Revenue growth has slowed from 15.3% in 2024Q1 to 9.5% in 2026Q1, while gross margins have compressed to 64.4% from a 67.8% peak in 2024Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'96 | Dec'95 |
|---|
| Sales/Revenue | 3.01B | 2.95B | 2.74B | 2.38B | 2.18B | 1.92B | 1.65B | 1.57B | 1.44B | 1.33B | 1.02B | 926.87M | 1.01B | 949.28M | 879.01M | 793.83M | 689.45M | 583.12M | 624.16M | 517.37M | 409.64M | 311.11M | 252.64M | 224.26M | 162.5M | 127.11M | 153.16M | 123.6M | 39.8M | 21M |
| Revenue Growth % | 8.49% | 7.68% | 15.05% | 9% | 13.54% | 16.57% | 4.71% | 8.96% | 8.43% | 31.18% | 9.57% | -8.38% | 6.57% | 7.99% | 10.73% | 15.14% | 18.24% | -6.58% | 20.64% | 26.3% | 31.67% | 23.14% | 12.66% | 38% | 27.85% | -17.01% | 23.92% | 210.56% | 89.52% | - |
| Cost of Goods Sold | 1.03B | 989.25M | 909.52M | 768.17M | 683.69M | 624.46M | 561.95M | 531.77M | 496.81M | 468.67M | 337.73M | 303.58M | 375.58M | 364.95M | 351.22M | 307.31M | 269.07M | 237.21M | 238.75M | 206.34M | 174.21M | 136.23M | 114.31M | 106.31M | 84.75M | 73.77M | 74.8M | 45.09M | 16.8M | 10M |
| COGS % of Revenue | - | 33.59% | 33.25% | 32.31% | 31.34% | 32.5% | 34.1% | 33.79% | 34.39% | 35.18% | 33.26% | 32.75% | 37.13% | 38.44% | 39.96% | 38.71% | 39.03% | 40.68% | 38.25% | 39.88% | 42.53% | 43.79% | 45.24% | 47.41% | 52.15% | 58.03% | 48.84% | 36.48% | 42.21% | 47.62% |
| Gross Profit | 1.98B | 1.96B | 1.83B | 1.61B | 1.5B | 1.3B | 1.09B | 1.04B | 947.7M | 863.48M | 677.81M | 623.28M | 636.06M | 584.34M | 527.79M | 486.53M | 420.38M | 345.91M | 385.42M | 311.03M | 235.43M | 174.88M | 138.34M | 117.94M | 77.76M | 53.34M | 78.36M | 78.51M | 23M | 11M |
| Gross Margin % | 65.79% | 66.41% | 66.75% | 67.69% | 68.66% | 67.5% | 65.9% | 66.21% | 65.61% | 64.82% | 66.74% | 67.25% | 62.87% | 61.56% | 60.04% | 61.29% | 60.97% | 59.32% | 61.75% | 60.12% | 57.47% | 56.21% | 54.76% | 52.59% | 47.85% | 41.97% | 51.16% | 63.52% | 57.79% | 52.38% |
| Gross Profit Growth % | - | 7.14% | 13.45% | 7.46% | 15.49% | 19.39% | 4.21% | 9.97% | 9.75% | 27.39% | 8.75% | -2.01% | 8.85% | 10.71% | 8.48% | 15.74% | 21.53% | -10.25% | 23.92% | 32.11% | 34.62% | 26.42% | 17.29% | 51.68% | 45.78% | -31.93% | -0.19% | 241.37% | 109.09% | - |
| Operating Expenses | 1.36B | 1.31B | 1.28B | 1.17B | 1.16B | 1.03B | 844.02M | 803.43M | 750.09M | 713.41M | 543.63M | 457.18M | 518.68M | 504.06M | 480.27M | 427.5M | 371.32M | 307.71M | 348.06M | 274.49M | 205.45M | 142.8M | 118.31M | 113.46M | 111.32M | 99.35M | 89.65M | 62.98M | 18.7M | 11.1M |
| OpEx % of Revenue | - | 44.49% | 46.79% | 49.38% | 53.29% | 53.76% | 51.21% | 51.05% | 51.93% | 53.55% | 53.53% | 49.33% | 51.27% | 53.1% | 54.64% | 53.85% | 53.86% | 52.77% | 55.77% | 53.05% | 50.15% | 45.9% | 46.83% | 50.59% | 68.5% | 78.16% | 58.53% | 50.96% | 46.98% | 52.86% |
| Selling, General & Admin | 988.94M | 949.94M | 916.41M | 851.4M | 856.36M | 761.6M | 587.17M | 567.33M | 523.98M | 490.4M | 384.92M | 316.17M | 349.81M | 336.92M | 326.3M | 294.69M | 254.75M | 214.32M | 245.26M | 205.68M | 155.65M | 110.57M | 93.44M | 83.54M | 64.3M | 62.19M | 61.36M | 42.15M | 17.6M | 10.4M |
