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Publication Date: 2026-08-27 07:00:00
What Happened?
Shares of hybrid multicloud computing company Nutanix (NASDAQ:NTNX) jumped 8.3% in the afternoon session after the company reported second-quarter CY2026 financial results that beat Wall Street expectations and issued strong revenue guidance.
According to a company press release, Nutanix reported second-quarter revenue of $757.1 million, up 15.9% year-over-year, surpassing Wall Street expectations of $737.9 million. The bottom line was exceptionally strong, as adjusted earnings per share of $0.60 delivered a 23.6% beat over the consensus estimate of $0.49. Top-line growth was supported by solid underlying business metrics, including an 18.5% year-over-year increase in billings to $873.5 million and a 15.8% increase in annual recurring revenue, which reached $2.55 billion.
The enterprise cloud software company also showcased impressive profitability and operational efficiency. Operating margins expanded to 9.2% from 4.8% a year ago, helping adjusted operating income hit $198 million (a 26.2% margin) to beat estimates by over 20%. Furthermore, free cash flow for the quarter jumped sequentially, reaching $277.6 million and representing a robust 36.7% margin. Looking ahead, Nutanix guided third-quarter CY2026 revenue to a midpoint of $760 million, landing roughly in line with consensus estimates.
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What Is The Market Telling Us
Nutanix’s shares are very volatile and have had…
