Key Takeaways
- Q2 revenue reached $161 million, representing 8.2% year-over-year growth and surpassing the $158.9 million estimate
- Earnings per share of $0.05 exceeded analyst projections of $0.03
- Adjusted operating income reached $40.83 million, topping forecasts by more than 10%
- Annual revenue outlook increased modestly to $645.5 million midpoint
- Board greenlit a $100 million share repurchase program; NCNO shares declined approximately 5% to $19.70
Shares of nCino tumbled approximately 5% to $19.70 during Wednesday’s premarket session following the release of its fiscal Q2 2027 earnings report, even though the cloud banking software provider exceeded Wall Street projections across key metrics including revenue, profit, and operating performance.
The company generated total revenue of $161 million during the quarter that concluded in July, marking an 8.2% increase compared to the previous year. This figure exceeded analyst expectations of $158.9 million by approximately 1.3%.
Subscription-based revenue totaled $143.5 million, outperforming the anticipated $141.5 million. This subscription segment represents the fundamental pillar of nCino’s revenue model.
On a generally accepted accounting principles (GAAP) basis, earnings per share registered at $0.05, surpassing the consensus forecast of $0.03 by two cents.
The company’s adjusted operating income totaled $40.83 million, exceeding projections of $36.91 million by over 10%. This translates to an operating margin of 25.4%.
Billings climbed to $158.1 million, reflecting a 13% year-over-year increase. Throughout the trailing twelve months, billings have expanded at an average annual rate of 9.6%.
Chief Executive Officer Sean Desmond highlighted how major financial institutions are broadening their adoption of nCino’s technology platform, particularly its artificial intelligence features. “Deploying AI in financial services demands deep domain context and expertise, and nCino is uniquely positioned to deliver it at scale globally,” Desmond stated.
Conservative Outlook for Coming Quarters
Looking ahead to Q3, nCino projected revenue ranging from $161.25 million to $163.25 million, with subscription revenue anticipated between $143.25 million and $145.25 million. The Q3 midpoint of approximately $162.3 million aligns closely with current analyst forecasts.
The company marginally elevated its full-year revenue guidance to a range spanning $644 million to $647 million, establishing a midpoint of $645.5 million—representing a modest increase from the previous $644 million midpoint.
Wall Street analysts tracking the company anticipate revenue expansion of 7.8% throughout the upcoming twelve months. This projection represents a deceleration from the 10.9% annualized growth rate observed during the previous two-year period.
Capital Allocation and Financial Health
nCino’s board of directors authorized a fresh $100 million stock buyback program. The company has already repurchased $300 million worth of shares since April 2025.
Free cash flow margin registered at 21.1% for the quarter, representing a decline from the 50.7% recorded in the preceding quarter.
Operating margin showed improvement, reaching 8.5%, compared to negative 6.2% during the corresponding quarter one year earlier.
Year-to-date in 2026, NCNO stock has decreased 19%. The company currently maintains a market capitalization of roughly $2.30 billion.
The timeframe required to recover customer acquisition costs stood at 26.4 months, which industry analysts at one research firm characterized as favorable efficiency for a software enterprise of nCino’s scale.
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