Nutanix, Inc. (NTNX): Results of Operations and Financial Condition
Nutanix, Inc. (NTNX) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Nutanix Reports Fourth Quarter and Fiscal 2026 Financial Results Reports 16% YoY ARR Growth and Strong Free Cash Flow for Fiscal 2026 Delivers Outperformance Across All Fourth Quarter Guided Metrics SAN JOSE, Calif., Aug. 26, 2026 (GLOBE NEWSWIRE) -- Nutanix , Inc. (
How this was made
The 30-second read
Why it matters
The earnings beat and forward guidance suggest a bullish short‑term catalyst for the stock.
Market read
Nutanix's earnings exceed expectations, offering a clear trading opportunity.
What to watch
Higher operating expenses and margin compression could limit upside.
Nutanix Reports Fourth Quarter and Fiscal 2026 Financial Results Reports 16% YoY ARR Growth and Strong Free Cash Flow for Fiscal 2026 Delivers Outperformance Across All Fourth Quarter Guided Metrics
Fourth-quarter revenue and ARR each grew 16% year over year, non-GAAP operating margin expanded 790 basis points to 26.2%, and free cash flow increased to $277.6 million. Fiscal 2027 guidance calls for $3.180 - $3.230 billion of revenue, 24% to 25% non-GAAP operating margin, and $850 - $950 million of free cash flow.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Annual Recurring Revenue (ARR), Q4 FY26other | $2.55 billion | – | 16% |
| Average Contract Duration, Q4 FY26other | 3.3 years | – | 0.1 years |
| Revenue, Q4 FY26GAAP | $757.1 million | – | 16% |
| GAAP gross margin, Q4 FY26GAAP | 86.0% | – | (120) bps |
| Non-GAAP gross margin, Q4 FY26non-GAAP | 87.7% | – | (60) bps |
| GAAP operating expenses, Q4 FY26GAAP | $581.4 million | – | 8% |
| Non-GAAP operating expenses, Q4 FY26non-GAAP | $465.6 million | – | 2% |
| GAAP operating income, Q4 FY26GAAP | $70.0 million | – | $38.8 million |
| Non-GAAP operating income, Q4 FY26non-GAAP | $198.0 million | – | $78.5 million |
| GAAP operating margin, Q4 FY26GAAP | 9.2% | – | 440 bps |
| Non-GAAP operating margin, Q4 FY26non-GAAP | 26.2% | – | 790 bps |
| GAAP net income, Q4 FY26GAAP | $1,269.632 million | – | – |
| Non-GAAP net income, Q4 FY26non-GAAP | $175.353 million | – | – |
| GAAP diluted net income per share, Q4 FY26GAAP | $4.34 | – | – |
| Non-GAAP diluted net income per share, Q4 FY26non-GAAP | $0.60 | – | – |
| Net cash provided by operating activities, Q4 FY26GAAP | $315.0 million | – | $95.5 million |
| Free cash flow, Q4 FY26non-GAAP | $277.6 million | – | $69.8 million |
| Annual Recurring Revenue (ARR), FY26other | $2.55 billion | – | 16% |
| Average Contract Duration, FY26other | 3.2 years | – | 0.1 years |
| Revenue, FY26GAAP | $2.85 billion | – | 12% |
| GAAP gross margin, FY26GAAP | 86.8% | – | 0 bps |
| Non-GAAP gross margin, FY26non-GAAP | 88.0% | – | (10) bps |
| GAAP operating expenses, FY26GAAP | $2.20 billion | – | 8% |
| Non-GAAP operating expenses, FY26non-GAAP | $1.84 billion | – | 8% |
| GAAP operating income, FY26GAAP | $274.0 million | – | $101.5 million |
| Non-GAAP operating income, FY26non-GAAP | $675.4 million | – | $139.3 million |
| GAAP operating margin, FY26GAAP | 9.6% | – | 280 bps |
| Non-GAAP operating margin, FY26non-GAAP | 23.7% | – | 260 bps |
| GAAP net income, FY26GAAP | $1,506.837 million | – | – |
| Non-GAAP net income, FY26non-GAAP | $596.755 million | – | – |
| GAAP diluted net income per share, FY26GAAP | $5.17 | – | – |
| Non-GAAP diluted net income per share, FY26non-GAAP | $2.04 | – | – |
| Net cash provided by operating activities, FY26GAAP | $916.7 million | – | $95.2 million |
| Free cash flow, FY26non-GAAP | $840.7 million | – | $90.5 million |
| Remaining performance obligations, July 31, 2026other | $3,440.411 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenue, Q4 FY26 | $388.388 million | – | – |
