Stock Analysis

Stock Analysis · Nice Ltd (NICE)

Overview

Nice Ltd (NICE) is a software company focused on helping organizations run customer service and customer engagement operations more efficiently. In practical terms, its products support contact centers and customer-facing teams with tools such as cloud-based platforms, analytics, automation, and AI-driven assistance. NICE also has offerings used in compliance-related and public safety contexts, depending on the segment and product line described in its filings.

A large part of the business is built around software and cloud services that are typically sold under subscription-style arrangements (often recognized over time), alongside related services. This kind of model can create recurring revenue, but results still depend on renewals, customer expansion, and the pace of new customer additions.

Based on the company’s reporting structure in its filings, revenue is commonly discussed by major business segments (and sometimes by cloud vs. on-premise categories, depending on the period and disclosures). Exact percentages can change year to year and should be taken from the most recent annual report.

Main revenue sources (high-level)

Customer Engagement / CX (contact center software, cloud platform, analytics, automation) (typically the largest segment in company reporting)
Financial Crime & Compliance (solutions used to detect and prevent fraud/financial crime and support compliance workflows)
Services and other revenue (implementation, support, professional services—usually smaller than core software revenue, but important for deployments)

From 2021 to 2024, total revenue increased (about $1.92B to $2.74B), while net income also rose (about $199M to $443M). Over the same period, operating income expanded (about $256M to $549M), suggesting profitability improved as the company grew, even while it continued investing in areas like research and development.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 16, 2026
Context
Sector	Technology
Industry	Software - Application
Market Cap ⓘ	$6.39B
Beta ⓘ	0.23
Fundamental
P/E Ratio ⓘ	11.77	27.48
Profit Margin ⓘ	19.48%	7.66%
Revenue Growth ⓘ	6.10%	15.80%
Debt to Equity ⓘ	2.25%	24.71%
PEG ⓘ	0.86
Free Cash Flow ⓘ	$711.62M

NICE’s market capitalization is about $6.4B. The stock’s beta is about 0.24, which indicates the share price has historically moved less than the broader market (though beta is backward-looking and can change).

Profitability stands out relative to the industry median shown: profit margin is about 19.5% versus an industry median near 7.7%. Revenue growth year over year is about 6.1%, below the listed industry median (~15.8%), pointing to slower top-line expansion compared with many application software peers.

Leverage appears low: debt-to-equity is about 2.2%, well below the industry median (~24.7%). Free cash flow over the trailing twelve months is about $712M, which can matter for flexibility (investment capacity, acquisitions, buybacks, and resilience during weaker demand).

Growth (Medium)

NICE operates in application software markets tied to customer experience and contact center modernization, where organizations continue shifting from legacy on-premise systems toward cloud platforms and more automated customer service. Broadly, this is a long-running transition rather than a one-time event, and it can support multi-year demand for vendors with proven enterprise deployments.

The company’s strategy, as described in its public filings and investor materials, has typically emphasized expanding cloud offerings, embedding AI/automation, and selling additional modules to existing customers. For long-term business growth, this approach generally relies on (1) customer retention, (2) customers expanding usage over time, and (3) winning new large deployments—especially in competitive enterprise environments.

Revenue growth has varied over time. It was notably higher earlier in the period shown (mid-to-high teens at points in 2021–2022) and more recently has been in the mid-to-high single digits (around 6% in the latest point shown). A key question for future growth is whether newer product cycles, customer migrations to cloud, and expansion within existing accounts can re-accelerate the top line.

Free cash flow has improved over the longer period shown (roughly $443M in 2021 to about $769M by 2025-03-31 on a trailing basis), and the latest trailing figure is about $712M. Strong cash generation can help fund continued product investment and provides a buffer during slower growth phases, though it does not by itself guarantee future growth.