10-Q · May 29, 2026
Nutanix reported strong Q3 results with revenue of $703 million, a 10% increase from the prior year, and an EPS of $0.47, significantly surpassing estimates. The company raised its full-year revenue guidance, reflecting…
Earnings analysis · 10-K
NTNX earnings analysis
Filed September 18, 2026 · Our reading of the company's report
The latest report
Nutanix delivered strong FY2026 operating momentum, with revenue up to $2.854 billion, operating margin expanding to 9.6%, ARR reaching $2.549 billion, and free cash flow increasing to $840.7 million. Its strategy is…
Read full summary
Nutanix delivered strong FY2026 operating momentum, with revenue up to $2.854 billion, operating margin expanding to 9.6%, ARR reaching $2.549 billion, and free cash flow increasing to $840.7 million. Its strategy is shifting the company from HCI toward a broader hybrid-cloud and AI platform, with external storage, cloud-native, Kubernetes, and agentic AI capabilities expanding the addressable market. The outlook is constructive, but the 5% workforce reduction, hardware constraints, government procurement investigation, and increasing AI-related regulatory exposure introduce meaningful execution and compliance risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.17
- Segment
- Single operating and reportable segment: FY2026 revenue was $2.854 billion. Geographic revenue was United States $1.530 billion, EMEA $831.4 million, Asia Pacific $417.8 million, and Other Americas $73.9 million.
What stood out
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Revenue and subscription mix accelerated
FY2026 revenue increased to $2.854 billion from $2.538 billion in FY2025 and $2.149 billion in FY2024. Subscription revenue reached $2.712 billion, representing approximately 95% of total revenue.
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Three-year margin expansion continued
Operating margin expanded to 9.6% in FY2026 from 6.8% in FY2025 and 0.4% in FY2024. Non-GAAP operating margin also increased to 23.7% from 21.1% and 16.2%, respectively.
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Cash generation strengthened
Free cash flow rose to $840.7 million in FY2026 from $750.2 million in FY2025 and $597.7 million in FY2024, while operating cash flow reached $916.7 million. Deferred revenue increased by $315.0 million during FY2026.
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Platform expansion supports growth
ARR increased to $2.549 billion from $2.202 billion in FY2025, while the company served over 32,000 end customers. Nutanix is broadening its platform from HCI into hybrid cloud, Kubernetes, external storage, and enterprise AI workloads, including generative and agentic AI.
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International growth led by EMEA
EMEA was the fastest-growing major region, with revenue increasing 21% to $831.4 million from $685.6 million. U.S. revenue increased 9% to $1.530 billion, Asia Pacific increased 6% to $417.8 million, and Other Americas increased 47% to $73.9 million.
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Significant share repurchases
The company repurchased approximately 9.4 million shares for $482.5 million during FY2026, including shares under an accelerated share repurchase agreement, and had $728.9 million remaining under the authorization at July 31, 2026.
What to watch
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Restructuring execution risk increased
In August 2026, Nutanix announced a plan to reduce global headcount by approximately 5%. The 10-K recorded $27.6 million of restructuring charges and expects an additional $5.4 million to $15.4 million in FY2027, creating execution and near-term margin risks.
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Hardware supply constraints persist
Beginning in the second quarter of FY2026, hardware component constraints caused higher pricing and longer lead times, potentially delaying software deployment and revenue recognition. Nutanix also had approximately $163.0 million of guarantees to its contract manufacturer as of July 31, 2026.
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Government procurement investigation
The DOJ is investigating U.S. federal government IT purchases involving historical conduct by a former employee and certain third-party partners. Nutanix is cooperating with a grand jury subpoena, but stated that it cannot predict the outcome or estimate any potential loss.
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AI regulation and reliability risk
AI-related exposure is materially broader as the company integrates agentic AI workflows and third-party AI models. The filing cites potential contractual disputes, indemnity obligations, litigation, regulatory investigations, privacy claims, and cybersecurity risks, while the EU AI Act and multiple U.S. state laws are already relevant.
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Distributor concentration
Sales concentration through the indirect channel remains significant: sales through the top two distributors represented 39% of total FY2026 revenue. Channel disruption, partner underperformance, or partner conflicts could therefore materially affect revenue and cash flows.
Management's outlook
The 10-K does not provide quantitative FY2027 revenue or EPS guidance. It describes continued investment in agentic AI, cloud-native offerings, sales capacity, and digital-sovereignty capabilities; annual outlook was provided separately in the Q4 earnings release and call.
Earlier filings 4
10-Q · March 2, 2026
Nutanix reported a beat in Q2 FY2026 with revenue of $722,825,000 (vs. $654,721,000 in Q2 FY2025) and diluted EPS of $0.36 (vs. $0.19 in Q2 FY2025). Gross profit expanded to $631,552,000 (≈87.4% margin) and operating…
10-K · September 24, 2025
Nutanix, Inc. reported a strong financial performance for FY 2025, highlighted by a revenue increase of approximately 15% year-over-year to reach $2.617 billion and a notable transition to a profitable operating model.…
10-Q · March 6, 2025
Nutanix reported strong Q2 results for the three months ended January 31, 2025: revenue rose to $654,721,000 (up $89,488,000 or 15.8% year-over-year), operating income improved to $65,438,000 (10.0% operating margin)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.