Nutanix Inc

Nutanix reported $757.08 million in revenue for the quarter ended July 2026, a 15.9% year-over-year increase, and EPS of $0.60, up from $0.37 a year ago. The results surpassed Wall Street expectations, with revenue beating the Zacks Consensus Estimate of $737.89 million by 2.6% and EPS exceeding the $0.48 estimate by 25%. Key metrics also outperformed, including Annual Recurring Revenue of $2.55 billion versus the $2.51 billion estimate, and total Remaining Performance Obligations of $3440.41 billion against the $3302 billion forecast. Subscription revenue rose 16.7% to $719.11 million, while product revenue grew 14.3% to $388.39 million. Nutanix shares have gained 12.5% over the past month, and the stock holds a Zacks Rank #1 (Strong Buy).

Nutanix reported fourth quarter and fiscal 2026 financial results, with annual recurring revenue growing 16% year-over-year to $2.55 billion and strong free cash flow generation. For the fourth quarter, revenue rose 16% to $757.1 million, GAAP operating income was $70.0 million, and non-GAAP operating income was $198.0 million, with free cash flow of $277.6 million. For the full fiscal year, revenue increased 12% to $2.85 billion, GAAP operating income was $274.0 million, non-GAAP operating income was $675.4 million, and free cash flow reached $840.7 million. The company added over 3,000 new customers during the year and signed new or enhanced agreements with AMD, Lenovo, NetApp, and NVIDIA. Looking ahead, Nutanix guides first quarter fiscal 2027 revenue between $755 million and $765 million, and fiscal 2027 revenue between $3.180 billion and $3.230 billion, with non-GAAP operating margin of 24% to 25% and free cash flow of $850 million to $950 million.

Nutanix and ChronoScale announced a strategic partnership to jointly deliver enterprise-ready AI infrastructure and accelerate adoption of AI services across global markets. ChronoScale plans to leverage Nutanix software within its AI infrastructure platform to support customer onboarding, tenant management, service automation, virtualized infrastructure, managed Kubernetes environments, and advanced AI service offerings. Customers are expected to be able to procure reserved capacity through ChronoScale GPU-as-a-Service for predictable workloads, or draw on ChronoScale Token Factory pre-paid inference tokens backed by leading open-source models for burst and experimental workloads. Nutanix will enable deployment of ChronoScale Foundry, an enterprise AI foundry, inside the customer's own environment, giving enterprises a managed platform to build, run, and govern agentic workflows locally. The partnership also establishes a framework that includes joint marketing activities, sales enablement, technical collaboration, joint solution development, and customer engagement programs targeting Global 2000 organizations.

Dell and Nutanix have announced that Dell PowerStore can now work with the Nutanix Cloud Platform on Nutanix Cloud Infrastructure 7.6. This marks the second Dell storage platform to support Nutanix, following PowerFlex. PowerStore brings comprehensive NVMe all-flash performance and the ability to independently scale compute and storage on the Nutanix AHV hypervisor, with seamless integration into Prism without requiring new tools or additional training. Additionally, Dell Private Cloud complements this with automated installation, full lifecycle management, and system-level hardware support from Dell. Omdia notes that organizations can deploy workload-ready clusters in about 2.5 hours, reducing steps by more than 90% compared to traditional installation methods. PowerStore for Nutanix Cloud Platform is available today on AOS 7.6.

Nutanix and the North Carolina School of Science and Mathematics have established the Nutanix Endowed Professorship in Computer Science, funded by a one-time corporate grant of $250,000 from Nutanix, with the endowment expected to be matched by state dollars in late 2026. The professorship will support NCSSM initiatives in teacher training and open-source educational resources, aiming to bridge the rural digital divide in computer science access. Charles Robinson has been appointed as the endowed professor and will teach six NCSSM Connect courses beginning in fall 2026, delivering honors-level computer science instruction to remote high school students across the state. The initiative builds on a decade-long partnership in which NCSSM has relied on the Nutanix Cloud Platform for its server infrastructure.

Shares of Elastic, Toast, and Nutanix rose in afternoon trading after the United States and Iran agreed to halt military exchanges, easing fears of a wider Middle East conflict. Elastic gained 2.6%, Toast jumped 3.7%, and Nutanix climbed 3.6%. The de-escalation reduced oil prices and inflation concerns, lowering the odds of a Federal Reserve rate hike and benefiting high-growth software stocks. The rally also built on a chip-to-software rotation triggered by a report that OpenAI may delay its IPO, which softened fears that AI labs would quickly disrupt incumbent software companies.

Nutanix reported third-quarter fiscal 2026 non-GAAP earnings of 47 cents per share, beating the Zacks Consensus Estimate by 34.29% and improving 11.9% year over year. Revenues rose 10% year over year to $703.1 million, exceeding the consensus mark by 2.53%. Annual recurring revenue grew 15% to $2.43 billion, and the company added 730 new logos, an 18% increase. Nutanix raised its full-year fiscal 2026 revenue guidance to $2.82-$2.84 billion and expects non-GAAP operating margin of approximately 22.5% with free cash flow of $760-$780 million. Despite the positive results, shares have declined about 3.8% since the report, underperforming the S&P 500.