NCino raises fiscal 2026 subscription revenue outlook to $517.5M with AI-driven platform momentum

Earnings Call Insights: nCino, Inc. (NCNO) Q2 2026

MANAGEMENT VIEW

* CEO Sean Desmond reported that "we outperformed our guidance ranges for both our revenues and profitability metrics, and the evolution of our product strategy continues to be validated in the marketplace." Desmond highlighted strong activity in the North American enterprise market, mentioning "significant expansion agreements with two top 50 U.S. banks and a top 5 Canadian bank," along with an "almost seven-figure ACV commitment from a net new $10 billion asset bank for commercial lending."
* Desmond emphasized expansion in EMEA, noting the company's first customer win in Spain and a successful go-live at ABN AMRO Bank in the Netherlands, stating, "we expect wins and more importantly, go-lives like these to precipitate more new business in our newer European markets throughout the second half of this year and beyond."
* The credit union segment showed momentum, with Desmond observing the team "added 6 new logos and 35 cross-sells in the second quarter." He also highlighted an existing U.K. challenger bank customer increasing their ACV with nCino by over 80%.
* On AI, Desmond revealed "over 80 customers have now purchased" the Banking Advisor technology and described it as a "differentiator that helps move deals over the finish line, including being a catalyst for customers to transition to our new pricing framework."
* CFO Gregory D. Orenstein reported, "total revenues were $148.8 million, up 12% year-over-year. Subscription revenues were $130.8 million, up 15% year-over-year on a reported basis and 10% organically." Orenstein added, "non-GAAP operating income was $30 million or 20% of total revenues." He explained share repurchases and reiterated that "our capital focus for the time being will be on realizing the benefits of the prior acquisitions we have made and on share repurchases."

OUTLOOK

* For Q3 fiscal 2026, Orenstein provided guidance: "we expect total revenues of $146 million to $148 million, and subscription revenues of $127.5 million to $129.5 million, an increase of 6% and 7%, respectively, at the midpoints of the ranges, including approximately $5.5 million of inorganic subscription revenues from FullCircl and Sandbox Banking."
* Full-year subscription revenues guidance increased to "$513.5 million to $517.5 million, up from our prior guidance of $507 million to $511 million, representing 10% growth at the midpoint of the range and 9% in constant currency."
* Orenstein stated, "we now expect U.S. mortgage subscription revenues growth of approximately 5% for fiscal '26, up from our prior guidance of flat year-over-year."
* The fiscal '26 outlook for ACV is "$564 million to $567 million, representing growth of 10% at the midpoint of the range, which reflects constant currency."

FINANCIAL RESULTS

* Subscription revenues outperformed, with approximately $4.3 million above the top end of guidance. Orenstein detailed, "$900,000 was a result of solid execution against our plan, $1.7 million was due to overperformance from our U.S. mortgage business...and $1.6 million was a result of favorable foreign exchange rates relative to plan."
* Professional services revenues were $18.1 million, a decrease of 2% year-over-year. Non-U.S. total revenues were $33.5 million, up 22%.
* The company ended the quarter with $123.2 million in cash and $203.5 million outstanding on its line of credit. nCino repurchased approximately 750,000 shares at an average price of $26.89 per share during the quarter.

Q&A

* Brent Alan Bracelin, Piper Sandler: Asked about sustainability of revenue growth and AI momentum. Orenstein attributed performance to "solid execution from the team," adding "the macro in general is more supportive than what we've seen." Desmond noted AI is "coming up in every customer conversation...it is contributing meaningfully to wins thus far."
* Terrell Frederick Tillman, Truist: Inquired about platform pricing and mortgage gains. Orenstein responded, "we are seeing price uplifts consistent with our expectations...we'd like to target around a 10% uplift just on an apples-to-apples basis." Desmond said, "we don't need to rely on any correlations to interest rates. We simply need to execute and have the best tech in the marketplace."
* Ryan John Tomasello, KBW: Asked about credit union momentum and Banking Advisor's ACV impact. Desmond stated, "the six deals are a validation of why we made the investment to activate this team." Orenstein said Banking Advisor's financial impact is not yet part of fiscal '26 plans, with focus currently on adoption.
* Adam Hotchkiss, Goldman Sachs: Asked about integration of DocFox and FullCircl. Desmond confirmed both are "on track to revenue plan," with DocFox technical work setting up "sales cycles in the back half of this year that we think will be accretive next year."
* Multiple analysts probed on ACV outlook, mortgage growth, and product adoption; management consistently emphasized execution and a strong pipeline.

SENTIMENT ANALYSIS

* Analysts expressed optimism and curiosity about sustainability of growth, competitive differentiation in AI, and uptake of platform pricing, with pressing follow-ups on mortgage momentum and product integration.
* Management displayed a confident tone in prepared remarks and Q&A, frequently referencing "solid execution," "strong pipeline," and "confidence" in guidance, while maintaining caution on extrapolating recent overperformance.
* Compared to the previous quarter, both analysts and management exhibited increased confidence, with management leveraging more concrete product and financial results to back their outlook.

QUARTER-OVER-QUARTER COMPARISON

* Guidance for full-year subscription revenues and total revenues increased from the previous quarter, reflecting improved execution and stronger end-market demand.
* Mortgage subscription revenue growth guidance shifted from flat to 5% year-over-year.
* Management tone was more positive, citing supportive macro conditions and a reduction in previous headwinds.
* Analysts' questions evolved from focusing on cost actions and restructuring (previous quarter) to probing for drivers of growth, sustainability, and new product adoption.
* Strategic focus remained on AI, platform pricing, and international expansion, with more evidence of traction in these areas than in the previous quarter.

RISKS AND CONCERNS

* Orenstein noted that second half year-over-year subscription revenues comparisons face a "3% headwind in both the third and fourth quarters as a result of onetime subscription revenues that occurred in the second half of fiscal '25."
* Management identified ongoing change management challenges with adoption of Banking Advisor and platform pricing transitions, emphasizing the importance of execution in large customer renewals and new geographies.
* Desmond addressed stablecoin regulation and its potential impact, stating "customers are not pushing us hard right now" for solutions in that area, but the company is "listening carefully."

FINAL TAKEAWAY

nCino management emphasized that Q2 results reinforced confidence in the company's AI-driven product strategy, platform pricing transition, and international expansion. Execution on key growth initiatives led to raised full-year guidance, with particular strength in mortgage, credit union, and EMEA segments. Management remains focused on adoption and successful execution, highlighting a robust pipeline and commitment to long-term growth as nCino positions itself as a leader in AI-enabled banking solutions.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/ncno/earnings/transcripts]

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* nCino Q2 2026 Earnings Preview [https://seekingalpha.com/news/4488839-ncino-q2-2026-earnings-preview]