Nutanix — Fourth Quarter and Fiscal 2026 Earnings Summary

Financial Performance

• Q4 FY26 revenue was $757.1 million, a 16% year-over-year increase from $653.3 million in Q4 FY25; full-year FY26 revenue was $2.85 billion, up 12% from $2.54 billion in FY25.
• Annual Recurring Revenue (ARR) reached $2.55 billion in Q4 FY26, representing 16% growth from $2.20 billion in Q4 FY25.
• Q4 FY26 GAAP operating income was $70.0 million compared to $31.2 million in Q4 FY25; Non-GAAP operating income was $198.0 million, up $78.5 million from $119.5 million in Q4 FY25.
• Full-year FY26 GAAP operating income was $274.0 million versus $172.5 million in FY25; Non-GAAP operating income was $675.4 million, an increase of $139.3 million from $536.1 million in FY25.
• Q4 FY26 GAAP operating margin was 9.2% (up 440 basis points from 4.8%); Non-GAAP operating margin was 26.2% (up 790 basis points from 18.3%).
• Full-year FY26 GAAP operating margin was 9.6% (up 280 basis points from 6.8%); Non-GAAP operating margin was 23.7% (up 260 basis points from 21.1%).
• Q4 FY26 GAAP gross margin was 86.0% (down 120 basis points from 87.2%); Non-GAAP gross margin was 87.7% (down 60 basis points from 88.3%).
• Full-year FY26 GAAP gross margin was 86.8% (flat from 86.8%); Non-GAAP gross margin was 88.0% (down 10 basis points from 88.1%).
• Q4 FY26 Net Cash Provided by Operating Activities was $315.0 million, up $95.5 million from $219.5 million; Free Cash Flow was $277.6 million, up $69.8 million from $207.8 million.
• Full-year FY26 Net Cash Provided by Operating Activities was $916.7 million, up $95.2 million from $821.5 million; Free Cash Flow was $840.7 million, up $90.5 million from $750.2 million.
• Average Contract Duration was 3.3 years in Q4 FY26 (up 0.1 years from 3.2 years) and 3.2 years for full-year FY26 (up 0.1 years from 3.1 years).
• Deferred revenue increased to $2.42 billion total ($1.25 billion current, $1.18 billion non-current) as of July 31, 2026, from $2.11 billion total ($1.05 billion current, $1.06 billion non-current) as of July 31, 2025.
• Remaining Performance Obligations (RPO) totaled $3.44 billion as of July 31, 2026, up from $2.69 billion as of July 31, 2025.

Guidance and Future Outlook

• First Quarter FY27 revenue is guided to be between $755 million and $765 million.
• First Quarter FY27 Non-GAAP operating margin is guided to be between 26% and 28%.
• Fiscal 2027 revenue is guided to be between $3.180 billion and $3.230 billion.
• Fiscal 2027 Non-GAAP operating margin is guided to be between 24% and 25%.
• Fiscal 2027 Free Cash Flow is guided to be between $850 million and $950 million.
• Weighted Average Shares Outstanding (Diluted) for Q1 FY27 is approximately 294 million.

Business Segments and Product Lines

• Added over 3,000 new customers during fiscal 2026.
• Launched the Model Context Protocol (MCP) Server for Nutanix Cloud Platform (NCP) to enable secure, natural-language, agentic AI automation.
• Announced availability of Dell Private Cloud with PowerStore for NCP within Nutanix Cloud Infrastructure (NCI) 7.6.
• Announced general availability of Nutanix Enterprise AI (NAI) 2.8 and upcoming general availability of Nutanix Kubernetes Platform (NKP) 2.19.
• Formed strategic partnerships with AMD, Lenovo, NetApp, and NVIDIA.
• Announced a strategic partnership with ChronoScale to accelerate enterprise AI adoption.
• Subscription revenue for Q4 FY26 was $719.1 million (up from $615.9 million in Q4 FY25); for full-year FY26, subscription revenue was $2.71 billion (up from $2.41 billion in FY25).

Market and Competitive Landscape

• Nutanix serves more than 50% of the Global 2000.
• The eighth annual Enterprise Cloud Index (ECI) survey identified Healthcare, Financial Services, and Public Sector industries as facing the greatest risks regarding shadow AI, data sovereignty, compliance, and organizational silos.

Risks and Challenges

• Forward-looking statements cite risks including supply chain constraints, component availability, and impacts on order timing, shipments, and deployments.
• Risks include the rapid evolution of markets, introduction of competing solutions (including public cloud infrastructure), and failure to meet customer needs.
• Potential challenges include delays in customer acceptance of new AI-related offerings, macroeconomic or geopolitical uncertainty, and difficulties in attracting or retaining qualified employees.
• Risks also include the ability to successfully implement restructuring initiatives, manage share repurchases, and maintain strategic alliances.

Management Commentary and Tone

• CEO Rajiv Ramaswami described the fourth quarter as a "strong finish" and the fiscal year as delivering "solid top and bottom line performance."
• CFO Rukmini Sivaraman stated results demonstrated a "good balance of top and bottom line performance" with a focus on "sustainable growth and improving profitability."
• Management highlighted progress in partnerships and innovation across the cloud platform, specifically regarding AI and support for external storage.

Other Key Points

• Full-year FY26 GAAP Net Income was $1,506.8 million, significantly higher than $188.4 million in FY25, largely driven by a non-cash deferred tax asset valuation allowance release of $1,198.9 million.
• Full-year FY26 Non-GAAP Net Income was $596.8 million.
• Repurchases of common stock totaled $483.5 million in FY26, compared to $307.9 million in FY25.
• Proceeds from the issuance of convertible notes were $848.0 million in FY25, with no new issuances in FY26.
• A partial repurchase of 2027 Notes occurred in FY25 ($95.5 million), with no such activity in FY26.
• Inducement expense related to the partial repurchase of 2027 Notes was $11.3 million in FY25 and $0 in FY26.
• Stock-based compensation expense was $357.7 million for FY26, up slightly from $351.6 million in FY25.
• Deferred tax asset increased to $1.22 billion as of July 31, 2026, from $17.0 million as of July 31, 2025.
• Total assets increased to $5.07 billion as of July 31, 2026, from $3.28 billion as of July 31, 2025.
• Stockholders' equity turned positive to $702.6 million as of July 31, 2026, from a deficit of $694.5 million as of July 31, 2025.