Nutanix talks up VMware migrations, multi-cloud and GenAI amid strong Q4 report – Blocks and Files

Nutanix talks up VMware migrations, multi-cloud and GenAI amid strong Q4 report – Blocks and Files

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Publication Date: 2025-08-28 07:00:00

Nutanix beat its revenue guidance with an 18 percent year-on-year jump to $653.3 million revenues for its final fy2025 quarter.

GAAP net income rose enormously, turning the year-ago $126.1 million loss into a $38.7 million profit. Full fy2025 year revenues of $2.54 billion were also up 18 percent Y/Y and full year profits of $188.4 million more than reversed the previous year’s $124.8 million loss. Nutanix’ Board authorized an increase of $350 million of common stock to the company’s existing share repurchase program

Nutanix is firing on all its engine’s cylinders and CEO Rajiv Ramaswami reflected this in his comments: “Our fourth quarter was a good finish to a fiscal year in which we delivered high-teens top line growth and added over 2,700 new customers.”

CFO Rukmini Sivaraman added her take: “Our fiscal 2025 results demonstrated a good balance of top and bottom line performance with 18 percent year-over-year revenue growth and strong free cash flow generation. These results drove a Rule of 401 score of 48, our second year in a row above 40.” The Rule of 40 is that a SaaS business’ revenue growth rate plus its profit margin should be equal to or greater than 40 percent.

Its average contract duration rose to 3.2 years, up by 0.1 year. Average Recurring Revenue (ARR) rose 17 percent to $2.2 billion. The customer count rose by 800 to 29,290, the highest increase over the past 22 quarters. What’s more, it expects…