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Image source: The Motley Fool. Wednesday, Aug. 26, 2026 at 4:30 p.m. ET Vice President of Investor Relations - Richard Valera Chief Executive Officer - Rajiv Ramaswami Chief Financial Officer - Rukmini Sivaraman Operator: Thank you for standing by, and welcome to Nutanix' Fourth Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. Now it's my pleasure to hand the conference to Rich Valera, Vice President of Investor Relations for Nutanix. Please proceed. Richard Valera: Good afternoon, and welcome to today's conference call to discuss fourth quarter fiscal year 2026 financial results. Joining me today are Rajiv Ramaswami, Nutanix' CEO; and Rukmini Sivaraman, Nutanix' CFO. After the market closed today, Nutanix issued a press release announcing fourth quarter fiscal year 2026 financial results. If you'd like to read the release, please visit the Press Releases section of our IR website. During today's call, management will be making forward-looking statements, including financial guidance. These forward-looking statements involve risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially and adversely from those anticipated by these statements. For a more detailed description of these and other risks and uncertainties, please refer to our SEC filings including our most recent annual report on Form 10-K and our subsequent quarterly reports on Form 10-Q as well as our earnings press release issued today. These forward-looking statements apply as of today, and we undertake no obligation to revise these statements after this call. As a result, you should not rely on them as predictions of future events. Please note, unless otherwise specifically referenced, all financial measures we use on today's call, except for revenue, are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. We have provided, to the extent available, reconciliations of these non-GAAP financial measures to GAAP financial measures on our IR website and in our earnings press release. Nutanix will be participating in the Goldman Sachs Communacopia + Technology Conference in San Francisco on September 8, and the Piper Sandler Growth Frontiers Conference in Nashville on September 15. We hope to see you at these events. Finally, our first quarter fiscal 2027 quiet period will begin on October 17. And with that, I'll turn the call over to Rajiv. Rajiv? Rajiv Ramaswami: Thank you, Rich, and good afternoon, everyone. Our fourth quarter was a strong finish to our fiscal 2026 year. We saw strength across our business and are happy to have exceeded all of our guided metrics for the quarter. We saw strong uptake of our external storage offerings and Nutanix Cloud Clusters, or NC2, in the quarter, both of which are helping to mitigate the impact of ongoing supply chain challenges on our customers. We also saw good performance from our portfolio products with notable strength in our Kubernetes and database management offerings. Turning to our full year results. In our fiscal 2026, we demonstrated good progress on a number of fronts. Despite increased hardware prices and supply shortages, we delivered solid top line performance, including revenue of $2.85 billion, up 12% year-over-year and ARR of $2.55 billion, which grew 16% year-over-year. We also saw strong new logo performance across all of our customer tiers, including the Global 2000, adding over 3,000 new customers. And finally, we generated free cash flow of $841 million, yielding a free cash flow margin of 29%. We are pleased to have delivered our third year in a row with a Rule of 40 score above 40. In FY '26, we also saw tangible progress on the product and partnership fronts, especially as it relates to AI and our support for external storage. We delivered Nutanix Agentic AI, a full stack software solution designed to reduce complexity, optimize performance and security, and enable lower and more predictable total costs for agentic AI applications. On the partnership front, we signed a strategic agreement with AMD to deploy our agentic AI platform on AMD's GPU solutions. This partnership complements our existing integration with NVIDIA's GPU solutions. It also includes broadening our support for AMD CPUs, ensuring that our customers have maximum flexibility for both GPU- and CPU-based solutions. We also announced new capabilities for our agentic AI solution to support a new generation of AI cloud providers or neoclouds, opening up a new market opportunity for us. Our partnership with ChronoScale announced last week represents some early success for us in this market. More recently, we have announced important new capabilities for our agentic AI solution. These include Nutanix Agent Gateway, which provides unified governance and cost control over AI spend to our customers and a model context protocol server for the Nutanix Cloud Platform, which brings secure natural language agentic AI automation to hybrid multi-cloud environments. Finally, we made good progress on our initiatives supporting the use of external storage with the Nutanix Cloud Platform. In FY '26, we added solutions supporting Dell PowerStore, which became generally available earlier this month and EverPure, which has been generally available for approximately 2 quarters. We also announced agreements to support NetApp and Lenovo's storage platforms. Notably, our solution supporting NetApp is currently in limited availability and was instrumental in the signing of several large wins in Q4. I'd now like to highlight a few of our largest and most notable wins in Q4. These wins demonstrate the appeal of our platform to businesses that are looking to adopt hybrid multi-cloud operating models and deploy modern applications and AI and increasingly to deploy our cloud platform while retaining their existing hardware, including servers and external storage. We saw strong momentum with our initiatives to support external storage in Q4, which included a sharp quarter-over-quarter increase in bookings and the signing of several 7-figure ACV deals. These included one of our largest wins in the quarter, a new logo with a Global 2000 aerospace, defense and security provider that was looking to modernize its IT environment. This customer chose the Nutanix Cloud Platform, along with Nutanix Cloud Manager based on its lower total cost of ownership, ease of migration and ability to utilize their existing NetApp storage. We also had a 7-figure new logo win with 1 of the premier hospital systems in North America that was unhappy with the renewal terms they received from their existing infrastructure provider. This customer chose the Nutanix Cloud Platform to run their business-critical applications and plans to utilize their existing Dell PowerFlex storage arrays going forward. We are pleased with the progress we've seen to date with our offerings supporting external storage and expect continued momentum on this front in FY '27. Some of our marquee wins in the quarter also reflected the strength we saw with our portfolio products. An example is another one of our largest wins in the quarter with a Global 2000 financial services provider in the APJ region. With this multiproduct expansion, the customer now plans to use Nutanix Kubernetes platform to deploy and manage their container-based applications while continuing to run their VM-based applications on our cloud platform. They also plan to extend their use of Nutanix Database Service to automate the management of their Oracle databases. And we continue to see adoption of our AI solution in Q4 with wins across a broad array of industry verticals in both civilian and government markets. Finally, in Q4, we saw continued momentum with NC2, our public cloud offering. This included a strong quarter-over-quarter increase in bookings and cores deployed. One 7-figure NC2 win was an expansion with a Global 2000 provider of financial services based in North America. This customer was already using the Nutanix Cloud Platform and Cloud Management to run some of their business-critical workloads on-prem. However, they were looking to shift a portion of their estate to the public cloud and automate the management of their SQL databases. To address these requirements, they plan to deploy Nutanix Database Service on NC2 running on AWS. We also landed a new logo with an EMEA-based provider of automotive technology. This customer was looking to exit their data centers, avoid lock-in with their existing on-prem vendor and switch from a CapEx to an OpEx model. They plan to deploy our cloud platform on NC2 in OVH public cloud. In closing, we were pleased with the broad-based strength we saw in our business in Q4. Our opportunities with AI, modern applications, hybrid multi-cloud and support for external storage provide us with a strong foundation for long-term growth. Finally, I would like to express my sincere gratitude to our investors, customers and partners for their trust in us and to our employees for their hard work that led to these results. And with that, I'll hand it over to Rukmini Sivaraman. Rukmini? Rukmini Sivaraman: Thank you, Rajiv, and thank you, everyone, for joining us today. I will first cover our Q4 fiscal '26 results, followed by a review of our full fiscal year 2026 results and then discuss guidance for Q1 '27 and full year fiscal '27. In Q4, we reported results that were above the high end of the range for all guided metrics. Our team executed well to deliver a strong finish for the fiscal year despite a challenging supply chain environment and continuing uncertainty in the macro environment. In Q4, we reported record quarterly revenue of $757 million, higher than the guided range of $725 million to $745 million. ARR at the end of Q4 was $2.549 billion, representing year-over-year growth of 16%, an increase in growth rate compared to the prior quarter. NRR or net dollar-based retention rate at the end of Q4 was 106%, flat quarter-over-quarter. In Q4, average billings contract duration was 3.3 years, slightly lower than our expectations. Non-GAAP gross margin in Q4 was 87.7%. Non-GAAP operating margin in Q4 was 26.2%, higher than our guided range of 21% to 23% due to lower operating expenses related to timing of hiring, among other factors, and higher revenue than expected. Non-GAAP net income in Q4 was $175 million or fully diluted EPS of $0.60 per share based on fully diluted weighted average shares outstanding of approximately 293 million shares. GAAP net income and fully diluted GAAP EPS in Q4 were $1.27 billion and $4.34 per share, respectively. Note that Q4 GAAP net income benefited from a onetime $1.2 billion valuation allowance release related to our U.S. deferred tax assets. We had previously noted the potential for a tax valuation allowance release in our prior 10-Q filing. Excluding this nonrecurring benefit, GAAP net income and fully diluted GAAP EPS in Q4 would have been $61 million and $0.21 per share, respectively. Free cash flow in Q4 was strong at $278 million, representing a free cash flow margin of 37%, benefiting from good bookings linearity and collection in the quarter. Moving to the balance sheet. We ended Q4 with cash, cash equivalents and short-term investments of $2.361 billion, up from $2.018 billion at the end of Q3. Moving to capital allocation. In Q4, we repurchased $50 million worth of common stock under our authorization. We also used about $26 million of cash to retire shares related to our employees' tax liability for their quarterly RSU vesting. Together, these actions help manage share dilution. Moving to a summary of our results for the full fiscal year 2026. We were happy with our fiscal year '26 results, achieved while navigating an uncertain macroeconomic environment along with significant supply chain constraints related to the pricing and availability of servers on which our customers run our software. Fiscal year '26 revenue was $2.854 billion, higher than the most recent guidance of $2.82 billion to $2.84 billion and representing a year-over-year growth rate of 12%. As we have discussed in earlier calls, we believe it is important to put this revenue growth in the context of the overall growth of the business. TCV bookings growth in fiscal year '26 was in the high teens percentage, higher than our revenue growth, partly because customers are experiencing longer lead times for servers on which they run our software. We help our customers manage through this environment by providing them with future start dates for our software licenses where necessary to align with the timing of their server delivery. And we recognize software license revenue aligned with the delayed license start date. Fiscal year '26 ending ARR, as mentioned earlier, was $2.549 billion, representing year-over-year growth of 16%. For the full year, average contract duration was 3.2 years, slightly higher than last year's average contract duration of 3.1 years. Non-GAAP gross margin in fiscal year '26 was 88%, relatively flat year-over-year. As mentioned in prior calls, gross margins could move around slightly depending on the mix of professional services revenue in a given period. Non-GAAP operating margin in fiscal year '26 was 23.7% higher than our most recent guidance of approximately 22.5% and a year-over-year increase of approximately 2.6 percentage