Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported August 26, 2026 · Beat 7 of last 7 quarters
Nutanix, Inc. reported Q4 FY2026 revenue of $757M, a beat of 2.5% against consensus, and EPS of $0.60, a beat of 22.4%.
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Nutanix's strong quarter and FY27 guidance indicate sustained demand for hybrid cloud and AI infrastructure software despite hardware supply constraints. The company's push into external storage and NC2 positions it to capture workloads as enterprises modernize and adopt AI, potentially benefiting the broader AI infrastructure ecosystem. The AMD partnership and neocloud initiatives signal expansion into AI-specific infrastructure opportunities.
Nutanix delivered record Q4 revenue of $757M, exceeding guidance, with ARR of $2.549B growing 16% YoY. The company saw strong uptake in external storage offerings and NC2, with sharp QoQ increases in bookings, including several 7-figure ACV deals. Full-year FY26 revenue was $2.854B, up 12% YoY, with TCV bookings growth in the high teens. Non-GAAP operating margin for the year was 23.7%, and free cash flow was $841M (29% margin). The company also announced a restructuring impacting ~5% of the workforce and a strategic partnership with AMD for its agentic AI platform.
Management guided Q1 FY27 revenue to $755M-$765M and non-GAAP operating margin to 26%-28%. For full-year FY27, they guided revenue of $3.18B-$3.23B (12% YoY growth at midpoint), non-GAAP operating margin of 24%-25%, and free cash flow of $850M-$950M (28% margin at midpoint). They expect server supply constraints to continue through FY27, with a moderately higher percentage of orders with future start dates, but see external storage, NC2, and cloud-native offerings as accelerants. They also noted a restructuring impacting ~5% of the workforce, with most savings reinvested into AI, cloud-native, and sales capacity. They expect renewals ACV pool to grow but at a slower rate than FY26, and plan to offer more payment flexibility, which is reflected in the FCF guidance.
“In the face of supply chain and what we're seeing today, this has become a really great opportunity because customers can now migrate to Nutanix, which -- while keeping their existing hardware, right, both their servers and storage.”
on External storage opportunity
“We are also assuming a moderately higher percentage of orders with future start dates in fiscal year '27 compared to fiscal year '26.”
on Supply chain impact on guidance
“We think there's room for it to expand meaningfully from here over time and are happy that from -- even for our initial guide for '27 that the midpoint is higher than what we delivered in '26.”
on Margin expansion
Can you walk us through the assumptions behind the FY27 growth guide and what gives you confidence around that starting point?
Rukmini highlighted growth drivers including external storage, NC2, cloud-native offerings, and the partner ecosystem, while noting the ongoing supply chain challenges and a moderately higher percentage of future start date orders. She also mentioned the renewals cohort growing at a slower rate and expressed comfort with the guidance given the momentum exiting FY26.
What's driving the sustained growth outlook for FY27 despite headwinds like a slower-growing renewal base and higher mix of future start date deals?
Rukmini and Rajiv cited strong momentum exiting FY26, with external storage and NC2 expected to grow faster than overall growth, and cloud-native offerings as accelerants. They also noted the broader ecosystem and growth vectors providing a foundation for the numbers.
Are you seeing any expansion of lead times or worsening pricing constraints, and how are you thinking about the impact on demand and the FY27 outlook?
Rajiv said they saw significant price increases in FY26 and expect additional increases in FY27, though perhaps moderating. Lead times are stabilizing but some vendors/SKUs still have extended lead times. Rukmini added that lead times and prices will remain elevated for the full year, and they are helping customers navigate by offering flexibility.