margin/guidance mix. Market coverage summary

Institutional Investors Weigh In On NiCE

A number of institutional investors and hedge funds have recently modified their holdings of NICE. FIL Ltd grew its stake in NiCE by 0.7% during the fourth quarter. FIL Ltd now owns 1,732,137 shares of the technology company’s stock valued at $195,801,000 after acquiring an additional 11,433 shares in the last quarter. Neuberger Berman Group LLC increased its holdings in NiCE by 13.7% during the 4th quarter. Neuberger Berman Group LLC now owns 961,146 shares of the technology company’s stock worth $108,648,000 after acquiring an additional 115,526 shares during the period. Lazard Asset Management LLC lifted its stake in NiCE by 32.0% in the 4th quarter. Lazard Asset Management LLC now owns 897,445 shares of the technology company’s stock worth $101,447,000 after purchasing an additional 217,673 shares in the last quarter. RPD Fund Management LLC purchased a new stake in NiCE in the 4th quarter worth approximately $100,154,000. Finally, Alliancebernstein L.P. boosted its holdings in NiCE by 6.6% in the 2nd quarter. Alliancebernstein L.P. now owns 819,140 shares of the technology company’s stock valued at $138,361,000 after purchasing an additional 50,403 shares during the period. 63.34% of the stock is owned by hedge funds and other institutional investors.

NiCE Company Profile

NiCE Ltd is a global software provider specializing in solutions for customer engagement, financial crime prevention, public safety, workforce optimization and border security. Its product offerings include cloud-native and on-premises platforms that leverage advanced analytics, artificial intelligence and automation to help organizations enhance customer experiences, streamline operations and ensure regulatory compliance. NiCE’s portfolio addresses the needs of contact centers, financial institutions, government agencies and enterprises across a broad range of industries.

In customer engagement, NiCE delivers tools for omnichannel interaction management, real-time and historical analytics, workforce management, and quality management.