nCino, the US-based banking software provider, has revealed that financial institutions adopting its agentic AI tools are already exhausting their initial bundles of Intelligence Units and returning to purchase additional capacity.
The development was revealed by CEO Sean Desmond during the company’s second-quarter fiscal 2027 earnings call, as nCino reported total revenue of $161m, up 8% year-on-year and ahead of analysts’ $159.18m estimate.
Subscription revenue increased 10% year-on-year to $143.5m, while non-GAAP operating income climbed 36% to $40.8m. Free cash flow also jumped 170% to $34m.
More than 230 customers have now purchased Intelligence Units, with some of the earliest adopters already reaching the limits of their initial allocations. nCino said it has begun monetising additional Intelligence Units as customers increase their use of its AI capabilities.
Desmond said the company is prioritising long-term AI adoption over near-term subscription revenue growth, adding that Intelligence Unit consumption could become a material driver of subscription revenue growth in the coming years.
AI adoption is also helping drive customer renewals. Twenty of nCino’s largest US enterprise customers by annual contract value, representing more than $900bn in assets, signed multi-year renewals during the quarter. The customers renewed ahead of schedule with average annual contract value increases of more than 10%, which nCino attributed partly to demand for its expanding AI offering.
By the end of the quarter, 12 of its top 20 US enterprise customers had moved to nCino’s new platform pricing model, taking the proportion of total annual contract value under the model to 48%, compared with 40% in the previous quarter.
The company highlighted Continuous Credit Monitoring as one of the AI capabilities driving Intelligence Unit consumption. The tool assesses more than 40 credit and operational indicators daily, helping credit teams identify loans requiring attention and supporting subsequent review processes.
Another Banking Advisor capability, “locate and file”, is estimated by one enterprise customer to save 160,000 hours annually, equivalent to more than $5.5m in potential annual savings based on nCino’s calculation.
nCino is also seeing growing adoption of its AI products internationally, with Hachijuni Nagano Bank in Japan selecting the company for consumer lending and a German development finance institution choosing its commercial lending solution.
However, higher-for-longer interest rates continue to weigh on the US independent mortgage bank market. nCino has reduced its forecast for US mortgage subscription revenue by approximately $700,000 for the third quarter and $1.2m for the fourth quarter.
For fiscal 2027, nCino now expects total revenue of between $644m and $647m, while non-GAAP operating income is forecast at $171m to $174m. nCino CEO Sean Desmond said, “We are no longer trying to convince prospective customers that we can lead the transition to agentic AI-powered banking. We are doing it.”
nCino CFO Greg Orenstein also commented, “We believe that will lead to material help our drivers from a top-line acceleration perspective, top-line growth perspective.”
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