nCino (NCNO) Q2 2027: Revenue Growth and Strong Margin Expansion — Positive Outlook

nCino, Inc. (NASDAQ: NCNO) reported its financial results for the second quarter of fiscal year 2027, revealing a solid performance that exceeded expectations. Total revenues reached $161.0 million, marking an increase of $12.2 million or 8% year-over-year from $148.8 million in Q2 FY 2026. Subscription revenues also saw a healthy rise, climbing to $143.5 million, which is a 10% increase from $130.8 million in the same quarter last year.

This quarter's results are a positive development for shareholders, reflecting not only revenue growth but also significant improvements in operational efficiency. The GAAP operating margin improved to 8%, up 1,500 basis points year-over-year, while the non-GAAP operating margin reached 25%, an increase of 500 basis points. These metrics indicate that nCino is effectively managing its costs while driving revenue growth, which is crucial for long-term profitability.

Key Financial Metrics:

• Total Revenues: $161.0 million, up $12.2 million or +8% YoY
• Subscription Revenues: $143.5 million, up $12.7 million or +10% YoY
• GAAP Operating Margin: 8%, up 1,500 basis points YoY
• Non-GAAP Operating Margin: 25%, up 500 basis points YoY
• Free Cash Flow: $34.0 million, up $21.4 million or +170% YoY
• GAAP Income from Operations: $13.6 million, compared to a loss of $(9.3) million in Q2 FY 2026
• Non-GAAP Operating Income: $40.8 million, up $10.8 million or +36% YoY

The announcement of a new $100 million stock repurchase authorization further underscores the company's commitment to returning value to shareholders. This follows the execution of $300 million in stock repurchases since April 2025, indicating strong confidence in the company's future prospects and operational execution.

Recent Business Highlights:

• Renewed and expanded contracts with four U.S. enterprise accounts, collectively representing over $900 billion in assets.
• Signed a development finance institution in Germany, enhancing nCino's presence in the DACH region.
• Expanded relationships with existing customers, including a U.S. regional bank for consumer lending and a community bank in Iowa for commercial onboarding.

Guidance:

Looking ahead, nCino provided guidance for the third quarter ending October 31, 2026, with total revenues expected to be between $161.25 million and $163.25 million. Subscription revenues are projected to be between $143.25 million and $145.25 million, while non-GAAP operating income is anticipated to be between $42.0 million and $44.0 million. For the full fiscal year 2027, total revenues are expected to be between $644.0 million and $647.0 million.

Analyst View:

Overall, this quarter's results are encouraging for nCino and its shareholders. The combination of revenue growth, margin expansion, and a proactive approach to share repurchases positions the company favorably in the market. The strong performance in free cash flow also suggests that nCino is generating sufficient cash to support its growth initiatives and shareholder returns.

Investors should keep an eye on the upcoming quarter's performance, particularly how nCino continues to leverage its AI capabilities and expand its customer base. The company's ability to maintain momentum in revenue growth and operational efficiency will be critical as it navigates the competitive landscape of financial services technology.

Note: All amounts in the following tables are in thousands.

Note: All amounts in the following tables are in thousands.

	January 31, 2026	July 31, 2026
Assets
Current assets
Cash and cash equivalents	$ 88,374	$ 83,290
Accounts receivable, net	166,540	122,365
Costs capitalized to obtain
revenue	17,211	16,935
contracts, current portion, net
Prepaid expenses and other
current assets	21,378	20,311
Total current assets	293,503	242,901
Property and equipment, net	75,607	73,636
Operating lease right-of-use	12,687	11,627
assets, net
Costs capitalized to obtain
revenue	30,735	29,870
contracts, noncurrent, net
Goodwill	1,077,947	1,075,770
Intangible assets, net	135,658	117,392
Investments	7,262	7,262
Long-term prepaid expenses and
other assets	14,707	13,295
Total assets	$ 1,648,106	$ 1,571,753
Liabilities, redeemable
non-controlling
interest, and stockholders’
equity
Current liabilities
Accounts payable	$ 14,521	$ 14,840
Accrued expenses and other
current liabilities	64,372	39,215
Deferred revenue, current
portion	210,552	218,810
Debt, current portion, net		9,803
Financing obligations, current	818	393
portion
Operating lease liabilities,	4,229	3 Disclaimer The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information. #NCNO#nCino#NCNO Q2#Earnings#Results#Q10 Summary Free Education Discover our Free Forex Trading Course 5 chapters · 13 lessons · glossary, flashcards & quizzes — no sign-up required Start Learning → Free Tool Check Hedge Fund Trades & Positions Track 13F filings — see what top hedge funds are buying and selling Explore Tracker → Related Articles Trending Stocks nCino Inc. (NCNO) Drops 0.67% After Earnings Post Earning Analysis nCino Inc. (NCNO) Drops 0.67% After Earnings nCino, Inc. provides cloud-based software solutions that streamline operations for financial institutions globally. The investment case for nCino is a "buy," primarily due to its robust technology platform that leverages AI and... QuoteReporter 4 minAug 25, 2026 Trending Stocks Box (BOX) quarter year Box Financial Results Summary Box, Inc. (BOX) Q2 FY27: Revenue Growth Continues, Operating Margins Expand — Positive Outlook Box, Inc. (NYSE:BOX) reported its second quarter fiscal 2027 results, showcasing a revenue increase of $321.1 million, which represents a growth of $28.1 million or +9% year-over-year. On a constant... QuoteReporter 3 minAug 25, 2026 Trending Stocks Semtech Corporation (SMTC) Q2 2027 Financial Results Summary Semtech Corporation (SMTC) Q2 2027: Record Revenue and Profitability — Strongly Positive In the second quarter of fiscal year 2027, Semtech Corporation (Nasdaq: SMTC) reported record net sales of $341.9 million, reflecting a significant increase of $84.3 million or 33% year-over-year compared to... QuoteReporter 3 minAug 25, 2026