| SG&A % of Revenue | - | 32.25% | 33.5% | 35.81% | 39.26% | 39.64% | 35.63% | 36.05% | 36.27% | 36.81% | 37.9% | 34.11% | 34.58% | 35.49% | 37.12% | 37.12% | 36.95% | 36.75% | 39.29% | 39.75% | 38% | 35.54% | 36.99% | 37.25% | 39.57% | 48.93% | 40.06% | 34.1% | 44.22% | 49.52% |
| Research & Development | 368.56M | 360.45M | 360.61M | 322.71M | 306.07M | 271.19M | 218.18M | 193.72M | 183.83M | 181.11M | 141.53M | 128.49M | 148.56M | 136.56M | 121.39M | 109.13M | 97.08M | 77.38M | 78.44M | 59.63M | 44.88M | 30.9M | 24.87M | 22.83M | 17.93M | 19.19M | 21.5M | 13.82M | 0 | 0 |
| R&D % of Revenue | - | 12.24% | 13.18% | 13.57% | 14.03% | 14.12% | 13.24% | 12.31% | 12.73% | 13.6% | 13.94% | 13.86% | 14.69% | 14.39% | 13.81% | 13.75% | 14.08% | 13.27% | 12.57% | 11.53% | 10.96% | 9.93% | 9.84% | 10.18% | 11.03% | 15.1% | 14.04% | 11.19% | - | - |
| Other Operating Expenses | 0 | 0 | 2.77M | 0 | 0 | 0 | 38.67M | 42.38M | 38K | -19K | -480K | -425K | -3K | -110K | 1.53M | 331.18M | 288.17M | 253.3M | 243.43M | 215.69M | 179.47M | 0 | 0 | 7.08M | 29.09M | 17.97M | 6.79M | 7M | 1.1M | 700K |
| Operating Income | 624M | 645.76M | 545.95M | 435.23M | 335.17M | 263.91M | 242.05M | 238.72M | 197.62M | 150.07M | 134.18M | 166.11M | 111.83M | 79.75M | 45.63M | 59.03M | 49.05M | 38.2M | 37.35M | 32.83M | 17.1M | 32.09M | 20.03M | 4.49M | -33.56M | -46.01M | -11.29M | 15.53M | 4.3M | -100K |
| Operating Margin % | 20.72% | 21.92% | 19.96% | 18.31% | 15.37% | 13.74% | 14.69% | 15.17% | 13.68% | 11.27% | 13.21% | 17.92% | 11.05% | 8.4% | 5.19% | 7.44% | 7.11% | 6.55% | 5.98% | 6.35% | 4.17% | 10.31% | 7.93% | 2% | -20.65% | -36.19% | -7.37% | 12.57% | 10.8% | -0.48% |
| Operating Income Growth % | - | 18.28% | 25.44% | 29.85% | 27% | 9.03% | 1.4% | 20.8% | 31.68% | 11.85% | -19.22% | 48.54% | 40.21% | 74.77% | -22.69% | 20.34% | 28.41% | 2.27% | 13.76% | 92.05% | -46.72% | 60.21% | 346.36% | 113.37% | 27.05% | -307.59% | -172.66% | 261.23% | 4400% | - |
| EBITDA | 841.27M | 844.8M | 750.97M | 602.59M | 511.72M | 448M | 424.07M | 411.95M | 354.76M | 306.37M | 211.98M | 224.07M | 185.17M | 171.24M | 141.49M | 126.15M | 106.16M | 85.42M | 80.09M | 63.77M | 39.29M | 46.05M | 35.03M | 23.57M | -22.05M | -30.72M | 566K | 22.54M | 5.4M | 600K |
| EBITDA Margin % | 27.93% | 28.68% | 27.46% | 25.35% | 23.46% | 23.32% | 25.73% | 26.17% | 24.56% | 23% | 20.87% | 24.18% | 18.3% | 18.04% | 16.1% | 15.89% | 15.4% | 14.65% | 12.83% | 12.32% | 9.59% | 14.8% | 13.86% | 10.51% | -13.57% | -24.17% | 0.37% | 18.23% | 13.57% | 2.86% |
| EBITDA Growth % | 9.34% | 12.49% | 24.63% | 17.76% | 14.22% | 5.64% | 2.94% | 16.12% | 15.79% | 44.53% | -5.4% | 21.01% | 8.14% | 21.03% | 12.16% | 18.83% | 24.29% | 6.65% | 25.6% | 62.28% | -14.67% | 31.47% | 48.57% | 206.91% | 28.21% | -5526.86% | -97.49% | 317.37% | 800% | - |
| D&A (Non-Cash Add-back) | 217.28M | 199.04M | 205.02M | 167.36M | 176.55M | 184.09M | 182.03M | 173.23M | 157.14M | 156.3M | 77.8M | 57.96M | 73.35M | 91.49M | 95.86M | 67.12M | 57.11M | 47.22M | 42.74M | 30.93M | 22.2M | 13.96M | 15M | 19.09M | 11.51M | 15.29M | 11.85M | 7M | 1.1M | 700K |
