Nice leans on AI to drive growth as Cognigy deal nears completion
Strong Q2 results come ahead of $955M Cognigy acquisition.
Nice on Thursday published financial results that exceeded market forecasts, just two weeks after announcing the largest acquisition in its history.
The customer relationship management software company continues to face negative investor sentiment amid concerns that artificial intelligence solutions could disrupt its market, a factor that also drove it to acquire Germany’s Cognigy for $955 million.
The deal is not yet complete, but in the meantime Nice is reporting a slight acceleration in growth and improved profitability. The company’s shares rose in pre-market trading on Wall Street and in Tel Aviv, though they remain down more than 10% since the start of the year.
Led by new CEO Scott Russell, Nice ended the second quarter of 2025 with revenue of $728 million, up 9% year-on-year, compared with 6% growth in the previous quarter. Cloud revenue grew at a faster pace, rising 12% to $540 million. Operating margin increased to 22.1% from 19.4% a year earlier, while operating profit jumped 25% to $160.6 million.
Excluding one-time items, operating profit reached $220 million. Net income was $187 million and cash flow totaled $61 million.
Nice’s net cash balance, after debt, stands at $1.1 billion, most of which will be used to finance the Cognigy acquisition, which is expected to close in the fourth quarter of 2025.
The company reiterated its annual revenue forecast of $2.9 billion for 2025, implying annual growth of 7%, but raised its earnings guidance to $12.30–$12.50 per share, 12% higher than in 2024.
Commenting on the results, Russell said: “AI is at the core of our strategy, and we are at the forefront of the AI-first transformation in the customer experience market. And this is just the beginning. Our momentum is set to accelerate further with the upcoming integration of Cognigy’s industry-leading CX-AI conversational and agentic capabilities upon closing of the transaction, enabling us to deliver truly human-like, AI-first customer experiences on CXone Mpower. Our continued leadership in AI innovation is powered by our solid financial foundation, strong profitability, and robust balance sheet, as well as a growing number of strategic partnerships secured over the past six months."
