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Jan 31
Nutanix Q2 2026 Earnings Report
Nutanix reported its second quarter fiscal 2026 financial results, exceeding guided metrics despite supply chain headwinds.
Key Takeaways
Nutanix delivered a solid second quarter with 10% revenue growth and a 16% increase in ARR. While the company outperformed its guidance across all metrics, it noted that supply chain constraints are extending server lead times, which may delay the realization of revenue and free cash flow from current bookings into future periods.
Annual Recurring Revenue (ARR) grew 16% year-over-year to $2.36 billion.
Non-GAAP operating margin expanded to 26.2%, up from 24.6% in the prior year quarter.
The company completed a $300 million accelerated share repurchase program during the quarter.
Supply chain constraints are driving longer server lead times, impacting the timing of near-term revenue and cash flow realization.
Revenue by Segment
Forward Guidance
Nutanix provided guidance for Q3 FY26 and updated its full-year FY26 outlook to account for supply chain dynamics.
Positive Outlook
- Full-year revenue guidance set at $2.80 - $2.84 billion.
- Full-year free cash flow expected between $745 - $775 million.
- Bookings expectations are higher than previously anticipated.
- Strong foundation for multi-year growth in AI and hybrid multicloud.
- Non-GAAP operating margin for the full year expected to be 21% to 22%.
Challenges Ahead
- Supply chain constraints are driving longer server lead times.
- Revenue from bookings expected to be realized later than originally planned.
- Free cash flow timing impacted by server delivery delays.
- Q3 non-GAAP operating margin expected to be lower (16%-17%) than Q2 results.
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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