Nice NICE reported adjusted earnings of $3.18 per share in the third quarter of 2025, beating the Zacks Consensus Estimate by 0.32% and increasing 10% year over year.

Non-GAAP revenues of $732 million surpassed the consensus mark by 0.56% and rose 6% year over year. The uptick was primarily driven by the continued strength of its cloud business and the ongoing expansion of its customer base.

Revenues in the Americas were $618 million, up 5% year over year. The same in EMEA was $74 million in the reported quarter, up 7% year over year. APAC revenues increased 19% year over year to $40 million.

NICE shares have lost 3.35% in the pre-market trading.

Nice Price, Consensus and EPS Surprise

Nice price-consensus-eps-surprise-chart | Nice Quote

NICE’s Top-Line Details

Cloud revenues (76.9% of revenues) of $562.9 million beat the Zacks Consensus Estimate by 0.64% and rose 13% year over year.

Strong cloud revenue growth fueled a solid year-over-year increase in total revenues, driven by growth in the adoption of CXone Mpower by customers. 

Service revenues (18.9% of revenues) of $138.7 million missed the consensus mark by 0.40% and declined 7.4% year over year.

Product revenues (4.1% of revenues) of $30.4 million beat the consensus mark by 3.55% but decreased 24.1% year over year.

Both Service and Product revenues declined as large enterprises continued transitioning from on-premise to the cloud platform.

NICE is driving growth through its focus on cloud, especially with the CXone Mpower platform. Its agentic AI boosts efficiency and improves customer experiences, strengthening NICE’s position in the CX market.

NICE Operating Details

On a non-GAAP basis, the gross margin contracted 120 basis points (bps) to 69.9% in the reported quarter. 

Research and development expenses, as a percentage of revenues, were down 90 bps year over year to 12.4%. Sales and marketing expenses, as a percentage of revenues, were in line year over year at 22.1%.

General and administrative expenses, as a percentage of revenues, decreased 40 bps year over year to 10.4%.

On a non-GAAP basis, operating expenses, as a percentage of revenues, contracted 70 bps year over year to 38.4%.

The non-GAAP operating margin contracted 50 bps on a year-over-year basis to 31.5%.

The non-GAAP EBITDA margin contracted 40 bps to 34.7%.

NICE Balance Sheet & Cash Flow Statement

As of Sept. 30, 2025, NICE had cash and cash equivalents (including short-term investments) of $455.9 million compared with $1.63 billion as of June 30, 2025.

In the third quarter of 2025, all outstanding debt was fully settled in cash.

The company’s cash flow from operations in the third quarter was $190.5 million compared with $61.32 million in the prior quarter.

In the third quarter of 2025, $40.6 million was allocated for the repurchase of shares.

• NICE Ltd. recently reported third-quarter 2025 results, delivering US$732 million in revenue and US$144.85 million in net income, while also raising its full-year 2025 revenue outlook to a new range of US$2.93 billion to US$2.95 billion, reflecting an expected 7% year-over-year increase at the midpoint.

• Strong cloud revenue growth, fueled by the company's continuing AI-first strategy and early integration of Cognigy, has been a significant driver behind the raised guidance and improved financial performance.

• We'll now examine how NICE Ltd.'s upward revision of revenue guidance, underpinned by cloud and AI momentum, impacts its investment narrative.

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NICE Investment Narrative Recap

To be a shareholder in NICE Ltd., you need to believe in the company’s ability to sustain long-term cloud and AI-powered revenue growth, supported by leading-edge technology and global enterprise traction. The recent guidance upgrade reinforces confidence in cloud and AI as the main short-term catalyst, but does not materially reduce key risks around margin pressure from ongoing infrastructure investment or integration challenges in acquired businesses. These fundamentals remain significant factors influencing risk and reward for investors.

Of the recent announcements, NICE’s expanded partnership with Tata Communications stands out. This collaboration integrates Tata’s digital channels and AI-powered suite with NICE’s CXone Mpower platform, accelerating global cloud adoption and supporting cloud revenue growth, the same area highlighted in the company’s updated outlook. It demonstrates NICE’s focus on embedding AI into every layer of enterprise customer experience, further tying into the critical catalysts that underpin its investment case.

However, in contrast to the positive revenue momentum, investors should be aware of persistent margin pressures linked to ongoing cloud investments and ...

Read the full narrative on NICE (it's free!)

NICE's narrative projects $3.6 billion revenue and $741.0 million earnings by 2028. This requires 8.5% yearly revenue growth and a $203.9 million earnings increase from $537.1 million.

Uncover how NICE's forecasts yield a ₪750.02 fair value, a 77% upside to its current price.

Exploring Other Perspectives

Six Simply Wall St Community fair value estimates for NICE Ltd. span from ₪32.83 to ₪861.19, reflecting highly varied outlooks. Strong cloud-driven revenue growth remains central, but opinions on future earnings potential differ significantly, inviting you to explore a wide range of views.

Nice (NICE) reported $732 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 6.1%. EPS of $3.18 for the same period compares to $2.88 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $727.92 million, representing a surprise of +0.56%. The company delivered an EPS surprise of +0.32%, with the consensus EPS estimate being $3.17.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Nice performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Geographic Revenues- Americas: $618 million versus $614.1 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.3% change.

• Geographic Revenues- Asia Pacific: $40 million versus $39.86 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +17.7% change.

• Geographic Revenues- EMEA: $74 million versus the two-analyst average estimate of $73.33 million. The reported number represents a year-over-year change of +7.3%.

• Revenue by Business Model- Cloud: $562.94 million versus $559.35 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +12.6% change.

• Revenue by Business Model- Services: $138.71 million versus $139.26 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -7.4% change.

• Revenue by Business Model- Product: $30.35 million versus $29.31 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -24.1% change.

View all Key Company Metrics for Nice here>>>

Shares of Nice have returned -3.3% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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