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

Ncino Inc. is forecasting notable revenue growth for FY26, with expectations ranging from $591.9 million to $593.4 million, reflecting an increase from previous estimates, alongside a projected EPS rise to $0.90-$0.91, indicating strong operational performance. The company reported a 9.6% year-over-year growth in total revenue for Q3 FY26, driven by robust subscription revenue which grew by 11.3% year-over-year, surpassing both internal estimates and consensus expectations. Positive growth trajectories are anticipated, with improvements expected to continue through FY26 and into FY27, as Ncino positions itself to capture demand for modern technology solutions within the banking sector.

Ncino Inc. is facing a challenging financial outlook primarily due to a slowdown in U.S. mortgage growth, which is currently at 2% year-over-year, leading to expectations of decelerated revenue growth and potential compression of the EV/revenue multiple to approximately 3x for FY27 estimates. Increased competition in the market may exert pricing pressure and further hinder revenue growth, while an extended economic downturn and low interest rates could negatively impact bank profit margins and, consequently, IT spending by Ncino's clients. Additionally, ongoing investments for growth have resulted in Ncino remaining unprofitable, compounded by the persistent headwinds in the mortgage sector throughout FY27.