Nutanix Inc. reported first‑quarter fiscal 2026 results on November 25, 2025, posting revenue of $670.6 million—slightly below the consensus estimate of $676.7 million—while adjusted earnings per share matched the $0.41 expectation. The company’s revenue fell 13% year‑over‑year from $591.0 million in Q1 FY2025, a decline driven largely by a shift of land‑and‑expand deals and OEM partner contributions into future periods. Management explained that the timing of revenue recognition for Dell and Microsoft partner‑based deployments, as well as a higher proportion of deferred bookings, caused the shortfall.
The company’s adjusted operating margin stood at 19.7%, a modest compression from the 21–22% range previously guided. Gross margin remained strong at 88%, reflecting continued pricing power in the subscription‑based cloud platform. EPS met expectations because cost controls and operational leverage offset the revenue dip; the company maintained disciplined spending while benefiting from a 18% year‑over‑year growth in annual recurring revenue, which helped preserve profitability.
Nutanix cut its full‑year 2026 revenue outlook to $2.82 billion–$2.86 billion, down from the prior $2.92 billion guidance, citing the deferred revenue shift. In contrast, the firm raised its free‑cash‑flow guidance to $800 million–$840 million, signaling confidence in cash generation and efficiency. CEO Rajiv Ramaswami said the company saw “solid demand for our cloud platform” and that “the underlying value of our business remains unchanged.” CFO Rukmini Sivaraman noted that the revenue shift was “expected to continue” and that the free‑cash‑flow increase reflected “improved operating efficiency.”
Investors reacted negatively to the guidance cut, with analysts pointing to the revenue miss and the shift in recognition timing as key concerns. The market’s response underscored the importance of predictable revenue streams, even as the company’s free‑cash‑flow outlook remained upbeat.
Nutanix remains a leader in the Gartner Magic Quadrant for Distributed Hybrid Infrastructure and continues to deepen partnerships with Dell and Microsoft. The company’s competitive position is reinforced by strong subscription momentum, a 109% net dollar‑based retention rate, and a growing presence in the hybrid‑cloud market. However, supply‑chain constraints and the timing of OEM partner shipments present short‑term headwinds that management is monitoring closely. Overall, the results suggest a company that is maintaining solid demand and cash flow while navigating revenue recognition dynamics that will shape near‑term guidance.
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