Nutanix stock fell after the company delivered fiscal fourth-quarter earnings and revenue that topped consensus estimates while the company's fiscal 2026 sales guidance edged by Wall Street targets. Also, a key financial metric missed views.
Reported after the market close on Wednesday, Nutanix earnings for the quarter ended July were 37 cents a share on an adjusted basis, up 36% from a year earlier, versus consensus estimates for a 33-cent profit.
The maker of cloud-computing network management software said revenue rose 19% to $653.3 million, topping views for $642.5 million in sales.
In fiscal Q4, annual recurring revenue from subscription services rose 17% to $2.2 billion, slightly missing views. Wall Street analysts had projected ARR of $2.241 billion.
Nutanix Stock: Partnerships Key
For fiscal 2026, Nutanix forecast revenue in a range of $2.90 billion to $2.94 billion versus estimates of $2.91 billion.
Strategic partnerships with Dell, Pure Storage, and Cisco Systems helped boost Q2 results, said Mehdi Hosseini, a Susquehanna analyst, in a report.
"However, new logo (customer) growth is beginning to decelerate, suggesting some saturation or longer sales cycles in certain segments," said Hosseini. "Annual recurring revenue grew 16.5% year-over-year, matching consensus but marking the third consecutive quarter of deceleration due to increasingly tough comparisons."
He added: "Despite this, we remain confident in Nutanix's ability to sustain high-teens ARR growth in the second half of fiscal 2026, driven by newer partnerships with Google Cloud and Pure Storage. That said, the scaling of these partnerships and associated product offerings is likely to take longer than previously anticipated, potentially pushing out some upside into fiscal 2027."
Nutanix's software manages network, storage and server infrastructure in cloud-computing platforms. Nutanix competes against Broadcom's VMware unit, startup Scale Computing, and others.
Nutanix Stock Technical Ratings
On the stock market today, Nutanix stock fell more than 6% to near 65 in early trading. Heading into the Nutanix earnings report, shares had advanced 13% in 2025.
"Guidance for Q1 revenue at the midpoint was slightly below expectations while operating margin was ahead," said RBC Capital analyst Matthew Hedberg in a report. "Initial fiscal 2026 guidance came ahead of consensus expectations across the board as management sees initial revenue growth of 15% versus 18% in 2025. Many investors we spoke with thought fiscal 2026 revenue growth could come in lower. We see guidance as a good starting point."
Meanwhile, Nutanix stock holds a Composite Rating of 51 out of a best-possible 99, according to IBD Stock Checkup.
Further, Nutanix stock holds an Accumulation/Distribution Rating of C-plus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, Nutanix has transitioned to a software subscription business model from selling hardware appliances.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