points. Non-GAAP net income in fiscal year '26 was $597 million or fully diluted EPS of $2.04 per share based on fully diluted weighted average shares outstanding of approximately 292 million shares. GAAP net income and fully diluted GAAP EPS in fiscal year '26 were $1.507 billion and $5.17 per share, respectively, which includes the $1.2 billion of nonrecurring income tax benefit associated with the release of the valuation allowance that I mentioned earlier. Excluding this nonrecurring benefit, GAAP net income and fully diluted GAAP EPS in fiscal year '26 would have been $299 million and $1.04 per share, respectively. Free cash flow in fiscal year '26 was $841 million, representing a free cash flow margin of 29%. In fiscal year '26, our Rule of 40 score, defined as revenue growth rate plus free cash flow margin, was a healthy 42%, reflecting our continued focus on sustainable, profitable growth, driving durable top line growth while improving bottom line margins. In fiscal year '26, in addition to our ongoing share repurchase activity, we completed an accelerated share repurchase of $300 million in fiscal Q2 and our Board subsequently increased our share repurchase authorization in Q3, indicative of our conviction and confidence in the business. Moving to Q1 '27. Our Q1 guidance is as follows: revenue of $755 million to $765 million, non-GAAP operating margin of 26% to 28%, fully diluted weighted average shares outstanding of approximately 294 million shares. Moving to the full year. Our initial fiscal year '27 guidance is as follows: revenue of $3.18 billion to $3.23 billion, representing a year-over-year growth rate of 12% at the midpoint of the range; non-GAAP operating margin of 24% to 25%, an increase from fiscal year '26 at the midpoint; free cash flow of $850 million to $950 million, representing a free cash flow margin of 28% at the midpoint. I will now provide a few points to note regarding our full year guidance. First, we continue to believe in the robust market opportunity and growth vectors driving our business, which include: a, core demand for our hybrid cloud platform, including the support of external storage platform; b, cloud-native and AI offerings; and c, a growing partnership ecosystem. Second, our guidance assumes that server supply constraints will continue, potentially impacting customers' decisions on the size and timing of their projects with us. Because of this, we are assuming a moderately higher percentage of orders with future start dates in fiscal year '27 compared to fiscal year '26. We also expect to continue to provide flexibility where needed for our larger customers to do phased migrations. Third, we expect the renewals ACV cohort or available-to-renew pool to grow year-over-year in fiscal year '27 but at a slower rate than in fiscal year '26 as the overall renewals base gets larger over time. Fourth, our non-GAAP operating margin and free cash flow guidance reflects the expected operating impact of the restructuring we announced earlier this month, was impacted approximately 5% of our global workforce. The full year free cash flow guidance incorporates $33 million to $43 million of nonrecurring charges from the restructuring, and we expect $30 million to $35 million of that to be paid out in cash in Q1. We expect to reinvest the majority of the savings from this restructuring into growth areas, including our agentic and AI solutions, our cloud native offerings, hiring more salespeople to target our large market opportunity, digital sovereignty investments and more. Fifth and finally, a note on billings and free cash flow. The vast majority of our customers continue to pay us multiple years of cash upfront upon purchase. Consistent with the discussion during our Investor Day in April, we expect to offer more payment plan flexibility to our customers in fiscal year '27, whether through third-party financing or annual payment structures. This provides customers with more flexibility as they make purchasing decisions. This is incorporated into our free cash flow guidance, which at the midpoint of the ranges implies a free cash flow margin of 28%. In closing, we are pleased with the strong finish to fiscal year '26, and we look forward to continued momentum in fiscal year '27. With that, operator, please open the line for questions. Operator: [Operator Instructions] One moment for our first questions, please, comes from Matt Martino with Goldman Sachs. Matthew Martino: Rukmini, maybe just starting with the FY '27 outlook. There are a few moving pieces between the healthy bookings backdrop, the hardware constraints you've been navigating and the potential for some of that delayed activity to convert as supply improves. So can you walk us through the assumptions behind the growth guide? And what gives you the confidence around that starting point? Rukmini Sivaraman: Yes. Matt, thank you for the question. So I'd highlight a few of the points that you brought up, Matt, and then just a broader backdrop as we thought about growth for next year. So first on the growth driver side, as I said in my prepared remarks and as Rajiv alluded to as well, we think we have several growth drivers strengthen the core platform, our hybrid cloud platform, including support for external storage, the growth in our cloud native and AI offerings and some of our other portfolio products continuing to grow, and then the third piece being continued help from our partner ecosystem, which has also continued to evolve and grow nicely over time. And as you said, we were happy with the strength of our business in Q4 and the momentum coming out of fiscal year '26. Now on the other side, we believe that the ongoing supply chain challenges that our customers are facing with respect to both pricing and availability of servers on which to run our software will continue and expected to continue into fiscal year '27, which could impact customers' decisions on size and the timing of their projects with us. So that's one of the reasons. We want to continue to provide flexibility with future start dates, and that's why we were assuming a moderately higher percentage of orders with future start dates in '27 compared to '26. And the other reason for that, we intend to continue to also provide flexibility when larger customers want to complete phased migrations onto our platform. The other piece that we mentioned was renewals cohort, expected to grow in 27% but slower -- at a slower rate than it grew in '26, Matt. So those are some of the puts and takes. And look, we finished '26 with good momentum, and we're comfortable with the guidance that we provided you today for '27. Matthew Martino: All right. Very helpful. And Rajiv, for you, nice to see the strong uptick in both NC2 and external storage this quarter. How is that changing the opportunity for the business, both in terms of the customers you can reach and the pace at which they can move forward, especially with these supply constraints out there? Rajiv Ramaswami: Yes. The whole reason for doing this was to make it easier for customers to adopt our platform. So that's certainly -- when we went into this supporting external storage, yes, we were more thinking of this as broadening our platform, providing our customers with flexibility to adopt our platform for compute, networking, management, cloud native, AI, et cetera, with storage being an option. Storage could be HCI or storage could be external storage. Now in the face of supply chain and what we're seeing today, this has become a really great opportunity because customers can now migrate to Nutanix, which -- while keeping their existing hardware, right, both their servers and storage. So we saw a very good uptake for our external storage opportunity just in Q4 alone. In fact, today, we now support multiple Dell platforms. We support EverPure. We are in limited availability with NetApp. And that's already led to multiple deals, significant deals, 7-figure deals in Q4. And so we do expect that to continue to accelerate in FY '27 for us. A very similar thing is public cloud. We are in the major public clouds, all the 3 major hyperscalers, and we also extend our platform to some of the European providers like OVH, et cetera. And this is also providing customers a very easy way to adopt our platform when you have supply chain constraints. And we saw a good uptick in our NC2 business this quarter. We expect that to also continue during FY '27. Operator: One moment for our next question, please. That comes from Sanjit Singh with Morgan Stanley. Sanjit Singh: Congrats on the very strong bookings this quarter. Definitely, when I look at my model, net new ARR is at the most it's been in quite a long time. And so Rukmini, I wanted to understand a little bit about the revenue guidance and in terms of what's actually making it so strong. I mean you talked about the headwinds, right, a lower, slower growing renewal base. We have a higher mix of future start date deals, more phased migration deals and that you're guiding to sustained growth. So on the other side of those potential headwinds going into next year, what's driving the sustained growth outlook? Is there an element there of better bookings that you guys delivered this year converting into revenue next year? I just want to understand some of those dynamics. Rukmini Sivaraman: Sanjit, so yes, to answer your question on what is driving the growth next year, I think it's a few things that we've touched on, and I'll add a little more color to that, Sanjit. So one is, like I said, we're exiting '26 with strong momentum. Q4 was a great quarter across multiple dimensions. And as Rajiv said in his prepared remarks, we saw strength practically across the board. So it was a great quarter. I feel like we're entering '27 with good momentum. So yes, we do expect continued growth in overall bookings to continue and some other specific growth drivers were -- that I mentioned. So for example, external storage support that we've talked about here and NC2, the question that was asked right before, we expect those to grow faster than the overall growth, meaning that they're going to be an accelerant to our overall growth because those are all options and choices for our customers that we didn't have before and we believe is allowing people to transition on to our platform even amidst what's happening on the server supply chain. So I would say that includes external storage, includes NC2. And then we also have our cloud native offerings, which we had a good year for those in '26 and we expect that to also be an accelerant to growth next year off of a smaller base. Now all of these are smaller portions of our overall business but are expected to grow nicely going into next fiscal year. Rajiv, anything you would add to that? Rajiv Ramaswami: Yes. I would just say the ecosystem around us is also helping, the OEMs, the cloud partnerships that we have. What I would say is I think we feel good about all the growth vectors while also providing us some levers to handle the supply chain issues, which are real and will continue this year. No doubt about it, right? I think -- I expect the supply chain shortages and price increases to continue through the rest of this fiscal year for us. But despite that, I think we feel good about the fact that we have a portfolio that really meets the needs for what customers want. They're looking to do these migrations from their existing providers. They're looking to adopt cloud native. They're looking to go run AI in a cost-effective manner and manage and govern that. They want to operate on-prem. They want to operate in the public cloud. They want to operate in service providers and neoclouds. So we have all of these coming together, and those are the growth drivers that are the underlying foundation for the numbers that we gave you. Sanjit Singh: Understood. It's very clear. And just as a follow-up, Rajiv, as we think about that ecosystem, particularly the storage partnerships and the storage OEMs, between what you have coming online with NetApp, what's already available on the Dell side of the equation as well as EverPure, which of these partnerships do you think will be the biggest potential accelerant going into next year? Rajiv Ramaswami: I would say all of them, Sanjit, because I think with every one of them -- with Dell, we have PowerFlex and PowerStore. With EverPure, we have all the flash arrays. And with NetApp, we have, again, a good chunk of their arrays that we support. I would say those 3 are all going to be significant for us and significant growth drivers. And we've already seen that now. We've seen deals across all of those and an acceleration in Q4 of that business. And even though NetApp is only limited availability, what that means is we are bringing on a subset of customers. We don't want to -- and we will expect to be soon opening it up broadly to anybody who wants it. We are already closing deals with NetApp. So I think all 3 of those providers are going to be quite significant for us this year. Sanjit Singh: Great. Congrats on Q4. Rukmini Sivaraman: Thank you. Operator: Our next question comes from James Fish with Piper Sandler. James Fish: Maybe just wanting to understand a little bit if you guys are seeing any net pull-in of demand actually given what's going