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]

Core Insights - Dell Technologies (DELL) and Nutanix (NTNX) are significant players in the cloud infrastructure and hyperconverged infrastructure (HCI) market, with both companies positioned to benefit from the increasing adoption of hybrid cloud solutions [1][2] Dell Technologies - Dell's Infrastructure Solutions Group (ISG) revenues, which include cloud offerings, increased by 12% year over year to $10.31 billion in Q1 FY26 [3][9] - The company is expanding its cloud services through partnerships and infrastructure solutions, including a recent collaboration with Singapore's Institute of Technical Education to launch a hybrid cloud VDI Center [4] - Dell is experiencing strong demand for AI-optimized servers, particularly the PowerEdge XE9680L, driven by digital transformation and interest in generative AI applications [5][9] - Despite a challenging macroeconomic environment, Dell's innovation in AI infrastructure and positive earnings outlook support its long-term strength, with a Zacks Consensus Estimate for fiscal 2026 earnings at $9.44 per share, indicating a 15.97% year-over-year increase [15][16] Nutanix - Nutanix offers software-defined HCI solutions that support multi-hypervisor and multi-cloud environments, gaining traction as a cost-effective alternative for customers [6] - The company added 620 customers in Q3 FY25, bringing its total client count to 27,490, demonstrating strong recurring revenue momentum [7][9] - Nutanix expanded its portfolio with new solutions like Cloud Native AOS and Nutanix Kubernetes Platform, as well as launching Nutanix Enterprise AI to support modern applications [8] - The Zacks Consensus Estimate for Nutanix's fiscal 2025 earnings is $1.74 per share, reflecting a 32.82% year-over-year increase, although its high valuation may limit near-term upside [15][17] Stock Performance and Valuation - Year-to-date, DELL shares have appreciated by 5.7%, while NTNX shares have increased by 22.9%, with Nutanix's outperformance attributed to its expanding partnerships and clientele [10] - DELL shares are currently trading at a forward Price/Sales ratio of 0.77X, indicating a cheaper valuation compared to NTNX's 6.97X, which is considered overvalued [13] - DELL holds a Zacks Rank of 1 (Strong Buy), while NTNX has a Zacks Rank of 2 (Buy), suggesting a stronger investment case for Dell [19]

Core Insights - Nutanix, Inc. is hosting a webinar to discuss its cloud native capabilities, including the Nutanix Kubernetes Platform, Nutanix Data Services for Kubernetes, and Nutanix Enterprise AI [1] - The webinar is scheduled for June 13, 2025, at 8:00 a.m. PDT and will be accessible via live webcast and replay on the Nutanix Investor Relations website [2] - Nutanix is recognized as a global leader in cloud software, providing a unified platform for application management and data handling across hybrid multicloud environments [2] Company Overview - Nutanix simplifies operations for organizations, allowing them to focus on business outcomes by reducing complexity [2] - The company has established itself as a pioneer in hyperconverged infrastructure, gaining trust from companies worldwide for consistent and cost-effective hybrid multicloud solutions [2]

