Nutanix (NTNX) Q3 2026 earnings summary

Executive summary

• Achieved Q3 FY26 revenue of $703.1 million, up 10% year-over-year, with 15% ARR growth to $2.43 billion and strong free cash flow generation.

• Exceeded all guided metrics for Q3 FY26 and raised full-year guidance, driven by robust bookings, new customer additions, and healthy demand across sectors.

• Announced major innovations in AI, modern applications, and strategic partnerships, including with NetApp, Lenovo, and AMD.

• Increased share repurchase authorization by $750 million, with $50 million repurchased in Q3.

• Continued transition to a subscription-based business model, with subscription revenue comprising the majority of total revenue.

Financial highlights

• Q3 FY26 revenue reached $703.1 million, above guidance of $680–$690 million, with ARR at $2.43 billion, up 15% year-over-year.

• Non-GAAP gross margin was 87.8%; non-GAAP operating margin was 22.3%, above guidance.

• Net income for Q3 FY26 was $72.1 million (GAAP), with non-GAAP net income per diluted share of $0.47.

• Free cash flow for Q3 FY26 was $197.2 million, with a margin of 28%.

• Cash, equivalents, and short-term investments totaled $2.018 billion at quarter-end.

Outlook and guidance

• Q4 FY26 revenue guidance: $725–$745 million; non-GAAP operating margin: 21–23%.

• Full-year FY26 revenue guidance raised to $2.82–$2.84 billion; non-GAAP operating margin ~22.5%; free cash flow: $760–$780 million.

• Guidance reflects higher TCV bookings expectations and continued supply chain constraints impacting revenue timing.

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

• Cash, investments, and available credit expected to be sufficient for at least the next 12 months.