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Publication Date: 2026-08-28 07:00:00
Nutanix delivered significant operating leverage in its fiscal fourth quarter of 2026, as both revenue and annual recurring revenue increased 16%, while profitability and free cash flow grew much faster.
Annual recurring revenue reached $2.55 billion, up from $2.20 billion a year earlier.
Quarterly revenue increased 16% to $757.1 million from $653.3 million.
The results reflected continued demand for Nutanix’s hybrid multicloud infrastructure platform as the company expanded customer relationships, strengthened strategic partnerships and increased its focus on AI-related workloads.
Profitability improved sharply.
GAAP operating income more than doubled to $70 million from $31.2 million in the prior-year quarter.
GAAP operating margin expanded 440 basis points to 9.2% from 4.8%.
The improvement was even more pronounced on a non-GAAP basis.
Non-GAAP operating income increased to $198 million from $119.5 million, representing growth of approximately 66%.
Non-GAAP operating margin expanded 790 basis points to 26.2% from 18.3%.
That margin expansion indicates Nutanix converted a substantially larger share of incremental revenue into operating profit.
Faster operating income growth than revenue also shows increasing scalability in the company’s subscription-oriented business model.
Cash generation strengthened as well.
Free cash flow increased to $277.6 million from $207.8 million a year earlier.
Operating cash flow reached $315 million during the quarter.
The…