nCino Inc (NASDAQ:NCNO) delivered a strong third-quarter performance for its fiscal 2026, surpassing analyst expectations on both the top and bottom lines. The banking software provider's results, coupled with a reaffirmed outlook, were met with a positive market reaction, with shares trading significantly higher in after-hours activity.
Earnings and Revenue Performance Versus Estimates
The company's financial results for the quarter ended October 31, 2025, exceeded the consensus forecasts set by Wall Street analysts. The key beats were centered on revenue and profitability.
- Revenue: nCino reported total revenue of $152.2 million, marking a 10% increase year-over-year. This figure came in above the analyst estimate of approximately $149.6 million.
- Earnings Per Share (Non-GAAP): The company's adjusted earnings per share of $0.31 significantly outpaced the consensus estimate of $0.2041, representing a beat of over 50%.
This dual beat indicates not only healthy sales growth but also effective management of costs and scaling of operations, leading to greater profitability than the market had anticipated.
Market Reaction and Price Action
The market's response to the earnings report was decisively positive. Following the release, nCino's stock experienced a substantial after-market gain of over 6.5%. This immediate upward movement suggests investors were encouraged by the earnings surprise and the company's execution. The positive sentiment is a notable shift, as the stock had been relatively flat over the preceding month, week, and two-week periods prior to the announcement.
Financial Outlook Versus Analyst Expectations
nCino provided guidance for both the upcoming fourth quarter and the full fiscal year 2026, which concludes on January 31, 2026. The company's projections align closely with, or slightly exceed, current analyst expectations.
- Q4 FY2026 Outlook: nCino anticipates total revenue between $146.75 million and $148.25 million. The midpoint of this range, $147.5 million, is very close to the analyst sales estimate of approximately $149.96 million for the quarter.
- Full-Year FY2026 Outlook: For the full year, the company expects total revenues between $591.9 million and $593.4 million. This outlook appears to be in line with the broader analyst revenue estimate for the year.
The guidance, which does not present a negative surprise, likely contributed to the stable and positive investor sentiment post-earnings by confirming the company's growth trajectory remains intact.
Key Highlights from the Quarterly Report
Beyond the headline numbers, nCino's earnings release highlighted several important business and financial developments:
- Profitability Milestone: The company achieved a GAAP operating margin of 8%, a dramatic improvement of over 800 basis points from the year-ago period. This shift from a slight loss to a solid profit underscores the company's path toward sustainable earnings.
- Strong Subscription Growth: Subscription revenue, a critical metric for SaaS companies, grew 11% year-over-year to $133.4 million, indicating healthy expansion within its existing customer base.
- Strategic Customer Wins: The quarter featured significant new and expansion agreements, including with a regional bank in Japan, a major bank in the Czech Republic, and two top-50 U.S. banks that expanded their commitments by more than 30% and 60%, respectively.
- Capital Return Program Completed: nCino announced the completion of its $100 million stock repurchase program, having bought back approximately 4.0 million shares.
- AI Product Launch: The company launched "Digital Partners," its first suite of role-based AI agents trained on financial services data, emphasizing its focus on embedding artificial intelligence into its platform.
For a detailed view of nCino's historical earnings, future estimates, and analyst projections, you can review the data here.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. The information presented should not be construed as a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
