nCino Reports Strong Q2 Results Amid Growth Shift Toward AI and Challenges in Mortgage Segment
On August 25, nCino (NASDAQ:NCNO) reported second-quarter fiscal 2027 results that exceeded its guidance across key metrics. Total revenue increased by 8% year-over-year to $161 million, with subscription revenue rising 10% and free cash flow surging 170%. The company is shifting focus toward AI-driven tools for banking clients while facing headwinds in the mortgage segment due to persistently high interest rates. Four of nCino's top enterprise accounts renewed contracts early and increased their annual contract value by over 10%, driven primarily by access to its expanding AI capabilities. The company has also seen strong international growth, with non-US subscription revenue rising 13% thanks to new wins in Japan and Germany. Meanwhile, the mortgage segment saw a decline in revenue due to ongoing challenges from high interest rates affecting independent banks. Despite these mixed results, nCino's financials showed strength: Non-GAAP operating income rose by 36%, professional services margin improved significantly, and the company repurchased $165 million worth of shares. The board also authorized an additional $100 million in buybacks.
Tickers: $NCNO
Topics: AI adoption customer retention international expansion subscription revenue growth