Nutanix (NTNX) Q1 2026 Financial Results Summary
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Nutanix (NTNX) Q1 2026 Financial Results Summary
On November 25, 2025, Nutanix, Inc. (NASDAQ: NTNX) announced its financial results for the first quarter of fiscal year 2026, which ended on October 31, 2025.
Key Financial Highlights for Q1 FY’26
- Annual Recurring Revenue (ARR):
- $2.28 billion
- Up 18% compared to $1.94 billion in Q1 FY’25
- Average Contract Duration:
- Remained stable at 3.1 years
- Revenue:
- $670.6 million
- Increased by 13% from $591.0 million in Q1 FY’25
- GAAP Gross Margin:
- 87.0%
- Improved by 100 basis points from 86.0% a year earlier
- Non-GAAP Gross Margin:
- 88.0%
- Increased by 50 basis points from 87.5%
- GAAP Operating Expenses:
- $533.8 million
- Up 11% from $481.0 million in Q1 FY’25
- Non-GAAP Operating Expenses:
- $458.0 million
- Increased by 15% from $398.9 million
- GAAP Operating Income:
- $49.3 million
- An increase of $22.0 million compared to $27.3 million in Q1 FY’25
- Non-GAAP Operating Income:
- $131.8 million
- Up by $13.6 million from $118.2 million in the same period last year
- GAAP Operating Margin:
- 7.4%
- Improved by 280 basis points from 4.6%
- Non-GAAP Operating Margin:
- 19.7%
- Decreased by 30 basis points from 20.0%
- Net Cash Provided by Operating Activities:
- $196.8 million
- An increase of $35.0 million from $161.8 million in Q1 FY’25
- Free Cash Flow:
- $174.5 million
- An increase of $22.6 million from $151.9 million in the prior year
Guidance for Future Quarters
- Second Quarter Fiscal 2026 Revenue Outlook:
- Estimated between $705 million and $715 million
- Second Quarter Non-GAAP Operating Margin Outlook:
- Projected between 20.5% and 21.5%
- Fiscal 2026 Revenue Guidance:
- Estimated between $2.82 billion and $2.86 billion
- Fiscal 2026 Non-GAAP Operating Margin:
- Expected to be between 21% and 22%
- Fiscal 2026 Free Cash Flow Guidance:
- Anticipated to be between $800 million and $840 million
Recent Developments
- Nutanix management highlighted strong demand for their cloud platform, mentioning increased bookings slightly ahead of expectations.
- The company announced expansions of partnerships with Dell and Microsoft to support their products with Nutanix’s cloud platform.
- There was a noted revenue shift late in the quarter, with some revenue expected to visit future periods, but overall revenue recognition is expected to remain unchanged.
Shareholder Actions
- Nutanix did not announce any new quarterly dividends during this reporting period.
- In the prior quarter, Nutanix executed share repurchases amounting to $50.2 million.
Conclusion
The first quarter results of fiscal year 2026 for Nutanix, Inc. showed strong performance with substantial growth in ARR, revenue, and cash flow metrics compared to the previous year. The guidance provided for Q2 and the full fiscal year indicates optimistic expectations for continued growth and operational success.
Note on Financial Metrics
All growth or decline metrics are presented as year-over-year changes versus the same quarter in the previous year (Q1 FY’25).
Here are the extracted tables from the press release:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands)
| Revenue: | Q1 FY’25 | Q1 FY’26 |
|---|---|---|
| Product | $301,919 | $349,003 |
| Support, maintenance and other services | $289,037 | $321,573 |
| Total revenue | $590,956 | $670,576 |
| Cost of revenue: | ||
| Product(1)(2) | $8,370 | $4,292 |
| Support, maintenance and other services(1) | $74,300 | $83,178 |
| Total cost of revenue | $82,670 | $87,470 |
| Gross profit | $508,286 | $583,106 |
| Operating expenses: | ||
| Sales and marketing(1)(2) | $253,401 | $285,233 |
| Research and development(1) | $173,959 | $187,482 |
| General and administrative(1) | $53,676 | $61,056 |
| Total operating expenses | $481,036 | $533,771 |
| Income from operations | $27,250 | $49,335 |
| Other income, net | $9,573 | $16,239 |
| Income before provision for income taxes | $36,823 | $65,574 |
| Provision for income taxes | $6,897 | $3,478 |
| Net income | $29,926 | $62,096 |
| Net income per share attributable to Class A | $0.11 | $0.23 |
| Net income per share attributable to Class A | $0.10 | $0.21 |
| Weighted average shares used in computing net income per share attributable to Class A common stockholders, basic | 266,556 | 269,872 |
| Weighted average shares used in computing net income per share attributable to Class A common stockholders, diluted | 288,829 | 296,518 |
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
| NUTANIX, INC. | As of July 31, 2025 | As of October 31, 2025 |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $769,502 | $780,421 |
| Short-term investments | $1,223,234 | $1,281,775 |
| Accounts receivable, net | $337,967 | $335,945 |
| Deferred commissions—current | $153,072 | $142,307 |
| Prepaid expenses and other current assets | $105,391 | $98,513 |
| Total current assets | $2,589,166 | $2,638,961 |
| Property and equipment, net | $142,814 | $138,309 |
| Operating lease right-of-use assets | $134,526 | $131,159 |
| Deferred commissions—non-current | $189,221 | $184,590 |
| Intangible assets, net | $2,615 | $2,421 |
| Goodwill | $185,235 | $185,235 |
| Other assets—non-current | $39,617 | $43,317 |
| Total assets | $3,283,194 | $3,323,992 |
| Liabilities and Stockholders’ Deficit | ||
| Current liabilities: | ||
| Accounts payable | $81,599 | $87,987 |
| Accrued compensation and benefits | $230,498 | $181,826 |
| Accrued expenses and other current liabilities | $24,187 | $25,072 |
| Deferred revenue—current | $1,054,023 | $1,080,854 |
| Operating lease liabilities—current | $23,234 | $24,094 |
| Total current liabilities | $1,413,541 | $1,399,833 |
| Deferred revenue—non-current | $1,058,731 | $1,090,140 |
| Operating lease liabilities—non-current | $115,754 | $111,417 |
| Convertible senior notes, net | $1,343,818 | $1,345,038 |
| Other liabilities—non-current | $45,870 | $46,192 |
| Total liabilities | $3,977,714 | $3,992,620 |
| Stockholders’ deficit: | ||
| Common stock | $7 | $7 |
| Additional paid-in capital | $4,200,466 | $4,200,897 |
| Accumulated other comprehensive income | $700 | $3,605 |
| Accumulated deficit | ($4,895,693) | ($4,873,137) |
| Total stockholders’ deficit | ($694,520) | ($668,628) |
| Total liabilities and stockholders’ deficit | $3,283,194 | $3,323,992 |