Nutanix — Financial Results
Revenue Grew 12% to $2.85 Billion, Driven by Both Subscription and Support
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Total Revenue | $2.15B | $2.54B | $2.85B |
| YoY Growth | 15% | 18% | 12% |
| Subscription Revenue | $2.02B | $2.41B | $2.71B |
Nutanix grew total revenue 12% in fiscal 2026, a slight deceleration from 18% the prior year. Nearly all revenue (95%) now comes from subscriptions, reflecting a fully completed transition away from hardware-tied, one-time sales. Both the product and support sides of the business grew, with the customer base expanding about 11% to over 32,000 end customers.
Recurring Revenue (ARR) Crossed $2.5 Billion, Signaling Durable Future Income
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Annual Recurring Revenue | $1.87B | $2.20B | $2.55B |
| Net Dollar-Based Retention Rate | — | 109% | 106% |
Annual recurring revenue (ARR) — the annualized value of all active subscription contracts — grew 16% to $2.55 billion, a useful indicator of predictable future income. However, the net dollar-based retention rate (NRR), which measures how much existing customers are spending versus a year ago, dipped from 109% to 106%. Still above 100%, meaning existing customers are on balance spending more, but the trend is worth watching.
Operating Profitability Improving Steadily, Though Still Modest on a GAAP Basis
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| GAAP Operating Margin | 0.4% | 6.8% | 9.6% |
| Non-GAAP Operating Margin | 16.2% | 21.1% | 23.7% |
| Free Cash Flow | $598M | $750M | $841M |
GAAP operating income (profit after all costs, by standard accounting rules) rose from $172.5 million to $274.0 million, while the non-GAAP figure — which strips out stock-based compensation and other items — reached $675 million. Free cash flow (cash generated after capital spending) grew 12% to $841 million, meaning the business is converting revenue into real cash at a healthy clip. Operating expenses as a percentage of revenue fell from 80% to 77%, showing the company is scaling more efficiently.
A $1.2 Billion Tax Benefit Produced a Massive One-Time Net Income Spike
| Metric | FY2025 | FY2026 |
|---|---|---|
| Net Income | $188M | $1.51B |
| Tax Benefit | ($23M expense) | $1.18B benefit |
Nutanix reported net income of $1.51 billion in fiscal 2026, but this number is heavily distorted by a one-time $1.21 billion valuation allowance release — an accounting event where the company recognized deferred tax assets (future tax savings it had previously been too cautious to count) because it is now consistently profitable. The underlying business profit is real and growing, but this tax gain will not repeat.
Hardware Supply Constraints Are Creating Friction for Customers
Beginning in the second half of fiscal 2026, shortages of certain hardware components at manufacturers led to higher prices and longer delivery wait times across vendors. Since Nutanix software is typically deployed on third-party hardware, delays in hardware availability can push back when customers deploy — and when Nutanix recognizes revenue. To help, Nutanix began allowing customers to purchase software independently of hardware delivery, decoupling the two, but supply chain conditions remain a near-term uncertainty worth monitoring.
AMD Strategic Investment Adds $150 Million and a Notable Partnership Signal
In May 2026, Nutanix sold approximately 4.1 million shares directly to Advanced Micro Devices (AMD) at $36.26 per share, raising $150 million. This type of deal — called a private placement — is typically accompanied by a deeper commercial or technical relationship, though the filing does not detail specific joint commitments. It adds to Nutanix's already substantial liquidity position of roughly $2.36 billion in cash and short-term investments.