NICE Tumbles 13.61% on $370M Surge in Volume Ranking 275th Despite Strong Q2 Earnings

NICE (NASDAQ: NICE) fell 13.61% on August 14, 2025, with a trading volume of $370 million—a 145.62% surge from the previous day—ranking 275th in market activity. The decline contrasted with strong second-quarter financial results, as the company reported non-GAAP earnings of $3.01 per share, surpassing estimates, and $726.7 million in revenue, exceeding its guidance. Cloud revenue grew 12% year-over-year to $540.8 million, driven by accelerating demand for AI and self-service solutions, with annual recurring revenue in this segment rising 42% YoY.

Management highlighted robust financial performance, including a 25% year-over-year increase in operating income to $160.6 million and a 62% rise in net income to $187.4 million. The company raised its full-year 2025 non-GAAP EPS guidance to $12.33–$12.53, reflecting 12% growth at the midpoint, while reaffirming revenue projections of $2.92 billion–$2.94 billion. Strategic momentum was underscored by the upcoming integration of Cognigy’s AI capabilities, expected to close by year-end, and expanded partnerships in AI-driven customer experience solutions.

Despite these positives, third-quarter revenue guidance of $722–$732 million fell slightly below analyst consensus of $737 million. Northland reiterated an Outperform rating with a $250 price target, citing NICE’s strong fundamentals, including a 66.9% gross margin and $1.2 billion in net cash. However, near-term challenges such as LiveVox churn and tougher comparisons may temper cloud growth in Q4. The stock remains near its 52-week low, trading significantly below its fair value estimate.

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