Key Highlights
- NTNX stock climbed 6.1% following fourth-quarter results that exceeded analyst projections
- Quarterly revenue reached $757.1 million, representing a 16% yearly increase and surpassing the $738 million consensus
- Adjusted operating profit totaled $198 million, beating the Street’s $164 million forecast
- The company maintains a strategic alliance with AMD, which acquired $150 million in NTNX shares in early 2025
- Full-year fiscal 2027 revenue outlook of $3.18 to $3.23 billion trails analyst expectations marginally
On August 26, Nutanix delivered impressive fourth-quarter financial results, propelling shares higher by more than 6% during Thursday’s premarket session.
The hybrid cloud infrastructure provider reported quarterly revenue of $757.1 million, marking a 16% increase compared to the year-ago quarter. This figure exceeded the Street’s $738 million projection.
On an adjusted basis, operating profit reached $198 million, significantly outpacing the $164 million consensus estimate from Wall Street analysts.
Prior to the market open, shares changed hands near $69.39. The equity had already appreciated roughly 34% during the preceding three-month period.
KeyBanc analyst Brandon Nispel maintained his Overweight recommendation while lifting his price objective to $79 from a previous $75 target. He noted that bookings growth remains robust and revenue performance should follow suit.
Characterizing the stock as “undervalued amid accelerating expansion,” Nispel highlighted the company’s positive trajectory entering fiscal 2027.
Strategic AMD Alliance Strengthens Investment Case
A significant catalyst behind investor enthusiasm for Nutanix is its collaboration with Advanced Micro Devices. The two technology firms unveiled a partnership in February focused on creating an infrastructure platform tailored for agentic artificial intelligence applications.
Under the terms of this arrangement, AMD committed to acquiring $150 million worth of Nutanix equity while also providing up to $100 million in development capital for the joint platform.
Nutanix’s platform integrates compute resources, data storage, and network infrastructure into a unified system. This architecture enables enterprises to oversee their entire application and data portfolio from a centralized location.
Chief Executive Officer Rajiv Ramaswami characterized fiscal 2026 as a successful period for the organization. The business onboarded over 3,000 first-time customers while deepening collaborations with AMD, Nvidia, Lenovo, and NetApp.
Full fiscal year 2026 annual recurring revenue climbed to $2.55 billion, representing a 16% gain from the prior year’s $2.20 billion.
For the same period, free cash flow totaled $840.7 million, up from $750.2 million recorded in fiscal 2025.
Forward Outlook Falls Modestly Short of Street Estimates
Looking ahead to fiscal 2027, Nutanix projected revenue ranging from $3.18 billion to $3.23 billion. At the midpoint of $3.205 billion, this forecast trails the $3.22 billion analyst consensus by a narrow margin.
For the opening quarter of fiscal 2027, the company anticipates revenue between $755 million and $765 million.
Management also provided guidance for a non-GAAP operating margin of 24% to 25% across the full fiscal year.
The enterprise recently introduced its Model Context Protocol server designed for its cloud platform, engineered to facilitate agentic AI capabilities within hybrid cloud deployments.
Additionally, Nutanix announced broad availability of Nutanix Enterprise AI version 2.8 alongside a fresh collaboration with ChronoScale focused on enterprise-grade AI infrastructure delivery.
The company further confirmed that Dell Private Cloud with PowerStore is now accessible for its cloud infrastructure offering.
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