Nutanix 2026 Q1 Earnings Record Net Income Surges 107.5% Despite Revenue Miss

Nutanix (NTNX) reported mixed results for its fiscal 2026 Q1 earnings on Dec 4, 2025, with revenue falling short of expectations but net income setting a 12-year high. The stock price declined sharply post-earnings, reflecting investor concerns over guidance adjustments and near-term performance.

Revenue

Nutanix’s total revenue rose 13.5% year-over-year to $670.58 million, driven by robust demand for its hybrid cloud solutions. Product revenue totaled $349 million, while support, maintenance, and other services contributed $321.57 million. Despite this growth, the figure missed the $676.4 million consensus estimate, signaling underperformance in key markets.

Earnings/Net Income

The company’s profitability strengthened significantly, with EPS surging 109.1% to $0.23 and net income jumping 107.5% to $62.10 million. This marked a record net income for the fiscal Q1 period, underscoring improved cost management and operational efficiency.

Price Action

Nutanix’s stock price has faced downward pressure, plummeting 33.80% month-to-date as of Dec 4. The decline reflects investor skepticism about near-term growth prospects and the company’s revised guidance.

Post-Earnings Price Action Review

The stock’s post-earnings performance highlighted a stark disconnect between strategy returns and market benchmarks. A strategy of buying NTNX when revenues miss and holding for 30 days yielded a 6.86% return, significantly underperforming the 85.89% benchmark. The approach showed a 0.00% maximum drawdown, a Sharpe ratio of 0.03, and 48.57% volatility, indicating high-risk, low-reward characteristics.

CEO Commentary

Nutanix’s CEO emphasized the company’s progress in scaling its enterprise cloud platform, noting, “Our focus on hybrid infrastructure and AI workload optimization is driving sustainable growth.” He reiterated confidence in long-term market opportunities, stating, “We remain committed to innovation and operational excellence to deliver value for stakeholders.” The commentary highlighted strategic priorities including expanding cloud-native solutions and enhancing customer retention.

Guidance

Management guided Q2 revenue to range between $705 million and $740 million, below the $749.09 million consensus estimate. The full-year outlook was also revised downward, reflecting cautious near-term expectations. Forward-looking statements emphasized disciplined cost management and targeted investments in high-growth areas.

Additional News

In the three weeks preceding the earnings release, Nutanix faced heightened scrutiny from analysts and investors. Applied Calculus’ technical analysis highlighted an “oversold” RSI reading below 20%, suggesting potential for a price reversal despite a 100% Strong Sell rating. Additionally, options flow data revealed negative sentiment from institutional investors, with large block transactions amplifying short-term volatility. The company also drew attention for its hybrid cloud strategy amid rising AI infrastructure demand, though execution challenges persist.