Nutanix 2026 Q1 Earnings Revenue Misses Estimates Despite Record Net Income

Nutanix (NTNX) reported fiscal 2026 Q1 results on Nov. 25, 2025, with revenue falling short of expectations and guidance revised downward. The company’s non-GAAP EPS of $0.41 matched estimates, but revenue of $670.58 million missed the $676.65 million forecast. Full-year revenue guidance was trimmed to $2.82–2.86 billion, and Q2 revenue guidance also fell below consensus.

Revenue

Nutanix’s total revenue rose 13.5% year-over-year to $670.58 million in Q1 2026, driven by strong performance across its product and support segments. Product revenue contributed $349 million, while support, entitlements, and other services accounted for $321.57 million. The results reflect sustained demand for the company’s cloud platform, though delayed revenue recognition from deferred contracts impacted near-term figures.

Earnings/Net Income

Earnings per share surged 109.1% to $0.23 in Q1 2026, with net income reaching a 12-year high of $62.10 million—a 107.5% increase from the prior year. The company’s profitability gains underscore operational improvements, though revenue shortfalls highlight ongoing challenges in revenue timing. The EPS growth represents a positive sign amid broader market volatility.

Post-Earnings Price Action Review

The strategy of buying Nutanix shares after quarterly revenue drops and holding for 30 days delivered strong returns over the past three years, achieving a 125.54% total return versus 65.99% for the benchmark. With an excess return of 59.55%, the approach capitalized on NTNX’s momentum post-earnings. A CAGR of 31.43% highlighted consistent growth, though a Sharpe ratio of 0.74 and zero maximum drawdown indicated relatively low risk.

CEO Commentary

CEO Rajiv Ramaswami noted bookings exceeded expectations but emphasized revenue delays due to deferred contracts. He reiterated confidence in the company’s long-term trajectory, citing 18% ARR growth to $2.28 billion, robust free cash flow, and strategic partnerships with Dell and Pure Storage. Ramaswami stressed that deferred revenue is a timing issue, not a structural problem, and reaffirmed growth targets for FY2026.

Guidance

CFO Rukmini Sivaraman revised FY2026 revenue guidance to $2.82–2.86 billion (12% Y/Y growth at midpoint), down from prior expectations, due to deferred revenue and OEM partner dependencies. Q2 revenue is projected at $705–715 million, below the $749 million consensus. Non-GAAP operating margin is expected to remain stable at 21%–22%, while free cash flow guidance was raised to $800–840 million.

Additional News

Recent news highlights Nutanix’s strategic partnerships with Dell PowerFlex and Pure Storage, expanding its hybrid cloud offerings. The company also secured recognition as a Gartner leader in distributed hybrid infrastructure. Despite these positives, shares plummeted 13% post-earnings amid revised guidance, reflecting investor concerns over revenue timing and market competition.