Automation firm NICE posts higher Q2 revenue on AI demand
Overview
NICE Q2 2025 cloud revenue grows 12% yr/yr, driven by AI demand
Total revenue of $726.7 mln exceeds high end of co's guidance range
Adjusted EPS for Q2 2025 grows 14%, at top of co's expected range
Outlook
NICE sees Q3 2025 revenue between $722 mln and $732 mln
NICE expects Q3 2025 EPS between $3.12 and $3.22
NICE reaffirms full-year 2025 revenue of $2.918 bln to $2.938 bln
NICE raises full-year 2025 EPS to $12.33-$12.53
Integration of Cognigy's CX-AI capabilities expected to further enhance customer experiences
Result Drivers
AI DEMAND - Accelerating demand for AI and self-service solutions drove a 42% rise in annual recurring revenue, per CEO Scott Russell
CLOUD REVENUE - Cloud revenue increased 12% yr/yr, contributing significantly to overall revenue growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | $726.70 mln | ||
Q2 Adjusted EPS | $3.01 | ||
Q2 Net Income | $187.40 mln | ||
Q2 Gross Margin | 66.8% | ||
Q2 Gross Profit | $485.10 mln | ||
Q2 Operating Income | $160.60 mln | ||
Q2 Operating Margin | 22.1% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Nice Ltd is $200.00, about 26% above its August 13 closing price of $147.99
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release:
