Why Is nCino (NCNO) Stock Rocketing Higher Today

What Happened?

Shares of banking software provider nCino (NASDAQ:NCNO) jumped 17.7% in the morning session after the company reported better-than-expected second-quarter earnings and raised its full-year financial outlook. The company announced total revenues of $148.8 million for the quarter, a 12.4% increase year-over-year, which surpassed analyst estimates. More impressively, nCino's adjusted earnings per share (EPS) came in at $0.22, significantly outperforming the consensus forecast of $0.14. Looking ahead, nCino provided a bullish forecast, raising its full-year guidance. It now expects revenue between $585 million and $589 million and adjusted EPS between $0.77 and $0.80. This strong performance and optimistic outlook signaled to investors that the company's growth trajectory is robust, prompting the significant stock rally.

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What Is The Market Telling Us

nCino’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for nCino and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 4.5% on the news that the stock was swept up in a broad market rally as Federal Reserve Chair Jerome Powell indicated that interest rate cuts could be on the horizon. Powell's comments, suggesting a potential policy shift after the central bank held rates steady throughout 2025, were a welcome development for investors. The news sparked a significant, broad-based rally, lifting stocks across the board. Technology companies, which had experienced a slump in the prior week, were among the primary beneficiaries of the renewed optimism, driving gains in stocks like nCino.

nCino is down 0.9% since the beginning of the year, and at $33.12 per share, it is trading 22.3% below its 52-week high of $42.64 from November 2024. Investors who bought $1,000 worth of nCino’s shares 5 years ago would now be looking at an investment worth $397.22.

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