Nutanix (NTNX) Q1 Earnings call transcript Nov 26, 2025

Nutanix, a leading cloud computing and digital transformation solutions provider, reported a strong first quarter for fiscal year 2025. The company's performance was marked by solid revenue growth, increased ARR, and strategic wins, demonstrating its strength and adaptability in the face of industry challenges and evolving market dynamics.

Financial Highlights and Market Performance

Nutanix reported a quarterly revenue of $591 million, surpassing its guidance, and an 18% year-over-year increase in ARR to $1.966 billion. The company's success can be attributed to its focus on helping businesses optimize their IT infrastructure and modernize their operations, particularly in the areas of hybrid multi-cloud environments and total cost of ownership (TCO).

Nutanix's largest wins in Q1 showcased the appeal of its Nutanix Cloud Platform. One such win involved a global IT consulting services provider expanding their partnership with Nutanix, enabling them to enhance their automation and self-service capabilities while reducing their exposure to competitors. Another notable win was a significant expansion with a North American food services and products provider, who sought to implement a hybrid multi-cloud environment and lower their TCO.

Innovation and Strategic Partnerships

Nutanix's continued innovation was highlighted by the general availability of its GPT-in-a-Box 2.0 solution for simplifying the deployment of generative AI applications. This offering, which includes Nutanix Enterprise AI (NAI), has the potential to strengthen Nutanix's position as a leading platform for running all applications and managing data anywhere.

Nutanix also announced a strategic partnership with AWS, which will simplify cloud migrations and offer access to AWS services for customers transitioning to Nutanix Cloud Clusters (NC2) on AWS. This collaboration will provide promotional credits for customer migrations and proof-of-concept trials, further solidifying Nutanix's partnership with AWS and enhancing its value proposition.

Outlook and Future Opportunities

Looking ahead, Nutanix remains focused on driving sustainable, profitable growth, particularly in the areas of generative AI and strategic partnerships. The company's updated guidance for fiscal year 2025 includes a revenue range of $2.435 billion to $2.465 billion, representing a 14% year-over-year growth, and an increase in non-GAAP operating margin to approximately 16% to 17%.

Nutanix's success in Q1 underscores its ability to navigate market challenges and capitalize on opportunities in the digital transformation landscape. As the company continues to innovate and expand its partnerships, it is well-positioned to deliver value to its customers and stakeholders in the rapidly evolving technology sector.