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nCino Crushes Q3 Expectations, Analysts Split on What Comes Next

MarketDash Editorial Team
3 days ago
nCino delivered a standout third quarter, beating earnings estimates by 55% and raising its full-year guidance. But while one analyst sees more upside ahead, another is taking a more cautious stance after the strong results.

nCino, Inc. (NCNO) just delivered the kind of quarter that makes CFOs smile. The cloud banking software company reported third-quarter results on Wednesday that sailed past Wall Street's expectations, then proceeded to bump up its full-year guidance for good measure.

The numbers tell a pretty clear story. nCino posted earnings of 31 cents per share, which doesn't sound earth-shattering until you realize analysts were only expecting 20 cents. That's a 55% beat. Revenue came in at $152.163 million, topping the $146.627 million consensus estimate.

But here's where it gets interesting: the company didn't just take a victory lap. Management raised its FY2026 adjusted EPS guidance from a range of $0.77-$0.80 all the way up to $0.90-$0.91. They also increased their revenue outlook from $585-$589 million to $591.9-$593.4 million.

CEO Sean Desmond was clearly feeling good about the quarter. "I'm extremely proud of our team's strong execution in the third quarter, delivering results that exceeded expectations while advancing our AI leadership position," he said. "The momentum we're seeing across customer segments, geographies, and products reinforces our conviction in both our fiscal 2026 goals and the journey ahead for nCino. As we rapidly expand our AI capabilities and introduce Digital Partners trained on an industry leading data set, we're not just providing tools—we're delivering a comprehensive AI strategy that financial institutions can trust and deploy with confidence."

The stock response? A modest 0.5% dip to $25.45 on Thursday. Sometimes the market is just hard to read.

The Analyst Split

What's particularly fascinating is how Wall Street analysts responded to these results. You'd think blockbuster earnings would lead to uniform bullishness, but that's not quite what happened.

Piper Sandler analyst Hannah Rudoff maintained a Neutral rating but actually lowered her price target from $34 to $30. That's a curious move after such a strong quarter, suggesting perhaps concerns about valuation or sustainability of growth.

Meanwhile, Keefe, Bruyette & Woods analyst Ryan Tomasello kept his Outperform rating and raised his price target from $34.50 to $36, signaling confidence that there's more upside to come.

Two analysts, same earnings report, completely different takeaways. That's the stock market in a nutshell.

Back to News

nCino Crushes Q3 Expectations, Analysts Split on What Comes Next

MarketDash Editorial Team
3 days ago
nCino delivered a standout third quarter, beating earnings estimates by 55% and raising its full-year guidance. But while one analyst sees more upside ahead, another is taking a more cautious stance after the strong results.

nCino, Inc. (NCNO) just delivered the kind of quarter that makes CFOs smile. The cloud banking software company reported third-quarter results on Wednesday that sailed past Wall Street's expectations, then proceeded to bump up its full-year guidance for good measure.

The numbers tell a pretty clear story. nCino posted earnings of 31 cents per share, which doesn't sound earth-shattering until you realize analysts were only expecting 20 cents. That's a 55% beat. Revenue came in at $152.163 million, topping the $146.627 million consensus estimate.

But here's where it gets interesting: the company didn't just take a victory lap. Management raised its FY2026 adjusted EPS guidance from a range of $0.77-$0.80 all the way up to $0.90-$0.91. They also increased their revenue outlook from $585-$589 million to $591.9-$593.4 million.

CEO Sean Desmond was clearly feeling good about the quarter. "I'm extremely proud of our team's strong execution in the third quarter, delivering results that exceeded expectations while advancing our AI leadership position," he said. "The momentum we're seeing across customer segments, geographies, and products reinforces our conviction in both our fiscal 2026 goals and the journey ahead for nCino. As we rapidly expand our AI capabilities and introduce Digital Partners trained on an industry leading data set, we're not just providing tools—we're delivering a comprehensive AI strategy that financial institutions can trust and deploy with confidence."

The stock response? A modest 0.5% dip to $25.45 on Thursday. Sometimes the market is just hard to read.

The Analyst Split

What's particularly fascinating is how Wall Street analysts responded to these results. You'd think blockbuster earnings would lead to uniform bullishness, but that's not quite what happened.

Piper Sandler analyst Hannah Rudoff maintained a Neutral rating but actually lowered her price target from $34 to $30. That's a curious move after such a strong quarter, suggesting perhaps concerns about valuation or sustainability of growth.

Meanwhile, Keefe, Bruyette & Woods analyst Ryan Tomasello kept his Outperform rating and raised his price target from $34.50 to $36, signaling confidence that there's more upside to come.

Two analysts, same earnings report, completely different takeaways. That's the stock market in a nutshell.