Nutanix's Q3 2025: Key Contradictions Unveiled in Partnerships, Pricing Strategy, and Federal Business Dynamics

Partnership with Dell and Cisco, federal business dynamics and linearity, pricing environment and strategy, renewals and revenue guidance, macro impact on sales are the key contradictions discussed in Nutanix's latest 2025Q3 earnings call.



Strong Financial Performance:
- Nutanix reported quarterly revenue of $639 million, exceeding the guided range of $620 million to $630 million, with a year-over-year growth rate of 22%.
- This growth was driven by strong demand across various customer segments and strategic partnerships.

Expansion of Customer Base:
- Nutanix reported an increase in ARR to $2.14 billion, representing a 18% year-over-year growth.
- Growth was supported by strong new logo wins, particularly with Fortune Global 500 companies and a focus on hybrid multi-cloud solutions.

Operating Margin Improvement:
- Nutanix achieved an operating margin of 21.5%, exceeding the guided range of 17% to 18%.
- The improvement was attributed to lower operating expenses due to timing of hiring and slightly higher revenue.

Macro and Demand Environment:
- Despite a dynamic macro environment, Nutanix saw continuing demand for its cloud platform, driven by concerns about industry M&A and interest in hybrid multi-cloud operating models.
- The company factored macro uncertainties, including tariff-related impacts and federal business variability, into their outlook.