nCino Inc (NASDAQ:NCNO) Reports Strong Q2 FY2026 Earnings, Beating Revenue and EPS Estimates

nCino Inc (NASDAQ:NCNO) delivered stronger-than-expected financial results for its second quarter of fiscal year 2026, with both revenue and earnings per share exceeding analyst projections. The cloud banking software provider reported total revenues of $148.8 million, representing a 12% year-over-year increase and surpassing the consensus estimate of $146.0 million. Subscription revenues, a key performance indicator for SaaS companies, grew even more impressively at 15% year-over-year to $130.8 million.

The company's non-GAAP earnings per share of $0.22 significantly outperformed analyst expectations of $0.14 per share, marking a 64% improvement compared to the same quarter last year. This earnings beat demonstrates nCino's ability to maintain profitability while continuing to invest in growth initiatives. The market responded positively to these results, with shares climbing approximately 6% in after-hours trading following the announcement.

Financial Performance Overview

nCino's quarterly performance reflects several positive trends beyond the headline numbers. The company's non-GAAP operating income reached $30.0 million, a substantial 56% increase from the $19.3 million reported in the second quarter of fiscal 2025. This improvement in operational efficiency occurred despite ongoing investments in research and development and sales expansion.

The company's balance sheet remains healthy with $123.2 million in cash and cash equivalents as of July 31, 2025. Management demonstrated confidence in the company's valuation by repurchasing approximately 750,000 shares during the quarter at an average price of $26.89, totaling $20 million.

Business Highlights and Expansion

nCino's quarter was marked by significant customer expansions and new client acquisitions across multiple geographic regions. The company strengthened relationships with two top-50 U.S. banks and a top-5 Canadian bank, indicating deepening penetration within large financial institutions. International expansion continued with the signing of nCino's first Spanish customer, a non-bank lender that will use the platform to scale its lending operations.

The company also expanded its relationship with a British challenger bank, adding nCino Client Lifecycle Management to enhance onboarding and compliance monitoring capabilities. In the mortgage sector, nCino secured a contract with the lending division of a top-25 home builder, demonstrating the platform's versatility across different financial services verticals.

Forward Guidance and Market Position

Looking ahead, nCino provided optimistic guidance for both the third quarter and full fiscal year 2026. For Q3, the company expects total revenues between $146.0 million and $148.0 million, slightly above analyst expectations of $145.9 million. Subscription revenue guidance of $127.5-$129.5 million and non-GAAP operating income of $31.5-$33.5 million suggest continued strong performance.

Full-year guidance was particularly noteworthy, with total revenues projected between $585.0 million and $589.0 million, compared to analyst estimates of $586.8 million. The company anticipates non-GAAP operating income of $117.5-$121.5 million and non-GAAP EPS of $0.77-$0.80, reflecting confidence in both top-line growth and bottom-line expansion.

CEO Sean Desmond emphasized the company's progress toward its vision of becoming the leader in AI-powered banking solutions, noting strengthened customer demand across target markets and newer solutions. The company's focus on integrating artificial intelligence and actionable insights into its platform appears to be resonating with financial institutions seeking to digitize operations and improve customer experiences.

For more detailed earnings analysis and future estimates, readers can review the comprehensive data available on nCino's earnings and estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and should not be considered investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.