Nutanix 2026 Q1 Earnings Record Net Income Surges 107.5%

Nutanix (NTNX) reported Q1 2026 earnings on Dec 4, 2025, with revenue rising 13.5% to $670.58 million, though falling short of the $676.4 million consensus. Guidance for Q2 revenue ($705–740 million) also underperformed expectations, contributing to a 34% month-to-date stock decline.

Revenue

Nutanix’s total revenue reached $670.58 million in Q1 2026, reflecting a 13.5% year-over-year increase. Product revenue led the growth at $349 million, while support, entitlements, and other services contributed $321.57 million. The company’s hybrid cloud strategy drove demand, though revenue fell below analyst projections.

Earnings/Net Income

Earnings per share (EPS) surged 109.1% to $0.23 in Q1 2026 from $0.11 in the prior year, with net income reaching $62.10 million—a 107.5% increase. This marked a 12-year high for Q1 net income, underscoring improved profitability despite R&D-driven margin pressures.

Price Action

NTNX stock declined 0.52% on the latest trading day, 2.54% for the week, and 33.80% month-to-date.

Post-Earnings Price Action Review

The strategy of buying NTNX when revenues miss and holding for 30 days yielded a 6.86% return, lagging the benchmark’s 85.89%. With a maximum drawdown of 0.00%, a Sharpe ratio of 0.03, and 48.57% volatility, the approach underperformed significantly.

CEO Commentary

CEO Dheeraj Pandey highlighted sustained hybrid cloud adoption and strategic AI investments, while acknowledging R&D margin pressures. He emphasized confidence in long-term profitability, citing strong customer retention and pipeline growth.

Guidance

Nutanix reiterated Q1 2026 revenue of $670.58 million and EPS of $0.23, aligning with reported figures. The company plans to scale AI capabilities through R&D and CAPEX, with qualitative goals to maintain cost discipline and expand market share.

Additional News

Applied Calculus’ analysis flagged NTNX as mispriced, leveraging trinitarian geometry—a framework combining probability theory, behavioral state transitions, and calculus—to predict price clusters. The stock’s 34% decline post-earnings and oversold RSI (below 20%) suggest potential reversal. Options strategies like the 45.00/52.50 bull call spread (Jan 16, 2026) are highlighted, with aggressive plays targeting $55 for high-reward scenarios. Analysts caution macroeconomic uncertainties but note structural arbitrage opportunities amid conditional price variance.