Nutanix (NTNX) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue reached $722.8M, up 10% year-over-year, exceeding guidance, with ARR up 16% to $2.36B and strong free cash flow generation.

• Added over 1,000 new customers, marking the strongest quarterly new logo additions in nearly eight years, with the end customer base surpassing 30,000.

• Completed a $300M accelerated share repurchase in Q2 FY26, reflecting confidence in long-term prospects.

• Announced a multi-year strategic partnership with AMD, including a $150M equity investment and up to $100M in R&D and go-to-market funding.

• Supply chain constraints, especially CPU shortages, are delaying hardware procurement and impacting near-term revenue and cash flow timing.

Financial highlights

• Q2 FY26 revenue: $722.8M, up 10% year-over-year, above guidance.

• ARR: $2.36B, up 16% year-over-year.

• Non-GAAP gross margin: 88.6%; GAAP gross margin: 87.4%.

• Non-GAAP operating margin: 26.2%; GAAP operating margin: 11.6%.

• Net income for Q2 FY26: $103M; Non-GAAP net income per diluted share: $0.56; Free cash flow: $191.4M.

Outlook and guidance

• Q3 FY26 guidance: revenue $680M–$690M, non-GAAP operating margin 16%–17%.

• FY26 guidance: revenue $2.8B–$2.84B, non-GAAP operating margin 21%–22%, free cash flow $745M–$775M.

• Bookings expectations for FY26 raised, but revenue and cash flow recognition delayed due to supply chain constraints.

• Free cash flow expected to be more weighted toward Q4.

• Management expects continued investment in sales, marketing, and R&D to support long-term growth.