NICE (NICE) Q4 2025 earnings summary

Executive summary

• Achieved 8% total revenue growth to $2.95B and 13% cloud revenue growth for 2025, with Q4 cloud revenue up 14% and total revenue up 9% year-over-year.

• Non-GAAP EPS for 2025 was $12.30, up 11% year-over-year; Q4 non-GAAP EPS was $3.24, up 7% year-over-year.

• AI ARR increased 66% to $328 million, now 13% of cloud revenue, with record new AI logo acquisitions and all new seven-figure deals including AI.

• Acquisition of Cognigy in September 2025 strengthened AI leadership and contributed to results, with full integration into CXone expected in 2026.

• Ended 2025 with strong booking momentum, a 25% increase in cloud backlog, and a debt-free balance sheet with $417 million in cash and investments.

Financial highlights

• Full year 2025 total revenue: $2.945 billion, up 8% year-over-year; Q4 revenue: $786 million, up 9% year-over-year.

• Cloud revenue for 2025: $2.24 billion, up 13% year-over-year; Q4 cloud revenue: $608 million, up 14% year-over-year.

• 2025 non-GAAP operating income: $908 million (30.8% margin); Q4: $244 million (31% margin).

• Free cash flow for 2025: $623 million (21% margin); Q4 free cash flow: $156 million.

• Ended 2025 with $417 million in cash and short-term investments, no outstanding debt.

Outlook and guidance

• 2026 total revenue guidance: $3.17–$3.19 billion (8% growth at midpoint); cloud revenue growth expected at 14.5%–15%.

• 2026 non-GAAP EPS guidance: $10.85–$11.05; Q1 2026 EPS: $2.45–$2.55.

• Q1 2026 revenue guidance: $755–$765 million (8.5% year-over-year growth at midpoint).

• Cognigy expected to contribute ~200 basis points to 2026 cloud growth.

• Highest incremental margin investment expected in H1 2026, with margin improvement in H2 and expansion in 2027.