nCino Revenue Growth Slowed to 8% at $161.0 Million
The agentic-banking platform posted $13.6 million of GAAP operating income and authorized another $100 million of share buybacks.
nCino, Inc. (NCNO), the platform for agentic banking, reported total revenues of $161.0 million for the second quarter of fiscal 2027, an 8% increase from $148.8 million a year earlier. That year-over-year rate slowed from 11% in the first quarter of fiscal 2027, when revenue was $159.4 million.
Subscription revenues were $143.5 million, up 10% from $130.8 million a year earlier, also slower than the 12% year-over-year increase recorded in the prior quarter. Professional services and other revenue was $17.5 million.
GAAP income from operations was $13.6 million, or an 8% operating margin, compared with a $9.3 million loss a year earlier. The margin was 13% in the first quarter of fiscal 2027, when GAAP operating income was $21.1 million. Non-GAAP operating income was $40.8 million, a 25% margin, versus $30.0 million a year earlier; the prior quarter’s non-GAAP operating income was $44.5 million and its non-GAAP margin was 28%.
Gross profit was $100.8 million, a 63% margin. Sales and marketing expense was $36.9 million, research and development expense was $31.0 million, and general and administrative expense was $19.2 million. Net income attributable to nCino was $5.1 million, or $0.05 a share.
Free cash flow was $34.0 million, compared with $80.8 million in the first quarter of fiscal 2027 and $12.6 million a year earlier. Cash, cash equivalents, and restricted cash were $83.6 million as of July 31, 2026, down from $103.1 million as of April 30, 2026. $275.4 million was outstanding under the company’s credit facility.
Chief Executive Officer Sean Desmond said the company exceeded all financial guidance and that many of its largest customers were consolidating more critical operations on nCino and expanding commitments to include its AI capabilities. The company said it completed multi-year renewals with four U.S. enterprise customers representing more than $900 billion in assets, all ahead of schedule with expanded commitments to use nCino’s AI tools. It also signed a development finance institution in Germany, expanded a U.S. regional bank into consumer lending, signed an Iowa community bank for commercial onboarding and account opening, selected Hachijuni Nagano Bank in Japan, and expanded its mortgage business with an Indiana credit union.
In the second quarter, nCino repurchased about 4.2 million shares at an average of $15.41 a share for about $65 million and finalized a $100 million accelerated share repurchase program that bought about 6.0 million shares at an average of $16.57 a share. Chief Financial Officer Greg Orenstein said the board authorized an additional $100 million repurchase program after $300 million of buybacks since April 2025. The company said it currently expects to fund the new program from existing cash and cash equivalents, credit-facility capacity, and/or future cash flows.
For the third quarter ending October 31, 2026, nCino guides to total revenues of $161.25 million to $163.25 million, subscription revenues of $143.25 million to $145.25 million, and non-GAAP operating income of $42.0 million to $44.0 million.
For fiscal 2027 ending January 31, 2027, the company guides to total revenues of $644.0 million to $647.0 million, subscription revenues of $573.5 million to $576.5 million, non-GAAP operating income of $171.0 million to $174.0 million, free cash flow of $137.0 million to $142.0 million, and period-end annual contract value of $662.5 million to $667.5 million.