| EBIT | 624M | 704.02M | 549.12M | 461.4M | 349.05M | 256.39M | 254.61M | 253.11M | 204.77M | 145.52M | 146.34M | 166.11M | 110.13M | 79.57M | 54M | 69.81M | 58.28M | 51.39M | 49.2M | 36.54M | 29.98M | 37.47M | 23.64M | 4.49M | -34.93M | -50.57M | -11.29M | 15.53M | 4.3M | -100K |
| Net Interest Income | 21.14M | 54.47M | 59.71M | 25.95M | 8.69M | -19.35M | -4.66M | -2.61M | -10.51M | -20.63M | 3.44M | 6.43M | 4.44M | 4.86M | 5.79M | 10.24M | 9.32M | 7.71M | 4.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 21.14M | 54.47M | 64.98M | 34.07M | 18.38M | 13.95M | 19.14M | 20.53M | 11.3M | 3.69M | 6.56M | 7.27M | 5.62M | 6.31M | 6.85M | 11.51M | 9.13M | 7.71M | 12.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 5.27M | 8.18M | 9.69M | 33.31M | 23.8M | 23.14M | 21.81M | 24.32M | 2.2M | 66K | 73K | 182K | 103K | 930K | 3.9M | 0 | 613K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 61.67M | 58.26M | 58.87M | 22.47M | 10.16M | -23.29M | -4.86M | -4.44M | -10.9M | -20.41M | 10.3M | 5.3M | 3.77M | 3.93M | 8.27M | 9.86M | 8.98M | 7.6M | 11.24M | 14.8M | -3.29M | 5.38M | 3.61M | 2.33M | -1.44M | -5.16M | 6.24M | -350K | 900K | 600K |
| Pretax Income | 685.67M | 704.02M | 604.83M | 457.7M | 345.33M | 240.62M | 237.19M | 234.27M | 186.72M | 129.66M | 144.48M | 171.41M | 115.03M | 83.68M | 53.9M | 68.88M | 58.03M | 45.8M | 48.59M | 47.63M | 30.99M | 37.47M | 23.64M | 6.81M | -33.63M | -46.6M | -5.05M | 15.18M | 5.2M | 500K |
| Pretax Margin % | 22.77% | 23.9% | 22.11% | 19.25% | 15.83% | 12.52% | 14.39% | 14.88% | 12.93% | 9.73% | 14.23% | 18.49% | 11.37% | 8.82% | 6.13% | 8.68% | 8.42% | 7.85% | 7.78% | 9.21% | 7.57% | 12.04% | 9.36% | 3.04% | -20.7% | -36.66% | -3.29% | 12.28% | 13.07% | 2.38% |
| Income Tax | 156.17M | 91.92M | 162.24M | 119.4M | 79.39M | 41.4M | 40.84M | 48.37M | 27.38M | -13.63M | 21.41M | 30.83M | 11.95M | 28.41M | -13.99M | 11.62M | 9.33M | 3.04M | 9.48M | 10.25M | 8.59M | 902K | 2.32M | 1.21M | 350K | 198K | 273K | 74K | 0 | 200K |
| Effective Tax Rate % | 22.78% | 13.06% | 26.82% | 26.09% | 22.99% | 17.2% | 17.22% | 20.65% | 14.66% | -10.51% | 14.82% | 17.99% | 10.39% | 33.94% | -25.96% | 16.87% | 16.07% | 6.64% | 19.51% | 21.53% | 27.72% | 2.41% | 9.81% | 17.69% | -1.04% | -0.42% | -5.41% | 0.49% | 0% | 40% |
| Net Income | 529.5M | 612.1M | 442.59M | 338.3M | 265.94M | 199.22M | 196.35M | 185.9M | 159.34M | 143.29M | 116.92M | 258.83M | 103.08M | 55.27M | 67.89M | 57.26M | 48.71M | 42.76M | 39.11M | 37.38M | 22.4M | 36.57M | 24.55M | 7.09M | -33.98M | -46.8M | -5.32M | 15.11M | 5.2M | 300K |
| Net Margin % | 17.58% | 20.78% | 16.18% | 14.23% | 12.19% | 10.37% | 11.91% | 11.81% | 11.03% | 10.76% | 11.51% | 27.93% | 10.19% | 5.82% | 7.72% | 7.21% | 7.06% | 7.33% | 6.27% | 7.22% | 5.47% | 11.75% | 9.72% | 3.16% | -20.91% | -36.82% | -3.47% | 12.22% | 13.07% | 1.43% |
