Have you evaluated the performance of Nutanix's (NTNX Quick QuoteNTNX - Free Report) international operations during the quarter that concluded in April 2025? Considering the extensive worldwide presence of this enterprise cloud platform services provider, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

While analyzing NTNX's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter stood at $638.98 million, increasing 21.8% year over year. Now, let's delve into NTNX's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Exploring NTNX's International Revenue Patterns

Of the total revenue, $13.56 million came from Other Americas during the last fiscal quarter, accounting for 2.12%. This represented a surprise of -27.66% as analysts had expected the region to contribute $18.75 million to the total revenue. In comparison, the region contributed $11.49 million, or 1.76%, and $11.17 million, or 2.13%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Asia Pacific contributed $106.9 million in revenue, making up 16.73% of the total revenue. When compared to the consensus estimate of $112.49 million, this meant a surprise of -4.97%. Looking back, Asia Pacific contributed $93.15 million, or 14.23%, in the previous quarter, and $82.5 million, or 15.73%, in the same quarter of the previous year.

Europe, the Middle East and Africa accounted for 26.98% of the company's total revenue during the quarter, translating to $172.42 million. Revenues from this region represented a surprise of +14.95%, with Wall Street analysts collectively expecting $149.99 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, the Middle East and Africa contributed $151.92 million (23.20%) and $147.07 million (28.03%) to the total revenue, respectively.

Revenue Forecasts for the International Markets

Wall Street analysts expect Nutanix to report $642.2 million in total revenue for the current fiscal quarter, indicating an increase of 17.2% from the year-ago quarter. Other Americas, Asia Pacific and Europe, the Middle East and Africa are expected to contribute 3% ($19.04 million), 17.8% ($114.21 million) and 23.7% ($152.28 million) to the total revenue, respectively.

For the full year, a total revenue of $2.53 billion is expected for the company, reflecting an increase of 17.6% from the year before. The revenues from Other Americas, Asia Pacific and Europe, the Middle East and Africa are expected to make up 2.7%, 17.4% and 24.2% of this total, corresponding to $68.64 million, $440.38 million and $610.6 million respectively.

Key Takeaways

Relying on global markets for revenues presents both prospects and challenges for Nutanix. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Currently, Nutanix holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Reviewing Nutanix's Recent Stock Price Trends

Over the past month, the stock has gained 7.4% versus the Zacks S&P 500 composite's 5.2% increase. The Zacks Computer and Technology sector, of which Nutanix is a part, has risen 8% over the same period. The company's shares have increased 16.9% over the past three months compared to the S&P 500's 2.4% increase. Over the same period, the sector has risen 6%.