NICE (NICE) Q4 2025 earnings summary

Executive summary

• Achieved 8% total revenue growth to $2.945B in FY 2025, with Q4 revenue up 9% to $786M; cloud revenue grew 13% to $2.24B for the year and 14% to $608M in Q4.

• Non-GAAP EPS for FY 2025 was $12.30 (+11% YoY); Q4 non-GAAP EPS was $3.24 (+7% YoY); results include Cognigy acquisition.

• AI ARR grew 66% to $328M, now 13% of cloud revenue; record new AI logos and all new seven-figure CXone deals included AI.

• Cloud backlog increased 25% YoY, reflecting strong bookings and improved win rates.

• Announced $600M share repurchase program, bringing total authorization to ~$1B; ended 2025 debt-free with $417M in cash and equivalents.

Financial highlights

• FY 2025 revenue: $2.945B (+8% YoY); cloud revenue: $2.24B (+13% YoY); Q4 revenue: $786M (+9% YoY); Q4 cloud revenue: $608M (+14% YoY).

• FY 2025 non-GAAP operating income: $908M (+7% YoY); Q4: $244M (+7% YoY); non-GAAP operating margin: 30.8% for FY, 31.0% for Q4.

• FY 2025 free cash flow: $623M (21% margin); Q4 operating cash flow: $179.7M.

• Cloud net revenue retention: 109% TTM; recurring revenue was 89% of Q4 total.

• Repurchased $489M in shares in 2025, representing 79% of free cash flow.

Outlook and guidance

• FY 2026 revenue guidance: $3.17B–$3.19B (+8% at midpoint); cloud revenue growth: 14.5%–15%.

• FY 2026 non-GAAP EPS: $10.85–$11.05; Q1 2026 revenue: $755M–$765M (+8.5% YoY at midpoint); Q1 EPS: $2.45–$2.55.

• Highest incremental margin investment expected in H1 2026, with margin improvement in H2; targeting 25–26% operating margin exit rate.

• Effective tax rate for 2026: 20.5%–21%.