NICE Ltd (NICE)
NEUTRALFundamental
77
Price
$99.41
Market Cap
$5.87B
Part 1 · What the company is worth
Overview
NICE, an Israeli company listed in the US, sells cloud software to two very different kinds of customer. Contact centers use its platform to route calls and chats, guide agents in real time and increasingly hand routine conversations to AI. Banks and other regulated financial firms use a separate line of software to spot money laundering and fraud in their transaction flows. Both businesses sell to the same kind of buyer: large enterprises that cannot easily rip out software once it runs a core process.
How it makes money
Most revenue now comes from cloud subscriptions billed recurrently rather than one-time software licenses; cloud revenue grew 13% in 2025 while the on-premise portion shrinks as customers migrate. Contracts with large enterprises and financial institutions run multiple years, giving revenue visibility, but the company must keep investing in AI features to defend pricing as customers compare it against newer, AI-native rivals rather than legacy on-premise vendors.
Revenue by segment
Cloud contact-center software (CXone) that routes and analyzes customer interactions and increasingly automates them with AI agents.
Software sold to banks and financial institutions to detect money laundering, fraud and market abuse (the Actimize product line).
Competitive moat
Switching costs · NarrowBoth product lines get woven into processes that are expensive to disrupt: a bank's anti-money-laundering rules or a call center's routing logic, once configured, is costly to migrate and carries compliance risk if it goes wrong. That said, competition from cloud-native customer-experience and AI startups is intensifying, and the moat has not stopped recent margin pressure and share-price declines.
What drives demand
Moderately cyclicalContact-center software spending follows corporate IT budgets and can be trimmed in a downturn, but much of it replaces headcount rather than adding cost, which cushions demand. Financial-crime and compliance software is closer to defensive: banks buy it because regulators require it, not because business is good, so that half of revenue is less exposed to the economic cycle than the customer-experience half.
Key risks
- Intensifying AI competition in customer experience — New AI-native entrants and larger platform vendors are competing directly for the customer-experience budget NICE has historically held, pressuring both growth and profitability as the company invests to keep pace.
- Cloud transition and margin pressure — Shifting revenue from on-premise licenses to cloud subscriptions changes the timing and shape of margins during the transition, and the company has flagged profitability pressure while it invests in AI capabilities.
- AI-related privacy and operational risk — Embedding AI and generative-AI models into products used by banks and call centers raises privacy, security and operational risks that the company itself flags as it expands these features.
- Operations based in Israel — A meaningful part of NICE's research and operations sits in Israel, exposing the company to regional political and security instability that could disrupt staff, facilities or customer confidence.
Customer concentration
NICE does not disclose revenue concentration among individual customers; its exposure runs instead through geography, with North America the dominant market for both product lines.
The case for
Buyers argue that NICE's compliance software is protected by regulatory necessity that AI hype cannot easily disrupt, that its double-digit cloud growth shows the customer-experience business is still winning share, and that a sell-off driven by AI competition fears has made the stock cheap relative to a durable, recurring-revenue base.
The case against
Sellers fear that AI-native rivals will erode NICE's position in customer-experience software faster than the compliance business can compensate, that the cloud transition keeps squeezing margins for longer than expected, and that a company built on North American enterprise contracts is more exposed to a single region's IT spending than diversification would suggest.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$3.07B
Trailing 12 months (through 6/30/2026)
Net Income
$425M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$615M
Total Equity
$151M
Total Liabilities
$88M
Current Ratio
1.33
Interest Coverage
-
Debt/EBITDA
0.11
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$207.51
Current Price
$99.41
Margin of Safety
+52.1%
Fair Value Range
$134.88 - $280.14
Estimation Methods
Valuation Metrics
P/E Ratio
14.59
ROE
11.3%
P/B Ratio
39.01
P/FCF
9.55
Gross Margin
65.1%
ROIC
140.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
140.5%
WACC
8.0%
ROIC − WACC
+132.5 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (15)
- ROIC 140.5%
- Gross Margin 65.1%
- P/FCF 9.55
- Debt/Equity ratio
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Debt/EBITDA
- DCF valuation (Undervalued)
- ROE 14.0%
- Revenue Growth 5Y 12.3%
- Analyst Consensus 67% Buy
- PEG Ratio 0.41
- Earnings Quality (OCF/NI) 1.10
- Net Margin Trend 20.8% vs 16.2%
Failed (4)
- Price CAGR 3.84%
- P/B Ratio 39.01
- Earnings Surprise avg -0.0%
- Piotroski F-Score 2/9
Unavailable (8)
- EPS data insufficient
- Dividend Payout NaN%
- Operating Margin NaN%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Scott E. Russell | Chief Executive Officer | 52 |
| Ms. Beth Gaspich | Chief Financial Officer | 59 |
| Mr. Dan Belanger | President of NICE Americas | - |
| Mr. Darren Rushworth | President of CE International | 57 |
| Mr. Craig B. Costigan | Chief Executive Officer of NICE Actimize | 64 |
| Mr. Arun Chandra | Chief Operating Officer | 64 |
| Mr. Jeff Comstock | President of CX Product & Technology | - |
| Mr. Ryan Gilligan | Vice President of Investor Relations | - |
| Mr. Alon Levy | VP, General Counsel & Corporate Secretary | 51 |
| Ms. Shiri Neder | Executive Vice President of Human Resources | 49 |
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for NICE, sourced from Markets Gazette.
- 5/6/2026POSITIVEWhat's Going On With NICE Stock Wednesday?
NICE Ltd. reported first-quarter 2026 results that surpassed analyst expectations, with earnings per share (EPS) reaching $2.64 against a consensus of $2.40. Total sales for the quarter amounted to $768.6 million, also exceeding the $750 million forecast. A key driver of this performance was the robust 14.6% year-over-year growth in cloud revenue, fueled by sustained momentum in artificial intelligence (AI) solutions. This strong showing indicates NICE's effective execution and its ability to capitalize on the growing demand for AI-driven cloud services, potentially signaling continued upward trajectory for the stock.
- 3/15/2026NEGATIVENICE Stock Fell Over 20% Last Quarter. One Investor Exited a $3 Million Position
NICE Ltd., a provider of AI-driven cloud software for customer engagement and automation, experienced a significant decline in its stock value, falling over 20% in the last quarter. This downturn prompted at least one major investor to exit a substantial $3 million position. The company's focus on AI for enterprise solutions has not translated into positive market sentiment recently, suggesting potential headwinds or a reassessment of its growth prospects by the market.
- 3/15/2026POSITIVEThis Investor Is Betting $16 Million on a Software Stock Down 17% This Past Year. Here's What to Know
An investor has placed a significant $16 million bet on NICE Ltd., an AI-powered cloud platform provider specializing in enterprise solutions for customer experience, analytics, and compliance. Despite the stock's 17% decline over the past year, this substantial investment signals strong conviction in the company's future prospects. NICE's focus on AI and cloud technologies positions it well within key growth sectors, potentially driving a recovery and future appreciation for shareholders. The investment may indicate an undervaluation by the market or confidence in upcoming catalysts.
via Markets Gazette