Key Points
nCino reported Q2 2027 financial results yesterday.
Management raised its fiscal 2027 revenue and free cash flow guidance.
Recovering from a 7.6% slide early in today's market session, nCino (NASDAQ: NCNO) stock is in positive territory. The tech company, which provides a platform for agentic artificial intelligence (AI) banking, announced second-quarter 2027 financial results yesterday after the bell rang, and investors -- after digging beyond the headline figures -- seem happy with the company's report.
As of 10:53 a.m, ET, shares of nCino are up 2.7%.
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There's more to the quarter than failing to meet analysts' profit expectations
Coming up shy of the $0.27 earnings per share (EPS) that analysts anticipated, nCino reported Q2 2027 EPS of $0.05. Evidently, this shortcoming was sufficient to drive a mild sell-off when the market opened this morning.
At the top of the income statement, however, the company delivered a surprise, reporting Q2 2027 sales of $161 million -- better than the $159.2 million expected by analysts.
Management's upwardly revised guidance for a more auspicious fiscal 2027 is also contributing to the stock's rise today. Whereas the company had originally projected fiscal 2027 revenue of $642 million to $646 million, it now expects $644 million to $647 million. Cash flow is also expected to be better than previously expected. Management now forecasts free cash flow of $137 million to $142 million -- better than the original guidance of $135 million to $140 million.
What's an AI investor to do now?
While nCino stock is bumping higher today, those interested in the AI stock shouldn't feel that shares are now too expensive. Trading at 3.7 times sales, nCino stock is available at a discount to its five-year average sales multiple of 6.7.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.