NICE Cuts Target to $125 After 9% Q4 Revenue Growth, Unveils AI Agents
DA Davidson cut its price target to $125 and kept a Neutral rating after NICE reported Q4 revenue of $786.5 million, up 9%, and full-year revenue of $2.945 billion, up 8%. The company also launched agentic AI technology converting enterprise interactions into ready-to-deploy AI agents to expand on-premises seat monetization.
1. Price Target Revision
DA Davidson trimmed its target price to $125 from $130 and maintained a Neutral rating, acknowledging NICE’s robust growth while signaling limited near-term upside.
2. Q4 and Full-Year Growth
NICE posted Q4 revenue of $786.5 million, up 9% year-over-year, driven by a 14% rise in cloud revenue to $608.3 million; operating income increased 7% to $243.8 million and EPS rose 7% to $3.24. Full-year revenue climbed 8% to $2.945 billion and EPS jumped 11% to $12.30.
3. AI Innovation and On-Premises Monetization
The company rolled out an agentic AI solution that turns enterprise interaction data into deployable AI agents, aiming to broaden its market reach and monetize its 60% on-premises seat base.