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

Ncino Inc. is projected to achieve revenue of $591.9-593.4 million in FY26, reflecting an increase from the previous expectations of $585-589 million, with a significant contribution from subscription services anticipated to reach $520-$522 million. The company reported a 9.6% year-over-year revenue growth in Q3 FY26, driven by robust subscription revenue growth, which outperformed estimates and consensus forecasts. Analysts expect growth to improve further into FY27, potentially enabling Ncino to return to mid to double-digit growth rates, supported by its ability to secure new contracts with both small and large financial institutions seeking modern technological solutions.

Ncino Inc faces a challenging outlook due to several fundamental economic pressures that could adversely impact its financial performance. Slowing U.S. mortgage growth, projected at only 2% year-over-year, combined with rising inflation and interest rates, is expected to put pressure on bank profit margins, subsequently affecting IT spending among Ncino's clients. Additionally, increased competition within the industry may lead to pricing pressures, and the company's ongoing investments for growth have resulted in a lack of profitability, further complicating its revenue growth prospects.