nCino has reported an 8% year-on-year increase in total revenue for the second quarter of fiscal 2027, while expanding its share repurchase programme by a further $100m as demand grows for its AI-powered banking technology.
For nCino, total revenue for the three months to 31 July 2026 reached $161.0m, up from $148.8m a year earlier, while subscription revenue increased 10% to $143.5m. The company’s GAAP operating margin also improved to 8%, up 1,500 basis points year-on-year, while its non-GAAP operating margin rose 500 basis points to 25%.
nCino CEO Sean Desmond said, “We delivered an exceptional second quarter of fiscal 2027, once again exceeding all financial guidance. We are seeing many of our largest customers consolidating more of their most critical operations on nCino and expanding their commitments to include our market leading AI capabilities. The confidence behind those commitments reflects a simple reality: deploying AI in financial services demands deep domain context and expertise, and nCino is uniquely positioned to deliver it at scale globally.”
The company’s improved profitability was reflected in its operating results. GAAP income from operations reached $13.6m, compared with a loss of $9.3m in the same period last year, while non-GAAP operating income increased 36% to $40.8m. Free cash flow also jumped 170% year-on-year to $34.0m.
The quarter brought further evidence of commercial momentum, with nCino completing multi-year renewals with four US enterprise customers representing more than $900bn in assets. All four renewals were completed ahead of schedule and included expanded commitments to the company’s AI capabilities.
Elsewhere, the company signed a German development finance institution, expanded its relationship with a US regional bank into consumer lending and added a community bank in Iowa. Japanese regional lender Hachijuni Nagano Bank also selected nCino to consolidate its consumer lending operations, while an Indiana-based credit union customer made the company its largest mortgage provider.
The latest results also included significant capital returns to shareholders. nCino repurchased approximately 4.2 million shares during the quarter at an average price of $15.41, representing around $65m in total consideration. It also completed the accelerated share repurchase programme announced in March 2026, buying approximately 6.0 million shares for $100m at an average price of $16.57.
nCino CFO Greg Orenstein added, “Following our execution of $300 million in stock repurchases since April 2025, nCino’s Board of Directors has authorized an additional $100 million stock repurchase program to provide continued flexibility to create stockholder value through repurchases of our common stock. This new authorization reflects continued confidence in our AI innovation and product strategy, market position, operational execution, and trajectory of free cash flow.”
The newly authorised $100m programme has no time limit and can be funded through existing cash, available credit facility capacity or future cash flows, at the board’s discretion. As of 31 July 2026, nCino held $83.6m in cash, cash equivalents and restricted cash, alongside $275.4m outstanding under its credit facility.
Looking ahead, the company expects third-quarter revenue to come in between $161.25m and $163.25m, including subscription revenue of between $143.25m and $145.25m. For fiscal 2027, nCino is forecasting total revenue of $644.0m to $647.0m, non-GAAP operating income of $171.0m to $174.0m and free cash flow of $137.0m to $142.0m.
With revenue growth, stronger cash generation and continued customer expansion underpinning its outlook, nCino is positioning its AI banking strategy as a key driver of future growth while using its improving financial performance to return more capital to shareholders.
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