Nutanix(US:NTNX)2026-02-25 21:12Revenue Growth - Annual Recurring Revenue (ARR) increased to $2.36 billion, a 16% year-over-year growth from $2.03 billion[4] - Revenue for Q2 FY'26 reached $722.8 million, reflecting a 10% increase compared to $654.7 million in Q2 FY'25[4] - Total revenue for the three months ended January 31, 2026, was $722,825,000, representing a 10.4% increase from $654,721,000 in the same period of 2025[21] - Total revenue for the six months ended January 31, 2026, was $1,245,677, a decrease of 10.6% from $1,393,401 in the same period of 2025[27] - Subscription revenue for the six months ended January 31, 2026, was $1,328,371, up from $1,185,114 in the same period of 2025, indicating a growth of 12.1%[27] Profitability - GAAP Operating Income rose to $84.1 million, up from $65.4 million, marking an increase of $18.7 million[4] - Non-GAAP Operating Income increased to $189.0 million, a $27.7 million rise from $161.3 million in the previous year[4] - Net income for the three months ended January 31, 2026, was $103,022,000, compared to $56,427,000 for the same period in 2025, reflecting an increase of 82.5%[21] - Net income for the six months ended January 31, 2026, was $165,118, compared to $86,353 for the same period in 2025, representing a growth of 91.1%[24] - The company reported a diluted net income per share of $0.36 for the three months ended January 31, 2026, compared to $0.19 for the same period in 2025, an increase of 89.5%[21] - Net income for the six months ended January 31, 2026, was $285,186,000, with diluted net income per share of $0.97[35] Cash Flow - Free Cash Flow for the quarter was $191.4 million, slightly up from $187.1 million, an increase of $4.3 million[4] - Net cash provided by operating activities for the six months ended January 31, 2026, was $394,171, compared to $383,421 for the same period in 2025, showing an increase of 2.0%[24] - Cash and cash equivalents at the end of the period were $603,417, down from $1,072,475 at the beginning of the period, indicating a decrease of 43.8%[24] Expenses - Operating expenses for the three months ended January 31, 2026, totaled $547,415,000, compared to $503,995,000 for the same period in 2025, reflecting a rise of 8.6%[21] - Total operating expenses for the six months ended January 31, 2026, were $909,191,000, resulting in an income from operations of $320,887,000 and an operating margin of 23.0%[35] - Research and development expenses for the six months ended January 31, 2026, were $299,135,000, down from $389,741,000 in the previous period[35] - Sales and marketing expenses for the six months ended January 31, 2026, were $522,086,000, a decrease from $562,776,000[35] Balance Sheet - Total current assets increased to $2,589,166,000 as of July 31, 2025, up from $2,466,144,000 as of January 31, 2026, marking a growth of 5%[19] - Total liabilities decreased to $3,977,714,000 as of July 31, 2025, from $4,108,220,000 as of January 31, 2026, indicating a reduction of approximately 3.2%[19] - The company’s total assets were $3,283,194,000 as of July 31, 2025, slightly up from $3,276,933,000 as of January 31, 2026, reflecting a marginal increase of 0.2%[19] - Total stockholders' deficit improved to $(694,520,000) as of July 31, 2025, from $(831,287,000) as of January 31, 2026, indicating a reduction in deficit of approximately 16.5%[19] Market Expansion - Nutanix's Cloud Platform was listed in the AWS Marketplace for the U.S. Intelligence Community, expanding its market reach[7] - The average contract duration increased to 3.1 years from 3.0 years year-over-year[4] Future Projections - The company expects Q3 FY'26 revenue to be between $680 million and $690 million, with a Non-GAAP Operating Margin projected at 16% to 17%[6] - Supply chain constraints are anticipated to impact the timing of near-term revenue and free cash flow[3]