nCino stock dropped around 5% to $19.70 in premarket trading Wednesday after the company reported its Q2 fiscal 2027 results, despite beating analyst estimates on revenue, earnings, and operating income.
Total revenue came in at $161 million for the quarter ended July, up 8.2% year on year. That topped Wall Street’s estimate of $158.9 million by 1.3%.
Subscription revenue hit $143.5 million, ahead of the $141.5 million analysts expected. Subscription revenue is the core of nCino’s business model.
🚨 $NCNO (nCino) Q2 FY2027 Results
Solid subscription growth + sharp profitability jump…
strong FCF and aggressive buybacks continue 🚀🏦📊 KEY METRICS (Q2 FY2027)
🔹 Total Revenue: $161.0M (+8% YoY) 🟢
🔹 Subscription Revenue: $143.5M (+10% YoY) 🟢
🔹 GAAP…— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) August 25, 2026
EPS on a GAAP basis came in at $0.05, beating the $0.03 consensus estimate by two cents.
Adjusted operating income was $40.83 million, beating estimates of $36.91 million by more than 10%. That represents a 25.4% margin.
Billings reached $158.1 million, up 13% year on year. Over the last four quarters, billings growth averaged 9.6% annually.
CEO Sean Desmond pointed to large customers expanding their use of nCino’s platform, including its AI capabilities. “Deploying AI in financial services demands deep domain context and expertise, and nCino is uniquely positioned to deliver it at scale globally,” Desmond said.
For Q3, nCino guided revenue of $161.25 million to $163.25 million, with subscription revenue between $143.25 million and $145.25 million. That puts the Q3 midpoint at roughly $162.3 million, in line with analyst expectations.
Full-year revenue guidance was slightly raised to a range of $644 million to $647 million, with a midpoint of $645.5 million, up from the prior midpoint of $644 million.
Analysts covering the stock expect revenue to grow 7.8% over the next 12 months. That would be a slowdown compared to the 10.9% annualized growth seen over the past two years.
The board approved a new $100 million stock repurchase plan. nCino has already bought back $300 million in stock since April 2025.
Free cash flow margin came in at 21.1% for the quarter, down from 50.7% in the prior quarter.
Operating margin improved to 8.5%, up from negative 6.2% in the same quarter last year.
NCNO stock is down 19% so far in 2026. The stock trades at a market cap of approximately $2.30 billion.
The customer acquisition cost payback period came in at 26.4 months, which analysts at one firm described as efficient for a software company of nCino’s size.
The post nCino (NCNO) Stock Falls 5% Even After Beating Earnings. Here’s Why appeared first on CoinCentral.
