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Jan 31, 2025
Nutanix Q2 2025 Earnings Report
Nutanix delivered strong Q2 2025 performance with 19% ARR growth and robust free cash flow generation.
Key Takeaways
Nutanix reported Q2 2025 revenue of $654.7 million, a 16% year-over-year increase. The company achieved a net income of $56.4 million and a non-GAAP EPS of $0.56. ARR grew 19% year-over-year to $2.06 billion, while free cash flow improved to $187.1 million. The company's continued momentum reflects strong demand for its hybrid multicloud solutions and strategic partnerships.
Q2 2025 revenue increased 16% year-over-year to $654.7 million.
Net income rose to $56.4 million, up from $32.8 million in Q2 2024.
ARR grew 19% year-over-year to $2.06 billion.
Free cash flow improved to $187.1 million, supporting financial flexibility.
Revenue by Segment
Forward Guidance
Nutanix expects continued growth in Q3 2025, with projected revenue between $620 million and $630 million and a non-GAAP operating margin of 17%-18%.
Positive Outlook
- Q3 2025 revenue guidance of $620 million to $630 million.
- Non-GAAP operating margin projected between 17% and 18%.
- Full-year FY25 revenue expected between $2.495 billion and $2.515 billion.
- Free cash flow for FY25 forecasted at $650 million to $700 million.
- Ongoing investment in AI-driven cloud solutions to expand market leadership.
Challenges Ahead
- Higher operating expenses expected as investments in R&D and sales continue.
- Increased competition in the hybrid multicloud market could pressure margins.
- Potential economic headwinds could impact enterprise IT spending.
- Continued reliance on strategic partnerships for revenue growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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