Nutanix (NTNX) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue reached $722.8M, up 10% year-over-year, with ARR up 16% to $2.36B and net income nearly doubling to $103M.

• Over 1,000 new customers added, marking the best 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.

• Strategic partnership with AMD announced, including a $150M equity investment and up to $100M for R&D and go-to-market initiatives.

• Expanded cloud platform capabilities, including support for sovereign clouds, hybrid multicloud, and AWS Marketplace listing for the U.S. Intelligence Community.

Financial highlights

• Q2 FY26 revenue: $722.8M (up 10% YoY); ARR: $2.36B (up 16% YoY); net income: $103M; free cash flow: $191.4M.

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

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

• Non-GAAP net income per diluted share: $0.56; GAAP EPS: $0.36; non-GAAP EPS: $0.61.

• Cash, equivalents, and short-term investments: $1.874B at Q2 end.

Outlook and guidance

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

• FY26 revenue guidance: $2.80–$2.84B; non-GAAP operating margin: 21–22%; free cash flow: $745–$775M.

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

• Free cash flow in 2H FY26 expected to be more weighted toward Q4.

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