nCino, Inc. (NCNO) Stock Forecast & Price Target

Ncino Inc. demonstrates a positive growth trajectory, with fiscal year 2026 subscription revenue guidance set between $513.5 million and $517.5 million, reflecting a 10% year-over-year increase at the midpoint. The company's mortgage business has shown robust performance, contributing $20.9 million in subscription revenues, which is up 22% year-over-year, while total revenue is projected to range from $585.0 million to $589.0 million, marking a 9% increase at the midpoint. Furthermore, international subscription revenues are seeing significant growth, with a 30% year-over-year rise reported, indicating a strong demand for Ncino's cloud-based software solutions across financial institutions.

Ncino Inc. is experiencing challenges that suggest a negative outlook for its stock, primarily due to anticipated deceleration in revenue growth and increased competition, which may result in pricing pressure. Management's guidance indicates that the fourth quarter will exhibit the lowest year-over-year subscription revenue growth rate, alongside expectations of stagnant inorganic subscription revenues and a decline in professional services revenue. Additionally, external factors such as a prolonged economic downturn and low interest rates are likely to pressure the financial institutions that Ncino serves, contributing to further uncertainty regarding bookings and overall revenue growth.