on with hardware. Are we seeing that backlog still built given your sort of high teens bookings comment of the year? Those kind of details would be helpful. Rukmini Sivaraman: Jim, I'll start, and Rajiv can add if he likes. So on the question about pull-ins, so the short answer is we did not really see anything unusual in terms of pull-ins in Q4. Now you remember that in our fiscal Q2, in our January quarter, we did call out that we had seen some pull-in activity into that quarter given some anticipated price increases for servers. That did not really appear to be the case in either fiscal Q3 or fiscal Q4, Jim. Now that's sort of one piece of it. And then more broadly, I think we've talked about this future start date dynamic for a while now, and that continues to be something that we continue -- expect to continue to see in '27, and I made some comments about that in my prepared remarks. So that's in there, but I don't think that's to your specific question that we saw anything unusual about pull-in activity in Q4. Rajiv Ramaswami: Yes. Just to add to that, Rukmini, I think, yes, certainly, I agree with you. We didn't see anything on the pull-ins. What we did see though was our -- we were able to close a reasonable number of large deals, multimillion-dollar ACV deals in Q4. And forecasting those is generally very hard, of course. We tend to see -- figure out some subset of them that we came in, but we had -- we executed very well on our large deals in Q4. And we gave you several examples in the script. James Fish: Yes. No, wins were pretty impressive, especially on the NetApp side this early, Rajiv. Rukmini, circling back with you actually on free cash flow guide here, understanding you're reinvesting the majority of the reduction in force here and you're also dealing with multiple moving parts, including, hey, look, we don't know in terms of what percentage of customers might go on this flexible billing arrangement. So I guess, is there a way to break down how much you guys are embedding in terms of a shift more towards third-party financing or the annual billings terms instead of a multi upfront? Just trying to understand like where we're at overall in terms of annual versus multiannual billings payment structures. Rukmini Sivaraman: Yes. Thanks, Jim. So I think I'll make a couple of comments on just free cash flow overall. So to your first point, if you look at our ACV bookings, currently for the full year '26, we were just about a double-digit percent of our TCV bookings, were -- TCV bookings, not ACV, were from these annual payments. And as I noted and you alluded to also, Jim, we expect to continue to offer more payment plan flexibility to customers in '27, whether it's a third-party financing or annual payment structures, and we've assumed a mix there, Jim. And because we think that it does provide more flexibility for customers as they think about their purchasing decisions. The second piece I'll say is the restructuring charges, which we've said we expect to be between $33 million and $43 million, will be paid out in fiscal year '27, and those are obviously -- we don't expect that to be a recurring charge. But even if you normalize for that, if you sort of add that back to the guide we gave you, the free cash flow margin is effectively the same as it was in fiscal year '26, right? So that's one piece that you can add back to the free cash flow guide if you want to normalize for the restructuring activity. And yes, as we said, we do expect to reinvest a majority of the savings from the restructuring into the growth areas that I talked about. So that -- all of that is factored into the free cash flow guide. Operator: One moment for our next question. That comes from Joseph Cardoso with JPMorgan. Joseph Cardoso: Maybe just the first one is a bit of a clarification and whether you can flesh out kind of the supply constraint environment that you guys are talking about. I know you touched on it in a few questions but maybe just being a little bit more pointed. Are you seeing any expansion of lead times? How are you thinking about constraints in pricing exiting the fiscal year and whether these things are -- have been worsening? Or are they stabilizing as you kind of progress through the quarter? And are you seeing it impact demand even more near term? And then as we think about the outlook going to fiscal '27, are you expecting a deterioration across those vectors? Or are you thinking about it more stabilizing but at this higher level? And then I have a follow-up. Just trying to understand those moving pieces there. Rajiv Ramaswami: Yes. Can I maybe take a broad cut? Rukmini, you can add also. I mean -- so we did see significant price increases in fiscal '26 on hardware, big jumps, I would say. We do expect to see additional price increases this year but perhaps moderating, not perhaps to the same extent, but it's hard for us to predict. But we have assumed that prices will continue to go up at least modestly during this fiscal year. From a lead time perspective, what we've seen is kind of very mixed. We are seeing lead times starting to stabilize, but some vendors and some SKUs will have extended lead times. Others will be able to deliver within more normal lead times. So I think, yes, what we try and provide for customers is to say, encourage them to look at the whole set of vendors that we work with, which is pretty much every OEM out there, every server vendor out there, and we go procure what works best for them, both from a pricing and availability perspective. And we work very closely with them to help them through this process. So that's what we expect. I do expect that this will continue through all of FY '27. Rukmini, anything to add? Rukmini Sivaraman: Yes, I had maybe a couple of comments. So both on pricing and lead times, we saw that really in the latter part of '26. We didn't really see in Q1, for example, of fiscal year '26. What we expect in '27 is that lead times will continue to remain elevated at this point based on what we know for the entire year '27 and same for prices, right? So that is sort of a different way to think about '26 versus '27 and what we've assumed in the '27 guide. Joseph Cardoso: Got it. Very useful color. And then maybe just for my next, just on the 5% head count that you guys disclosed. You're also guiding for growth while reinvesting the majority of savings into some of those areas like agentic AI, cloud native sales, et cetera. How should we think about the savings relative to how it hits margins versus redeployment? And maybe just kind of walk through like how you guys are thinking about avoiding cutting sales capacity right now as you're thinking about some of this demand converting and the payback time line there? Rukmini Sivaraman: So I can start and Rajiv, I welcome you to add on. So I think the way we thought about planning for fiscal year '27 is that there's things that we plan on doing every year. So for example, there's an annualization of all the people who are hired in '26, and all of them will be sort of now in the full year of '27, right? So that's just an annualization of those who are hired. There's also raises that we give everyone, all of our employees every year. So those are things we do every year. And then there were all these areas that we alluded to, right, so agentic and AI offerings, adding more reps to sort of -- so we have enough sales coverage out there to address the market opportunity, digital sovereignty, all the areas that I called out, or areas that we wanted to make sure we were investing in commensurate with the opportunity that we saw. And so the restructuring was intended to make sure that we were deploying those resources and investments aligned with the areas where we think we will have the highest return. And so that's how you should think about it. And you put all that together and given all that and incorporating sort of the top line pace that we have guided to, you'll see that our operating margin guide is higher than fiscal year '26, right? So we've sort of shared with you all that we're going to continue to drive increasing operating margins. And so we feel good about being able to do that and guide to that while making sure we're investing in all the right areas that we need to. Rajiv, anything you would add? Rajiv Ramaswami: No, you covered it. Operator: One moment for our next question. That comes from Radi Sultan with UBS. Radi Sultan: First for Rajiv. As I think about sort of the neocloud opportunity, the ChronoScale strategic agreement, like can you just walk us through the revenue opportunity to Nutanix there? And like is there a potential to upsell other parts of the portfolio like NKP and NDB into those end customers? Or is it just limited to AI solutions for now? Rajiv Ramaswami: Yes. First of all, Radi, thanks for the question. It's actually the full stack that we provide to ChronoScale. It's everything. Our Nutanix Cloud Platform, our NKP offering and on top of that, the Nutanix Agentic AI portion. So it's a full stack that they will deploy on top of their hardware and deliver a range of AI-based services, right, GPU services -- GPU-based services to enterprise customers. So that -- so it is a full stack, so not just AI, number one. Number two, they are a service provider. So the revenue model for us is as and when they onboard customers, when they go out there and win customers, that's when we start seeing the revenue coming in, right, for us. So -- and that's the case with all our service provider business for the most part, right, which is it's tied to them winning customers on the platform. And we also expect that, yes, this is the first neocloud that we did such a partnership with. As you know, we only recently announced our -- and brought our portfolio to market for the neoclouds with a full multi-tenant offering, the entire stack. So we are working with other neoclouds as well here during the year to win them over. Radi Sultan: Awesome. And then, Rukmini, just on duration, continue to kind of tick up healthy here year-over-year. I guess, like what's driving the health of duration? And sort of what's embedded in the guide in terms of average contract duration for this year? Maybe just walk through the key moving parts there. Rukmini Sivaraman: Yes. Radi, so for duration in fiscal year '27, we're assuming it will stay flat to maybe slightly higher compared to '26, Radi. And so I think we've talked about before, there's a lot of things that can drive duration. We have seen in the past and we saw some in fiscal year '26 as well just some larger deals with longer durations, and those can play that number. We've talked about overall renewals duration is shorter than land-and-expand duration, generally speaking, but sometimes customers will opt for longer renewals durations as well and now especially with -- if we give them more flexibility on payment schedules, et cetera. So a few moving pieces there. And what's assumed and embedded in the guidance we gave you is that overall average contract durations in '27 to be flat to slightly higher. Operator: Our next question comes from Param Singh with Oppenheimer. Paramveer Singh: Great quarter. I had a couple of questions here. One, thinking about your full year guide. I appreciate all the color and the conservatism. But as you think about it in terms of the growth drivers on a year-over-year basis, if you could rank or quantify what do you think is going to come in from, let's say, the traditional hyper-converged business, including taking share from VMware versus, say, your NCI compute or I should say, qualification external storage and then finally, the other pieces of the portfolio, whether it's databases or on the AI side. And then I had a follow-up question. Rajiv Ramaswami: Yes. Maybe let me start there. So the bulk of our new business for this year, the land-and-expand business that we will close will be HCI, right, still, right? That's the bulk. But that's not the fastest growing, but that's going to be the majority of the business. Now our external storage, which is really what you refer to as NCI-C, was off to a very strong Q4. And we expect that to grow very nicely this year. So I think the growth rate on that is going to be pretty high and quite substantial this year with a lot of opportunities there. So I would put that in terms of contribution from a growth perspective, that's probably going to be the largest growth contributor. Right behind that would be our cloud native offering, our cloud native public cloud as well as our AI offerings and our Nutanix Database Services. All of those really coming behind that will also grow. So I would say those are the 3, right: NCI, largest component of the business; external storage, fast grower for this year; and the remaining portfolio products will also be growing very rapidly. Paramveer Singh: And as my follow-up, maybe for Rukmini. I appreciate that you're reinvesting into the business as you should. But with this level of growth rate, I was hoping to see a little bit more margin expansion. So maybe help me think through how do you think about the necessary components of organic investment at this point? And how much would you want leverage to show up versus reinvest into the business going forward? Rukmini Sivaraman: Yes. Look, I think the growth versus margin balance, Param, is obviously one we spend a lot of time thinking about, and we believe it was important, as you alluded to, to invest in certain areas where we think we are well positioned to win and we think we see the return. I mean we had already seen the return and want to double down or we believe it's important for us to go and play in those areas because we know -- we expect to have a higher return there. And look, the reason we did the restructuring was because we believe that there were certain things we could do within our existing OpEx and overall spend envelope that we should reallocate in order to be able to go and fund some of this growth, right? So that's how we've approached it. And we do believe that there's more room for margin expansion. I think we've been quite consistent in saying that our non-GAAP operating margins today are not where we think our steady-state operating margins will be. We think there's room for it to expand meaningfully from here over time and are happy that from -- even for our initial guide for '27 that the midpoint is higher than what we delivered in '26. Operator: Our next question comes from Wamsi Mohan with Bank of America. Wamsi Mohan: Just to maybe not beat a dead horse here, but are you assuming that the server availability gets better or worse or remains unchanged as you look into fiscal '27? Rukmini, I think you said you only have the back half impact on server availability in '26. So is there a way to also think through how much of growth impact that had in fiscal '26 and that the growth impact that you're anticipating in fiscal '27 is maybe roughly double of what you're thinking in fiscal '26? Is that maybe the right way to think about it? Rukmini Sivaraman: Yes. So we haven't sort of quantified that explicitly, Wamsi. Yes, I think what we want to say though is that from a lead time perspective, we really saw that elongate in any kind of meaningful way only in the latter part of '26. And we know starting '27 that it's -- we expect it to stay elongated. And lead times, look, will -- I think, will move around, depending on what's happening in the market. Obviously, it's a very dynamic market and people's ability to get various components and memory and everything else. So we think lead times will still be elevated and move around maybe from time to time in fiscal year '27. So yes, what we did say was it's a full year in '27 versus partial year in '26 and that we expect to continue to offer this flexibility with start dates to make sure that people are -- customers are -- who are willing to make commitments with us and are ready to do so are able to do so while timing it with when they're getting the servers. So that's how I would think about it, Wamsi. And the other piece is on pricing of servers, which I think Rajiv talked a little bit about earlier, which is that we expect that to continue to increase in '27, perhaps not at the same pace but continue to go up, which can impact us, how customers think about their projects and timing and sizing and all of that. Rajiv, anything you would add? Rajiv Ramaswami: Yes. So Wamsi, there are some offsetting factors here. There is no doubt that supply chain impacted us for a portion of last year, and we expect it to impact us for the full year, right? So that's more headwind this year compared to last year. And the prices are going to remain elevated. And so we expect that. But offsetting on the other side is that our external storage portfolio is growing. We now have many more storage arrays that we support compared to last year. And so that allows us to offset some of this issue, right, because those customers can use us without buying new hardware. So we have some other offsetting factor. And then the public cloud usage, I think -- and also, we've learned from the last 6 months on how to work with our customers to help them with these supply issues. So we've got some offsetting factors to counter the headwinds, the broader headwinds that we see with the supply chain this year. So that's what we factored in as we try to give you our guide for the year. Wamsi Mohan: Okay. I appreciate that. And then maybe, Rajiv, for you. You made a quite a few comments around sort of agentic AI. I was curious as to your perspective on how much -- are we at a point where agentic AI in the enterprise on-prem side is inflecting in a meaningful way? As you think about '27, '28, when do you think we start to see meaningful inflection for the industry and for you in particular? Rajiv Ramaswami: Yes. I would say for us -- by the way, it's a relatively new portfolio product area for us, and it's growing quickly off a small base, as we continue to add significant capabilities to the platform over the last 6 months even. Now from an industry-wide adoption, I would say we're still very, very early. I wouldn't necessarily say we are at an inflection point where this is going to scale rapidly. But more and more customers -- this is a topic of conversation with everybody, starting with a gateway that everybody wants to have to have some regulation around cost controls and governance. That's fairly broadly deployable and applicable to a lot of companies. And then there's going to be a subset of companies that have significant usage, relatively speaking, that will deploy either on-prem or in, say, a third-party service provider or in a colo, their own infrastructure, right, GPU clusters for running their AI workloads. And that opportunity, we're starting to see. I mean, we have some initial wins that we talked about some of those even at our user conference earlier this year. And we expect -- for example, at Nutanix, we have our own internal usage where we are a software company. We have been using AI models for the entire software development life cycle for quite a while. And like most of other companies, we started out using frontier models and cloud models. And the costs -- as the costs started going up and the usage started going up for us dramatically, we have now shifted to deploying our own clusters with our software stack on it, running open-weight models, and we hope that we will be able to service the majority of our internal needs with that rather than going to the frontier models. And we will, of course, still continue to go to the frontier models to get the best of the best, but we expect that to be a smaller portion. And for all the stuff that runs on our clusters with open-weight models, we no longer have to pay on a per token basis, right? That's a onetime investment that we make, and then we can use it to the maximum extent over many years. So I think this kind of a model, I think, I would say, more enterprise customers will start to adopt over time, but we're still very early days. Operator: One moment for our next question, please. It comes from Matt Hedberg with RBC. Simran Biswal: This is Simran on for Matt Hedberg. Congrats on the quarter. I had 2 questions. First, Rukmini, the color around ATR for fiscal '27 was helpful. Just double-clicking on that. How should we think about linearity of renewals through the year and the level of deal visibility you have as we think about the supply chain constraints? Rukmini Sivaraman: Yes. Simran, so I think the first thing I'll point out, right, that is on renewals, we don't really see or expect any kind of meaningful impact from supply chain because the supply chain comes into play really largely when customers are using us or choosing us for newer deployments or for migration, things like that, where they are adopting our cloud platform, specifically HCI, right, not external storage piece and therefore, need to go and procure servers, which is not the case for renewals, right? So that's the good news on renewals, that those are largely independent and insulated from any kind of supply chain challenges. And then I think part of your question was what about linearity through the quarters. Look, I think based on our visibility, it's -- there's nothing unusual I would call out, Simran, and if we were to see that, we'll make sure to update you going forward. As you know and Rajiv talked about before, like with any other subscription-based companies, sometimes things can renew early. If customers are ready or if we are selling them expansion and the customer wants to sort of bundle all of that and renew early, we're, of course, happy to do that as long as it's good economics and so on. And so that can happen in timing from time to time, but that also, again, even those instances, the revenue really shows up in the quarter in which it was due. So yes, other than that, nothing unusual, I would call out about renewals linearity at this point. Simran Biswal: Got it. That's helpful. And then anything to call out in terms of performance and expectations around U.S. Fed? Rukmini Sivaraman: Yes. So we had a really good quarter with the U.S. Fed in fiscal Q4. As Rajiv said, we had really good broad-based performance in Q4 and U.S. Fed was no exception. We had a really strong quarter in the U.S. Fed for Q4. And looking at Q1, seasonally, it tends to be our largest quarter for U.S. Fed. And the teams are, of course, looking -- working hard to make sure that we deliver to our opportunity with the U.S. Fed. Anything you would add, Rajiv, to that on Fed? Rajiv Ramaswami: No, no, I think you covered it. Operator: And our next question is from Mike Cikos with Needham. Michael Cikos: I'll echo my congrats on the quarter as well as the strength of the net new ARR in this quarter and execution. I just -- I think it's been asked a couple of different ways but maybe not as bluntly. But if I think about this quarter and the strong results you posted, can you just comment on to what degree this quarter may have benefited from a catch-up on contracts that have been signed with future start dates, and ultimately converting into revenue? Was that a factor that we need to consider here? Or no, we continue to see things like to the right and this really was just execution in the quarter? And I'd appreciate any quick follow-up as well. Rukmini Sivaraman: Mike, I'll start. I don't think we saw -- well, we didn't see any kind of catch-up in future start date in Q4, Mike, so I wouldn't call that out as a reason for the overall outperformance in Q4. You mentioned net new ARR. And one maybe piece of additional color I'll add on that is that even our net new ARR performance was also a function of our strong overall performance in the quarter. Specifically to ARR, we had a lower-than-typical average billing duration in the quarter. And I called out that sort of billing duration was a bit lower than expected in Q4. And that drove a higher net new ARR relative to the revenue we generated in the quarter. And billing duration can move around from quarter-to-quarter. And based on our view of Q1, we expect billing duration to go the other way, to be meaningfully higher in Q1 based on what we know. And that would tend to drive a lower net new ARR for a given revenue. So that's the only additional color I would add, Mike. But no, there wasn't kind of a future start date catch-up in Q4. Rajiv Ramaswami: Yes. I would just add to that, Rukmini. I think that we are also assuming a moderately higher percentage of orders with future start dates in FY '27 compared to FY '26. And so this continues. Michael Cikos: Understood. Understood. And I appreciate the call out on both fronts there. I also wanted to ask -- I know you guys are calling out the available to renew, this pool is going to continue to grow, albeit at a slower rate versus what we just saw in fiscal '26. My question, I know it's a little bit longer term here, but like I'm looking at the number of new logos that you guys have acquired, and we really saw a pickup exiting fiscal '24 in that 4Q, right? If I'm just assuming average of, call it, 3-ish-plus year contract duration when the volume of new logos really started to tick up, is it fair to assume that, that ATR pool, like the growth there should see an acceleration, if you will, if we think about fiscal '28? And again, I'm just trying to think about the volume of new logos that you guys acquired as well as the breadth of the platform. Rukmini Sivaraman: So I'll take a shot at that, Mike. So look, overall, generally happy with the new logo performance, and I'm trying to harken back to Q4 '24, Mike, and what was happening then. And look, I would say, I think when you look at our land-and-expand ACV, which is -- think of that as net new kind of business coming on to the platform, land or new logo ACV is actually a minority of land and expand, which is not a surprise. I think we've talked about that before. And as you would expect for a company of our size, expand just as a proportion of the total land and expand is the higher proportion. Expand is much -- most of that is expand relative to land. So while very happy with the land performance over time, it is still a minority of the land and expand. And so no, I don't think there's any kind of dynamic where there's some year where it would go up or anything like that, Mike. And remember that the renewal base has also gotten larger and larger every single year. And we had those initial few years where it was growing really rapidly because we were really only starting to build a renewal base in those early years. So yes, that's what I would sort of say. I don't think there's as big of a correlation perhaps as you think between any kind of things that happened in Q4 '24 and the renewal ACV expectations. Michael Cikos: Understood. Congrats on the strong finish to the year. Rukmini Sivaraman: Thank you, Mike. Operator: Thank you. And ladies and gentlemen, this concludes our Q&A session and conference for today. We want to thank everyone for participating, and you may now disconnect. Before you buy stock in Nutanix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nutanix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Nutanix. The Motley Fool has a disclosure policy. Nutanix (NTNX) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Nutanix, Inc. (NASDAQ:NTNX) ended fiscal 2026 with a strong quarter, but its reported free cash flow guidance midpoint points to a more measured year ahead. Fourth-quarter revenue rose 16% to $757.1 million, while annual recurring revenue, or ARR, also increased 16% to $2.55 billion. Revenue exceeded Nutanix, Inc. (NASDAQ:NTNX)’s $725 million-$745 million guidance range and the consensus estimate of $738.3 million. Company-defined non-GAAP diluted earnings per share of $0.60 also beat the consensus estimate of $0.49. Nutanix, Inc. (NASDAQ:NTNX)’s fiscal 2027 outlook calls for revenue of $3.18 billion-$3.23 billion, company-defined non-GAAP operating margin of 24%-25%, and free cash flow of $850 million-$950 million. At the respective midpoints, revenue would grow about 12%, while free cash flow would rise around 7% to $900 million. That difference raises the question of whether operating leverage is beginning to normalize. Nutanix, Inc. (NASDAQ:NTNX) showed clear operating leverage during the fourth quarter. GAAP operating margin widened to 9.2% from 4.8%, while the company-defined non-GAAP operating margin increased to 26.2% from 18.3%. Fourth-quarter company-defined non-GAAP operating expenses rose just 2% against the 16% revenue increase. For the full year, the non-GAAP operating margin expanded 260 basis points to 23.7%. Nutanix, Inc. (NASDAQ:NTNX) produced $277.6 million of fourth-quarter free cash flow, up from $207.8 million a year earlier. Full-year free cash flow reached $840.7 million, versus $750.2 million in fiscal 2025. Nutanix, Inc. (NASDAQ:NTNX) defines free cash flow as operating cash flow less purchases of property and equipment. Demand indicators also remain supportive. Total remaining performance obligations rose 28% to $3.44 billion, and the current portion increased 27% to $1.69 billion. Nutanix, Inc. (NASDAQ:NTNX) added more than 3,000 customers during fiscal 2026 and signed new or enhanced agreements with AMD, Lenovo, NetApp and NVIDIA. Support for external storage systems and Nutanix Cloud Clusters may help customers proceed despite high server prices and extended lead times. The restructuring bridge makes the cash-flow outlook stronger than the reported midpoint suggests. Nutanix, Inc. (NASDAQ:NTNX) said guidance includes $33 million-$43 million of non-recurring restructuring charges, with $30 million-$35 million expected to be paid during the first quarter. Adding back the $38 million midpoint would increase normalized free cash flow to approximately $938 million. That would represent roughly 12% growth and a margin of about 29% at the revenue-guidance midpoint, close to expected revenue growth and the prior-year margin. The reported guidance still shows slower cash-flow expansion. The $900 million free-cash-flow midpoint implies roughly 7% growth and a 28% margin, below fiscal 2026’s 29%. Fourth-quarter GAAP gross margin also fell 120 basis points to 86.0%, while the company-defined non-GAAP gross margin declined 60 basis points to 87.7%. Nutanix, Inc. (NASDAQ:NTNX) expects server constraints to continue through fiscal 2027, assumes more orders with future software start dates, and expects the available renewal pool to grow more slowly. Nutanix, Inc. (NASDAQ:NTNX) also plans to reinvest most restructuring savings into Agentic AI, cloud-native products, sales coverage and digital-sovereignty initiatives. Annual payment schedules and third-party financing may support customer purchasing decisions while shifting the timing of cash collections. The filings available so far reflect positions held before NTNX reported its recent results. Insider Monkey’s database showed 48 hedge funds holding NTNX at the end of 2Q2026, unchanged from funds three months earlier. Nutanix, Inc. (NASDAQ:NTNX)’s reported $900 million fiscal 2027 free-cash-flow guidance midpoint indicates that operating leverage is normalizing. The restructuring-adjusted bridge points to approximately $938 million of free cash flow, roughly 12% growth and a stable margin, suggesting that part of the reported slowdown reflects non-recurring costs. Gross-margin pressure, payment timing, and renewed investment remain important variables, but recurring-revenue growth, expanding operating margins, and contracted demand show that the underlying operating model remains healthy. While we acknowledge the potential of NTNX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: ConocoPhillips (COP): Wall Street Sees More Upside Despite Leadership Shakeup and Here is Why Chevron (CVX) is a Favorite Among Hedge Funds Disclosure: None. This article is originally published at Insider Monkey.

This article first appeared on GuruFocus. Revenue (Q4 FY2026): Record quarterly revenue of $757 million, above the guided range of $725 million to $745 million. Revenue (Full Year FY2026): $2.854 billion, up 12% year-over-year. Annual Recurring Revenue (ARR): $2.549 billion at end of Q4, up 16% year-over-year. Net Revenue Retention (NRR): 106% at end of Q4, flat quarter-over-quarter. Non-GAAP Gross Margin (Q4): 87.7%. Non-GAAP Gross Margin (FY2026): 88%, relatively flat year-over-year. Non-GAAP Operating Margin (Q4): 26.2%, above the guided range of 21% to 23%. Non-GAAP Operating Margin (FY2026): 23.7%, up approximately 2.6 percentage points year-over-year. Non-GAAP Net Income (Q4): $175 million, or $0.60 per diluted share. Non-GAAP Net Income (FY2026): $597 million, or $2.04 per diluted share. GAAP Net Income (Q4): $1.27 billion, or $4.34 per diluted share, including a one-time $1.2 billion valuation allowance release. GAAP Net Income (FY2026): $1.507 billion, or $5.17 per diluted share, including the nonrecurring tax benefit. Free Cash Flow (Q4): $278 million, representing a 37% margin. Free Cash Flow (FY2026): $841 million, representing a 29% margin. Rule of 40 Score (FY2026): 42%. Cash and Investments: $2.361 billion at end of Q4, up from $2.018 billion at end of Q3. Average Contract Duration (Q4): 3.3 years. Average Contract Duration (FY2026): 3.2 years. New Customers (FY2026): Added over 3,000 new customers. Warning! GuruFocus has detected 7 Warning Signs with SNPS. Is NTNX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nutanix Inc (NASDAQ:NTNX) exceeded all guided metrics in Q4 FY2026, with record quarterly revenue of $757 million and strong full-year revenue growth of 12% to $2.85 billion. The company saw robust momentum in external storage offerings and Nutanix Cloud Clusters (NC2), which helped mitigate supply chain challenges and drove a sharp quarter-over-quarter increase in bookings. Nutanix Inc (NASDAQ:NTNX) delivered strong free cash flow of $841 million for FY2026, achieving a 29% margin and a Rule of 40 score of 42% for the third consecutive year. Strategic partnerships, including agreements with AMD and Cronos Scale, are expanding the company's AI and neocloud market opportunities, with new capabilities like Nutanix Agent Gateway enhancing its AI portfolio. The company reported strong new logo performance, adding over 3,000 customers in FY2026, including several seven-figure ACV deals in Q4, particularly in external storage and NC2. Nutanix Inc (NASDAQ:NTNX) faces ongoing supply chain challenges, including elevated server prices and extended lead times, which are expected to persist throughout FY2027 and may impact customer project timing and sizing. The company's FY2027 revenue guidance of 12% growth at the midpoint reflects a slower growth rate compared to the high-teens TCV bookings growth, due to a higher percentage of orders with future start dates. Nutanix Inc (NASDAQ:NTNX) announced a restructuring impacting approximately 5% of its global workforce, resulting in $33 million to $43 million in nonrecurring charges, which will weigh on free cash flow in FY2027. The renewal ACV cohort is expected to grow at a slower rate in FY2027 compared to FY2026, as the renewal base becomes larger, potentially limiting revenue growth from renewals. The company's free cash flow guidance for FY2027 implies a margin of 28% at the midpoint, which is lower than the 29% achieved in FY2026, partly due to increased payment plan flexibility for customers. Q: Can you walk us through the assumptions behind the FY27 growth guide, considering the healthy bookings backdrop, hardware constraints, and potential for delayed activity to convert as supply improves? A: Rukmini Sivaraman (CFO) highlighted several growth drivers, including the strength of the core hybrid cloud platform, support for external storage, cloud-native and AI offerings, and the partner ecosystem. However, the guidance assumes ongoing server supply chain challenges will continue into FY27, impacting project size and timing. The company expects a moderately higher percentage of orders with future start dates and a slower growth rate for the renewal ACV cohort. Despite these headwinds, they are comfortable with the guidance, citing strong momentum exiting FY26. Q: How is the strong uptick in NC2 and external storage changing the opportunity for the business, especially given supply constraints? A: Rajiv Ramaswami (CEO) explained that supporting external storage and public cloud offerings makes it easier for customers to adopt the Nutanix platform, especially during supply chain challenges. Customers can migrate to Nutanix while keeping their existing servers and storage. In Q4, they saw a sharp quarter-over-quarter increase in external storage bookings, including several seven-figure ACV deals, and strong momentum with NC2. He expects this momentum to continue and accelerate in FY27. Q: What is driving the sustained revenue growth outlook for FY27, given the headwinds of a slower-growing renewal base and higher mix of future start date deals? A: Rukmini Sivaraman (CFO) stated that the company is exiting FY26 with strong momentum and expects continued growth in overall bookings. Specific accelerants include external storage support and NC2, which are expected to grow faster than the overall business, as well as cloud-native offerings. Rajiv Ramaswami (CEO) added that the ecosystem, including OEMs and cloud partnerships, is helping, and the portfolio meets customer needs for migrations, cloud-native adoption, and cost-effective AI, providing a strong foundation for the guidance. Q: Which of the storage partnerships (Dell, Everpure, NetApp) do you think will be the biggest potential accelerant going into next year? A: Rajiv Ramaswami (CEO) stated that all of them will be significant. The company supports Dell PowerFlex and PowerStore, Everpure, and a good chunk of NetApp's arrays. They have already seen deals across all of these and an acceleration in Q4. Even though NetApp is only in limited availability, they are already closing deals and expect to open it up broadly soon. All three providers are expected to be quite significant for the company in FY27. Q: Did you see any net pull-in of demand given the hardware situation, and is the backlog still building? A: Rukmini Sivaraman (CFO) clarified that they did not see any unusual pull-in activity in Q4, unlike in fiscal Q2 when customers pulled demand forward due to anticipated server price increases. The future start date dynamic continues and is expected to persist in FY27. Rajiv Ramaswami (CEO) added that they executed very well on large multimillion-dollar ACV deals in Q4, which are inherently difficult to forecast. Q: Can you break down how much of the FY27 free cash flow guide is impacted by a shift towards more flexible billing arrangements (third-party financing or annual payments)? A: Rukmini Sivaraman (CFO) noted that in FY26, about a double-digit percentage of TCV bookings came from annual payments. For FY27, they expect to continue offering more payment plan flexibility and have assumed a mix in the guidance. She also clarified that the restructuring charges of $33 million to $43 million are included in the free cash flow guide, and even when normalizing for that, the free cash flow margin is effectively the same as FY26. The majority of restructuring savings will be reinvested into growth areas. Q: Are you seeing expansion of lead times and worsening pricing constraints, and how are you thinking about this for FY27? A: Rajiv Ramaswami (CEO) stated that they saw significant hardware price increases in FY26 and expect additional, though perhaps moderating, increases in FY27. Lead times are mixed, with some vendors stabilizing while others have extended lead times. They work closely with customers to procure from the best vendors. Rukmini Sivaraman (CFO) added that the supply chain challenges were a back-half phenomenon in FY26, but they expect them to persist for the entire FY27, with lead times remaining elevated and prices continuing to rise. Q: How should we think about the savings from the 5% restructuring relative to how it hits margins versus redeployment into areas like agentic AI and sales capacity? A: Rukmini Sivaraman (CFO) explained that the FY27 plan includes annualization of FY26 hires and standard raises. The restructuring was intended to reallocate resources to areas with the highest return, such as agentic AI, cloud-native offerings, and adding more sales reps. Despite these investments, the operating margin guide for FY27 is higher than FY26, demonstrating their ability to drive increasing operating margins while investing in the right areas. Q: Can you walk through the revenue opportunity with the Cronos Scale neocloud partnership, and is there potential to upsell other parts of the portfolio? A: Rajiv Ramaswami (CEO) clarified that the partnership involves the full Nutanix stack, including the cloud platform, NKP, and agentic AI offerings. The revenue model is tied to Cronos Scale onboarding customers, as is typical for service provider business. This is the first neocloud partnership, and they are working with other neoclouds to win them over, having recently brought a full multi-tenant offering to market for this segment. Q: What is driving the health of contract duration, and what is embedded in the FY27 guide? A: Rukmini Sivaraman (CFO) stated that for FY27, they are assuming average contract duration will stay flat to slightly higher compared to FY26. Duration can be driven by larger deals with longer terms, and while renewals generally have shorter durations, customers sometimes opt for longer renewal terms, especially with more flexible payment schedules. These factors are all embedded in the guidance. Q: Can you rank or quantify the growth drivers for FY27, such as traditional HCI, external storage, and other portfolio products? A: Rajiv Ramaswami (CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Nutanix? Here are five stocks we like better. Nutanix’s fiscal fourth-quarter results beat expectations, but Advanced Micro Devices’ equity investment and joint AI platform work give investors a larger strategic catalyst to watch. Advanced Micro Devices and Nutanix are jointly developing an open, full-stack AI infrastructure platform for enterprise agentic AI and inference workloads. Nutanix’s partnerships with Advanced Micro Devices and NVIDIA position the company across both major GPU ecosystems, though competition and execution remain key risks. While Nutanix’s (NASDAQ: NTNX) earnings-driven rally gives reason to look at the stock, Advanced Micro Devices’ (NASDAQ: AMD) strategic investment is the more important reason to buy. AMD isn’t simply integrating its chips with Nutanix; it bought equity in the company and committed to joint development and go-to-market efforts, signaling more than a simple partnership. What is Nutanix, and why does AMD care? Nutanix provides a software platform to run applications and manage data across datacenters, hyperscale, and edge environments. It pioneered hyper-converged infrastructure, the bundling of compute, networking, and storage into a single, unified software system. The core product is Nutanix Cloud Platform, a control plane replacing complex legacy systems with a flexible, unified dashboard. Businesses use it for simplicity, cost reductions, and scalability. → Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch AMD wants Nutanix because it is the unifying software enabling it to sell end-to-end inference systems to businesses and enterprises. AMD will provide the hardware while Nutanix provides the control system to seamlessly deploy and run AI models, agentic workloads, and inference across their networks. The partnership also expands AMD’s push into open-source AI solutions, cementing it as the full-stack alternative to NVIDIA’s (NASDAQ: NVDA) CUDA-based vendor lock-in. Nutanix wants AMD because it expands its user base, broadens the addressable market and helps it strengthen the sales team. Catalysts for adoption include reduced space and hardware requirements to run the system. This plays well with consumers with space, power, environmental, or other hurdles to their AI aspirations. Looking ahead, adoption is expected to be robust, as inference will be the larger market as compared to model training. Estimates vary but tend to agree: inference infrastructure will be worth at least double the model-training market, growing at a high double- to low triple-digit compound annual growth rate over the next few years to a decade. → Palantir's Kool-Aid Moment: The Math Behind Karp's Forecast Catalysts for Nutanix's stock price include the launch of AMD’s MI450 line and Helios rack-scale solutions. They are already in high demand, with deployments beginning this quarter and expected to accelerate over the subsequent few quarters. Based on demand metrics and trends, AMD’s GPU sales will grow at a highish triple-digit pace year over year for several quarters, alongside robust demand for its CPUs and adjacent technologies. This translates to strong demand for Nutanix solutions, setting the stage for sustained strength over the next decade. Nutanix called out AMD again during its Q4 fiscal year 2026 (FY2026) report and conference call, highlighting the strength and importance of the relationship. However, as important as it is to the stock price outlook, Nutanix is also a multifaceted player, with NVIDIA also a partner. Nutanix deploys its platform similarly alongside NVIDIA’s, making it one of the better-positioned AI companies, with business tied to both major GPU providers. In this scenario, it doesn’t matter who sells GPUs, CPUs, or AI systems, as long as someone does. NVIDIA’s latest results suggest a robust year ahead for all AI winners, with its current-year guidance raised and fiscal 2028 outlook well above forecasts. It suggests the market's material disconnect on AI persists and that these stocks still have ample upside. → Looking Beyond NVIDIA? These 3 AI ETFs Are Beating the Market Analysts' sentiment trends suggest they are waking up to the Nutanix opportunity. The stock carries a Moderate Buy rating, and the Q4 FY2026 release triggered numerous price target increases, including a new high-end target, affirming the uptrend. Targets from Needham & Company, Oppenheimer, and Royal Bank of Canada put this market in the $85 to $90 range within the next 12 months, sufficient for a fresh all-time high. The all-time high is a major technical trigger that could unleash an influx of capital. The technical pattern suggests an inflection is near, with the potential to rise $55 from the critical resistance point. Institutional interest also suggests confidence or growing confidence in this AI play. They own more than 85% of the stock, have accumulated in every quarter for the past year, and ramped activity in early calendar Q3 as the stock price completed its reversal. The likely outcome is that they underpin price action for the remainder of the quarter, aiding in the move to $80. The question is whether they sustain their bullish posture through year’s end, and it is likely, given the trends. The company provided healthy guidance for fiscal Q1 FY2027 and has the potential to outperform. Nutanix's biggest risk is from competition, but it is less of a risk and more of a tailwind in 2026. Vendor lock-in with NVIDIA, higher prices and customer friction at VMware have created an opportunity for Nutanix. In doing so, Nutanix can gain share in this rapidly evolving market and sustain a dominant position well into the future. The article "Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes Shape" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Nutanix stock has delivered a strong 3 year gain, yet its current market price screens as expensive on most checks while an intrinsic value estimate based on a Discounted Cash Flow (DCF) approach suggests the shares trade at a discount of about 17% to that model. Nutanix has returned about 116% over the past 3 years, which raises the question of how much of its potential is already reflected in the current share price. Healthy demand signals for Nutanix hybrid cloud software can support expectations for future cash flows, while any slowdown in enterprise spending on these solutions may weigh on how much value investors are prepared to assign to those cash flows. Nutanix screens as undervalued on only 1 of 6 broad checks, which points to a stock that leans expensive rather than a clear bargain despite the intrinsic value signal. The issue now is whether Nutanix current valuation leaves enough room for investors if the company simply delivers in line with current expectations rather than surprising to the upside. Compare Nutanix valuation signals with other hybrid cloud and infrastructure peers by scanning the hand picked 55 AI infrastructure stocks that may also be positioned for a significant move. The Discounted Cash Flow (DCF) approach used here projects what Nutanix might generate in future free cash flows and discounts those back to today. Nutanix has latest twelve month free cash flow of about $746 million, and the model assumes that cash generation continues to grow rather than contract over time. Based on these inputs, the DCF model points to an estimated intrinsic value of about $80 per share, which is roughly 17% above the current market price. That places Nutanix in the undervalued category on a cash flow basis, even though the stock trades on a P/E ratio that is higher than both its peer group and the wider software industry. UBS highlighting healthier hybrid cloud demand ahead of upcoming results is cited as one factor supporting the cash flow outlook used in the model, even as the market already prices in strong expectations. Overall, Nutanix stock currently screens as undervalued relative to what this DCF model suggests its cash flows are worth. Our Discounted Cash Flow (DCF) analysis suggests Nutanix is undervalued by 17.0%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Nutanix. The P/E multiple is a useful cross check for Nutanix because it ties the current share price directly to the earnings that investors are paying for. Nutanix trades on a P/E of about 65.1x, which is meaningfully higher than the Software industry average of 31.1x and also above the peer group average of 59.3x. The fair P/E ratio implied by this framework is about 38.6x, which is well below Nutanix current 65.1x. That gap suggests investors are already paying a premium to what the model views as appropriate given the company profile, while other metrics such as the DCF output point in a more supportive direction. On the earnings multiple alone, Nutanix stock appears overvalued relative to both its peers and the fair P/E level suggested by this model. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Nutanix's mixed valuation signals leave off. They spell out which paths for growth, margins and earnings would need to play out for the stock to be worth materially more or less than it is today, and they sit on the company Community page. Each one turns its implied fair value into a thesis about the business that can be tracked over time and assessed against how Nutanix actually performs. One of the top community narratives on Nutanix: 41% overvalued Read one of the top narratives on Nutanix Do you think there's more to the story for Nutanix? Head over to our Community to see what others are saying! Nutanix presents a split picture. The Discounted Cash Flow (DCF) intrinsic value points to the stock trading at a discount, while the earnings multiple suggests it is overvalued relative to peers and the modelled fair P/E. Broader valuation checks lean weak, so the intrinsic value signal sits against a backdrop that does not look cheap on most measures. The key question from here is whether Nutanix can deliver the cash flow profile implied in the DCF without a reset in growth expectations that drags the multiple closer to peer levels. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NTNX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

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. (NASDAQ: NTNX), a hybrid cloud leader and AI innovator, today announced financial results for its fourth quarter and fiscal year ended July 31, 2026. “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,” said Rajiv Ramaswami, CEO of Nutanix. “In FY26, we made good progress with respect to partnerships, signing new or enhanced agreements with AMD, Lenovo, NetApp and NVIDIA. We also delivered innovation across our cloud platform, especially with respect to AI and broadening our support for external storage.” “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,” said Rukmini Sivaraman, CFO of Nutanix. “We remain focused on delivering sustainable growth and improving profitability.” Fourth Quarter Fiscal 2026 Financial Summary Fiscal 2026 Financial Summary Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release. Recent Company Highlights Nutanix Announces the Model Context Protocol (MCP) Server for Nutanix Cloud Platform (NCP): Nutanix announced the launch of its MCP server for NCP, bringing secure, natural-language, agentic AI automation to hybrid cloud environments without sacrificing control. Nutanix Announces Availability of Dell PowerStore: Nutanix announced that Dell Private Cloud with PowerStore for NCP is now available with Nutanix Cloud Infrastructure (NCI) 7.6. Nutanix Unveils New Regulated Industry Data from Its Eighth Annual Enterprise Cloud Index (ECI) Survey: Nutanix unveiled new regulated industry data from its eighth annual ECI survey shared earlier this year, which showed that Healthcare, Financial Services, and Public Sector industries face the greatest risks in shadow AI, data sovereignty, compliance, and organizational silos. Nutanix and ChronoScale Announce Strategic Partnership to Accelerate Enterprise AI Adoption: Nutanix and ChronoScale announced a strategic partnership to jointly deliver enterprise-ready AI infrastructure and help accelerate adoption of AI servers across global markets. Nutanix Gives Enterprises the Freedom to Run Production Agentic AI Their Way: Nutanix announced the general availability of Nutanix Enterprise AI (NAI) 2.8, and the upcoming general availability of Nutanix Kubernetes Platform (NKP) 2.19, along with new incentives, programs, and resources designed to help partners accelerate growth on emerging AI opportunities. First Quarter Fiscal 2027 Outlook Fiscal 2027 Outlook Supplementary materials to this press release, including our fourth quarter and fiscal 2026 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results. Webcast and Conference Call Information Nutanix executives will discuss the Company’s fourth quarter and fiscal 2026 financial results on a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call. Footnotes 1Annual Recurring Revenue, or ARR, is defined as the sum of ACV for all subscription contracts from all customers in effect as of the end of a specific period, assuming any subscription contract that expires is renewed on its existing terms. ARR excludes the value of professional services, non-portable software and support contracts and hardware sales. For the purposes of this calculation, we generally assume that the contract term begins on the date when the software is made available to the customer. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. For comparability purposes, ARR for all prior periods have been adjusted to conform to the updated methodology. 2Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period. 3Weighted average share count used in computing diluted non-GAAP net income per share. Non-GAAP Financial Measures and Other Key Performance Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation, costs associated with our acquisitions (such as amortization of acquired intangible assets and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization of the debt discount and issuance costs related to debt, interest expense related to debt, inducement expense related to the repurchase of convertible senior notes, changes in the fair value of convertible notes receivable, valuation allowance releases, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the top-line growth of our subscription business (including our ability to acquire subscriptions with new customers and to retain and expand with existing customers), while normalizing for differences in contract durations. Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any subscription contract not to be renewed on its existing terms. ARR is a performance measure that should be viewed independently of revenue and does not represent our revenue under GAAP on an annualized basis or a forecast of GAAP revenue. Investors should not place undue reliance on ARR as an indicator of our future or expected results. ARR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled performance measures presented by other companies. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income, operating margin, and net cash provided by operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our first quarter fiscal 2027 outlook and/or our fiscal 2027 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures. Forward-Looking Statements This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business trends, momentum and prospects; our expectations regarding demand for our solutions; our ability to capitalize on market opportunities through our partnerships, cloud platform innovations, AI offerings and support for external storage; our focus on delivering sustainable growth and improving profitability; our first quarter fiscal 2027 outlook; and our fiscal 2027 outlook. These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; supply chain constraints, component availability and related impacts on the timing of orders, shipments and customer deployments; any failure to successfully implement or realize the anticipated benefits of our business plans, strategies and initiatives, or unexpected difficulties or delays in doing so; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions (including AI-related offerings), products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to successfully implement and realize the anticipated benefits of our recently announced restructuring initiatives; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 24, 2025 and subsequent quarterly reports. Additional information will be set forth in our Annual Report on Form 10-K for the fiscal year ended July 31, 2026, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances. About Nutanix Nutanix is a hybrid cloud leader and AI innovator, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media. © 2026 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix. Investor Contact:Richard [email protected] Media Contact:Jennifer [email protected] __________________________(1) Prior to the fourth quarter of fiscal 2026, this was included within Other assets—non-current. Prior period amounts have been updated to conform to the current period presentation. __________________________(1) Includes the following stock-based compensation expense: __________________________(2) Includes the following amortization of intangible assets: __________________________(1) Included within other assets—non-current in the consolidated balance sheets. __________________________(1) Prior to fiscal 2026, these amounts were presented as separate line items, Professional services and Other non-subscription product. Prior period amounts have been updated to conform to the current period presentation. __________________________ (1) Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. Prior period amounts have been updated to conform to current quarter methodology. __________________________(1) Stock-based compensation expense(2) Amortization of intangible assets(3) Restructuring charges(4) Legal fees(5) Change in fair value of convertible note receivable and other(6) Amortization of debt issuance costs and interest expense related to debt(7) Valuation allowance release related to our U.S. deferred tax assets(8) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.(9) Includes 22,166 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans(10) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes __________________________(1) Stock-based compensation expense(2) Amortization of intangible assets(3) Restructuring charges(4) Legal fees(5) Change in fair value of convertible note receivable and other(6) Amortization of debt issuance costs and interest expense related to debt(7) Valuation allowance release related to our U.S. deferred tax assets(8) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.(9) Includes 23,492 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans(10) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $4,403 of interest expense related to the convertible senior notes __________________________(1) Stock-based compensation expense(2) Amortization of intangible assets(3) Legal fees(4) Other(5) Amortization of debt issuance costs and interest expense related to debt(6) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.(7) Includes 28,797 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans(8) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes __________________________(1) Stock-based compensation expense(2) Amortization of intangible assets(3) Legal fees(4) Other(5) Inducement expense related to partial repurchase of the 2027 Notes(6) Amortization of debt issuance costs and interest expense related to debt(7) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.(8) Includes 26,604 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans(9) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $3,172 of interest expense related to the convertible senior notes

Nutanix (NTNX) reported $757.08 million in revenue for the quarter ended July 2026, representing a year-over-year increase of 15.9%. EPS of $0.60 for the same period compares to $0.37 a year ago. The reported revenue represents a surprise of +2.6% over the Zacks Consensus Estimate of $737.89 million. With the consensus EPS estimate being $0.48, the EPS surprise was +25%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Nutanix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Annual Recurring Revenue (ARR): $2.55 billion versus the nine-analyst average estimate of $2.51 billion. Remaining Performance Obligations- Total: $3440.41 billion versus the three-analyst average estimate of $3302 billion. Revenue- Support, maintenance and other services: $368.69 million versus the 12-analyst average estimate of $356.78 million. The reported number represents a year-over-year change of +17.6%. Revenue- Product: $388.39 million versus the 12-analyst average estimate of $378.94 million. The reported number represents a year-over-year change of +14.3%. Disaggregation of Revenue- Professional services revenue: $37.97 million compared to the $38.21 million average estimate based on seven analysts. The reported number represents a change of +31.4% year over year. Disaggregation of Revenue- Subscription revenue: $719.11 million versus the seven-analyst average estimate of $699.92 million. The reported number represents a year-over-year change of +16.7%. View all Key Company Metrics for Nutanix here>>> Shares of Nutanix have returned +12.5% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nutanix (NTNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Nutanix (NTNX) came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.00%. A quarter ago, it was expected that this enterprise cloud platform services provider would post earnings of $0.35 per share when it actually produced earnings of $0.47, delivering a surprise of +34.29%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Nutanix, which belongs to the Zacks Computers - IT Services industry, posted revenues of $757.08 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 2.60%. This compares to year-ago revenues of $653.27 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Nutanix shares have added about 28.5% since the beginning of the year versus the S&P 500's gain of 12.2%. While Nutanix has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Nutanix was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $753.24 million in revenues for the coming quarter and $2.18 on $3.19 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, SAIC (SAIC), has yet to report results for the quarter ended July 2026. The results are expected to be released on August 31. This information technology company is expected to post quarterly earnings of $2.25 per share in its upcoming report, which represents a year-over-year change of -38%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. SAIC's revenues are expected to be $1.75 billion, down 1.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nutanix (NTNX) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

