nCino, Inc.

Second-quarter fiscal 2027 total revenue was $161 million, up 8% year over year. Subscription revenue was $143.5 million, up 10% year over year and 10% in constant currency; excluding U.S. mortgage, subscription revenue rose 12% year over year and 12% in constant currency. U.S. mortgage subscription revenue was $20.6 million, down 1% year over year, while professional services revenue was $17.5 million, down 3%. Non-GAAP operating income was $40.8 million, or 25% of revenue, up 36% year over year; free cash flow was $34 million, up 170%. For Q3, nCino guided to total revenue of $161.25 million to $163.25 million, subscription revenue of $143.25 million to $145.25 million, and non-GAAP operating income of about $42 million to $44 million. For fiscal 2027, management raised guidance to total revenue of $644 million to $647 million, subscription revenue of $573.5 million to $576.5 million, non-GAAP operating income of $171 million to $174 million, and free cash flow of $137 million to $142 million. Full-year ACV additions are expected to be $60 million to $65 million, with cumulative ACV of $662.5 million to $667.5 million.

Sean Desmond said the company is gaining momentum because customers increasingly view nCino as a trusted, AI-powered banking platform rather than another vendor. He emphasized early renewals, expanding use of AI features, and strong global pipeline activity, pointing to wins across enterprise, community, regional, credit union, and international customers. His tone was confident and increasingly bullish on AI adoption, but he also noted that regulatory, security, and implementation reviews still slow production deployment.

Greg Orenstein highlighted broad beat-and-raise execution: revenue, subscription growth, operating income, and free cash flow all outperformed. He said subscription revenue outside U.S. mortgage grew 12% in the quarter, while U.S. mortgage remained weaker and he lowered the mortgage outlook by about $700,000 in Q3 and about $1.2 million in Q4 to reflect more IMB churn. He also noted $3.3 million of non-GAAP operating income upside in the quarter, $2.4 million of which came from disciplined expense management, and discussed capital allocation with $65 million of open-market repurchases, $100 million under the ASR, $300 million repurchased since April 2025, and a new $100 million authorization.

Analysts focused heavily on mortgage, AI monetization, and whether the recent growth acceleration is sustainable. Management said the mortgage business still matters but sees more durable upside in core banking, community/regional banks, credit unions, and cross-selling beyond mortgage, while acknowledging higher-for-longer rates are pressuring IMBs. On AI, management said more than 230 customers have bought intelligence units, usage is moving into production, and some customers are already coming back for more units, but they do not expect material fiscal 2027 revenue impact yet; they said adoption should become a bigger revenue driver over time. They also said the customer rollout pace is being limited more by governance, security, and implementation processes than by product availability.