# NCNO earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/NCNO) · [Earnings tab](https://www.lopjlb.com/stock/NCNO?tab=earnings) Updated: 2026-08-25T06:26:34 Quarters analyzed: 8 ## Cross-quarter narrative Across eight quarters, nCino's narrative shifted from opaque early periods to a clear AI-driven growth story punctuated by execution volatility. FY25 Q3 (Dec 2024) showed accelerating gross bookings, pricing simplification, and the FullCircl acquisition expanding onboarding SAM, with margins expanding on Salesforce agreement benefits. FY25 Q4 (Apr 2025) revealed execution gaps: Consumer Lending and DocFox onboarding delays, EMEA sales lag, and mortgage headwinds from higher rates prompted lowered FY26 guidance. FY26 Q1 ## Latest CallCard · Q1 nCino Q1 FY27 beat guidance with 12% subscription growth, 28% non‑GAAP margin and strong AI adoption, prompting raised FY27 revenue and operating‑income outlook. **Guidance:** raised — Guidance raised to $642‑646M revenue and $166‑171M non‑GAAP operating income for FY27, reflecting stronger Q1 performance. **Tone:** mgmt 0.8 · Q&A pressure 0.4 · divergence 0.3 Prepared remarks highlighted outperforming guidance, 12% subscription growth and 28% non‑GAAP margin, signaling optimism. ### Demand visibility Robust demand for AI and commercial banking solutions Over 40% of ACV has transitioned to the new pricing model, customers are reaching AI bundle limits, and commercial banking leaders report strong interest. ### Margins / costs Improved margins across the board Non‑GAAP operating margin rose to 28% and professional services gross margin jumped 1,100 bps to 10%, contributing $1M to operating‑income overperformance. ### Capital allocation Share repurchases and AI investment Repurchased ~6.1M shares for $93.1M in Q1, $65M remaining; continued investment in AI tooling that cut professional‑services hours per engagement >40%. ### Milestones - **Agentic Operating System (AOS) launch** [on_track]: Unveiled at Insight conference, positioning AI agents across banking workflows. - **Forward Deploy Engineering engagements** [on_track]: Deployments with ConnectOne, $5B community bank, $80B regional bank and top‑4 enterprise bank delivering AI outcomes. - **Banking Adviser usage growth** [on_track]: Usage up >38x in May vs October, first customers hitting intelligence‑unit limits. - **AI code contribution** [on_track]: AI‑assisted code rose from 21% FY26 Q1 to ~57% FY27 Q1, accelerating product development cycles. - **Professional services margin improvement** [on_track]: Gross margin rose 1,100 bps to 10%, reflecting AI‑driven efficiency gains. ### Fears / risks - **AI adoption pace**: Management must ensure customers move beyond initial AI bundles to sustain revenue uplift. - **Mortgage revenue volatility**: Guidance assumes negative 2% YoY mortgage subscription growth in Q2 due to elevated rates. - **Pricing model transition**: Shift to outcome‑based pricing creates execution risk if customers resist new model. - **Competitive pressure**: AI‑focused banking platforms could erode nCino’s market share if differentiation falters. - **Regulatory/compliance risk**: AI governance must meet banking regulations; any lapse could impact adoption. - **Macro‑economic uncertainty**: Global economic conditions could affect banking spend on digital transformation. - **Execution capacity**: Forward deploy engineering teams are fully utilized; scaling may strain resources. - **Currency tailwinds fading**: Future guidance does not assume additional foreign‑currency benefits, reducing upside. ### Key quotes > “We delivered a great start to the year, outperforming guidance across all key metrics, including accelerating subscription revenues growth to 12% and improving our non-GAAP operating margin to 28%, achieving the Rule of 40.” > “Non-GAAP operating income was $44.5 million or 28% of total revenues, an increase of 79% year-over-year.” > “We still see strong demand and expansion across some of the largest customers that we have, and we still see new logo opportunities in this space.” ## Quarter one-liners - **2027 Q1:** nCino Q1 FY27 beat guidance with 12% subscription growth, 28% non‑GAAP margin and strong AI adoption, prompting raised FY27 revenue and operating‑income outlook. - **2026 Q4:** nCino exceeded FY26 guidance with 17% ACV growth, 38% of ACV on platform pricing, 170 AI customers, and hired new CRO; FY27 guidance targets 8-9% subscription growth, $132-137M free cash flow, and Rule of 40 by Q4. - **2026 Q3:** — - **2026 Q2:** nCino beat Q2 FY2026 revenue and profit guidance, citing strong loan origination, credit‑union expansion, mortgage growth and AI adoption, while raising full‑year outlook. - **2026 Q1:** nCino Q1 FY2026 revenue beat guidance with strong subscription growth, AI product launches and credit‑union wins, while announcing restructuring cost savings and modestly raising full‑year guidance. - **2025 Q4:** nCino sees AI as growth engine, but execution gaps, slower international and mortgage bookings, and macro headwinds temper FY26 outlook, prompting lowered guidance. - **2025 Q3:** nCino beats Q3 with accelerating gross bookings, new pricing framework adoption, FullCircl acquisition expanding onboarding SAM, mortgage churn rising on IMB M&A, and international momentum in Japan and EMEA. - **2025 Q2:** — ## Guidance path 2025 Q2:vague → 2025 Q3:maintained → 2025 Q4:lowered → 2026 Q1:raised → 2026 Q2:raised → 2026 Q3:vague → 2026 Q4:vague → 2027 Q1:raised --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/NCNO`