nCino Delivers Margin Breakthrough and Accelerates AI Ambitions in Q3
nCino, Inc. (NASDAQ: NCNO) continues to strengthen its position in banking technology with robust Q3 fiscal 2026 results. The company delivered double-digit revenue growth, a dramatic jump in margins, and expanding traction across geographies—fueled by both product innovation and large-scale client wins.
Strong Revenue and Margin Growth Mark a Shift to Profitability
nCino's third quarter revenue climbed 10% year-over-year to $152.2 million, with subscription revenues up 11% to $133.4 million. The standout figure, however, is the operating margin: GAAP operating margin reached 8% (up more than 800 basis points YoY), and non-GAAP operating margin surged to 26% (up 600 basis points). Non-GAAP net income soared 49% to $35.8 million.
Here's a summary of key Q3 performance metrics:
| Q3 Metric | Q3 FY2026 | Q3 FY2025 | % Change |
|---|---|---|---|
| Total Revenue ($M) | 152.2 | 138.8 | +10% |
| Subscription Revenue ($M) | 133.4 | 119.9 | +11% |
| Non-GAAP Op. Income ($M) | 39.9 | 28.0 | +42% |
| Non-GAAP Net Income ($M) | 35.8 | 24.1 | +49% |
| Non-GAAP Net Income per Share ($) | 0.31 | 0.20 | +51% |
AI Strategy and Global Expansion Fuel Customer Wins
Management emphasized progress in both AI development and new business momentum. nCino launched role-based Digital Partners—AI agents built on deep financial data expertise—to address critical client needs in risk, decision-making, and process automation. CEO Sean Desmond highlighted the growing customer demand: "As we rapidly expand our AI capabilities, we're delivering a comprehensive strategy that financial institutions can trust."
Significant wins this quarter included a Japanese regional bank with over $80 billion in assets, two major U.S. banks expanding commercial lending partnerships by more than 30% and 60% respectively, and new adoption of nCino Mortgage by a top U.S. homebuilder. nCino also continued global integration initiatives, supporting a $90 billion Czech bank.
Capital Allocation: Buybacks Reflect Confidence
The company completed its $100 million stock repurchase program, buying back roughly 4 million shares at an average price of $25.02. In Q3 alone, about 1.4 million shares were repurchased at an average of $27.71. As of quarter-end, nCino reported $87.9 million in cash and cash equivalents, with $203.5 million outstanding under its credit facility. These moves signal confidence in future growth and cash generation.
Financial Outlook Remains Upbeat for FY 2026
Guidance for the fourth quarter and full year 2026 reflects management’s bullish stance. For Q4, total revenues are expected between $146.75 million and $148.25 million, with non-GAAP net income per share projected at $0.21 to $0.22. Full-year revenue guidance is set at $591.9–$593.4 million, with annual contract value projected between $564–$567 million. Non-GAAP net income per diluted share is expected to reach $0.90 to $0.91 for the year.
| FY2026 Guidance | Low | High |
|---|---|---|
| Total Revenue ($M) | 591.9 | 593.4 |
| Subscription Revenue ($M) | 520.5 | 522.0 |
| Non-GAAP Net Income per Share ($) | 0.90 | 0.91 |
| Annual Contract Value ($M) | 564 | 567 |
Bottom Line: Expanding Margins and Strong Execution Set a Positive Tone
nCino’s Q3 results highlight accelerating profitability and operational efficiency, driven by recurring revenues and major client expansions. The aggressive push into AI and recent customer wins support long-term confidence. For investors and observers, the combination of rising margins, buybacks, and a strong outlook makes nCino one to watch as the fintech landscape continues to evolve in 2026.
Management will discuss these results and future expectations further during their earnings call later today, accessible via nCino’s investor relations website.
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