nCino Inc. shares declined 8.1% after the company reported a second-quarter fiscal 2027 financial beat but provided revenue guidance below analyst expectations. The Wilmington, N.C.-based cloud banking software provider posted adjusted earnings per share of $0.05, reversing a loss of $0.13 in the same period a year earlier, while revenue rose 8% year-over-year to $161.0 million, beating the consensus estimate of $159.14 million.
Subscription revenues, the company’s primary revenue stream, increased 10% to $143.5 million from $130.8 million a year ago. Adjusted operating income grew 36% to $40.8 million, and the adjusted operating margin expanded by 500 basis points to 25%. Free cash flow surged 170% to $34.0 million.
CEO Sean Desmond highlighted strong customer adoption, noting that large clients are consolidating operations on nCino’s platform and expanding commitments to include its AI capabilities. The company also continued its aggressive share repurchase program, buying back approximately 4.2 million shares at an average price of $15.41 for $65 million during the quarter. Additionally, nCino finalized a $100 million accelerated share repurchase program and authorized a further $100 million for future buybacks.
Despite the strong quarterly performance, nCino’s third-quarter revenue guidance of $161.25 million to $163.25 million fell short of the $162.7 million consensus estimate. Full-year fiscal 2027 revenue is projected between $644.0 million and $647.0 million, slightly above the $645 million consensus, while adjusted operating income is expected between $171.0 million and $174.0 million. Free cash flow guidance for the year ranges from $137.0 million to $142.0 million.