(Bloomberg) -- Wall Street is eagerly anticipating Nvidia Corp.'s (NVDA) earnings on Wednesday afternoon, not so much for what the numbers will say about the chip giant, but for what they mean to artificial intelligence investors and the market itself. Most Read from Bloomberg Lutnick's Intervention in Canada Talks Draws Praise, Blame Apple Gears Up to Launch Its First New Mac Mini in Two Years Xi Signals Defiance as US Threatens Sanctions Over Iran Help US Weighs More Trade Measures Against Canada After Retaliation Bessent's Mentor Druckenmiller Calls Bond Buying a Mistake "Nvidia is the best barometer for AI spending," said Rob Conzo, chief executive officer of the Wealth Alliance, which owns Nvidia shares in several portfolios. "It will help determine if hyperscalers are still accelerating, from an infrastructure perspective, or if they're becoming more disciplined." The company's shares have been on a wild ride this year, sinking through the winter, then soaring through the spring, and bouncing around all summer. They're coming off a seven-day losing streak, matching the longest since 2019, in which they lost 7.5%. And that follows a 19% leap from late July through mid-August. All told, Nvidia is up 14% in 2026, a decent showing but still a far cry from its past performance. At this time last year, the stock had gained 34%, and in 2024 it was soaring more than 150%. The reason is hardly a secret, with investors increasingly cautious about the durability of the AI trade with inflation remaining high, interest rates rising and geopolitical risks all over the place, whether it's the US's military and economic war with Iran or its trade war with Canada. The tech-heavy Nasdaq 100 Index suffered its worst month in more than a year in July, falling 6.6% as investors dumped the shares of companies exposed to the AI buildout amid concerns about how much longer the heavy spending would last. But since its July 29 trough, the index has regained much of that lost ground, led by memory and storage companies like Sandisk Corp. and chipmakers such as Marvell Technology Inc. Wall Street expects Nvidia to deliver stellar results for the fiscal second quarter, which ended July 31. Analysts project that revenue nearly doubled from a year ago, which would be the fastest pace in two years, as did net income, according to data compiled by Bloomberg. That, however, isn't what the market is focused on. Rather, investors want to hear what Chief Executive Officer Jensen Huang has to say about capital spending by its biggest customers, future demand and a spate of new financing deals that involve Nvidia. Price increases will also be top of mind after some of the company's customers were told that the cost of servers with its AI chips will rise more than 15% in some cases, due to surging memory costs. "This will be a very interesting report, but it isn't so much about the numbers," Conzo said. "The forward guidance discussions will be far more in view." Earlier this month, Nvidia said it's partnering with Wall Street firms including Goldman Sachs Group Inc., BlackRock Inc. and Apollo Global Management Inc. to provide $500 billion in financing for AI infrastructure. Nvidia also agreed to spend as much as $105 billion to back a data center campus in Ohio that will be leased by OpenAI. "They're going to need to discuss those two big partnerships or agreements in good detail and sort of calm the market's fears around the circularity of financing," said Shaon Baqui, a senior equity analyst at Janus Henderson, which holds a substantial position in Nvidia. The big questions from investors are how much of Nvidia's revenue is being driven by its own financing and if it's creating or bringing forward demand. Huang's comments alone likely won't be enough to resolve some of the issues the market is having with AI investments at the moment, according to Daniel Pilling, portfolio manager at Sands Capital Management, which owns the stock. "It's going to be a really important quarter for them, not because of what they're doing on the balance sheet, but what they're doing off the balance sheet," said Brian Mulberry, chief market strategist at Zacks Investment Management, which holds Nvidia shares. "It effectively makes Jensen Huang kind of like the pope of AI. He gets to bless any of these deals." Even with a market capitalization of more than $5 trillion, the biggest in the world, Nvidia's equity valuation has been steadily eroding this year. At roughly 19 times earnings expected over the next 12 months, the stock is close to the cheapest it has been since late 2018, before AI exploded and when the chipmaker's market value was less than $100 billion. "Nvidia isn't the most exciting part of the market, or even the AI trade, anymore," said Randy Hare director of equity research at Huntington National Bank, which owns the stock. "Right now the tightness is in the memory space, the optical area, energy. Momentum is shifting from semis to other parts of infrastructure, and from there it could shift to hyperscalers again." In terms of trading into the earnings, Nvidia shares haven't performed well after its results over the last few quarters, falling the day after five of its last six reports, according to data compiled by Bloomberg. The options market is pricing in a roughly 5% swing in either direction. Of course, the shares could get a boost from a strong report and forecasts that calm investors' nerves, potentially reinvigorating the broader AI trade. Wall Street will be listening for updates on Nvidia's Vera Rubin and Blackwell chip sales as well as its outlook for gross margins. "Their stock in my view is at a bit of a nexus, like a bit of a turning point," said Melissa Otto, head of technology, media and telecommunications research at Visible Alpha. "We're going to get a lot more visibility, hopefully, and commentary around Rubin and the performance of Blackwell." Tech Chart of the Day Top Tech Stories Meta Platforms Inc. and state attorneys general have discussed a possible mid-trial settlement of a blockbuster case accusing the company of deliberately designing Facebook and Instagram to addict teens, people familiar with the matter said. OpenAI said that its new Jalapeno chips performed better than Nvidia's current lineup during testing, underscoring the company's progress developing AI processors in-house. SoftBank Group Corp. is talking with investment banks about a potential $10 billion to $20 billion bond offering to help refinance a loan for its investment in US tech giant OpenAI, according to people familiar with the matter. Apple announced upgraded Mac mini and Mac Studio desktop computers, giving the in-demand machines major processor upgrades. Earnings Due Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek The Diamond Industry's Old Guard Wants You to Buy 'Natural' Plus-Size Clothes Are Disappearing at Retailers in GLP-1 Era Drones, Balloons and Sound Waves: New Ways to Fight the World's Fires Moldy Peanuts Can Be Deadly. The Solution Is More Mold New York's Israeli Restaurants Are Doing Better Than You Might Think ©2026 Bloomberg L.P.

Interested in Nutanix? Here are five stocks we like better. Nutanix exceeded its fiscal fourth-quarter guidance, reporting record revenue of $757 million, 16% year-over-year ARR growth to $2.549 billion, and a 26.2% non-GAAP operating margin. Fiscal 2026 free cash flow reached $841 million, with a 29% margin. Management highlighted strong demand for external storage integrations and Nutanix Cloud Clusters, which help customers manage hardware shortages and pricing pressures. Dell, Pure Storage and NetApp partnerships, along with cloud, database and AI offerings, are expected to drive fiscal 2027 growth. Nutanix projected fiscal 2027 revenue of $3.18 billion to $3.23 billion, while cautioning that server supply constraints and elevated hardware prices could delay customer projects. The company also plans to reinvest savings from a restructuring affecting about 5% of its workforce into AI, cloud-native products and other growth initiatives. From CrowdStrike to Chewy, These Tanking Stocks Are Announcing Buybacks Nutanix (NASDAQ:NTNX) reported fourth-quarter fiscal 2026 results above its guided ranges, citing broad-based demand for its hybrid multicloud platform, external storage support, public-cloud offering and portfolio products despite continued server supply constraints. Fourth-quarter revenue reached a record $757 million, exceeding the company’s guidance of $725 million to $745 million. Annual recurring revenue, or ARR, totaled $2.549 billion at quarter-end, up 16% from a year earlier and representing an acceleration from the prior quarter’s growth rate. Net dollar-based retention remained at 106% sequentially. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects MarketBeat Week in Review – 12/15 - 12/19 Chief Executive Officer Rajiv Ramaswami said the company saw strong uptake for external storage offerings and Nutanix Cloud Clusters, or NC2, which he said are helping customers address hardware availability and pricing challenges. Nutanix also reported notable performance in its Kubernetes and database management products. For fiscal 2026, Nutanix reported revenue of $2.854 billion, up 12% year over year, and ARR of $2.549 billion, up 16%. The company added more than 3,000 customers during the year, including customers across its Global 2000, enterprise and other customer tiers. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? Is Nutanix the Best Comeback Trade Left in 2025? The Setup Says Yes Free cash flow for the year was $841 million, equal to a 29% free-cash-flow margin. Nutanix said its Rule of 40 score, calculated as revenue growth plus free-cash-flow margin, was 42%, marking its third consecutive year above 40. Non-GAAP operating margin was 23.7% for the fiscal year, up about 2.6 percentage points from the prior year and above the company’s most recent outlook of approximately 22.5%. Non-GAAP net income was $597 million, or $2.04 per diluted share. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding GAAP net income for fiscal 2026 was $1.507 billion, or $5.17 per diluted share. However, Chief Financial Officer Rukmini Sivaraman said the result included a one-time $1.2 billion income-tax benefit from the release of a valuation allowance related to U.S. deferred tax assets. Excluding that benefit, GAAP net income would have been $299 million, or $1.04 per diluted share. In the fourth quarter, non-GAAP operating margin was 26.2%, above the company’s 21% to 23% guidance range. Sivaraman attributed the outperformance to revenue above expectations and lower operating expenses, including the timing of hiring. Fourth-quarter free cash flow totaled $278 million, or a 37% margin. Management highlighted external storage support as an increasingly important avenue for customer adoption. Nutanix added support for Dell PowerStore, which became generally available earlier in the month, while support for Pure Storage’s FlashArray had been generally available for about two quarters. The company also announced agreements to support NetApp and Lenovo storage platforms. Ramaswami said Nutanix’s NetApp integration remains in limited availability but helped secure several large deals in the fourth quarter. He said the company expects all three storage relationships — Dell, Pure Storage and NetApp — to be meaningful growth drivers in fiscal 2027. The company described several seven-figure annual contract value wins involving external storage. These included a Global 2000 aerospace, defense and security customer that selected Nutanix Cloud Platform and Nutanix Cloud Manager while retaining its NetApp storage, as well as a North American hospital system that plans to use existing Dell PowerFlex arrays. NC2 bookings and deployed cores also increased sharply from the prior quarter, according to management. One seven-figure expansion involved a North American financial-services customer planning to deploy Nutanix Database Service on NC2 running on Amazon Web Services. Nutanix also added an automotive technology customer in Europe that plans to use NC2 on OVHcloud. The company continued to build its artificial intelligence portfolio during the year, including the launch of Nutanix Agentic AI, Agent Gateway and a Model Context Protocol server for Nutanix Cloud Platform. Nutanix also entered a strategic agreement with AMD to deploy its Agentic AI platform on AMD GPU solutions, complementing its existing NVIDIA integration. Ramaswami said enterprise adoption of agentic AI remains in its early stages, though AI has become a topic of discussion with customers. He said demand for governance, cost controls and AI infrastructure is growing, while the company’s AI products are expanding from a small base. For the first quarter of fiscal 2027, Nutanix forecast revenue of $755 million to $765 million and non-GAAP operating margin of 26% to 28%. For the full fiscal year, the company projected: Revenue of $3.18 billion to $3.23 billion, representing 12% growth at the midpoint. Non-GAAP operating margin of 24% to 25%. Free cash flow of $850 million to $950 million, representing a 28% margin at the midpoint. Sivaraman said the outlook assumes server supply constraints and elevated hardware prices will persist through fiscal 2027, potentially affecting the timing and size of customer projects. Nutanix expects a moderately higher percentage of orders to carry future license start dates as customers await server deliveries, and it expects to continue accommodating phased migrations for larger customers. Management said external storage and NC2 provide offsets to those challenges by enabling customers to move to Nutanix while retaining existing storage hardware or using public-cloud infrastructure. The company also expects cloud-native products, AI offerings, database services and its partner ecosystem to contribute to growth. Nutanix’s fiscal 2027 outlook includes the impact of a restructuring announced earlier in the month that affected about 5% of its global workforce. The company expects restructuring charges of $33 million to $43 million, including $30 million to $35 million of cash payments in the first quarter. Sivaraman said Nutanix plans to reinvest most resulting savings into Agentic AI, cloud-native products, sales coverage, digital sovereignty investments and other growth areas. The company also said it plans to offer customers more payment flexibility through third-party financing and annual payment structures. In fiscal 2026, annual-payment arrangements accounted for roughly a double-digit percentage of total contract value bookings, according to Sivaraman. Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments. The company's product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Nutanix Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.