By Nate Wolf
Shares of nCino soared Wednesday after the software company reported better-than-expected quarterly results and a series of new customers.
The company, which sells solutions to banks and lenders, posted adjusted earnings of 37 cents a share for its fiscal fourth quarter ended in January. That was up from 12 cents in the year-ago quarter and surpassed analysts' consensus call for 21 cents, per FactSet. Revenue totaled $149.7 million, a 6% jump from a year ago and ahead of Wall Street's forecast for $147.9 million.
NCino stock spiked 24% to $18.50 in premarket trading Wednesday. It needed a boost after getting crushed in this year's software selloff. Shares were down 42% this year as of Tuesday's close of trading.
The company announced new contracts with a global financial institution in Japan and a top-three Austrian bank, as well as expanded work with two large existing customers. The international wins should start showing up in nCino's subscription revenue as early as the current quarter, said Truist Securities analyst Terry Tillman.
"Credit where credit's due, we believe nCino delivered a strong finish in 4Q," Tillman wrote in a research note. While growth isn't explosive, the company is integrating artificial-intelligence agents and has the data needed to continue improving that technology, Tillman added. Truist reiterated a Hold rating on the stock and cut its price target to $19 from $27.
NCino forecast revenue of $639 million to $643 million in fiscal 2027, representing 7.8% annual growth at the midpoint. It expects adjusted operating income of $165 million to $170 million in 2027, up from $129.4 million in 2026 and ahead of analysts' forecast of $154.3 million.
Longtime shareholders might still be disappointed as nCino stock remains down roughly 80% since its initial public offering in 2020. Barron's identified nCino in January as a potential buy-low target for private-equity firms or larger public companies.
Write to Nate Wolf at nate.wolf@barrons.com
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(END) Dow Jones Newswires
April 01, 2026 09:54 ET (13:54 GMT)
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