Nutanix Inc (NASDAQ:NTNX) Reports Q1 FY26 Results, Misses Revenue and EPS Estimates

Nutanix Inc (NASDAQ:NTNX) has released its financial results for the first quarter of fiscal year 2026, concluding on October 31, 2025. The hybrid multicloud computing company reported figures that presented a mixed picture relative to analyst expectations, leading to a nuanced market interpretation reflected in the stock's recent price performance.

Earnings and Revenue Versus Estimates

The company's top and bottom-line results for the quarter came in slightly below the consensus estimates held by Wall Street analysts. While Nutanix demonstrated year-over-year growth, it did not meet the specific targets set for the period.

• Revenue: The company reported revenue of $670.6 million, falling short of the analyst estimate of approximately $690.3 million.
• Non-GAAP Earnings Per Share (EPS): Nutanix reported a non-GAAP EPS of $0.41, which was slightly below the estimated $0.42.

This minor miss on both key metrics appears to be a primary factor influencing investor sentiment in the lead-up to and following the earnings release.

Market Reaction and Price Action

The market's reaction to the earnings report can be observed in the stock's recent performance. In the weeks preceding the announcement, the stock experienced a downward trend, suggesting that investors were potentially adjusting their positions in anticipation of the quarterly results.

• The stock has declined approximately 14.9% over the past month.
• It is down about 8.2% over the past week.

This pre-earnings weakness indicates that the market had already begun pricing in concerns or tempered expectations. The absence of a significant after-hours move following the release suggests the results were largely in line with these recently adjusted market expectations, neither providing a major positive surprise nor a severe disappointment that would trigger a sharp directional move.

Management Commentary and Financial Highlights

Despite the slight miss on quarterly estimates, the company's management highlighted several areas of strength and forward momentum. President and CEO Rajiv Ramaswami pointed to "solid demand" for the company's cloud platform, with bookings that were slightly ahead of internal expectations.

Key financial highlights from the quarter include:

• Annual Recurring Revenue (ARR): Grew 18% year-over-year to $2.28 billion.
• Free Cash Flow: Demonstrated solid performance at $174.5 million.
• GAAP Profitability: Achieved a GAAP operating income of $49.3 million, a significant increase from $27.3 million in the prior year.

CFO Rukmini Sivaraman addressed a dynamic observed late in the quarter, noting a shift of some revenue from Q1 into future periods. The company expects the total revenue recognition over time to remain unchanged and has factored this pattern into its updated guidance.

Forward Outlook and Analyst Comparisons

Nutanix provided its outlook for the upcoming second quarter and the full 2026 fiscal year. This guidance offers a critical point of comparison against existing analyst estimates and provides insight into management's confidence.

• Q2 FY26 Revenue Outlook: The company projects revenue between $705 million and $715 million. This range sits comfortably above the current analyst sales estimate of approximately $765.0 million for the quarter, indicating management's expectation of a sequential rebound.
• Full-Year FY26 Outlook: Nutanix raised its free cash flow guidance to a range of $800 million to $840 million, signaling strong confidence in its cash generation capabilities.

Summary of Key Press Release Elements

The earnings report underscored Nutanix's continued transition towards a subscription-based model, evidenced by the strong 18% growth in Annual Recurring Revenue. The company also maintained robust profitability metrics and operating leverage. Recent strategic highlights include being named a Leader in the 2025 Gartner® Magic Quadrant™ for Distributed Hybrid Infrastructure and expanding key partnerships with industry giants like Dell and Microsoft to support their respective platforms.

For a more detailed breakdown of past earnings and future analyst estimates for Nutanix, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available sources and should not be relied upon as the sole basis for an investment decision. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.