nCino's AI-Driven Growth: Banking Adviser Propels Cloud Banking Solutions

nCino Lifts Outlook on AI Growth | The Motley Fool

nCino (NCNO 1.06%) reported Q2 FY2026 results on August 26, 2025, reporting total non-GAAP revenue of $148.8 million (up 12% year-over-year) and non-GAAP subscription revenue of $130.8 million (up 15% year-over-year, 10% organically), both exceeding guidance. The company highlighted rapid adoption of its AI Banking Adviser, major enterprise wins, and raised its FY2026 non-GAAP revenue and profitability guidance while confirming its progress toward the Rule of 40 by fiscal 2027. Key insights below address platform pricing progress, AI differentiation, and acceleration across international and vertical markets. nCino has transitioned approximately 21% of annualized contract value (ACV) to its new platform pricing. The company is aiming for an approximately 10% price uplift at renewal. The largest cohort of renewals is set for Q4 FY2026, with early renewals already occurring as customers seek immediate access to new AI functionality. "We've told folks that, you know, we'd like to target around a 10% uplift just on an apples-to-apples basis, so no additional product, just switching from, you know, on renewal to the new model. You know, ultimately, the biggest cohort of migrations or renewals this year is gonna be in the fourth quarter. So, you know, we wanna work through that before we kinda come out with what we see through that because, again, gonna be a largest cohort for this year. But it's going well, going in accordance with our expectations." -- Greg Orenstein, Chief Financial Officer This transition increases recurring revenue visibility, with pricing power supported by differentiated capabilities and growing customer demand for embedded AI. Banking Adviser, nCino's purpose-built AI interface for financial institutions, now has over 80 customers, up from fewer than 20 at the start of the fiscal year. Management emphasized that AI is influencing renewals, cross-sells, and accelerating platform selection, though revenue impact is expected to materialize in FY2027 as the focus shifts from adoption to monetization. "Banking Adviser represents an AI-powered interface designed exclusively for financial institutions. Unlike generic AI solutions, Banking Adviser is deeply integrated into nCino workflows and understands financial products, process workflows, regulatory nuances, and day-to-day banking realities. Banking Adviser is evolving to become the primary interface through which our customers will experience increasingly sophisticated AI capabilities and fully agentic workflows, which we plan to start rolling out to the market next quarter." -- Sean Desmond, Chief Executive Officer Rapid customer adoption and plans for next-generation agentic workflows position nCino as a central AI partner for financial services, solidifying competitive differentiation and a foundation for future upsell. Q2 saw significant wins, including Continental Europe's first Spanish bank, a strategic go-live at ABN AMRO in The Netherlands, along with six new credit union logos and 35 cross-sell deals. Non-U.S. non-GAAP subscription revenue grew 30% year-over-year (27% in constant currency), with management highlighting robust credit union, mortgage, and onboarding momentum. "In the mid-market, we saw an almost 7-figure ACV commitment from a net new $10 billion asset bank for commercial lending. We also saw positive traction with our growth initiatives for fiscal 2026, which, as a reminder, are expanding our focus in EMEA, activating the credit union market, realizing the onboarding opportunity, cross-selling mortgage, and embedding AI, data, and analytics across our unified platform." -- Sean Desmond, Chief Executive Officer Diversified international, vertical, and segment growth supports sustained ACV and booking momentum. Management raised full-year FY2026 non-GAAP revenue guidance to $585 million to $589 million (up from $578.5 million to $582.5 million), non-GAAP subscription revenue guidance to $513.5 million to $517.5 million (up from $507 million to $511 million), and non-GAAP operating income guidance to $117.5 million to $121.5 million (up from $112 million to $116 million). The ACV outlook for FY2026 increased to $564 million to $567 million, with expected 10% year-over-year growth at the midpoint. There was no specific fiscal 2027 guidance beyond reaffirmation of the Rule of 40 target and continued pipeline strength; no explicit net interest income (NII) or CET1 disclosures were made.

nCino Says AI Capabilities Will Drive Cloud Banking Solution's Continued Growth | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Sean Desmond, CEO at nCino, said Tuesday (Aug. 26) during the company's quarterly earnings call that nCino expects AI to be as transformative for financial services as the shift to cloud services was a decade ago, and that financial institutions are looking to nCino to help them navigate their "AI journey." nCino unveiled Banking Advisor in June 2024, at which time it served as a "banker-focused, conversational copilot tool" providing portfolio management, streamlining tasks and helping banks track and comply with regulatory requirements. During Tuesday's call, Desmond said that as an AI-powered interface designed for financial institutions, Banking Advisor is the "first pillar" of nCino's AI strategy and has been purchased by more than 80 of the company's customers. "Financial institutions don't just need AI tools; they want a partner they trust who deeply understands banking, has a proven ability to drive industrywide change, and possesses the data foundation necessary to build truly differentiated AI capabilities," Desmond said during the call. "nCino has been that partner." As it looks to grow the adoption of AI, nCino aims to leverage its strengths in providing mission-critical systems, understanding regulatory complexities, appreciating the need to protect customers' information, and understanding the financial services vertical and the context in which it will use AI, Desmond said. "AI is coming up in virtually every customer conversation, and we are already seeing our AI-first approach contributing as a differentiator that helps move deals over the finish line, including being a catalyst for customers to transition to our new pricing framework," Desmond said. Desmond shared these plans during an earnings call in which nCino reported that its total revenue increased 12% year over year during the quarter ended July 31, while its subscription revenues increased 15%. In a presentation released Tuesday, the company said it exceeded its guidance ranges for those metrics as well as non-GAAP operating income and non-GAAP net income attributable to nCino per diluted share. During the call, Desmond attributed the gains to the nCino team's execution and a "more supportive" macro environment. "The headwinds that we've been navigating have generally subsided," Desmond said. "From a deal activity standpoint and from a sales opportunity standpoint, we haven't seen this level of activity in quite some time."