nCino (NCNO) Q3 2026 earnings summary

Executive summary

• Achieved Q3 FY26 total revenues of $152.2M, up 10% year-over-year, with subscription revenues of $133.4M, up 11% (7% organic).

• Non-GAAP operating income reached $39.9M (26% of revenues), a 42% increase year-over-year, exceeding guidance.

• AI-powered platform and Banking Advisor capabilities are driving customer adoption, early renewals, and competitive differentiation.

• Completed $100M stock repurchase program, buying back 4M shares at an average price of $25.02.

• International subscription revenues grew 21% year-over-year, expanding the global footprint.

Financial highlights

• Q3 FY26 non-GAAP operating income: $39.9M (26% margin); non-GAAP net income: $35.8M, or $0.31 per diluted share.

• Cash and equivalents at quarter-end: $87.9M; $203.5M outstanding under the credit facility.

• Free cash flow for Q3 FY26 was $4.9M, with a free cash flow margin of 3%.

• Subscription revenues comprised 88% of total revenues in Q3 FY26.

• Non-GAAP gross margin for Q3 FY26 was 68%; subscription gross margin was 76%.

Outlook and guidance

• Q4 FY26 guidance: total revenues $146.75M–$148.25M; subscription revenues $130.75M–$132.25M.

• FY26 guidance: total revenues $591.9M–$593.4M; subscription revenues $520.5M–$522.0M; non-GAAP operating income $127.2M–$128.2M; non-GAAP net income per diluted share $0.90–$0.91; ACV $564M–$567M.

• Fiscal 2026 ACV outlook includes $4.5M from the Sandbox Banking acquisition.

• Rule of 40 target expected to be achieved around Q4 fiscal 2027.

• Management expects continued growth in subscription revenues as the asset-based pricing model is further adopted.