Q3 2025 Nice Ltd Earnings Call Transcript
Key Points
- NICE Ltd (NICE) reported strong financial performance in Q3 2025, with total revenue reaching $732 million, at the high end of their guidance range.
- Cloud revenue increased by 13% year over year, driven by AI and self-service offerings, with a notable 49% acceleration in annual recurring revenue (ARR).
- The acquisition of Cogniti, a leader in AI-driven customer service solutions, was completed earlier than expected, contributing positively to NICE's financial results.
- NICE's AI solutions, particularly the CXAI platform, are gaining traction, with significant deals such as an eight-figure ACV deal with a leading global auto manufacturer.
- The company is experiencing strong international growth, with international revenue increasing by 11% year over year, driven by large enterprise wins and cloud adoption.
- The operating margin is expected to slightly contract due to the acquisition of Cogniti, despite previous expectations of a 50 basis point increase.
- Gross margin decreased to 69.9% from 71.7% last year, reflecting investments in scaling international operations and expanding the global cloud footprint.
- The non-GAAP earnings per share growth expectation was adjusted down to 10% from 12% due to the impact of the Cogniti acquisition.
- There is ongoing pressure on margins due to investments in sovereign cloud infrastructure and international expansion.
- The cloud net retention rate (NRR) decreased to 109% from 111% in the previous quarter, indicating a potential challenge in maintaining customer expansion and loyalty.
Welcome to the NICE conference call discussing 3rd quarter 2025 results, and thank you all for holding.
All participants are at present in a listen-only mode.
Following management's formal presentation, instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded November 13, 2025.
I would now like to turn this call over to Mr. Ryan Gilligan, VP Investor relations at NI.
Please go ahead.
Thank you, operator. I'm incredibly excited to join NICE as the company's new Vice President of investor relations. And I look forward to working closely with all of you in the investment community.
With me on today's call are Scott Russell, Chief Executive Officer, and Beth Gaspich, Chief Financial Officer.
Before we start, I would like to point out that some of the statements made on this call will constitute forward-looking statements in accordance with the Safe harbor provisions of the Private
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
