Nutanix (NTNX) Q4 2026 earnings summary

Executive summary

• Delivered record Q4 revenue of $757.1M, exceeding guidance, and FY26 revenue of $2.85B, up 12% year-over-year.

• ARR reached $2.55B, growing 16% year-over-year, with over 3,000 new customers added in FY26 and 650 new logos in Q4.

• Free cash flow for FY26 was $841M (29% margin), with Q4 free cash flow at $277.6M; Rule of 40 score exceeded 40 for the third consecutive year.

• Advanced partnerships with AMD, Lenovo, NetApp, and NVIDIA, and delivered innovation in AI, cloud native, and external storage offerings.

• Launched new AI automation tools, expanded storage platform support, and introduced secure AI automation protocols.

Financial highlights

• Q4 non-GAAP gross margin was 87.7%; non-GAAP operating margin was 26.2%, above guidance.

• Q4 non-GAAP net income was $175M (EPS $0.60); GAAP net income was $1.27B (EPS $4.34), including a $1.2B one-time tax benefit.

• FY26 non-GAAP net income was $597M (EPS $2.04); GAAP net income was $1.51B (EPS $5.17), with $299M (EPS $1.04) excluding the tax benefit.

• Ended Q4 with $2.36B in cash, equivalents, and short-term investments; FY26 ended with $777M in cash and cash equivalents.

• Q4 FY26 free cash flow was $277.6M; FY26 free cash flow $840.7M.

Outlook and guidance

• FY27 revenue guidance: $3.18B–$3.23B (12% growth at midpoint); non-GAAP operating margin: 24%–25%; free cash flow: $850M–$950M (28% margin at midpoint).

• Q1 FY27 revenue guidance: $755M–$765M; non-GAAP operating margin: 26%–28%.

• Guidance assumes continued server supply constraints, higher percentage of orders with future start dates, and restructuring charges of $33M–$43M, with most savings reinvested in growth areas.

• Plans to reinvest restructuring savings into AI, cloud-native offerings, sales expansion, and digital sovereignty.