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Oct 31, 2025
Nutanix Q1 2026 Earnings Report
Nutanix reported solid demand for its cloud platform, with bookings slightly ahead of expectations, 18% YoY ARR growth, and strong free cash flow performance for the first quarter of fiscal year 2026.
Key Takeaways
Nutanix delivered a strong first quarter for fiscal year 2026, exceeding booking expectations and achieving 18% year-over-year ARR growth. The company also reported solid free cash flow performance and continued progress with key partnerships, despite a revenue shift from Q1 into future periods.
Annual Recurring Revenue (ARR) grew by 18% year-over-year to $2.28 billion.
Free Cash Flow for the quarter was $174.5 million, an increase from $151.9 million in the prior year.
Non-GAAP Operating Margin was 19.7%, slightly down from 20.0% in the previous year.
The company expanded partnerships with Dell and Microsoft, integrating its cloud platform with Dell PowerStore and Azure Virtual Desktop.
Revenue by Segment
Forward Guidance
Nutanix provided an optimistic outlook for Q2 fiscal 2026 and the full fiscal year 2026, raising free cash flow guidance, despite anticipating continued revenue shifts into future periods.
Positive Outlook
- Raised full-year free cash flow guidance to $800 - $840 million.
- Underlying demand and business fundamentals remain unchanged.
- Anticipates Q2 fiscal 2026 revenue between $705 - $715 million.
- Projects Q2 fiscal 2026 Non-GAAP Operating Margin between 20.5% to 21.5%.
- Full fiscal year 2026 revenue expected to be $2.82 - $2.86 billion.
Challenges Ahead
- Anticipates some revenue shift from Q1 into future periods to continue.
- The revenue shift has been factored into Q2 and updated full-year revenue guidance.
- Non-GAAP operating margin for Q2 is projected to be slightly lower than the full fiscal year outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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