Shares of nCino (NCNO), the cloud banking software provider, plummeted 7.30% in Thursday's pre-market trading session following a disappointing earnings report and a series of analyst downgrades. The stock's sharp decline reflects growing concerns about the company's profitability and near-term growth prospects.

nCino reported fourth-quarter fiscal 2025 adjusted earnings per share of $0.12, falling short of the Zacks Consensus Estimate of $0.18. This earnings miss triggered a wave of pessimism among investors and analysts alike. In response to the weaker-than-expected results, several Wall Street firms slashed their price targets for nCino stock. Notably, Stephens dramatically reduced its target price from $38 to $24, while both KBW and Keefe Bruyette lowered their targets to $28 from $40.

Despite the company reporting full-year 2025 revenue of $540.7 million, representing a 14% increase from the previous year, profitability remains a key concern. nCino's net loss for the year, although narrowed by 11% to $37.9 million, continues to weigh on investor sentiment. The ongoing losses, coupled with the recent earnings miss, have raised questions about the company's path to profitability and its ability to meet growth expectations in an increasingly competitive fintech landscape. As nCino grapples with these challenges, investors will be closely watching for signs of improved financial performance and strategic initiatives to drive sustainable growth.