nCino Inc

nCino shares are up 2.7% in midday trading after the company reported second-quarter 2027 results that beat revenue expectations and raised its full-year guidance. The company posted EPS of $0.05, missing the $0.27 analysts expected, but revenue came in at $161 million, above the $159.2 million forecast. Management now expects fiscal 2027 revenue of $644 million to $647 million, up from its previous range of $642 million to $646 million, and free cash flow of $137 million to $142 million, up from $135 million to $140 million. The stock trades at 3.7 times sales, below its five-year average of 6.7.

nCino raised its fiscal 2027 non-GAAP operating income guidance to $171 million to $174 million, up from a prior range of $166 million to $171 million, while trimming its U.S. mortgage subscription revenue outlook due to higher-for-longer mortgage rates. The company reported fiscal second-quarter total revenue of $161 million, beating the analysts' estimate of $159.18 million, and guided third-quarter revenue to $161.25 million to $163.25 million, with full-year revenue expected at $644 million to $647 million. CEO Sean Desmond highlighted multiyear renewals with four of its 20 largest U.S. enterprise customers, representing over $900 billion in assets, with an average ACV increase of more than 10%. CFO Gregory Orenstein noted that approximately 48% of total ACV is now on platform pricing, up from 40% last quarter, and that over 230 customers have purchased AI intelligence units. The company also authorized an additional $100 million share repurchase program, having repurchased about 4.2 million shares for $65 million in the quarter.

nCino has launched Mortgage MCP, a new set of AI agent connections for its Mortgage Suite designed to change how lenders handle routine workflows. The product rollout comes as the company's share price sits at US$19.17, with a most-followed narrative pegging fair value at about US$23.08 per share, implying the stock is roughly 17% undervalued. A separate discounted cash flow model from Simply Wall St estimates fair value at US$41.49, approximately 53.8% above the current price. The launch reframes the investment story around nCino's AI-driven banking platform, though risks remain if AI projects fail to gain traction with banks or if larger cloud providers crowd its core lending workflows.

ConnectOne Bank is actively deploying nCino’s embedded AI capabilities across its commercial lending operations, with early results showing a 97.5% reduction in document search time. The bank has implemented nCino Banking Advisor’s Knowledge Base capability, reducing a task that previously took 20 minutes to as little as 30 seconds, and active users grew 41% in 10 weeks. ConnectOne has also built two custom AI agents on the nCino Agentic Operating System, targeting high-friction tasks with 16 unique skills; one agent using Document Intelligence has already cut task time by 60%. Chairman and CEO Frank Sorrentino III stated the goal is to make frontline staff 50% more efficient, saving 1,000 hours per person annually on non-essential work. nCino’s engineering team collaborated directly with ConnectOne to compress a multi-year transformation into weeks of iterative deployment.

Simply Wall St's most followed narrative estimates nCino's fair value at $23.08 per share, 26.4% above its last close of $16.99, driven by accelerating adoption of its AI-powered Banking Advisor and new client wins with DNB ASA and Cornerstone First Mortgage. The stock has fallen 31.08% year to date and 41.05% over the past year, though a 30-day rebound of 10.90% hints at short-term momentum. The valuation gap persists despite a current P/E of 140.4x, far above the US Software industry average of 29.3x and a peer average of 35.9x. The bullish narrative hinges on successful AI execution and international expansion, while competitive pressure or slower adoption pose key risks.

Cornerstone First Mortgage has switched to nCino's Mortgage Point of Sale to enhance the borrower experience and support its continued nationwide expansion. The San Diego-based lender, which has doubled in size twice over the past three years and now operates in 49 states through approximately 130 branches, sought a scalable platform capable of supporting its unique branch-based model while delivering a consistent borrower experience. Cornerstone selected nCino's Mortgage Point of Sale for its flexibility, mobile capabilities, and nCino's commitment to customer partnership. Since switching, Cornerstone has significantly expanded its use of the platform, adopting nCino-connected verification tools for digital income, employment, and asset verification, and accelerating its adoption of eNotes and remote online notarization.

JPMorgan raised its price target on nCino to $17 from $16 while keeping a Neutral rating, rolling forward valuation to December 2027. The firm expressed a constructive view on banking technology, arguing that AI-defensibility concerns are overstated given vendors' entrenched workflow, data, and compliance moats. JPMorgan highlighted Alkami as a high-conviction takeout candidate amid activist pressure and noted that its top ideas operate in a consolidated duopolistic digital banking market with strong retention and paths to free cash flow expansion.

Shares of nCino jumped 7.3% after the banking software provider announced that DNB, Norway's largest financial institution, has gone live on its platform to power its corporate lending business. DNB, which serves over 200,000 corporate clients, also plans to extend its use of the platform to small and medium-sized enterprise lending in the following year. The partnership demonstrates that major, top-tier banks are adopting comprehensive software solutions to modernize their global operations, signaling strong market validation for nCino's platform.

DNB has gone live on the nCino Platform to power its corporate lending business, with plans to extend to SME lending next year. Headquartered in Oslo, Norway, DNB serves over 2 million retail customers and more than 200,000 corporate clients globally. The bank deployed nCino for Commercial Lending alongside Banking Advisor, nCino's AI-powered conversational interface, following a gold standard implementation supported by Deloitte. DNB plans to continue the nCino rollout across branches in nine countries. The platform provides a single, connected data environment with embedded intelligence to help bankers work more efficiently.

nCino, Inc. reported strong fiscal first-quarter 2027 results for the period ended April 30, 2026, with total revenue of $159.4 million, up 11% from $144.1 million a year earlier. Subscription revenue rose 12% to $140.9 million, while GAAP income from operations swung to a $21.1 million profit from a $1.5 million loss in the same quarter last year. Non-GAAP operating income jumped 79% to $44.5 million, and free cash flow climbed 54% to $80.8 million. The company held $103.1 million in cash, cash equivalents, and restricted cash, with $262.8 million outstanding under its credit facility, and repurchased about 6.1 million shares for roughly $93.1 million during the quarter. nCino guided for second-quarter revenue between $157.75 million and $159.75 million and full-year fiscal 2027 revenue between $642.0 million and $646.0 million.