nCino Expands Buyback as AI Demand Supports Growth

nCino reported higher revenue and profitability for its fiscal second quarter while authorizing another $100 million for share repurchases, as the banking software provider pointed to growing customer commitments to its artificial intelligence capabilities.

According to FinTech Global, nCino’s total revenue for the three months ended July 31 rose 8% from a year earlier to $161 million. Subscription revenue increased 10% to $143.5 million. The company’s GAAP operating margin reached 8%, up 15 percentage points from the prior-year period, while its non-GAAP operating margin increased 5 percentage points to 25%.

CEO Sean Desmond said many of nCino’s largest customers are consolidating more of their operations on the company’s platform and expanding their commitments to its AI capabilities. He said deploying AI in financial services requires industry-specific knowledge and expertise, which he described as an area where nCino is positioned to deliver at scale, FinTech Global reported.

The company’s GAAP operating income was $13.6 million, compared with a $9.3 million operating loss a year earlier. Non-GAAP operating income rose 36% to $40.8 million, while free cash flow increased 170% to $34 million, according to FinTech Global.

nCino also completed multiyear renewals with four U.S. enterprise customers representing more than $900 billion in assets. The renewals were completed ahead of schedule and included expanded commitments to the company’s AI capabilities. The company also added financial institutions in Germany, Japan and the U.S. during the quarter.

nCino purchased about 4.2 million shares for roughly $65 million during the quarter and completed a previously announced $100 million accelerated repurchase program. Its board approved another $100 million repurchase program, bringing total repurchases since April 2025 to $300 million before the new authorization.

For fiscal 2027, nCino expects revenue of $644 million to $647 million, non-GAAP operating income of $171 million to $174 million and free cash flow of $137 million to $142 million, FinTech Global reported. The company said the additional buyback can be funded with existing cash, available credit capacity or future cash flows.