By
Publication Date: 2025-11-26 16:00:00
What’s going on here?
Nutanix’s stock sank 17% to about $49 on Wednesday, after the cloud software firm trimmed its long-term revenue outlook – even as profit and recurring sales kept climbing.
What does this mean?
For its fiscal first quarter, Nutanix posted adjusted earnings of $0.41 per diluted share, up from $0.36 a year earlier and in line with FactSet’s forecast. Revenue climbed 13% to $670.6 million from $591 million, but that fell just short of the $676.6 million analysts were expecting. The firm also cut its fiscal 2026 revenue target to between $2.82 billion and $2.86 billion, down from $2.9 billion to $2.94 billion, even as it kept its operating margin forecast and nudged its free cash flow outlook higher for that year. Management blamed both the quarterly miss and the softer 2026 sales goal on revenue recognition timing, citing more deals with deferred start dates and a bigger slice of business flowing through original equipment manufacturers. Translation: Nutanix says the contracts and cash are largely intact, but more of the accounting benefit will show up later rather than sooner.
Why should I care?
For markets: Timing worries overshadow steady momentum.
Investors zoomed in on the guidance cut and shrugged off Nutanix’s solid progress, knocking the stock down by about $10 in a single session. That selloff came even though annual recurring revenue grew 18% and net-new ARR 17% in the quarter – figures Morgan Stanley called “impressive” given the…
