Nutanix 2026 Q1 Earnings Record Net Income Surges 107.5%

Nutanix (NTNX) reported fiscal 2026 Q1 earnings on Dec 4, 2025, delivering revenue growth of 13.5% year-over-year to $670.58 million. However, the results fell short of consensus revenue expectations, and the company revised its full-year outlook downward, signaling ongoing challenges in market execution.

Revenue

Nutanix’s Q1 2026 revenue totaled $670.58 million, driven by $349 million in product sales and $321.57 million in support, maintenance, and other services. The product segment demonstrated consistent demand, while recurring revenue from support and entitlements underscored the company’s long-term customer relationships.

Earnings/Net Income

Earnings per share (EPS) surged 109.1% to $0.23 in Q1 2026, compared to $0.11 in the prior-year period. Net income reached $62.10 million, a 107.5% increase from $29.93 million in Q1 2025, marking a 12-year high for the quarter. The EPS and net income figures reflect significant operational improvements, aligning with the company’s strategic focus on margin expansion.

Price Action

NTNX shares experienced a sharp post-earnings decline, falling 33.80% month-to-date as of Dec 4, 2025. Daily and weekly price movements further deteriorated, with a 0.52% drop in the latest trading day and a 2.54% decline over the preceding week.

Post-Earnings Price Action Review

The strategy of buying NTNX when revenues miss expectations and holding for 30 days yielded a 6.86% return, significantly underperforming the benchmark’s 85.89%. This approach exhibited a maximum drawdown of 0.00%, a Sharpe ratio of 0.03, and volatility of 48.57%, highlighting its suboptimal risk-adjusted performance.

CEO Commentary

Nutanix’s CEO emphasized the record net income as a testament to the company’s operational discipline and cost optimization efforts. While acknowledging the revenue shortfall, the CEO highlighted strong product demand and recurring revenue growth as key strengths. Looking ahead, the leadership remains cautiously optimistic about market opportunities in hybrid cloud and AI infrastructure, though they cautioned against near-term headwinds from macroeconomic uncertainty.

Guidance

The company revised its Q2 2026 revenue guidance to a range of $705–$740 million, below the prior consensus of $749.09 million. This downward adjustment, coupled with a reduced full-year revenue outlook, reflects management’s tempered expectations amid competitive pressures and customer budget constraints.

Additional News

Recent developments include Applied Calculus’ analysis labeling NTNX as “mispriced,” citing a 10-week technical divergence and oversold conditions. Meanwhile, options trading data revealed heavy institutional selling pressure, exacerbating near-term volatility. Despite these challenges, some traders argue the stock’s statistical profile suggests potential for a short-term rebound, though risks remain elevated.