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Investing.com - Citizens JMP has raised its price target on nCino Inc. (NASDAQ:NCNO) to $41.00 from $35.00 while maintaining a Market Outperform rating following the company’s second-quarter fiscal 2026 results. The cloud banking software provider, currently valued at $3.3 billion, is trading at $28.69 with analyst targets ranging from $27 to $38. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model.
The cloud banking software provider reported revenue of $148.8 million for the quarter, exceeding consensus estimates of $143.2 million and representing a 12% year-over-year increase, though slightly down from the 13% growth recorded in the previous quarter. This performance aligns with the company’s broader growth trajectory, maintaining a healthy gross margin of 60.05%. InvestingPro data reveals several additional growth metrics and valuation insights available to subscribers.
nCino’s subscription revenue reached $130.8 million, surpassing analyst expectations of $125.6 million and showing 15% year-over-year growth, an improvement from the 14% growth rate in the prior quarter.
The company demonstrated strong profitability with a non-GAAP operating margin of 20.2%, significantly higher than the consensus estimate of 16.9%, while non-GAAP earnings per share came in at $0.22, outperforming the $0.14 consensus forecast.
nCino’s billings totaled $139.9 million against consensus estimates of $133.3 million, growing 12% year-over-year compared to 14% in the previous quarter, while its 24-month remaining performance obligation reached $828.0 million, increasing 19% year-over-year versus 18% in the prior quarter.
In other recent news, nCino Inc. reported its second-quarter earnings for fiscal year 2026, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.22, significantly higher than the forecasted $0.14, representing a 57.14% surprise. Additionally, nCino reported revenues of $148.8 million, exceeding the anticipated $143.18 million. This revenue outperformance was primarily driven by strong results in subscription services, particularly within mortgage services, and benefited from foreign exchange tailwinds. Following these results, Goldman Sachs raised its price target for nCino to $29.00, up from $27.00, while maintaining a Neutral rating. Despite the positive earnings report, the stock experienced a slight decline in after-hours trading. These developments highlight nCino’s robust performance in the recent quarter.
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