Nutanix, Inc.

Nutanix reported Q4 fiscal 2026 revenue of $757 million, above the guided range of $725 million to $745 million. Non-GAAP gross margin was 87.7%, non-GAAP operating margin was 26.2%, and non-GAAP EPS was $0.60. GAAP net income was $1.27 billion and GAAP EPS was $4.34, both boosted by a one-time $1.2 billion deferred tax asset valuation allowance release; excluding that benefit, GAAP net income would have been $61 million and GAAP EPS $0.21. FY26 revenue was $2.854 billion, up 12% year over year, ARR was $2.549 billion, up 16%, non-GAAP gross margin was 88%, and non-GAAP operating margin was 23.7%. Free cash flow was $278 million in Q4 and $841 million for FY26, with FY26 free cash flow margin at 29% and Rule of 40 at 42%. For Q1 FY27, Nutanix guided to revenue of $755 million to $765 million and non-GAAP operating margin of 26% to 28%. For FY27, guidance is revenue of $3.18 billion to $3.23 billion, non-GAAP operating margin of 24% to 25%, and free cash flow of $850 million to $950 million.

Rajiv Ramaswami described the quarter as a strong finish to FY26 and said the company exceeded all guided metrics. He emphasized that the platform is benefiting from broader demand for hybrid multi-cloud, AI, and modern applications, while external storage support and NC2 are helping customers adopt Nutanix despite server supply issues. He also highlighted momentum in agentic AI, partnerships with AMD and ChronoScale, and recent product additions like Nutanix Agent Gateway and MCP support.

Rukmini Sivaraman said Q4 results were above the high end of guidance across all metrics, with revenue of $757 million, ARR of $2.549 billion, gross margin of 87.7%, and operating margin of 26.2%. She noted Q4 free cash flow of $278 million and cash, cash equivalents and short-term investments of $2.361 billion at quarter-end, up from $2.018 billion in Q3. She also laid out FY27 guidance and explained that the outlook reflects continued server supply constraints, more future-start-date orders, a slower-growing renewals pool, and the expected impact of the restructuring affecting about 5% of global workforce, with $33 million to $43 million of nonrecurring charges and $30 million to $35 million expected in Q1.

Analysts focused heavily on how much of the FY27 guide is driven by supply-chain headwinds versus true demand momentum. Management said they did not see unusual pull-ins in Q4, but do expect elevated lead times and continued hardware price increases in FY27, partly offset by stronger external storage, NC2, cloud-native, and AI opportunities. On free cash flow, management said it expects more payment-plan flexibility for customers and that the restructuring savings will be mostly reinvested into growth areas rather than fully dropping to the bottom line.