Nutanix (NasdaqGS:NTNX) Q2 2026 Earnings call February 25, 2026 04:30 PM ET Company ParticipantsRajiv Ramaswami - CEORich Valera - VP of Investor RelationsRukmini Sivaraman - CFOConference Call ParticipantsBen Bollin - Partner and Senior Equity Research AnalystBrandon Nispel - Director and Equity Research AnalystDan Bergstrom - Equity AnalystJames Fish - Managing Director and Senior Research AnalystMatthew Martino - VP and Software Equity Research AnalystMike Cikos - VP and Senior Equity Research AnalystNeh ...

Financial Data and Key Metrics Changes - The company reported quarterly revenue of $723 million, exceeding the guidance range of $705 million to $715 million [5][14] - Annual Recurring Revenue (ARR) grew 16% year-over-year to $2.36 billion [5][14] - Non-GAAP gross margin was 88.6%, and non-GAAP operating margin was 26.2%, higher than the guided range of 20.5% to 21.5% [16][19] - Free cash flow for the quarter was $191 million, representing a free cash flow margin of 26% [17][19] Business Line Data and Key Metrics Changes - The company added over 1,000 new customers, marking the strongest quarterly new logo additions in eight years [5][14] - The average contract duration remained consistent at 3.1 years [16] - The net dollar-based retention rate (NRR) at the end of Q2 was 107% [14] Market Data and Key Metrics Changes - The company faced supply chain challenges, particularly with CPU and memory shortages, which began to impact operations more significantly in the latter half of Q2 [6][15] - The company noted that longer lead times for servers would affect near-term revenue and free cash flow [8][20] Company Strategy and Development Direction - The company announced a strategic partnership with AMD, focusing on developing a Nutanix-powered Agentic AI platform, with AMD investing $150 million in Nutanix common stock and funding up to $100 million for R&D [4][5] - The company aims to leverage AI as a significant long-term growth opportunity, providing a platform for enterprise applications [5][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic environment and the impact of supply chain challenges on revenue timing, but emphasized strong business fundamentals [9][19] - The company expects bookings growth for the full fiscal year to exceed prior expectations, despite delays in revenue recognition due to supply chain issues [19][20] Other Important Information - The company repurchased $333 million worth of common stock under its existing share repurchase authorization [17][19] - The updated guidance for fiscal year 2026 includes revenue of $2.8 billion to $2.84 billion and free cash flow of $745 million to $775 million [19][20] Q&A Session Summary Question: VMware Replacement Opportunity - Management indicated that the opportunity for VMware replacements remains strong, with continued customer additions and high hypervisor adoption [24][25] Question: Confidence in Q4 Upsell - Management expressed confidence in Q4 due to traditional strong performance in that quarter and growth in remaining performance obligations (RPO) [27][28] Question: RPO and Off-Balance Sheet Bookings - Management clarified that the growth in RPO was influenced by the exclusion of cancelable backlog, which remains a small portion of total RPO [33][34] Question: AMD Partnership Revenue Opportunity - The partnership with AMD aims to enhance the Nutanix software stack on AMD hardware, with revenue expected to start materializing in FY27 [80][82] Question: Supply Constraints Impact - Management noted that both CPU and memory shortages are significant challenges, with an unclear timeline for resolution [84][86]

Q2 FY2026 Earnings February 25, 2026 To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this presentation includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income per share (diluted), free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measure ...

EXHIBIT 99.1 Nutanix Reports Second Quarter Fiscal 2026 Financial Results Delivers Outperformance Across All Guided Metrics SAN JOSE, Calif., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its second quarter ended January 31, 2026. "Our business performed solidly in the second quarter, including strong bookings, strong new logo additions, and solid free cash flow performance," said Rajiv Ramaswami, CEO of Nutanix ...

News Highlights AMD and Nutanix sign multi-year agreement to accelerate adoption of Nutanix-powered agentic AI platform on AMD accelerated compute infrastructure for enterprise AI and service providers AMD to invest and fund up to $250 million in Nutanix shares, and R&D and go-to-market for integrated solutions Joint roadmap to integrate AMD ROCm™ and AMD Enterprise AI software into the Nutanix Cloud Platform and the Nutanix Kubernetes Platform using AMD EPYC™ CPUs and AMD Instinct™ GPUs with support from a ...

SAN JOSE, Calif., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its second quarter ended January 31, 2026. “Our business performed solidly in the second quarter, including strong bookings, strong new logo additions, and solid free cash flow performance,” said Rajiv Ramaswami, CEO of Nutanix. “Our opportunities with AI, modern applications, hybrid multicloud, and support for external storage provide us with a str ...

Nutanix's EPS is estimated to be $0.44, with a slight analyst expectation increase to $0.45, despite a 19.6% decline from the previous year.Projected revenue is expected to rise by 9%, reaching approximately $714 million.Nutanix, Inc. (NASDAQ:NTNX) is a leading cloud computing company that specializes in providing enterprise cloud platforms. These platforms integrate storage, computing, and virtualization into a single solution, streamlining data center operations. Nutanix competes with tech giants like VMw ...

Core Viewpoint - Nutanix, Inc. (NTNX) is identified as an infrastructure software company that aids enterprises in managing their IT infrastructure more efficiently, but it has not been beneficial for its shareholders [1]. Company Summary - Nutanix focuses on providing solutions for IT infrastructure management [1]. - The company has faced challenges in delivering value to its shareholders, indicating potential issues in performance or market perception [1].

Core Viewpoint - Nutanix, Inc. will report its financial results for the second quarter of fiscal year 2026 on February 25, 2026, after U.S. markets close [1] Group 1: Financial Reporting - The financial results will cover the period ending January 31, 2026 [1] - A conference call and earnings webcast will be held on the same day at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss the results [2] - Interested parties can register for the conference call to receive dial-in details and a unique PIN number [2] Group 2: Company Overview - Nutanix is a leader in hybrid multicloud computing, providing a unified software platform for running applications and managing data [4] - The company serves over 29,000 customers globally, helping organizations to digitally transform and manage hybrid multicloud environments effectively [4]

Core Viewpoint - Broadcom (AVGO) has faced significant stock declines in the past, with drops exceeding 30% on multiple occasions, indicating vulnerability to abrupt market corrections [1][5]. Risk Factors - **Risk 1: VMware Customer Loss and Legal Action** There is a potential loss of VMware customers due to compulsory subscriptions and price increases, with evidence of price hikes ranging from 800% to 1,500% expected by May 2025. Additionally, legal actions are anticipated, such as Tesco's £100 million lawsuit regarding alleged contract violations [3][10]. - **Risk 2: Geopolitical Retaliation Risks in China** Broadcom may face a significant revenue exposure loss of 17% from China due to new U.S. tariffs on AI chip exports and directives to eliminate foreign software from state-owned enterprises by mid-2026. This geopolitical tension could lead to immediate margin pressures [4][10]. Financial Performance - **Revenue Growth** Broadcom has reported a revenue growth of 23.9% over the last twelve months and a 25.2% average growth over the last three years [11]. - **Cash Generation** The company has demonstrated strong cash generation capabilities, with a free cash flow margin of nearly 42.1% and an operating margin of 40.8% for the last twelve months [11]. - **Valuation** Broadcom's stock is currently trading at a price-to-earnings (P/E) multiple of 68.2, indicating a high valuation relative to earnings [11].