Ncino 2026 Q2 Earnings Wider Losses Despite Revenue Growth

Ncino (NCNO) reported fiscal 2026 Q2 earnings on August 26, 2025. The company delivered a revenue beat but missed profitability expectations, with a wider net loss per share and mixed post-earnings performance.

Revenue
The total revenue of Ncino increased by 12.4% to $148.81 million in 2026 Q2, up from $132.40 million in the same period the previous year.

Earnings/Net Income
Ncino's losses deepened to $0.13 per share in 2026 Q2 from a loss of $0.10 per share in 2025 Q2, marking a 30.0% wider loss. The company’s net loss widened to $-13.72 million in 2026 Q2, a 24.5% increase from the $-11.02 million loss in 2025 Q2. Despite the continued losses, the company reported its highest Q2 net income in seven years.

Price Action
The stock price of Ncino edged up 1.16% during the latest trading day and climbed 3.09% during the most recent full trading week, though it dropped 6.85% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Ncino shares after a revenue raise on the financial report release date and holding for 30 days resulted in a -25.01% return, significantly underperforming the benchmark return of 58.85%. While the strategy avoided further losses with a maximum drawdown of 0.00%, it was a high-risk, low-reward approach, as indicated by a Sharpe ratio of -0.18 and a volatility of 54.02%.

CEO Commentary
Sean Desmond, CEO, highlighted nCino's strong Q2 performance, outpacing revenue and profitability guidance, driven by product strategy validation and expansion in key markets. He emphasized progress in EMEA, credit union activations, onboarding, mortgage cross-selling, and AI integration. Desmond noted, “AI is coming up in virtually every customer conversation,” positioning Banking Advisor as a transformative interface. He expressed optimism about AI adoption and reiterated the company’s leadership in AI banking. Strategic priorities include leveraging AI, expanding in EMEA, and enhancing cross-selling. Desmond also emphasized the company’s mission to solve inefficiencies for financial institutions, saying, “we believe we have built a competitive moat that is both wide and deep.”

Guidance
For Q3 2026, nCino expects total revenue of $146–$148 million and subscription revenue of $127.5–$129.5 million, with non-GAAP operating income of $31.5–$33.5 million and non-GAAP net income per share of $0.20–$0.21. Full-year 2026 guidance includes subscription revenue of $513.5–$517.5 million, total revenue of $585–$589 million, and non-GAAP net income per share of $0.77–$0.80. ACV is projected at $564–$567 million, with net additions of $48–$51 million. The company expects to achieve Rule of 40 by Q4 2027.

Additional News
Within three weeks of the earnings report, nCino announced a strategic partnership with a major European bank to co-develop AI-driven customer experience tools. The company also confirmed the appointment of a new Chief Technology Officer, emphasizing a stronger focus on product innovation and platform scalability. Additionally, nCino unveiled a revised shareholder return plan, which includes a stock repurchase program of up to $25 million over the next 12 months, signaling renewed confidence in its long-term value proposition.