Nice (TSE:8089) Stock Grapples With Profit Slump Despite Revenue Growth

Nice stock came into this earnings print treading water, with the share price roughly flat over the past month, and it now faces a harsher spotlight. The headline is a sharp squeeze on profitability. Q1 2027 basic earnings per share dropped to ¥12.64 on revenue of ¥62,734m, which is a thin return for a company trading on 8.6x trailing P/E.

In the very short term the market is reacting to that earnings hit. The bigger question for you is whether this margin pressure is a temporary reset or the new normal for Nice over the coming years.

Like the Nice story but worried this earnings reset could be a sign of deeper margin pressure? Take a look at our curated list of companies that pair resilient profitability with stronger balance sheets in the list of solid balance sheet and fundamentals stocks (40 results).

Q1 2027 Earnings Summary

• Revenue (Q1 2027 vs. Q1 2026): ¥62,734m vs. ¥59,536m (up 5.4%)
• Net Income (Excl. Extra Items, Q1 2027 vs. Q1 2026): ¥147m vs. ¥303m (down 51.5%)
• Basic EPS (Q1 2027 vs. Q1 2026): ¥12.64 vs. ¥25.54 (down 50.5%)
• Trailing Net Income (Excl. Extra Items, TTM Q1 2027 vs. TTM Q1 2026): ¥2,430m vs. ¥3,173m (down 23.4%)

Tired of scrolling through pages of earnings figures and raw margins data on Nice? Get a clear visual read on how the company’s profitability and valuation fit together in the full company report for Nice.

Nice bullish story under pressure but not broken

For investors who view Nice as an integrated timber to housing platform, the latest revenue move to ¥62,734m versus ¥59,536m keeps the top line broadly aligned with that idea. The business is still shifting a large volume of building related goods and services. The mixed picture is that this revenue performance now sits alongside much thinner earnings, so any bullish view rests on the company converting that scale into better margins rather than on a clear profit trend today.

Margin squeeze gives bears more evidence to point to

The earnings reset gives cautious investors plenty to point at. Net income excluding extra items roughly halved year on year in the quarter, and trailing net income excluding extra items moved lower as well. Basic EPS fell in line with that pressure. Short term share price moves are modest so far, but the direction of profits sits against the idea of Nice as a consistently resilient housing and materials platform and makes any cyclical concerns around the business mix harder to dismiss.

After this kind of earnings reset at Nice, it helps to know if shrinking profits and dividend coverage are isolated issues. Scan our independent risk analysis for Nice which shows 2 important warning signs

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If the profit squeeze at Nice has your attention but you are not ready to act, register for free with Simply Wall St and add Nice to your Watchlist to track price against fair value and watch how margins develop before deciding on an entry point. Once you do own shares, keep your decisions grounded in data by using the Portfolio Command Center to cut through noise and focus on the most important changes to your holdings. Over the long run, tap into collective insight through the Community and see how other investors are thinking about the same risks and opportunities. By spotting potential catalysts and warning signs early, you can stay in front of market reactions and make more confident investment calls.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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