Nutanix(US:NTNX)2025-11-25 21:01Financial Performance - Nutanix reported an 18% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.28 billion in Q1 FY'26 compared to $1.94 billion in Q1 FY'25[3] - Total revenue for Q1 FY'26 was $670.6 million, reflecting a 13% increase from $591.0 million in Q1 FY'25[3] - Free cash flow for the quarter was $174.5 million, up from $151.9 million in the same quarter last year, marking a $22.6 million increase[3] - GAAP operating income increased to $49.3 million in Q1 FY'26, compared to $27.3 million in Q1 FY'25, representing a $22.0 million improvement[3] - Non-GAAP operating margin for Q1 FY'26 was 19.7%, slightly down from 20.0% in Q1 FY'25[3] - Nutanix expects full-year revenue guidance to be between $2.82 billion and $2.86 billion, with a non-GAAP operating margin forecast of 21% to 22%[5] - Net income for Q1 2025 was $62,096 thousand, compared to $29,926 thousand in Q1 2024, reflecting a significant increase of approximately 107.5%[20] - Total operating expenses increased from $481,036 thousand in Q1 2024 to $533,771 thousand in Q1 2025, a rise of approximately 10.9%[20] - Cash provided by operating activities was $161,751 thousand in Q1 2024, compared to $196,825 thousand in Q1 2025, indicating an increase of about 21.6%[21] - Gross profit for the three months ended October 31, 2025, was $583,106, with a gross margin of 87.0%[34] - Total operating expenses decreased to $533,771, resulting in an income from operations of $49,335, with an operating margin of 7.4%[34] - Net income for the period was $62,096, translating to a net income per share of $0.23 (basic) and $0.21 (diluted)[34] - Operating income increased significantly to $131,849, with an operating margin of 19.7% for the adjusted figures[34] - The gross margin improved to 88.0% when considering non-GAAP adjustments, indicating a strong operational performance[34] Cash Flow and Assets - Nutanix's net cash provided by operating activities was $196.8 million, an increase of $35.0 million from $161.8 million in the previous year[3] - Total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $780,436 thousand, up from $716,994 thousand at the end of Q1 2024, an increase of about 8.8%[21] - The company reported a free cash flow of $151,920 for the three months ended October 31, 2024, compared to $174,506 for the same period in 2025[38] Expenses - Research and development expenses were $187,482, reflecting a decrease of $39,501 compared to the previous period[34] - Sales and marketing expenses totaled $285,233, down by $17,760 from the prior period[34] Partnerships and Recognition - The company announced expansions in partnerships with Dell and Microsoft to enhance its cloud platform capabilities[2] - Nutanix was recognized as a Leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure[4] Contract and Obligations - Nutanix's average contract duration remained stable at 3.1 years[3] - Remaining performance obligations increased from $2,118,298 thousand in Q1 2024 to $2,670,515 thousand in Q1 2025, reflecting a growth of approximately 26%[32] Liabilities and Assets - Total assets decreased from $3,323,992 thousand to $3,283,194 thousand, a decline of approximately 1.2%[18] - Total liabilities slightly decreased from $3,992,620 thousand to $3,977,714 thousand, a reduction of about 0.4%[18] Share Information - The weighted average shares outstanding for basic and diluted calculations were 269,872 and 296,518, respectively[34] - The company adopted a long-term projected non-GAAP tax rate of 20% for calculating non-GAAP net income and income per share, effective from the third quarter of fiscal 2025[35]