Banking software provider nCino's Q3 revenue beats expectations on expansion agreements

nCino

03/12/2025 21:21

Overview

nCino fiscal Q3 revenue rises 10% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q3 beats consensus, reflecting strong operational performance

Company completed $100 mln stock repurchase program, repurchasing 4 mln shares

Outlook

nCino expects Q4 total revenues between $146.75 mln and $148.25 mln

Company forecasts FY 2026 total revenues between $591.9 mln and $593.4 mln

nCino projects FY 2026 non-GAAP EPS of $0.90 to $0.91

Result Drivers

AI LEADERSHIP - CEO Sean Desmond attributed strong execution to advancing AI capabilities and introducing Digital Partners

EXPANSION AGREEMENTS - Co secured expansion agreements with major banks, contributing to revenue growth

OPERATING MARGINS - Improved operating margins driven by cost management and strategic initiatives

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$152.16 mln
$146.63 mln (15 Analysts)
Q3 Adjusted EPS
Beat
$0.31
$0.20 (15 Analysts)
Q3 Adjusted Net Income
Beat
$35.80 mln
$23.74 mln (13 Analysts)
Q3 Gross Margin
62.00%
Q3 Adjusted Operating Income
Beat
$39.90 mln
$32.43 mln (14 Analysts)
Q3 Adjusted Operating Margin
26.00%
Q3 Operating Margin
8.00%
Q3 Subscription Revenue
$133.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for nCino Inc is $36.00, about 47.2% above its December 2 closing price of $24.46

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 36 three months ago

Press Release: ID:nGNX95PzDF

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)