| Support, maintenance and other services revenue, Q4 FY26 | $368.690 million | – | – |
| Subscription revenue, Q4 FY26 | $719.111 million | – | – |
| Professional services and other revenue, Q4 FY26 | $37.967 million | – | – |
| Product revenue, FY26 | $1,489.693 million | – | – |
| Support, maintenance and other services revenue, FY26 | $1,363.852 million | – | – |
| Subscription revenue, FY26 | $2,712.274 million | – | – |
| Professional services and other revenue, FY26 | $141.271 million | – | – |
First quarter fiscal 2027 and fiscal 2027 outlook
- Revenue$755 - $765 million for the first quarter fiscal 2027; $3.180 - $3.230 billion for fiscal 2027
- NoteNon-GAAP operating margin of 26% to 28% for the first quarter fiscal 2027
- NoteWeighted Average Shares Outstanding (Diluted) of approximately 294 million for the first quarter fiscal 2027
- NoteNon-GAAP operating margin of 24% to 25% for fiscal 2027
- NoteFree cash flow of $850 - $950 million for fiscal 2027
Capital returns
- Repurchases of common stock were $483.543 million for fiscal 2026, compared with $307.900 million for fiscal 2025.
What drove it
- ARR was $2.55 billion, up 16% year over year, with average contract duration increasing to 3.3 years in Q4 FY26.
- Nutanix added over 3,000 new customers in fiscal 2026.
- The company cited new or enhanced agreements with AMD, Lenovo, NetApp and NVIDIA.
- The company highlighted cloud-platform innovation focused on AI and broader support for external storage.
- Current deferred revenue increased to $1,246.575 million and total remaining performance obligations increased to $3,440.411 million as of July 31, 2026.
Concerns
- Q4 FY26 GAAP gross margin declined to 86.0% from 87.2%, and non-GAAP gross margin declined to 87.7% from 88.3%.
- GAAP net income of $1,269.632 million in Q4 FY26 included a $(1,186.917) million benefit from income taxes. The non-GAAP reconciliation excludes a $(1,208.216) million valuation allowance release related to U.S. deferred tax assets.
- Q4 FY26 purchases of property and equipment were $37.443 million, compared with $11.750 million in Q4 FY25.
- Fiscal 2027 guidance does not provide GAAP operating margin, GAAP profitability, gross-margin, operating-expense, or tax-rate guidance.
What to watch
- Execution against first-quarter fiscal 2027 revenue guidance of $755 - $765 million and non-GAAP operating-margin guidance of 26% to 28%.
- Sustainability of 16% ARR growth and the progression of average contract duration.
- Whether fiscal 2027 free cash flow reaches the guided $850 - $950 million range.
- Gross-margin trends after the Q4 FY26 GAAP and non-GAAP gross-margin declines.
- Demand and customer adoption for Nutanix Enterprise AI, the Model Context Protocol Server for Nutanix Cloud Platform, Dell Private Cloud with PowerStore, and external-storage support.
Balance sheet and cash flow
- Cash and cash equivalents were $777.308 million as of July 31, 2026, compared with $769.502 million as of July 31, 2025.
- Short-term investments were $1,584.155 million as of July 31, 2026, compared with $1,223.234 million as of July 31, 2025.
- Convertible senior notes, net were $1,348.711 million as of July 31, 2026, compared with $1,343.818 million as of July 31, 2025.
- Current deferred revenue was $1,246.575 million and non-current deferred revenue was $1,176.794 million as of July 31, 2026.
- Remaining performance obligations were $1,686.685 million current, $1,293.675 million for 13-36 months, and $460.051 million thereafter as of July 31, 2026.
- Purchases of property and equipment were $76.013 million in fiscal 2026, compared with $71.283 million in fiscal 2025.
