Ncino 2026 Q3 Earnings Record Net Income Surges 307.5%

Ncino (NCNO) delivered a strong earnings report, surpassing expectations with a 9.6% revenue increase and a significant net income turnaround. The company raised full-year guidance, reflecting confidence in its AI-driven growth and operational efficiency.

Revenue

Ncino’s total revenue climbed to $152.16 million in Q3 2026, a 9.6% year-over-year increase from $138.80 million. Subscription revenue, the company’s core business, reached $133.41 million, while professional services and other revenue contributed $18.75 million. This performance highlights the growing demand for nCino’s cloud-based solutions across diverse financial institutions.

Earnings/Net Income

Ncino returned to profitability with an EPS of $0.06 in Q3 2026, reversing from a $0.05 loss in the prior year. Net income surged to $8.62 million, a 307.5% improvement from a $4.15 million net loss. This marked the highest Q3 net income in seven years, driven by cost discipline and AI-enhanced operational efficiencies. The company’s ability to achieve profitability underscores its strategic focus on margin expansion.

Price Action

The stock price of Ncino rose 5.05% in the latest trading day and 3.86% for the week, though it declined 4.16% month-to-date.

Post-Earnings Price Action Review

The strategy of buying NCINO shares on the date of its revenue raise announcement and holding for 30 days demonstrated robust performance over the past three years. Cumulative returns of 24.8% outperformed the S&P 500’s 15.8%, reflecting strong investor confidence in the company’s earnings beats and positive guidance.

CEO Commentary

CEO Sean Desmond highlighted Q3’s momentum in sales and product development, driven by strong customer demand and AI innovation. Key differentiators include Banking Advisor’s 91% faster loan decisions and 64% higher ROA compared to peers. Strategic priorities include expanding AI capabilities, enhancing Banking Advisor with 100 features by year-end, and leveraging Operational Analytics. Desmond expressed optimism about achieving FY2026 goals and long-term growth through customer outcomes and disciplined execution.

Guidance

For Q4 2026, nCino expects revenue of $146.75M–$148.25M (subscription: $130.75M–$132.25M) and non-GAAP EPS of $0.21–$0.22. Full-year 2026 guidance was raised to revenue of $591.9M–$593.4M and non-GAAP EPS of $0.90–$0.91. The company reiterated its Rule of 40 target by Q4 2027, emphasizing AI-driven margin expansion and cost discipline.

Additional News

nCino completed a $100 million share buyback program, repurchasing 4 million shares at an average price of $25.02. The company also announced international expansion initiatives, including new contracts in Japan and EMEA, and highlighted AI-driven customer outcomes like a $5 billion U.S. bank eliminating 86% of duplicate data entry. CEO Sean Desmond noted strong early renewals for AI features, underscoring customer demand for the platform’s innovation.