We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nutanix Q2 Earnings and Revenues Beat Estimates, Sales Rise Y/Y
Read MoreHide Full Article
Key Takeaways
Nutanix beat Q2 estimates with EPS of 56 cents and revenue up 10.4% to $722.8 million.
NTNX added 1,000 customers, its strongest quarterly new logo growth in 8 years.
Nutanix lifted FY26 revenue outlook to $2.80-$2.84B, with FCF seen at $745-$775M.
Nutanix (NTNX - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate by 27.27% and increased 19.1% year over year.
Nutanix’s revenues climbed 10.4% year over year to $722.8 million, beating the Zacks Consensus Estimate by 1.27% and the guided range of $705-$715 million.
The top line was driven by more than 1000 new customers landing on the company’s platform through various incentive programs, increased customer engagement considering NTNX as an alternative amid industry M&A, and stronger support from its OEM partners, such as CSCO, Dell or Lenovo, and an integrated offering partnered with Supermicro.
NTNX noted that the average contract term length in the fiscal second quarter was 3.1 years, largely in line with the company’s expectations.
Product revenues (53.6% of total revenues) increased 9.4% year over year to $387.4 million. Support, maintenance & other services revenues (46.4% of total revenues) rose 11.6% to $335.5 million.
Subscription revenues (95.5% of total revenues) climbed 10.6% to $690.5 million from the year-ago quarter’s figure. Professional services and other revenues (4.5% of total revenues) improved 6.6% to $32.3 million.
Annual recurring revenues climbed 16% year over year to $2.36 billion.
During the fiscal second quarter, Nutanix added more than 1000 customers, representing its strongest quarterly new logo additions in eight years.
NTNX’s Operating Details
In the fiscal second quarter, Nutanix’s non-GAAP gross margin expanded 30 basis points year over year to 88.6%.
Non-GAAP operating expenses increased 8.2% year over year to $451.2 million.
Non-GAAP operating income was $189 million, up $27.7 million from the year-ago quarter.
Non-GAAP operating margin was 26.2%, above the guided range of 20.5-21.5% and increased 160 bps compared to the year-ago quarter. This was driven by better-than-expected revenues and lower operating expenses related to the timing of hiring.
NTNX’s Balance Sheet & Cash Flow
As of Jan. 31, 2025, cash and cash equivalents plus short-term investments totaled $1.87 billion, down from $2.06 billion at the end of the first quarter of fiscal 2026.
During the second quarter of fiscal 2026, cash generated from operating activities was $197.3 million, and free cash flow was $191.4 million.
Nutanix Offers Q3 and FY26 Outlook
For the third quarter of fiscal 2026, revenues are estimated between $680 million and $690 million. Non-GAAP operating margin is expected in the band of 16-17%. The company anticipates the fully weighted average shares outstanding to be approximately $288 million.
For fiscal 2026, revenues are estimated in the range of $2.80-$2.84 billion. The company expects free cash flow in the range of $745-$775 million.
Non-GAAP operating margin is projected in the 21-22% band.
Micron Technology shares have gained 342% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 18. You can see the complete list of today’s Zacks #1 Rank stocks here.
MongoDB shares have returned 24.5% in the past 12 months. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.
Credo Technology Group shares have gained 106% in the past 12 months. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Nutanix Q2 Earnings and Revenues Beat Estimates, Sales Rise Y/Y
Key Takeaways
Nutanix (NTNX - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate by 27.27% and increased 19.1% year over year.
Nutanix’s revenues climbed 10.4% year over year to $722.8 million, beating the Zacks Consensus Estimate by 1.27% and the guided range of $705-$715 million.
The top line was driven by more than 1000 new customers landing on the company’s platform through various incentive programs, increased customer engagement considering NTNX as an alternative amid industry M&A, and stronger support from its OEM partners, such as CSCO, Dell or Lenovo, and an integrated offering partnered with Supermicro.
NTNX noted that the average contract term length in the fiscal second quarter was 3.1 years, largely in line with the company’s expectations.
Nutanix Price, Consensus and EPS Surprise
Nutanix price-consensus-eps-surprise-chart | Nutanix Quote
Top-Line Details of NTNX
Product revenues (53.6% of total revenues) increased 9.4% year over year to $387.4 million. Support, maintenance & other services revenues (46.4% of total revenues) rose 11.6% to $335.5 million.
Subscription revenues (95.5% of total revenues) climbed 10.6% to $690.5 million from the year-ago quarter’s figure. Professional services and other revenues (4.5% of total revenues) improved 6.6% to $32.3 million.
Annual recurring revenues climbed 16% year over year to $2.36 billion.
During the fiscal second quarter, Nutanix added more than 1000 customers, representing its strongest quarterly new logo additions in eight years.
NTNX’s Operating Details
In the fiscal second quarter, Nutanix’s non-GAAP gross margin expanded 30 basis points year over year to 88.6%.
Non-GAAP operating expenses increased 8.2% year over year to $451.2 million.
Non-GAAP operating income was $189 million, up $27.7 million from the year-ago quarter.
Non-GAAP operating margin was 26.2%, above the guided range of 20.5-21.5% and increased 160 bps compared to the year-ago quarter. This was driven by better-than-expected revenues and lower operating expenses related to the timing of hiring.
NTNX’s Balance Sheet & Cash Flow
As of Jan. 31, 2025, cash and cash equivalents plus short-term investments totaled $1.87 billion, down from $2.06 billion at the end of the first quarter of fiscal 2026.
During the second quarter of fiscal 2026, cash generated from operating activities was $197.3 million, and free cash flow was $191.4 million.
Nutanix Offers Q3 and FY26 Outlook
For the third quarter of fiscal 2026, revenues are estimated between $680 million and $690 million. Non-GAAP operating margin is expected in the band of 16-17%. The company anticipates the fully weighted average shares outstanding to be approximately $288 million.
For fiscal 2026, revenues are estimated in the range of $2.80-$2.84 billion. The company expects free cash flow in the range of $745-$775 million.
Non-GAAP operating margin is projected in the 21-22% band.
Zacks Rank and Stocks to Consider
Currently, NTNX carries a Zacks Rank #3 (Hold).
Micron Technology (MU - Free Report) , MongoDB (MDB - Free Report) , and Credo Technology Group (CRDO - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Micron Technology shares have gained 342% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 18. You can see the complete list of today’s Zacks #1 Rank stocks here.
MongoDB shares have returned 24.5% in the past 12 months. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.
Credo Technology Group shares have gained 106% in the past 12 months. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.