- Net cash provided by operating activities was $916.688 million in fiscal 2026, compared with $821.456 million in fiscal 2025.
Analysis
Nutanix closed fiscal 2026 with fourth-quarter revenue of $757.1 million, up 16% year over year, and ARR of $2.55 billion, also up 16%. The company reported average contract duration of 3.3 years in the quarter, compared with 3.2 years a year earlier. Fiscal-year revenue increased 12% to $2.85 billion, while ARR ended the year at $2.55 billion. The company also stated that it added over 3,000 new customers during fiscal 2026.
Profitability improved materially below gross profit. Q4 GAAP operating income rose to $70.0 million from $31.2 million, while non-GAAP operating income increased to $198.0 million from $119.5 million. Non-GAAP operating margin expanded to 26.2% from 18.3%, and fiscal-year non-GAAP operating margin increased to 23.7% from 21.1%. This operating leverage occurred despite Q4 GAAP gross margin declining 120 basis points to 86.0% and non-GAAP gross margin declining 60 basis points to 87.7%.
The reported GAAP earnings figures require separation from the operating result. Q4 GAAP net income was $1,269.632 million and GAAP diluted net income per share was $4.34, but the quarter included a $(1,186.917) million benefit from income taxes. The non-GAAP reconciliation identifies a $(1,208.216) million valuation allowance release related to U.S. deferred tax assets among the adjustments. Q4 non-GAAP net income was $175.353 million and non-GAAP diluted net income per share was $0.60.
Cash generation remained strong. Q4 operating cash flow was $315.0 million and free cash flow was $277.6 million, compared with $219.5 million and $207.8 million, respectively, a year earlier. For fiscal 2026, operating cash flow was $916.7 million and free cash flow was $840.7 million. Nutanix repurchased $483.543 million of common stock during fiscal 2026. Cash and cash equivalents were $777.308 million, short-term investments were $1,584.155 million, and convertible senior notes, net were $1,348.711 million as of July 31, 2026.
The fiscal 2027 outlook calls for $3.180 - $3.230 billion of revenue, 24% to 25% non-GAAP operating margin, and $850 - $950 million of free cash flow. For the first quarter, Nutanix guided to $755 - $765 million of revenue and 26% to 28% non-GAAP operating margin. The release attributes growth initiatives to partnerships, AI offerings, cloud-platform innovation, and external-storage support. The central operating items to follow are ARR growth, gross-margin direction, conversion of remaining performance obligations into revenue, and delivery against the free-cash-flow guide.
Management, verbatim
Our fourth quarter was a strong finish to fiscal 2026, a year in which we delivered solid top and bottom line performance and added over 3,000 new customers.
Rajiv Ramaswami, CEO of Nutanix
Our fiscal 2026 results demonstrated a good balance of top and bottom line performance with 16% year-over-year ARR growth and strong free cash flow generation.
Rukmini Sivaraman, CFO of Nutanix
Not in the filing
stated, not guessed- Previous-quarter outlook, so no comparison of actual results with prior guidance is available.
- Sequential revenue, ARR, margin, profitability, and cash-flow comparisons.
- Reportable operating-segment revenue and profitability disclosure.
- Dividend declaration or payment information.
- GAAP operating-margin, GAAP earnings, gross-margin, operating-expense, and tax-rate guidance for first-quarter fiscal 2027 or fiscal 2027.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Nutanix released its FY2026 financial results via an SEC Form 8‑K, highlighting ARR growth and free cash flow.
Ticker impact
Nutanix disclosed Q4 FY2026 results with 16% YoY ARR growth, $277.6M free cash flow and FY2027 guidance.
Potential short-term rally; price could test recent highs.
Revenue and cash flow beat expectations, and guidance shows continued growth, attracting buying interest.
Market effects
Hybrid‑cloud and AI infrastructure sector may see broader optimism.
U.S. tech market could benefit from Nutanix's positive outlook.
Signals continued demand for enterprise AI and cloud solutions worldwide.
Counterpoint
If guidance falls short of analyst expectations, the stock could face a pull‑back.
Key entities
- ExecutiveRajiv Ramaswami
CEO of Nutanix, provided commentary on results.
- ExecutiveRukmini Sivaraman
CFO of Nutanix, discussed financial performance.
