The EPS miss vs the Street $0.27 consensus (actual $0.12 GAAP diluted) is noisy due to heavy share buyback financing and stock-based comp adjustments—the non-GAAP EPS of $0.21 (per Nasdaq reference) beat the $0.12 consensus by 75%, and the raised FY guidance for both revenue and ACV signals accelerating momentum. Traders should watch the buyback execution vs debt levels and whether the subscription ACV guidance of $662.5-667.5M implies a ~$190M+ incremental ACV year, which would be a strong re-rating catalyst.
Price Chart
Executive Summary
nCino reported Q1 FY2027 results with total revenue of $159.4M (up 11% YoY), subscription revenue of $140.9M (up 12% YoY), and GAAP operating margin expanding to 13% from -1% YoY. GAAP diluted EPS was $0.12 vs consensus $0.27, a miss of 56%, but this is due to large share repurchases (6.1M shares for $93.1M) and related debt incurrence—the business fundamentals were strong, with revenue above the $159.1M consensus, raised FY guidance, and operating cash flow surging 50% to $81.4M.
Key Financial Metrics
Key Facts
- Total revenues $159.4M, up 11% YoY, above $159.1M consensus
- Subscription revenues $140.9M, up 12% YoY, representing 88% of total revenue
- GAAP operating income swung to $21.1M from a ($1.5M) loss YoY; operating margin +13%
- Non-GAAP operating income $44.5M, up 79% YoY; non-GAAP operating margin 28%
- Free cash flow $80.8M, up 54% YoY
- Raised FY2027 guidance: total revenue $642-646M, subscription $571.5-575.5M, ACV $662.5-667.5M
- Repurchased 6.1M shares at ~$15.20 avg, totaling $93.1M; $65M remaining under buyback program
- Drew down $199.3M in term loan (net) and $150M net on revolver to fund buybacks and operations
- GAAP diluted EPS $0.12 vs consensus $0.27 — EPS miss driven by higher share count dilution from buyback financing interest
Financial Impact
Revenue beat consensus by $0.3M (0.2%), subscription growth +12% YoY, operating margins expanded 1,400 bps GAAP and 1,100 bps non-GAAP, free cash flow +54%
Risk Factors
- Net debt of ~$159.7M ($262.8M drawn vs $103.1M cash) creates interest expense headwind of ~$4.5M/quarter
- GAAP EPS dilution from buyback financing may continue to mask strong operating performance in headline earnings
- Macro headwinds in banking sector (customer consolidation, bank failures) could slow new logo wins and expansion
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001902733-26-000064 |
| Document: ncno-20260527.htm | 0001902733-26-000064 |
| Document: 0001902733-26-000064-index-headers.html | 0001902733-26-000064 |
| Document: 0001902733-26-000064-index.html | 0001902733-26-000064 |
| Document: 0001902733-26-000064.txt | 0001902733-26-000064 |
| 8-K Data (Synthetic) | 0001902733-26-000064 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 18d ago | 144 | $19.73 | awaiting T+60 | — | $22.92 (+16.17%) |
Oct 5, 2026 22d ago | 144 | $19.28 | awaiting T+60 | — | $22.92 (+18.88%) |
Sep 8, 2026 6w ago | Insider Cluster | $21.73 | awaiting T+60 | — | $22.92 (+5.48%) |
Sep 3, 2026 7w ago | 144 | $23.63 | awaiting T+60 | — | $22.92 (−3.00%) |
Aug 25, 2026 9w ago | Press Release | $21.51 | awaiting T+60 | — | $22.92 (+6.56%) |
Aug 6, 2026 11w ago | Insider Cluster | $19.17 | awaiting T+60 | — | $22.92 (+19.56%) |
Aug 6, 2026 11w ago | Insider Cluster | $19.17 | awaiting T+60 | — | $22.92 (+19.56%) |
Aug 5, 2026 11w ago | 144 | $19.23 | awaiting T+60 | — | $22.92 (+19.19%) |
Aug 5, 2026 11w ago | 144 | $19.23 | awaiting T+60 | — | $22.92 (+19.19%) |
Aug 4, 2026 11w ago | 144 | $19.23 | awaiting T+60 | — | $22.92 (+19.19%) |
US Market Status
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