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Publication Date: 2025-11-26 22:03:00
Nutanix (NASDAQ: NTNX) won’t be heading into the Thanksgiving holiday on a high note. The hybrid cloud computing specialist’s stock took a major hit on Wednesday, cratering by almost 18% after the release of a dispiriting quarterly earnings report.
After market close on Tuesday, Nutanix unveiled its fiscal first quarter of 2026 results. The company’s revenue grew by 13% year-over-year to $670.6 million, while net income not according to generally accepted accounting principles (GAAP) improved by 18% to hit $120.9 million ($0.41 per share). Annual recurring revenue (ARR), meanwhile, rose 18% to just under $2.3 billion.
Nutanix’s revenue came in lower than the average analyst expectation of $676.9 million. The company’s non-GAAP (adjusted) profitability met the consensus estimate.
In its earnings release, Nutanix attributed the improvements to strong client demand; it pointed out that bookings were ahead of its expectations. It also cited expansions with partners Dell Technologies and Microsoft as catalysts for growth.
Nutanix’s trailing numbers weren’t discouraging, but its guidance left something to be desired. The company is expecting to earn $705 million to $715 million in revenue for its current (second) quarter, which is quite some distance under the analyst consensus of almost $749 million. The adjusted net margin should be 20.5% to 21.5%.
It’s similar for the current fiscal year, as management is…
