nCino Inc. shares were held at Neutral by BTIG on Tuesday, as the banking software provider reported accelerating core revenue growth but missed adjusted earnings expectations in its fiscal second quarter.
The Wilmington, North Carolina-based company posted total revenue of $161 million for the quarter, an 8% increase from a year earlier and above Wall Street’s forecast of $159.14 million. Core revenue, excluding mortgage-related activity, grew 12%, while U.S. mortgage revenue declined 1%.
Adjusted earnings per share came in at $0.05, below the $0.2658 expected by analysts. The stock, trading at $20.81, has gained 25% over the past six months, giving the company a market capitalization of approximately $2.28 billion.
BTIG maintained its Neutral rating on nCino, citing the earnings shortfall despite improvements in core growth. The firm also noted that management has been actively repurchasing shares, contributing to a high shareholder yield. nCino recently announced an additional $100 million share repurchase authorization.
Citizens analyst team raised its price target to $25 from $23 while keeping a Market Outperform rating. The upgrade follows nCino’s progress in transitioning customers to its updated pricing structure, with 48% of annual contract value now under the new terms, up from over 40% in the prior quarter. Twelve of the company’s 20 largest U.S. enterprise customers have adopted the new pricing, supported by four top clients accelerating their renewals.
Fiscal 2027 revenue growth estimates were increased by roughly 30 basis points, and core subscription growth projections were raised by 80 basis points. nCino also secured its largest deal of the year in the third quarter, underscoring momentum in its core markets.
