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WILMINGTON, N.C. - nCino, Inc. (NASDAQ:NCNO) saw its shares surge 4.7% after the banking software provider reported third-quarter fiscal 2026 results that significantly exceeded analyst expectations, driven by strong subscription revenue growth and expanding profit margins.
The company posted adjusted earnings of $0.31 per share for the quarter ended October 31, 2025, handily beating the analyst consensus of $0.21. Revenue reached $152.2 million, up 10% YoY and surpassing the $147.35 million estimate. Subscription revenue, which forms the core of nCino’s business model, grew 11% to $133.4 million compared to $119.9 million in the same period last year.
"I’m extremely proud of our team’s strong execution in the third quarter, delivering results that exceeded expectations while advancing our AI leadership position," said Sean Desmond, CEO at nCino. "The momentum we’re seeing across customer segments, geographies, and products reinforces our conviction in both our fiscal 2026 goals and the journey ahead."
The company demonstrated substantial margin improvement, with GAAP operating margin expanding to 8%, up over 800 basis points YoY. Non-GAAP operating margin reached 26%, a 600 basis point increase from the prior year. This translated to GAAP net income of $6.5 million, compared to a loss of $5.3 million in the year-ago period.
Looking ahead, nCino raised its full-year fiscal 2026 outlook, now expecting revenue between $591.9 million and $593.4 million, above the consensus estimate of $588.1 million. The company also increased its adjusted EPS guidance to $0.90-$0.91, well above analyst expectations of $0.79.
For the fourth quarter, nCino projects revenue of $146.75-$148.25 million and adjusted earnings of $0.21-$0.22 per share, in line with analyst estimates.
During the quarter, nCino expanded its global footprint, securing a Japanese bank with over $80 billion in assets as a new mortgage lending customer and extending its Integration Gateway to a $90 billion bank in the Czech Republic. The company also completed its previously announced $100 million stock repurchase program, having bought back approximately 4.0 million shares at an average price of $25.02 per share.
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