| Net Income Growth % | 13.75% | 38.3% | 30.83% | 27.21% | 33.49% | 1.47% | 5.62% | 16.67% | 11.2% | 22.55% | -54.83% | 151.11% | 86.48% | -18.59% | 18.57% | 17.57% | 13.92% | 9.33% | 4.62% | 66.87% | -38.74% | 48.93% | 246.28% | 120.87% | 27.38% | -779.77% | -135.2% | 190.56% | 1633.33% | - |
| Net Income (Continuing) | 529.5M | 612.1M | 442.59M | 338.3M | 265.94M | 199.22M | 196.35M | 185.9M | 159.34M | 143.29M | 123.07M | 140.58M | 100.15M | 52.47M | 67.89M | 57.26M | 48.71M | 42.76M | 39.11M | 37.38M | 22.4M | 36.57M | 21.32M | 5.61M | -35.35M | -51.36M | -5.32M | 15.11M | 5.2M | 300K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 118.25M | 2.92M | 2.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 13.42M | 13.37M | 13.34M | 12.87M | 24.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.74 | 9.67 | 6.76 | 5.11 | 4.00 | 2.98 | 2.98 | 2.88 | 2.52 | 2.31 | 1.92 | 4.22 | 1.69 | 0.89 | 1.09 | 0.89 | 0.76 | 0.68 | 0.64 | 0.67 | 0.43 | 0.89 | 0.66 | 0.21 | -1.23 | -1.79 | -0.21 | 0.62 | 0.35 | 0.03 |
| EPS Growth % | 17.57% | 43.05% | 32.29% | 27.75% | 34.23% | 0% | 3.47% | 14.29% | 9.09% | 20.31% | -54.5% | 149.7% | 89.89% | -18.35% | 22.47% | 17.11% | 11.76% | 6.25% | -4.48% | 55.81% | -51.69% | 34.85% | 214.29% | 117.07% | 31.28% | -752.38% | -133.87% | 77.14% | 1066.67% | - |
| EPS (Basic) | - | 9.82 | 6.97 | 5.32 | 4.17 | 3.15 | 3.14 | 2.99 | 2.60 | 2.37 | 1.96 | 4.35 | 1.74 | 0.92 | 1.11 | 0.91 | 0.78 | 0.70 | 0.65 | 0.69 | 0.45 | 0.96 | 0.70 | 0.22 | -1.23 | -1.79 | -0.21 | 0.66 | 0.35 | 0.03 |
| Diluted Shares Outstanding | 60.6M | 63.32M | 65.51M | 66.27M | 66.47M | 66.9M | 65.96M | 64.66M | 63.31M | 62.12M | 61.03M | 61.28M | 60.9M | 61.83M | 62.26M | 64.24M | 64.13M | 62.49M | 61.27M | 55.79M | 52.1M | 41.32M | 37.49M | 33.77M | 27.63M | 26.07M | 24.74M | 24.5M | 14.52M | 13.33M |
| Basic Shares Outstanding | 59.92M | 62.33M | 63.48M | 63.59M | 63.79M | 63.19M | 62.71M | 62.12M | 61.39M | 60.44M | 59.67M | 59.55M | 59.36M | 60.39M | 60.91M | 62.92M | 62.65M | 61.4M | 60.09M | 54.17M | 49.78M | 38.29M | 35.08M | 32.23M | 27.63M | 26.07M | 24.74M | 23.12M | 14.52M | 13.33M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 6.73% | 32.67% | 14.77% | 37% | 52.48% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1366.67% |
Leadership transition and AI competition
According to the provided quarterly income statements, NICE's year-over-year revenue growth has decelerated from 15.3% in 2024Q1 to 9.5% by 2026Q1, suggesting that the company's transition to cloud-based subscription models may be encountering headwinds as the addressable market for enterprise contact center software matures.
The consistent decline in top-line expansion rates warrants investigation into whether this reflects a saturation of the core CXone platform or a broader cyclical slowdown in enterprise IT spending. Investors should monitor if the shift toward consumption-based AI pricing can offset the deceleration in seat-based growth.
As reported in the financial data, NICE's gross margin has compressed from a peak of 67.8% in 2024Q4 to 64.4% in 2026Q1, indicating that the costs associated with cloud infrastructure delivery may be scaling faster than the company's ability to extract premium pricing from its AI-driven service modules.