Financial Data and Key Metrics Changes - The company reported quarterly revenue of $639 million, exceeding the guided range of $620 million to $630 million, representing a year-over-year growth rate of 22% [14][15] - Annual Recurring Revenue (ARR) at the end of Q3 was $2.14 billion, reflecting an 18% year-over-year growth [15] - Non-GAAP gross margin in Q3 was 88.2%, and non-GAAP operating margin was 21.5%, higher than the guided range of 17% to 18% [16] - Non-GAAP net income in Q3 was $125 million, translating to a fully diluted EPS of $0.42 per share [17] - Free cash flow in Q3 was $203 million, representing a free cash flow margin of 32% [18] - The company ended Q3 with cash, cash equivalents, and short-term investments of $1.882 billion, up from $1.743 billion at the end of Q2 [19] Business Line Data and Key Metrics Changes - The company experienced strong new logo growth across all customer segments, with significant wins in the EMEA region and North America [9][10] - The net dollar-based retention rate (NRR) at the end of Q3 was 110%, remaining flat quarter-over-quarter [16] - Average contract duration was 3.1 years, slightly higher than expectations and up slightly quarter-over-quarter [16] Market Data and Key Metrics Changes - The company noted a dynamic macro environment affecting deal cycles, particularly in the federal business, leading to longer deal cycles and variability [26][30] - The company is optimistic about the federal business benefiting from its platform's focus on modernization and total cost of ownership [26] Company Strategy and Development Direction - The company aims to become the leading platform for running applications and managing data anywhere, focusing on hybrid multi-cloud capabilities and partnerships [13] - Recent partnerships with Dell and Pure Storage are expected to enhance the company's offerings, with new solutions being introduced [12][63] - The company is expanding its cloud platform to support Google Cloud and announced a new solution, Cloud Native AOS, to enable modern applications [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment remaining similar to Q3, with expectations to continue adding new customers [21] - The company plans to increase investments in sales, marketing, and research and development to address market opportunities [21] - Management acknowledged the challenges of year-over-year comparisons for new logo additions in Q4 due to strong performance in the previous year [21] Other Important Information - The company repurchased $38 million worth of common stock under its existing share repurchase authorization [19] - The updated guidance for fiscal year 2025 includes revenue of $2.52 billion to $2.53 billion, representing a year-over-year growth of approximately 17.5% [20] Q&A Session Summary Question: Can you walk us through the linearity seen throughout the quarter? - Management noted that while linearity can vary, they have not seen significant changes in deal cycles, although some variability exists in the federal business [30][31] Question: What is the delta between NCIC and the core standard NCI license? - The NCIC offering includes the platform minus the storage, and early customer feedback has been positive [36][39] Question: What is driving the increase in operating margin guidance? - The increase is attributed to timing of hiring and expected ramp-up in investments in Q4 [41][42] Question: Can you explain the difference between ARR and revenue growth rates? - Revenue is a flow metric while ARR is a stock metric, and factors like contract duration can affect their relative growth rates [50][51] Question: How is the pricing environment and share gains versus VMware? - The pricing environment has been stable, and the company has seen strong traction in acquiring new customers, particularly with its hypervisor [75][72] Question: What is the status of partnerships with Dell and Cisco? - Cisco has been a consistent contributor to new logo growth, while the Dell partnership is still in early stages but expected to ramp up [61][63]

Financial Data and Key Metrics Changes - The company reported quarterly revenue of $639 million, exceeding the guided range of $620 million to $630 million, representing a year-over-year growth rate of 22% [14][15] - Annual Recurring Revenue (ARR) at the end of Q3 was $2.14 billion, reflecting an 18% year-over-year growth [15][18] - Non-GAAP gross margin in Q3 was 88.2%, and non-GAAP operating margin was 21.5%, higher than the guided range of 17% to 18% [16][18] - Non-GAAP net income in Q3 was $125 million, translating to a fully diluted EPS of $0.42 per share [17][18] - Free cash flow in Q3 was $203 million, representing a free cash flow margin of 32% [18] Business Line Data and Key Metrics Changes - The company experienced strong new logo growth across all customer segments, with significant wins in large organizations modernizing their IT infrastructure [9][10] - The average contract duration increased to 3.1 years, slightly higher than expectations [16] - The net dollar-based retention rate (NRR) at the end of Q3 was 110%, remaining flat quarter-over-quarter [16] Market Data and Key Metrics Changes - The company noted strong demand for its solutions, particularly in the federal business, despite longer deal cycles due to changes in the federal government [26][27] - The company is optimistic about opportunities in the federal sector, focusing on modernization and total cost of ownership (TCO) improvements [26] Company Strategy and Development Direction - The company aims to become the leading platform for running applications and managing data anywhere, focusing on hybrid multi-cloud capabilities and partnerships [12][13] - Recent partnerships with Dell and Pure Storage are expected to enhance the company's offerings and market reach [12][63] - The company is expanding its cloud platform to support Google Cloud and announced new solutions to enable modern applications [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic macro environment affecting deal cycles and customer engagement but remains optimistic about continued demand for their solutions [25][26] - The company expects to continue adding new customers while noting that Q4 presents a tough year-over-year comparison for new logo additions [21] - Management raised full-year guidance across all metrics, reflecting confidence in sustained growth and profitability [22][20] Other Important Information - The company repurchased $38 million worth of common stock during Q3 and used approximately $65 million to retire shares related to employee tax liabilities [19] - The updated guidance for fiscal year 2025 includes revenue of $2.52 billion to $2.53 billion, representing a year-over-year growth of approximately 17.5% [20] Q&A Session Summary Question: Can you walk us through the linearity seen throughout the quarter? - Management noted that while linearity can vary, they have not seen significant changes in deal cycles, although some variability exists in the federal business [30][31] Question: What is the delta between NCIC and the core standard NCI license? - The NCIC offering includes the platform minus the storage, and early customer feedback has been positive [39] Question: What is driving the increase in operating margin guidance? - The increase is attributed to timing of hiring and expected productivity improvements, along with prudent investments in areas with anticipated returns [41][45] Question: How did the renewals business perform versus land and expand? - The company saw strong new logo growth and solid renewals in Q3, with a greater mix of larger deals in the pipeline [78][79] Question: What is the pricing environment like? - The pricing environment has been stable, with no significant changes noted, and the company continues to see traction in new customer acquisitions [74][75] Question: How is the company addressing the competitive landscape, particularly with VMware? - The company is gaining traction with new customers, many of whom are adopting their hypervisor, and is optimistic about opportunities arising from VMware's changes [72][74]

