nCino Inc. reported second-quarter fiscal 2026 results that fell short of analyst expectations, sending shares down 3.4% in after-hours trading. The Wilmington, North Carolina-based banking software provider posted adjusted earnings per share of $0.05, missing the consensus estimate of $0.2658 by 81.2%. Revenue rose 8% year-over-year to $161 million, slightly exceeding the $159.14 million forecast.
Subscription revenue, the company’s primary growth driver, increased 10% to $143.5 million, including a 12% rise excluding U.S. mortgage. Professional services revenue declined 3% to $17.5 million, though gross margin improved to 3% from negative 3% a year earlier. Overall gross profit margin stood at 61.61% over the last twelve months, while non-GAAP operating income rose 36% to $40.8 million, representing 25% of revenue.
Free cash flow surged 170% to $34 million, supported by a $300 million share repurchase program executed since April 2025. The company also announced a new $100 million buyback authorization. nCino’s current ratio stood at 0.89.
During the quarter, nCino signed multi-year renewals with 20 of its largest U.S. enterprise customers, representing over $900 billion in combined assets. Approximately 48% of total annual contract value is now on platform pricing, up from 40% the prior quarter. The company also noted that over 230 customers purchased AI Intelligence Units, and highlighted customer expansions including a regional bank with over $15 billion in assets adding consumer lending capabilities.
Management raised its full-year guidance, projecting revenue of $644 million to $647 million and non-GAAP operating income of $171 million to $174 million, up from a prior range of $166 million to $171 million. Free cash flow guidance was increased to $137 million to $142 million. For the third quarter, nCino expects revenue of $161.25 million to $163.25 million and non-GAAP operating income of $42 million to $44 million.
Shares of nCino closed the regular session at $20.81, down 0.67% from the prior close. In after-hours trading, the stock fell an additional $0.71, or 3.41%, to $20.10, extending declines to about 4.1% from the prior session’s close. The stock remains roughly 40.8% below its 52-week high of $33.92 and 45.7% above its 52-week low of $13.80.
