Nutanix (NTNX) Earnings & Analysis

Latest quarter

Nutanix reported Q4 FY2026 revenue of $757.1 million, above the consensus of $737.9 million. Its adjusted earnings per share were $0.60, compared with the consensus estimate of $0.48.

Revenue rose from $653.3 million a year earlier. In its annual filing, Nutanix attributed fiscal 2026 product revenue growth primarily to software renewals and programs to attract new customers and expand with existing ones. The company said support, maintenance and other services revenue also grew for the fiscal year alongside its customer base.

For the quarter, gross margin fell to 86.0% from 87.2%, while operating margin increased to 9.24% from 4.78%. Free cash flow rose to $277.6 million from $207.8 million.

Nutanix reported diluted earnings per share of $4.34, compared with $0.13 a year earlier. For the full fiscal year, the company attributed a decline in its income tax provision primarily to releasing a valuation allowance on most of its U.S. deferred tax assets and the lapse of the statute of limitations for certain foreign tax positions.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

In its annual filing, Nutanix said it plans targeted sales and marketing investments in major accounts, large deals and commercial accounts to support customer adoption of its broader platform. The company said new sales personnel take time to reach full productivity and that the process can take longer when they focus on major accounts and large deals.

Guidance

Nutanix expects the cost of support, maintenance and other services revenue to increase in absolute dollars as that revenue grows. The company also expects research and development expenses to increase in absolute dollars over the long term as it invests in future products and services.