NICE Sees Q4 EPS Beat, AI Revenue Up 66% YoY
NICE Ltd. raised its target price by 1.6% after reporting Q4 adjusted EPS of $3.24 on $786.5 million revenue, slightly above consensus. Rapid AI adoption drove a 66% year-over-year increase in annual recurring revenue, now comprising 13% of cloud service sales alongside over 20% backlog growth.
1. Q4 Financial Performance
NICE delivered Q4 adjusted diluted EPS of $3.24 on $786.5 million in net revenue, exceeding analyst consensus by $0.03 and $6.6 million respectively. This performance follows a roughly 15% year-to-date stock decline driven by sector weakness and a Capital Markets Day free cash flow shortfall.
2. AI Adoption and Backlog Growth
Annual recurring revenue from NICE’s AI segment surged 66% year-over-year, representing 13% of total cloud service sales as customer expansion accelerated. Management highlights more than 20% growth in backlog revenue, underpinning expectations for continued momentum in 2026.
3. Analyst Rating and Valuation
Piper Sandler maintained a Neutral rating on NICE while increasing the target price by 1.6%, reflecting confidence in the recent quarterly results. The cautious outlook balances strong AI adoption against broader software sector headwinds and cash flow concerns.