Shares of nCino (NCNO) plunged 31.05% in pre-market trading on Wednesday following the cloud-banking company's disappointing fourth-quarter results and weak guidance for the upcoming year. The sharp decline comes as investors react to lower-than-expected earnings and a softer outlook for fiscal 2026.

nCino reported fourth-quarter non-GAAP earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.18 per share and falling short of the $0.21 per share earned in the same quarter last year. While revenue for the quarter rose to $141.37 million from $123.69 million a year earlier, slightly surpassing analyst expectations, the company's profitability took a hit.

The outlook for fiscal 2026 further dampened investor sentiment. nCino expects adjusted earnings per share of $0.66 to $0.69 on revenue of $574.5 million to $578.5 million, significantly below analyst projections of $0.88 per share and $612.1 million in revenue. The company also provided soft guidance for the first quarter, forecasting non-GAAP EPS of $0.15 to $0.16 on revenue of $138.8 million to $140.8 million, falling short of analyst estimates. In response to the weak performance and outlook, nCino's board approved a $100 million share buyback program, signaling confidence in the company's long-term prospects despite near-term challenges.