Nutanix Reports Strong Q3 Earnings, Raises Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Strong Earnings Report: Nutanix's Q3 fiscal 2026 results show adjusted EPS of $0.47, surpassing the $0.35 consensus estimate, indicating a significant improvement in profitability.
- Revenue Growth: The company reported a 10% year-over-year revenue increase to $703 million, exceeding the $686.4 million estimate, reflecting robust demand in the hybrid multicloud computing sector.
- Future Guidance: For the ongoing quarter, Nutanix expects revenue between $725 million and $745 million, with a midpoint of $735 million, which is below the $742 million consensus, suggesting a cautious outlook.
- Full-Year Guidance Raised: The company projects full-year revenue between $2.82 billion and $2.84 billion, with free cash flow expected between $760 million and $780 million, demonstrating management's confidence in sustainable growth and profitability improvements.
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Analyst Views on NTNX
Wall Street analysts forecast NTNX stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 48.810
Low
53.00
Averages
70.42
High
90.00
Current: 48.810
Low
53.00
Averages
70.42
High
90.00
About NTNX
Nutanix, Inc. is engaged in cloud software, offering organizations a single platform for running apps and data across clouds. The Company’s Nutanix Cloud Platform is designed to enable organizations to build a hybrid multicloud infrastructure, providing a consistent cloud operating model with a single platform for running applications and managing data in core data centers, at the edge, and on public clouds, all while supporting a variety of hypervisors and container platforms. Nutanix Cloud Platform supports a variety of workloads with varied compute, storage, and network requirements, including business-critical applications, data platforms, general-purpose workloads, end user computing and virtual desktop infrastructure services, enterprise artificial intelligence (AI) workloads, and cloud native applications. Its solutions are primarily sold through its channel partners or original equipment manufacturers (OEMs) and delivered directly to its end customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Nutanix (NTNX) Q3 2026 Earnings Transcript
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- Share Repurchase Plan: The board approved a $750 million increase in share repurchase authorization, having repurchased $50 million worth of common stock in Q3, demonstrating the company's confidence in its value and commitment to shareholder returns.
- Optimistic Future Outlook: CFO guided Q4 revenue expectations between $725 million and $745 million, raising FY 2026 revenue guidance to $2.82 billion to $2.84 billion, reflecting strong confidence in future growth.
- Ongoing Supply Chain Challenges: Despite onboarding over 700 new customers, CEO highlighted that supply chain issues continue to impact server hardware prices and lead times, which may affect future revenue conversion, necessitating close monitoring of market dynamics.
See More
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- Guidance Increase: The company raised its FY2026 sales guidance, reflecting an optimistic outlook for future revenue growth, which is likely to attract more investor interest in its long-term prospects.
- Positive Market Reaction: Following the earnings report, Nutanix's stock gained 0.6% in pre-market trading, indicating market recognition of its performance and outlook, potentially leading to further stock price appreciation.
- Strategic Growth Indicator: The combination of exceeding earnings expectations and raising guidance signals Nutanix's strengthening competitiveness in the cloud infrastructure sector, which may attract more enterprise clients and enhance its market share.
See More
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- Annual Recurring Revenue Growth: The company achieved a 15% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.435 billion, which highlights significant progress in expanding its customer base and enhances revenue predictability for the future.
- Strong Cash Flow Performance: Nutanix generated $197 million in free cash flow, resulting in a free cash flow margin of 28%, which not only supports future investments but also reflects ongoing improvements in operational efficiency.
- Market Challenges and Opportunities: Despite facing supply chain challenges and geopolitical issues in the Middle East, Nutanix raised its full-year revenue guidance to $2.82 billion to $2.84 billion, demonstrating confidence in continued market demand and growth prospects.
See More
Nutanix (NTNX) Q3 2026 Earnings Transcript
See More
