Banking software provider nCino (NASDAQ: NCNO) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 8.2% year on year to $161 million. The company expects next quarter’s revenue to be around $162.3 million, close to analysts’ estimates. Its non-GAAP profit of $0.26 per share was in line with analysts’ consensus estimates.

Is now the time to buy NCNO? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

nCino’s second quarter results reflected steady execution, with management highlighting broad-based adoption of its AI-powered banking platform and early contract renewals among large enterprise customers as key drivers. CEO Sean Desmond emphasized the company’s ability to secure multiyear renewals from four of its top twenty U.S. clients, noting these renewals included average annual contract value increases exceeding 10%. Management credited these wins to nCino’s unified platform and embedded AI capabilities, which are increasingly helping clients streamline operations and achieve measurable efficiency gains.

Looking forward, nCino’s outlook is shaped by accelerating customer adoption of its banking adviser AI tools and growing international momentum. Desmond pointed to a healthy pipeline and stated, “The pace of product innovation nCino is realizing today would not have been possible a few years ago.” Management expects AI adoption, especially in areas like continuous credit monitoring, to drive long-term subscription revenue growth, while cautioning that the near-term focus remains on broad-based platform adoption rather than immediate monetization of new AI features.

Key Insights from Management’s Remarks

Management attributed second quarter momentum to successful expansion of AI capabilities, platform pricing transitions, and strengthening relationships with both domestic and international customers.

• Early enterprise renewals: Four of the company’s top twenty U.S. enterprise clients renewed contracts ahead of schedule, each opting into expanded AI toolsets and platform pricing, reflecting strong client confidence in nCino’s technology.
• AI-driven efficiency gains: Customers are realizing tangible improvements, with one large client estimating $5.5 million in annual savings from a single AI feature, Locate and File, which automates loan officer tasks. This illustrates how nCino’s AI tools are driving measurable outcomes in banking workflows.
• Platform pricing adoption rising: Approximately 48% of nCino’s total annual contract value (ACV) base has now transitioned to platform-based pricing, up from 40% in the previous quarter. This new pricing model is seen by management as a key lever for expanding future AI adoption and cross-selling additional modules.
• International expansion: The company secured new wins with financial institutions in Japan and Germany, with management citing nCino’s regulatory expertise and AI capabilities as differentiation points versus local competitors and internal build alternatives.
• Mortgage market headwinds continue: While independent mortgage banks remain challenged by high interest rates, nCino is offsetting these pressures by winning new business with community banks and credit unions, and by focusing on features that deliver reliability and better borrower experiences.

Drivers of Future Performance

nCino expects future performance to be driven by broader adoption of AI solutions, continued international expansion, and ongoing shifts to platform pricing, though mortgage market headwinds remain.

• Expanding AI adoption: Management believes that broader deployment of banking adviser and agentic AI capabilities, such as continuous credit monitoring, will become a larger revenue driver over time, even though near-term revenue impact is expected to be limited as customers move from pilot to production.
• International and cross-segment growth: The company anticipates that both international markets and non-mortgage banking segments—such as commercial and consumer lending—will continue to provide growth, supported by a pipeline of new logos and upsell opportunities among existing clients.
• Platform pricing transition: As more customers transition to the unified platform pricing model, management expects improved customer stickiness and more consistent expansion opportunities, which could translate into higher average contract values and better long-term margin profile.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) further adoption of AI features as more customers move from sandbox to live deployment, (2) the percentage of annual contract value transitioning to platform pricing, and (3) the pace of international customer wins, particularly in Europe and Asia. The resolution of U.S. mortgage market headwinds and successful upsell of new modules will also be key areas to track.

nCino currently trades at $21.13, in line with $21.22 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

Now Could Be The Perfect Time To Invest In These Stocks

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.