- Price
- $112.17
- Fair value
- $170.00
- Discount
- 34.0%
- Uncertainty
- High
- LSEG rating
- 2.25
- Moat
- None
- Next earnings
- 2026-11-05
- Next earnings is estimate
- Yes
- Company name
- NiCE
- Sector
- Customer experience & compliance software
- About
- NiCE is an enterprise software company based in Israel, with its US headquarters in Hoboken, New Jersey. It serves two main markets: Customer Engagement and Financial Crime and Compliance. Its main product is CXone, a cloud platform that companies use to run their contact centers and customer service. NiCE Cognigy adds AI agents that answer customers by voice and chat, and these are now built into CXone. NiCE also sells software for public safety and for banks that must find fraud and money laundering. Cloud revenue was $609 million of its $782 million revenue in Q2 2026. Its American Depositary Shares trade on Nasdaq, and it files reports with the SEC as a foreign private issuer.
- Thesis
- The market prices NiCE for the fear that AI agents will reduce the number of human contact center agents, and so the number of seats that companies pay for in CXone. Revenue growth slowed to 7.6% in Q2 2026 from 9.8% in Q1, and cloud revenue growth slowed to 12.6% from 14.6%. The non-GAAP operating margin fell to 25.3% from 30.2% a year earlier, as NiCE invests in AI and in Cognigy. Investors are not yet sure that AI revenue can replace the seat revenue that AI can remove. For the gap to close, three things must be true. Cloud revenue must grow 13% to 15% in 2026, as the guidance says. AI annual recurring revenue (ARR), which was $362 million or 15% of cloud revenue in Q2 2026, must keep growing fast. The operating margin must stop falling, so that NiCE reaches its 2026 non-GAAP EPS guidance of $11.06 to $11.26. The Q3 2026 report, estimated for about November 5, 2026, gives the next test with the Q3 guidance of $780 million to $790 million of revenue. The 2027 guidance in February 2027 shows whether growth holds. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a faster fall in contact center seats than the growth in AI revenue.
- Risks
- AI agents can handle more customer contacts without human agents. If customers buy fewer CXone seats faster than they buy AI products, NiCE's revenue growth can slow further.
Competition is strong from other contact center software companies, from large cloud providers and from new AI companies. Price pressure can reduce margins.
The non-GAAP operating margin fell to 25.3% in Q2 2026 from 30.2% a year earlier. If AI investments do not bring the expected revenue, profits can stay lower.
NiCE has large operations in Israel. Conflict in the region can disrupt its staff and operations.
- Balance sheet
- Cash: $355M
Debt: $0.0M
Net cash: $355M
NiCE had no outstanding debt at June 30, 2026. Cash, cash equivalents and short-term investments were $354.7 million, of which cash and cash equivalents were $315.4 million. Cash and cash equivalents were $379.4 million at December 31, 2025. NiCE bought back $253 million of shares in Q1 2026 and $58.0 million in Q2 2026. Operating cash flow was $122.7 million in Q2 2026. Total assets were $5.12 billion, much of it goodwill and intangible assets from acquisitions such as Cognigy.
As of 2026-06-30.
- Checkpoints
- Nov 5, 2026 (estimate): Q3 2026 earnings: cloud growth and AI ARR. Pending. Watch: Revenue within the guidance of $780 million to $790 million, cloud growth of 13% or more and higher AI ARR pass; revenue below the range or slower cloud growth fails.
Feb 2027 (estimate): 2026 results and 2027 guidance. Pending. Watch: 2026 non-GAAP EPS within $11.06 to $11.26 and 2027 guidance for cloud growth near 13% pass; lower EPS or a weaker cloud outlook fails.
- Recent events
- 2026-09-08: NiCE said that the German health insurer AOK PLUS went live on NiCE Cognigy and CXone, with AI agents for more than 5 million member interactions a year.
2026-08-05: NiCE reported Q2 2026 results. Revenue rose 7.6% to $782.3 million, above its guidance range, and cloud revenue rose 12.6% to $609.0 million. GAAP EPS was $1.40 and non-GAAP EPS was $2.70. AI ARR reached $362 million. NiCE kept its 2026 revenue guidance of $3,170 million to $3,190 million and raised its non-GAAP EPS guidance to $11.06 to $11.26. It used $58.0 million for share buybacks.
2026-07-01: NiCE became a launch partner for the AWS European Sovereign Cloud, so customers in Europe can keep their data in the EU.
2026-05-07: NiCE launched a joint solution with ServiceNow that links customer engagement with ServiceNow workflows.
2026-05-06: NiCE reported Q1 2026 results. Revenue rose 9.8% to $768.6 million and cloud revenue rose 14.6% to $603.4 million. AI ARR rose 66% from a year earlier. NiCE bought back $253 million of shares and raised its 2026 EPS guidance.