Nutanix (NTNX) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue reached $670.6 million, up 13% year-over-year, with ARR growing 18% to $2.284 billion and bookings slightly ahead of expectations.

• Free cash flow for Q1 was $174.5 million, up 15% year-over-year, and net income rose to $62.1 million.

• Customer base expanded to nearly 30,000, driven by strong new logo additions and healthy partner progress.

• Recognized as a Leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure and announced expanded partnerships with Dell and Microsoft.

• Added Greg Lavender, former Intel CTO, to the board of directors.

Financial highlights

• Q1 non-GAAP gross margin was 88.0%; non-GAAP operating margin was 19.7%.

• Non-GAAP net income was $121 million (EPS $0.41); GAAP net income was $62.1 million (EPS $0.21).

• Free cash flow was $174.5 million, with a margin of 26%.

• Cash, equivalents, and short-term investments totaled $2.062 billion at quarter-end.

• Repurchased $50 million in stock and used $89 million to retire shares for employee RSU tax liabilities.

Outlook and guidance

• Q2 FY26 revenue guidance: $705–$715 million; non-GAAP operating margin: 20.5%–21.5%.

• FY26 revenue guidance: $2.82–$2.86 billion (12% YoY growth at midpoint); non-GAAP operating margin: 21%–22%.

• FY26 free cash flow guidance raised to $800–$840 million (28.9% margin at midpoint).

• Bookings growth expectations for the year remain unchanged, but more revenue is expected to shift into future periods due to flexible license start dates and OEM partner business.

• Seasonality expected to mirror prior year, with a slightly higher second-half revenue mix.