Nutanix, Inc.

What they do

Nutanix sells a unified software platform — the Nutanix Cloud Platform — that combines compute, storage, and networking into a software-defined stack, and manages data across core data centers, edge locations, and public clouds. Its products include Nutanix Cloud Infrastructure (NCI), the AOS scale-out storage technology, and Nutanix AHV, its native hypervisor. The company reports as a single operating segment and sells primarily through channel partners and original equipment manufacturers under a subscription model. Its software runs on a range of qualified server platforms and external storage from partners.

Revenue drivers

• Subscription revenue (term-based licenses and SaaS) — The core of the business: products with associated support and maintenance are sold with a defined duration, and support/maintenance is bundled into subscription fees rather than sold separately.
• Nutanix Cloud Infrastructure (NCI) and AHV — NCI is the distributed HCI product for enterprise IT applications, and AHV is the native hypervisor with built-in Kubernetes support; these are the platform products driving customer adoption and renewals.
• Support and maintenance on non-portable software — Purchases of non-portable software are typically accompanied by a separate support and maintenance purchase, an additional recurring revenue stream alongside subscriptions.
• AI and external storage expansion — Management cites enterprise AI workloads (machine learning, generative AI, agentic AI) and newly extended support for external storage from qualified partners, including Dell PowerStore with NCI 7.6, as growth areas.

Recent performance

For fiscal 2026 ended July 31, 2026, Nutanix reported revenue of $2.85 billion, up 12% year over year from $2.54 billion. Annual Recurring Revenue (ARR) reached $2.55 billion, up 16% year over year, and the company added over 3,000 new customers. Fourth quarter fiscal 2026 revenue was $757.1 million, up 16% year over year, with GAAP operating income of $70.0 million and free cash flow of $277.6 million. Full-year GAAP operating income was $274.0 million and free cash flow was $840.7 million, versus $750.2 million in fiscal 2025. GAAP gross margin for the fourth quarter was 86.0%, down 120 basis points year over year.

Strategy

Nutanix is positioning itself as a hybrid multicloud platform for running applications and AI and managing data anywhere, with a stated vision to simplify distributed apps and data. It has completed a transition from a hardware company to a subscription-based software company and is extending its software to run on a variety of server platforms and external storage from qualified partners. The company is investing in AI-related capabilities, including Nutanix Enterprise AI 2.8 and the Nutanix Kubernetes Platform, and in Project Beacon, a multi-year effort to provide consistent Kubernetes platform management and data-centric services across clouds. It is also building partnerships, including new or enhanced agreements with AMD, Lenovo, NetApp and NVIDIA announced during fiscal 2026. Management states it intends to reduce sales and marketing spend as a percentage of revenue by improving demand generation efficiency and focusing on lower-cost renewals.

Risks

• Competitive market and VMware/Broadcom dynamics — The company's ability to capitalize on Broadcom's acquisition of VMware and related changes to its product portfolio and business model is called out as a risk to its competitive position.
• Sales pipeline and go-to-market execution — Management flags the recent evolution of its sales pipeline and the ability to recruit, train and retain sufficient ramped-up sales personnel as factors that may adversely affect top-line results.
• Macroeconomic, geopolitical and supply chain conditions — The filing cites uncertain global macroeconomic conditions, geopolitical trends, and disruptions or delays in global supply chains as risks to business, results and cash flows.
• Platform interoperability with third parties — The company notes risks tied to the interoperability and availability of its platform and solutions with and on third-party platforms and technologies, and undetected defects in its solutions.

Outlook

For the first quarter of fiscal 2027, management guided revenue of $755 million to $765 million, non-GAAP operating margin of 26% to 28%, and diluted weighted average shares outstanding of approximately 294 million. A full fiscal 2027 outlook was also provided in the results release. Management states it remains focused on delivering sustainable growth and improving profitability.