- NCino Inc. (NCNO) stock plunged 35% to $18.50 in Wednesday’s premarket after forecasting fiscal 2026 EPS of $0.66-$0.69 and revenue of $574.5-$578.5 million, missing Wall Street’s $0.88 and $613.4 million estimates.
- Despite quarterly revenue of $141.3 million topping the $140.8 million forecast, earnings of $0.12 per share fell below the expected $0.19, while fiscal 2025 saw total revenues rise 13% to $540.7 million and subscription revenues grow 15% to $469.2 million.
- CEO Sean Desmond announced a $100 million stock repurchase plan, signaling confidence in NCino’s long-term strategy and cash flow potential, aiming to boost shareholder value amid the market’s harsh reaction.
NCino Inc. (NCNO) shares plummeted 35% to $18.50 in Wednesday’s premarket trading, a sharp reaction to the cloud-based software company’s disappointing outlook and mixed fourth-quarter results. The $3.18 billion market cap firm forecasted fiscal year 2026 earnings per share of $0.66 to $0.69, well below the Wall Street consensus of $0.88, and projected revenue of $574.5 million to $578.5 million against expectations of $613.4 million. While quarterly revenue hit $141.3 million, edging out the $140.8 million estimate, earnings of $0.12 per share fell short of the anticipated $0.19, signaling challenges ahead despite a solid annual performance. For fiscal year 2025, ending January 31, NCino reported total revenues of $540.7 million – a 13% jump from $476.5 million the prior year – driven by subscription revenues climbing 15% to $469.2 million from $409.5 million.
Amid this turbulence, NCino unveiled a $100 million stock repurchase plan, a move CEO Sean Desmond framed as a vote of confidence in the company’s future. He emphasized the board’s belief that buying back shares at current valuations, down sharply to $18.50, is a smart use of capital, bolstered by NCino’s ability to generate growing free cash flow. This strategic pivot comes as the company, known for its banking software solutions, navigates a competitive landscape where cloud adoption is accelerating but investor patience for growth hiccups is thinning. The 35% premarket drop reflects Wall Street’s unease with the weaker guidance, overshadowing the 13% revenue growth and 15% subscription uptick that highlight NCino’s underlying resilience. Desmond’s commitment to deploying capital for shareholder value suggests a balancing act—steadying the ship while betting on long-term potential in a market quick to punish short-term stumbles.
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