Cloud Software Earnings Season: nCino and Box Both Beat Q2 Estimates as AI Upsells Drive Growth

The Quick Take

• nCino (NASDAQ: NCNO) beat Q2 earnings estimates with EPS of $0.25, driven by bank digital transformation spending and expansion of its AI-powered financial services cloud platform
• Box (NYSE: BOX) reported Q2 revenue of $321.1M and beat EPS expectations as its enterprise content management platform benefits from AI-powered workflow automation upsell momentum
• Both results support the thesis that enterprise software companies with embedded AI features are successfully converting cost-efficiency pitches into expanded per-seat and usage-based revenue streams

nCino and Box both delivered Q2 earnings beats that reinforced the narrative of enterprise software companies successfully converting AI capability investments into near-term revenue growth. nCino, which provides a cloud banking platform used by financial institutions for commercial lending, retail banking and regulatory compliance workflows, reported EPS of $0.25 against expectations, supported by continued growth in bank technology transformation spending. The platform has been integrating AI capabilities including automated underwriting assistance, document analysis and risk modelling that improve efficiency for its banking clients while providing nCino with opportunities to expand the scope and pricing of existing contracts.

Box reported revenue of $321.1M for the quarter alongside an EPS beat, demonstrating that its pivot to positioning as an AI-powered enterprise content management and workflow platform is resonating with corporate customers managing large volumes of unstructured data. Box has been building out its AI capabilities including Box AI, which allows users to query, summarise and extract information from files stored in the Box Content Cloud. The enterprise content management market is competitive, with Microsoft SharePoint and Google Drive representing major alternatives, but Box has maintained strong retention among large enterprise customers who rely on its security, compliance and integration capabilities.

Taken together, the nCino and Box results contribute to a growing body of evidence that enterprise software companies with domain-specific AI integrations are outperforming the market's more cautious expectations for how quickly AI features would translate into measurable revenue impact. The pattern across the sector appears to be that AI capabilities are driving both net expansion from existing customers adding seats or modules and new customer wins from organisations that are prioritising AI-ready platforms in their procurement decisions. Investors following cloud software will watch both companies for continuation of this trend in Q3 guidance and net revenue retention metrics as the key performance indicators.

Synthesized from 2 sources.