NICE Ltd. Q4 FY2025 earnings call

Scott Russell highlighted that in 2025, the company achieved financial guidance each quarter and for the full year, with total revenue growth of 8%, cloud revenue growth of 13% and non-GAAP EPS of $12.30. They leaned into AI-first platform-led strategy, doubled down on international expansion and strategic partnerships. Extended CX AI market leadership with AI ARR increasing 66%, acquired Cognigy, had strong international growth, expanded strategic partner ecosystem. In Q4, cloud revenue grew 14%, new cloud ACV bookings were record, win rates improved. Beth Gaspich noted 2025 full year total revenue $2.945 billion, 8% growth; cloud revenue 13% growth; completed acquisition of Cognigy, fully repaid debt, repurchased shares. Q4 total revenue $786 million, 9% growth; cloud revenue $608 million, 14% growth. Discussed investments in 2026 in cost of goods sold, R&D, sales and marketing for growth acceleration and margin expansion.

Customer Engagement revenue in Q4 was $658 million, representing 84% of total revenue and growing 10% year-over-year. Financial Crime and Compliance revenue totaled $128 million, growing 2% year-over-year and represented 16% of total revenue. Americas region represented 82% of total revenue, growing 5% year-over-year. EMEA revenue represented 13% of total revenue, grew 38% year-over-year or 32% on a constant currency basis. APAC revenue representing 5% of total revenue grew 11% year-over-year, consistent on a constant currency basis. Cloud revenue totaled $608 million in Q4, growing 14% year-over-year and represented 77% of total revenue. AI ARR was $328 million, up 66% year-over-year. Cloud net revenue retention for the trailing 12 months was 109%.

Full year 2026 total revenue expected to be in range of $3.170 billion to $3.190 billion, 8% increase at midpoint. Cloud revenue growth expected in range of 14.5% to 15% with Cognigy contributing ~200 basis points. Full year 2026 fully diluted earnings per share expected in range of $10.85 to $11.05. First quarter 2026 total revenue expected in range of $755 million to $765 million, 8.5% year-over-year growth at midpoint. First quarter 2026 fully diluted earnings per share expected in range of $2.45 to $2.55.

Q: Rishi Jaluria asked about market disconnect regarding AI being a tailwind for NiCE and AI native partnerships.

A: Scott Russell said CX AI market is expanding, NiCE's unified platform is needed, and they leverage AI models with their specialization.

Q: Samad Samana asked about upward revision in 2026 cloud revenue growth forecast.

A: Beth Gaspich said it's from strength of backlog, core organic cloud revenue and Cognigy's strong showing.

Q: Arjun Bhatia asked about seat dynamics and ROI signals.

A: Scott Russell said customers use AI as efficiency driver, not to reduce agents, and Beth Gaspich said they monitor investments and ROI through key metrics.

Q: Unknown Analyst asked about international revenue trend and Cognigy joint go-to-market.

A: Scott Russell said international expansion has momentum, and joint go-to-market was strong in Q4.

Q: Sitikantha Panigrahi asked about backlog to revenue lag and Cognigy ARR.

A: Beth Gaspich said backlog will be recognized in next 24 months, and Cognigy ARR is on track.

Q: James Reynolds asked about displacement of CRM vendor and seasonality.

A: Scott Russell said customers wanted unified platform, and Beth Gaspich said seasonality was healthy.

Q: Michael Funk asked about migration pace and TCV, and about financial crime business.

A: Scott Russell talked about migration momentum and value, and said financial crime business is strong.

Q: Thomas Blakey asked about win rates and pricing, and about consumption-based AI.

A: Scott Russell said customers expect ROI, and Beth Gaspich said they use flexible pricing and have upside in interactions.

Q: Patrick Walravens asked about $100 million deals.

A: Beth Gaspich said those deals are live and there are additional opportunities.