Financial Data and Key Metrics Changes - In Q4 2025, the company reported quarterly revenue of $653 million, representing a 19% year-over-year increase [7][14] - Full fiscal year 2025 revenue was $2.54 billion, up 18% year-over-year, with an annual recurring revenue (ARR) of $2.22 billion, increasing 17% year-over-year [8][17] - Free cash flow for Q4 was $208 million, yielding a free cash flow margin of 32%, while for the full year, free cash flow was $750 million, representing a 30% margin [16][19] - Non-GAAP net income for Q4 was $109 million, or $0.37 per share, while GAAP net income was $39 million, or $0.13 per share [15][16] Business Line Data and Key Metrics Changes - The company added over 2,700 new customers in fiscal year 2025, the highest in four years, including over 50 Global 2000 accounts [8][17] - The average contract duration increased to 3.2 years in Q4, slightly above expectations [15] - The net dollar retention rate (NRR) at the end of Q4 was 108% [15] Market Data and Key Metrics Changes - The company enhanced its platform with new capabilities, including support for Google Cloud and a partnership with Pure Storage [9][10] - The company was recognized as a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure and as a challenger in the 2025 Gartner Magic Quadrant for container management [10] Company Strategy and Development Direction - The company is focused on capitalizing on multi-year opportunities in the face of industry disruption, with a strategic decision to enable customers to utilize existing external storage hardware [9][13] - The company aims to continue landing new customers at a rate of mid to high three digits per quarter in fiscal year 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the business despite macroeconomic uncertainties, particularly in U.S. Federal government spending [21][44] - The company expects some decline in average contract duration due to larger contracts in fiscal year 2025 that may not recur [22][23] Other Important Information - The company announced a $350 million increase to its existing share repurchase authorization [25] - The first quarter fiscal 2026 guidance includes revenue of $670 million to $680 million and a non-GAAP operating margin of 19.5% to 20.5% [20] Q&A Session Summary Question: Can you talk about the FI win and the size of the deal? - Management noted that the FI win was significant, involving a long-term partnership, but did not quantify the deal size [30][31] Question: NRR was down a couple of points sequentially; can you explain? - Management explained that NRR can be affected by the net impact of ARR contributions from prior quarters and noted that larger initial deal sizes could lead to lower future expansion [34][35] Question: How should we think about Dell PowerFlex customers compared to traditional Nutanix customers? - Management indicated that Dell PowerFlex targets large customers, and initial wins were achieved quickly, with expectations for continued growth [40][41] Question: What is the outlook for the U.S. Federal business? - Management acknowledged longer deal cycles and variability in the U.S. Federal sector but remained optimistic about modernization opportunities [44][45] Question: Can you discuss the enterprise AI maturity and its impact on Nutanix? - Management stated that enterprise AI adoption is still in early stages but is expected to accelerate over the next few years [54][55] Question: What are the dynamics around average contract duration and its impact on revenue? - Management explained that average contract duration can vary based on business mix and noted that a slight decline is expected, impacting revenue [85][88]

Financial Data and Key Metrics Changes - In Q4 2025, Nutanix reported quarterly revenue of $653 million, representing a 19% year-over-year increase [5][13] - For the full fiscal year 2025, revenue was $2.54 billion, up 18% year-over-year, with an annual recurring revenue (ARR) of $2.22 billion, increasing 17% year-over-year [6][16] - Free cash flow for FY 2025 was $750 million, a 26% increase year-over-year, yielding a free cash flow margin of 30% [6][18] - Non-GAAP net income for Q4 was $109 million, or $0.37 per share, while GAAP net income was $39 million, or $0.13 per share [14][15] Business Line Data and Key Metrics Changes - The company added over 2,700 new customers in FY 2025, the highest in four years, including over 50 Global 2000 accounts [6][16] - The average contract duration increased to 3.2 years in Q4, slightly above expectations [14] - Non-GAAP gross margin for Q4 was 88.3%, and for FY 2025, it was 88.1%, reflecting a year-over-year increase of 140 basis points [14][18] Market Data and Key Metrics Changes - Nutanix enhanced its platform with new capabilities, including support for Google Cloud and partnerships with Pure Storage and Dell PowerFlex [7][8][9] - The company was recognized as a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure and as a challenger in the 2025 Gartner Magic Quadrant for container management [8][9] Company Strategy and Development Direction - Nutanix is focused on capitalizing on multi-year opportunities in the face of industry disruption, emphasizing partnerships and ongoing innovation [12] - The company aims to enhance its Gen AI capabilities and extend hybrid multi-cloud capabilities [7][8] - Nutanix plans to continue landing new customers at a rate of mid to high three digits per quarter in FY 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the U.S. Federal business despite current uncertainties and longer deal cycles [44][70] - The company anticipates some macroeconomic uncertainties but remains confident in solid demand for its solutions [69][70] - Guidance for Q1 FY 2026 includes revenue expectations of $670 million to $680 million, with an initial FY 2026 revenue guidance of $2.9 billion to $2.94 billion, reflecting a 15% year-over-year growth rate at the midpoint [19][21] Other Important Information - Nutanix announced a $350 million increase to its existing share repurchase authorization [25] - The company will update its methodology for calculating ARR and NRR starting Q1 FY 2026 to align with the timing of license provisioning [24] Q&A Session Summary Question: Can you talk about the FI win and the size of the deal? - Management noted that the FI win is significant, involving a long-term partnership, but did not quantify the deal size [30][31] Question: NRR was down a couple of points sequentially; can you explain? - Management explained that NRR can be affected by the timing of ARR contributions from prior deals and noted that larger initial deal sizes may impact future expansion [33][35] Question: How should we think about Dell PowerFlex customers compared to traditional Nutanix customers? - Management indicated that Dell PowerFlex targets large customers, and initial wins were achieved quickly, reflecting strong interest [40][41] Question: Can you provide insights on the federal government business? - Management acknowledged longer deal cycles and variability in the U.S. Federal sector but remains optimistic about modernization opportunities [44][45] Question: What is the outlook for enterprise AI maturity? - Management stated that enterprise AI adoption is still in early stages, with expectations for significant growth in the coming years [54][55] Question: How are you managing revenue timing dynamics for larger deals? - Management confirmed that they have visibility into transactions scheduled for FY 2026 and have factored this into their guidance [56][57] Question: Can you elaborate on the impact of average contract duration on revenue? - Management explained that average contract duration can vary and that a slight decline is expected, which may impact revenue [82][84]