nCino, Inc.

Q1 fiscal 2027 total revenue was $159.4 million, up 11% year over year. Subscription revenue was $140.9 million, up 12% year over year, and non-U.S. total revenue was $36.4 million, up 15% year over year. Non-GAAP operating income was $44.5 million, or 28% of revenue, up 79% year over year; professional services gross margin improved to 10%, up 1,100 basis points year over year; and free cash flow was $80.8 million, up 54% year over year. For Q2, management guided total revenue to $157.75 million to $159.75 million, subscription revenue to $140.25 million to $142.25 million, and non-GAAP operating income to $35.5 million to $37.5 million. For FY27, nCino raised guidance to total revenue of $642 million to $646 million, subscription revenue of $571.5 million to $575.5 million, non-GAAP operating income of $166 million to $171 million, and free cash flow of $135 million to $140 million. The company also reiterated FY27 net additions to ACV of $60 million to $65 million and said annual U.S. mortgage subscription revenue growth is expected to be approximately 1%.

Sean Desmond framed nCino as a long-term AI beneficiary because of its banking domain data, regulatory context, and workflow embedding. He emphasized that AI is not just a chatbot layer but an “Agentic operating system” built into banking workflows, with Banking Advisor and digital partners intended to expand across the platform. His tone was confident and upbeat, with repeated comments that customer demand, Insight feedback, and early AI consumption trends give him “tremendous confidence” in future growth.

Greg Orenstein focused on the quarter’s financial outperformance and the durability of the updated business model. He highlighted the $159.4 million of revenue, 12% subscription growth, 28% non-GAAP operating margin, $80.8 million of free cash flow, and the 10% professional services gross margin, while noting that some operating income upside came from timing of expenses and about $1.3 million of FX tailwind plus roughly $500,000 from U.S. mortgage and $200,000 of execution outperformance. He also said the company repurchased about 6.1 million shares for $93.1 million at an average price of $15.20, with $65 million remaining on the December 2025 buyback authorization.

Analysts pressed on how quickly AI efficiencies are flowing through professional services, and management said the work started early last year and is now shortening deployments from months to weeks. Questions also focused on intelligence-unit monetization, and management said first customers have reached their bundle limits and addendums are already in front of them, though the company is still taking a prudent approach to FY27 and expects meaningful revenue contribution later. Analysts also asked about mortgage volatility, international growth, win rates, and AI-related compute costs; management said mortgage remains seasonal and prudently guided, international momentum is solid in Europe, Japan, and Southeast Asia, win rates are okay, and token/LLM costs are being watched closely but are currently being managed well relative to consumption.