This margin contraction suggests that the transition to cloud is not yet yielding the expected operating leverage, potentially due to higher compute costs or competitive pricing pressures. The inability to maintain gross margins above 65% may imply that the company's cloud delivery model requires further optimization to achieve structural efficiency.
Based on the reported figures, operating margins fell to 16.5% in 2026Q1 from a 22.4% peak in 2025Q4, suggesting that the company is struggling to maintain expense discipline as revenue growth slows and the cost of supporting complex AI-integrated platforms continues to rise across the organization.
The sharp drop in operating income indicates that SG&A and R&D expenses are not scaling efficiently relative to the current revenue trajectory. This trend may suggest that the company is currently in a high-investment phase, which could weigh on profitability until the Enlighten AI engine achieves broader market adoption.
Analysis of the income statement reveals significant volatility in net income, which dropped to $46.7M in 2026Q1 from $150.6M in 2025Q4, partly influenced by the cessation of stock-based compensation reporting in the most recent quarter, which complicates the assessment of true underlying operational profitability for investors.
The sudden disappearance of SBC expenses in 2026Q1 makes it difficult to compare current earnings quality against prior periods where SBC was a material line item. Investors should exercise caution, as the reported EPS may be masking underlying compensation costs that were previously dilutive to shareholders.
Based on the provided data, the combination of decelerating revenue growth and contracting operating margins suggests that the market's valuation of NICE as a high-growth SaaS leader may be increasingly disconnected from the company's current ability to generate consistent, scalable earnings in a competitive AI landscape.
Short-term performance metrics indicate that the company is facing structural challenges in maintaining its historical growth premium. If the current trend of margin compression persists, the market may be forced to re-rate the stock toward a lower multiple more consistent with a mature, slower-growth software utility.
Quick answers to the most common questions about buying NICE stock.
For fiscal year 2025, NICE Ltd. (NICE) reported total revenue of $2.95B. This represents a 13925.7% increase compared to $21.0M in 1995.
NICE Ltd. (NICE) is profitable, generating $612.1M in net income for the fiscal year ending 2025 with a net profit margin of 20.8%.
NICE Ltd. (NICE) reported an operating income of $645.8M, resulting in an operating profit margin of 21.9%. This margin reflects the operational efficiency of the business before interest and taxes.
NICE Ltd. (NICE) generated $1.96B in gross profit for the year, representing a gross profit margin of 66.4%. This demonstrates the company's core pricing power and production efficiency.