Nutanix Stock Drops Despite Record Revenue and Cash Flow Growth, Sets Ambitious FY26 Target

Nutanix's shares fell 7.3% despite a 19% YoY revenue increase to $653mln in Q4 FY25. The company reported strong free cash flow generation and new customer acquisition. Nutanix set a FY26 revenue target of $2.9bln-$2.94bln, supported by partnerships with Dell and Pure Storage.

Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, reported its fourth-quarter and fiscal-year results for 2025, showcasing a 19% year-over-year (YoY) revenue increase to $653 million. Despite this robust financial performance, the company's shares fell by 7.3% [1].

Rajiv Ramaswami, President and CEO of Nutanix, highlighted the company's strong finish to the fiscal year, noting that they added over 2,700 new customers and made significant progress in partnerships with major tech firms like AWS, Pure Storage, NVIDIA, and Google. The company's Rule of 40 score, which measures the sum of revenue growth rate and free cash flow margin, reached 48, indicating a good balance of top and bottom line performance [1].

The company's strong free cash flow generation was a notable highlight. Rukmini Sivaraman, CFO of Nutanix, stated that the company's fiscal 2025 results demonstrated a good balance of top and bottom line performance, with 18% YoY revenue growth and strong free cash flow generation [1].

Nutanix's stock decline can be attributed to several factors, including the broader market sentiment and potential concerns about the company's future growth prospects. However, the company remains optimistic about its future, setting a FY26 revenue target of $2.9 billion to $2.94 billion, supported by partnerships with Dell and Pure Storage [1].

Looking ahead, Nutanix executives will discuss the company's fourth-quarter and fiscal 2025 financial results on a conference call today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial-in details and a unique PIN number [1].

References:
[1] https://finance.yahoo.com/news/nutanix-reports-fourth-quarter-fiscal-200100293.html