Nice beats forecasts, raises outlook after $955M Cognigy acquisition

Nice has beaten forecasts for the third quarter, following the completion of its $955 million acquisition of German AI company Cognigy, and has slightly raised its full-year outlook.

The company reported third-quarter revenue of $732 million, up 6% from the same period last year. Cloud revenue grew at a faster pace, climbing 13% to $563 million. Operating profit rose 5% to $230 million, while net profit jumped 20% to $144.9 million.

Nice raised its 2025 non-GAAP revenue forecast to a range of $2.932 billion to $2.946 billion, representing a 7% increase at the midpoint compared to last year. It also updated its non-GAAP diluted earnings per share guidance to $12.18–$12.32, a 10% increase from last year’s midpoint. The updated outlook includes Cognigy’s expected contribution from the date of acquisition through year-end.

Cognigy’s flagship platform enables human-like customer service in more than 100 languages, powered by AI agents. Its clients include Nestlé, Mercedes, and Lufthansa.

“We’re pleased to report a strong third quarter, stemming from the continued execution of our AI-first strategy and our outstanding go-to-market performance” said Scott Russell, CEO of Nice. “Total revenue was $732 million, at the high end of our guidance, with cloud revenue increasing 13% year over year to $563 million. Our cloud revenue growth was fueled by the strong momentum of our CX AI and Self-Service business, whose ARR growth accelerated to 49% year over year, and 43% year over year excluding Cognigy. Our AI capabilities were included in every new seven-figure CX deal, underscoring the expansion of our AI-powered, enterprise-grade solutions. The strength of our strategy, combined with the pace of our innovation and execution, positions Nice at the forefront of the industry’s AI transformation.”