Financial Data and Key Metrics Changes - The company reported quarterly revenue of $639 million, exceeding the guided range of $620 million to $630 million, representing a year-over-year growth rate of 22% [13] - Annual Recurring Revenue (ARR) at the end of Q3 was $2.14 billion, reflecting an 18% year-over-year growth [6][13] - Non-GAAP gross margin in Q3 was 88.2%, and non-GAAP operating margin was 21.5%, higher than the guided range of 17% to 18% [14] - Non-GAAP net income in Q3 was $125 million, translating to a fully diluted EPS of $0.42 per share [15] - Free cash flow in Q3 was $203 million, representing a free cash flow margin of 32% [16] Business Line Data and Key Metrics Changes - The company experienced strong new logo growth across all customer segments, with significant wins in the EMEA region and North America [7][9] - The net dollar-based retention rate (NRR) at the end of Q3 was 110%, remaining flat quarter-over-quarter [14] - Average contract duration increased to 3.1 years, slightly higher than expectations [14] Market Data and Key Metrics Changes - The company noted a dynamic macroeconomic environment affecting deal cycles, particularly in the federal business sector [25][30] - The company is optimistic about opportunities in the federal business, focusing on modernization and total cost of ownership (TCO) improvements [25] Company Strategy and Development Direction - The company aims to become the leading platform for running applications and managing data anywhere, focusing on hybrid multi-cloud capabilities and partnerships [12] - Recent product announcements include support for Google Cloud and enhancements to the Nutanix Cloud Platform, indicating a commitment to innovation [11] - The company is expanding its partner ecosystem, particularly with Dell and Cisco, to drive new logo growth and market penetration [62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainties but expressed confidence in continued demand for their solutions [30][88] - The company expects to maintain strong performance in Q4, with guidance for revenue between $635 million and $645 million [17][18] - Management highlighted the importance of investing in sales, marketing, and R&D to capture market opportunities [19] Other Important Information - The company repurchased $38 million worth of common stock during Q3 [17] - The updated guidance for fiscal year 2025 includes revenue of $2.52 billion to $2.53 billion, representing a year-over-year growth of approximately 17.5% [18] Q&A Session Summary Question: Can you walk us through the linearity seen throughout the quarter? - Management noted that while linearity can vary, they have not seen significant changes in deal cycles, although some variability exists in the federal business [29][30] Question: What is the delta between NCIC and the core standard NCI license? - The NCIC offering includes the platform minus the storage, and early customer feedback has been positive [36][39] Question: What is driving the increase in operating margin guidance? - The increase is attributed to timing of hiring and expected investments in sales and marketing, with a focus on sustainable growth [41][44] Question: Can you explain the difference between ARR and revenue growth rates? - Revenue is a flow metric while ARR is a stock metric, and various factors such as contract duration can affect their relative growth rates [50][52] Question: How is the company performing against VMware in terms of share gains? - The company is seeing strong traction with new customers, particularly those adopting their hypervisor, indicating competitive wins against VMware [74][76] Question: What is the outlook for partnerships with Dell and Cisco? - The company continues to expand its partner ecosystem, with Cisco contributing steadily to new logo growth and Dell's PowerFlex solution just entering the market [62][108]