Nutanix 2026 Q1 Earnings Strong Earnings Growth with 107.5% Net Income Surge

Generated by AI AgentDaily EarningsReviewed byAInvest News Editorial Team
Friday, Dec 5, 2025 4:40 am ET1min read
Aime RobotAime Summary

-

Nutanix
reported 13.5% YoY revenue growth to $670.58M in Q1 2026, driven by product and recurring support revenue segments.

- Earnings surged 109.1% to $0.23 EPS and net income hit a 12-year high of $62.1M, exceeding expectations despite revenue shortfall.

- Downgraded Q2 guidance and 33.8% post-earnings stock decline raised concerns, with analysts labeling

NTNX
a "Strong Sell" and bearish options activity intensifying.

- A novel trinitarian geometry model suggests potential short-term reversal, though elevated risks persist amid weak volatility and poor backtested strategy performance.

Nutanix (NTNX) reported fiscal 2026 Q1 earnings on Dec 4, 2025, delivering a 13.5% year-over-year revenue increase to $670.58 million. While revenue fell short of the $676.4 million consensus, the company’s EPS and net income surged, outpacing expectations. However, downwardly revised Q2 guidance and a weak stock price performance have raised concerns about near-term momentum.

Revenue

Nutanix’s revenue growth was driven by its product and support segments. Product revenue totaled $349 million, reflecting robust demand for its integrated cloud solutions. Support, entitlements, and other services contributed $321.57 million, underscoring the company’s recurring revenue model. Combined, these segments accounted for 100% of total revenue, with no material shifts in segment composition.

Earnings/Net Income

The company’s earnings per share (EPS) surged 109.1% to $0.23, while net income hit a 12-year-high of $62.10 million—a 107.5% increase from $29.93 million in the prior year. This marked a significant acceleration in profitability, driven by cost discipline and scale. The EPS performance was notably strong relative to expectations.

Post-Earnings Price Action Review

The stock’s post-earnings trajectory has been volatile, with a 33.80% month-to-date decline despite record earnings. A backtested strategy of buying

NTNX
when revenues miss estimates and holding for 30 days yielded a 6.86% return, significantly underperforming the 85.89% benchmark. The strategy’s poor performance was compounded by a Sharpe ratio of 0.03 and 48.57% volatility.

Additional News

Recent developments include heightened skepticism from analysts, with Barchart’s technical analysis labeling NTNX a 100% Strong Sell. Institutional options activity has also signaled bearish sentiment, with large block trades amplifying downward pressure. Meanwhile, a novel trading framework using trinitarian geometry suggests potential for a short-term reversal, though risks remain elevated.

Comments



Add a public comment...
No comments

No comments yet