nCino reported second-quarter fiscal 2027 results that topped analyst estimates on revenue and earnings, yet its stock fell 8.1% in extended trading after the company projected third-quarter revenue below expectations.
The Wilmington, North Carolina-based provider of cloud-based banking software posted adjusted earnings per share of $0.05, compared with a loss of $0.13 in the same period last year. Total revenue rose 8% year-over-year to $161.0 million, exceeding the consensus estimate of $159.14 million. Subscription revenue, the company’s primary driver, increased 10% to $143.5 million.
Profitability metrics also improved. Adjusted operating income climbed 36% to $40.8 million, lifting the adjusted operating margin by 500 basis points to 25%. Free cash flow surged 170% to $34.0 million.
Management highlighted strong demand for its AI capabilities, noting that large customers are consolidating operations on nCino’s platform. CEO Sean Desmond stated that clients are expanding commitments to include the company’s market-leading AI tools.
Despite the strong quarter, nCino’s outlook tempered investor sentiment. The company guided third-quarter revenue to a range of $161.25 million to $163.25 million, below the analyst consensus midpoint of $162.7 million. For the full fiscal year, nCino expects revenue between $644.0 million and $647.0 million, slightly above the consensus of $645 million.
The company also announced shareholder returns. In the quarter, nCino repurchased approximately 4.2 million shares at an average price of $15.41, totaling $65 million. It also finalized a $100 million accelerated share repurchase program covering about 6.0 million shares. The board authorized an additional $100 million for future buybacks.
Shares of nCino fell 8.1% to $14.05 in after-hours trading following the release.
