Nutanix Reports Second Quarter Fiscal 2026 Financial Results

Core Insights - Nutanix reported solid performance in Q2 FY2026, with strong bookings and new customer additions, alongside healthy demand despite supply chain constraints impacting server lead times [2][3] - The company anticipates that supply chain issues will affect the timing of near-term revenue and free cash flow, leading to updated guidance for Q3 and the full fiscal year [2][3] Financial Performance - Annual Recurring Revenue (ARR) increased to $2.36 billion, a 16% year-over-year growth from $2.03 billion [3][28] - Total revenue for Q2 FY2026 was $722.8 million, up 10% from $654.7 million in Q2 FY2025 [3][20] - GAAP operating income rose to $84.1 million, compared to $65.4 million in the same quarter last year, reflecting an increase of $18.7 million [3][20] - Non-GAAP operating income for the quarter was $189.0 million, up from $161.3 million, marking a $27.7 million increase [3][20] Expense and Margin Analysis - GAAP gross margin improved to 87.4%, up from 87.0% year-over-year, while non-GAAP gross margin increased to 88.6% from 88.3% [3][20] - GAAP operating expenses were $547.4 million, a 9% increase from $504.0 million in Q2 FY2025 [3][20] - Non-GAAP operating expenses rose to $451.2 million, an 8% increase from $417.0 million [3][20] Cash Flow and Guidance - Free cash flow for the quarter was $191.4 million, slightly up from $187.1 million year-over-year [3][20] - For Q3 FY2026, revenue is projected to be between $680 million and $690 million, with a non-GAAP operating margin expected to be between 16% and 17% [5] - The full fiscal year revenue outlook is set between $2.80 billion and $2.84 billion, with free cash flow anticipated to be between $745 million and $775 million [6] Recent Developments - Nutanix's Cloud Platform has been listed in the AWS Marketplace for the U.S. Intelligence Community, enhancing its market presence [8] - The company completed a $300 million accelerated share repurchase during the second quarter [8] - Nutanix will hold its Investor Day 2026 on April 7, 2026, in Chicago, coinciding with its annual .NEXT user conference [8]