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Publication Date: 2026-08-29 02:51:00
Nutanix, Inc. (NASDAQ:NTNX) ended fiscal 2026 with a strong quarter, but its reported free cash flow guidance midpoint points to a more measured year ahead. Fourth-quarter revenue rose 16% to $757.1 million, while annual recurring revenue, or ARR, also increased 16% to $2.55 billion. Revenue exceeded Nutanix, Inc. (NASDAQ:NTNX)’s $725 million-$745 million guidance range and the consensus estimate of $738.3 million. Company-defined non-GAAP diluted earnings per share of $0.60 also beat the consensus estimate of $0.49.
Nutanix, Inc. (NASDAQ:NTNX)’s fiscal 2027 outlook calls for revenue of $3.18 billion-$3.23 billion, company-defined non-GAAP operating margin of 24%-25%, and free cash flow of $850 million-$950 million. At the respective midpoints, revenue would grow about 12%, while free cash flow would rise around 7% to $900 million. That difference raises the question of whether operating leverage is beginning to normalize.
Bull Case
Nutanix, Inc. (NASDAQ:NTNX) showed clear operating leverage during the fourth quarter. GAAP operating margin widened to 9.2% from 4.8%, while the company-defined non-GAAP operating margin increased to 26.2% from 18.3%. Fourth-quarter company-defined non-GAAP operating expenses rose just 2% against the 16% revenue increase. For the full year, the non-GAAP operating margin expanded 260 basis points to 23.7%.
Nutanix, Inc. (NASDAQ:NTNX) produced $277.6 million of fourth-quarter free cash…
