Nutanix Q4 Earnings Report: Revenue Beats Expectations, Shares Slide

Nutanix Inc. (NTNX) reported Q4 revenue of $653.26 million, beating the analyst estimate of $641.51 million and up from $547.95 million from the same period last year. The company announced a strategic collaboration with Finanz Informatik, a digitalization partner of the German Savings Bank Finance Group, and signed a long-term contract. NTNX stock was down 4.45% at $66.50 in extended trading.

Nutanix Inc. (NTNX) reported a robust performance in the fourth quarter of fiscal year 2025, with revenue rising to $653.3 million, a 19% increase over the same period last year. This figure exceeded both the company's guidance of $635 million to $645 million and analyst estimates of approximately $643 million. The quarterly results reflect Nutanix's ongoing transition from hardware sales to a subscription-driven software business model, with subscription revenue accounting for about 94.4% of total revenue, up 19% year-over-year.

The company's annual recurring revenue (ARR) climbed 17% to $2.22 billion, demonstrating the strength of its subscription-based business. This growth was driven by a 19% increase in subscription revenue, highlighting Nutanix's success in securing long-term customer contracts. The company also saw a notable expansion in its non-GAAP operating margin, which reached 18.3%, up from 12.9% in the prior-year quarter.

Nutanix's strategic partnership with Finanz Informatik, a digitalization partner of the German Savings Bank Finance Group, was a key highlight of the quarter. The company signed a long-term contract to transition Finanz Informatik's Windows and Linux workloads to Nutanix's platform over a two-year period. This collaboration underscores Nutanix's expanding influence in the European IT and data center sectors.

The company's stock, NTNX, was down 4.45% at $66.50 in extended trading following the announcement, reflecting market sentiment about the company's performance and future prospects. Despite the stock price decline, Nutanix's financial results indicate a strong quarter with significant growth in revenue and ARR, as well as improvements in operating margins.

References:
[1] https://www.nasdaq.com/articles/nutanix-revenue-jumps-19-fiscal-q4
[2] https://www.gurufocus.com/news/3083033/nutanix-ntnx-secures-major-deal-with-finanz-informatik-for-platform-migration