Domo signs strategic collaboration agreement with AWS for AI solutions
On Thursday, Goldman Sachs analyst Adam Hotchkiss increased the price target on nCino Inc. (NASDAQ:NCNO) shares to $27, up from the previous $27, while maintaining a Neutral rating on the company. The revised target follows nCino’s reported first-quarter fiscal year 2026 earnings, which surpassed consensus estimates and aligned with the preliminary results shared on May 20. According to InvestingPro data, nCino currently trades at an EV/EBITDA multiple of 104.8x, suggesting a premium valuation. The stock has seen a significant decline of 36% over the past six months, though it’s shown strong momentum recently.
nCino’s financial performance was bolstered by various segments, including commercial, which accounted for nearly half of the first-quarter bookings, as well as consumer, mortgage, and professional services. With revenue growth of 13.5% in the last twelve months and a gross profit margin of 60%, the company shows promising operational efficiency. The company’s success in the first quarter is attributed to improved bookings in the initial quarter, particularly given the low expectations set for the first half of fiscal year 2026. Management has confirmed their full-year bookings and Annual Contract Value (ACV) targets. InvestingPro analysis reveals several additional insights about nCino’s financial health and growth prospects, available in the comprehensive Pro Research Report.
Despite the first-quarter achievements alleviating some pressure for the latter half of the year, Goldman Sachs noted a slowdown in key top-line indicators like billings, Remaining Performance Obligations (RPO), and organic subscription revenue excluding mortgage.
During the earnings call, nCino’s management highlighted several key points, including the strong performance in the mortgage sector, the mix of bookings, the anticipated cost savings from the workforce and office space reductions announced on May 27, and the observation that no significant changes have occurred in the demand environment thus far.
Goldman Sachs acknowledges the potential for nCino’s first-quarter outperformance to lead to further revenue beats throughout the year, especially considering management’s guidance for a back-half weighted bookings approach. While analysts expect the company to become profitable this year, with a forecasted EPS of $0.71 for FY2026, challenges remain. The firm also points out the challenges nCino may face in the second half of the year due to the need for successful new product execution in an uncertain lending environment. This complexity has led Goldman Sachs to maintain their Neutral stance on nCino shares while adjusting the price target to reflect the recent earnings beat. For deeper insights into nCino’s valuation and growth prospects, InvestingPro subscribers can access exclusive analysis and Fair Value estimates among 30+ premium financial metrics.
In other recent news, nCino Inc. reported strong financial results for the first quarter of fiscal year 2026. The company achieved a 13% year-over-year revenue increase, reaching $144.1 million, surpassing the consensus estimate of $140.9 million. Subscription revenue also exceeded expectations, rising 14% to $125.6 million. JMP Securities maintained a Market Outperform rating for nCino with a price target of $32, citing these robust financial results. The company’s non-GAAP operating margin was slightly above consensus at 17.2%, and earnings per share matched projections at $0.16. The company also reported a 14% increase in billings to $156.6 million, outperforming expectations. nCino’s management plans to engage with investors in upcoming meetings, further discussing their strategic focus on AI and innovation. Additionally, the company has announced workforce reductions as part of efforts to streamline operations and enhance efficiency.
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