Cloud computing firm Nutanix's Q1 revenue slightly misses estimates

Nutanix

25/11/2025 21:12

Overview

Nutanix fiscal Q1 revenue grows 13% yr/yr but slightly misses analyst expectations

Adjusted operating income for fiscal Q1 misses analyst estimates

Company reports 18% increase in annual recurring revenue, indicating strong demand

Outlook

Company expects Q2 revenue between $705 mln and $715 mln

Nutanix sees FY 2026 revenue at $2.82 bln to $2.86 bln

Company raises FY 2026 free cash flow guidance to $800 mln - $840 mln

Result Drivers

CLOUD PLATFORM DEMAND - Nutanix saw solid demand for its cloud platform, with bookings slightly ahead of expectations, contributing to ARR growth of 18% yr/yr

REVENUE SHIFT - Some revenue shifted from Q1 into future periods, affecting quarterly revenue, but expected to remain unchanged over time

PARTNERSHIP EXPANSIONS - Nutanix expanded partnerships with Dell and Microsoft to enhance its cloud platform capabilities

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$670.60 mln
$676.75 mln (12 Analysts)
Q1 Gross Margin
87.00%
Q1 Adjusted Operating Income
Miss
$131.80 mln
$136.34 mln (12 Analysts)
Q1 Adjusted Gross Margin
88.00%
Q1 Adjusted Operating Margin
19.70%
Q1 Annual Recurring Revenue
$2.28 bln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Nutanix Inc is $89.00, about 34.5% above its November 24 closing price of $58.32

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release: ID:nGNX8hMlvz

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)