Nutanix, Inc.

Q4 FY26 results: beat guidance across the board (good) - Revenue: $757M (record), above guide $725–$745M. - ARR: $2.549B, +16% YoY (growth rate up vs prior quarter). - NRR: 106% (flat QoQ). - Margins/earnings (non-GAAP): Gross margin 87.7%, Operating margin 26.2% (above guide 21–23%). - Cash flow: Free cash flow (FCF) $278M, 37% FCF margin. - Notable GAAP “surprise”: GAAP net income benefited from a one-time $1.2B valuation allowance release; excluding it, GAAP net income would have been $61M.

Full-year FY26: strong profitable growth with cash generation (good) - Revenue: $2.854B, +12% YoY (slightly above latest guidance). - ARR: $2.55B ARR, +16% YoY. - New logo expansion: +3,000+ new customers; Global 2000 acquisition called out as broad-based. - FCF: $841M, 29% FCF margin → Rule of 40 score 42% (3rd consecutive year above 40). - Bookings vs revenue: TCV bookings grew high-teens, higher than revenue growth—management attributed this partly to server-delivery delays forcing future start dates (revenue recognized when software license starts).

FY27 guidance: growth continues but with supply-chain and restructuring overhangs (mixed) - Q1 FY27 revenue: $755–$765M. - FY27 revenue: $3.18–$3.23B (~+12% YoY at midpoint). - FY27 non-GAAP operating margin: 24–25% (improving vs FY26 midpoint). - FY27 FCF: $850–$950M (midpoint FCF margin ~28%). - Key embedded assumptions: - Server supply constraints persist → moderately higher % of deals with future start dates and phased migrations expected. - Renewal ACV cohort grows YoY but slower than FY26 as renewal base expands. - Restructuring impact: ~5% workforce impacted; non-GAAP ops and FCF reflect $33–$43M of nonrecurring charges (FCF includes cash payouts expected mainly in Q1).