Nutanix Revenue Reaches $757.1 Million After Two Slower Quarters
Annual recurring revenue stood at $2.55 billion, with year-over-year growth accelerating to 16%.
Nutanix, Inc. (NTNX), a hybrid cloud software company, reported fourth-quarter revenue of $757.1 million, a 16% increase from a year earlier after 10% year-over-year growth in each of the two preceding quarters. Sequential revenue rose from $703.1 million.
The hybrid cloud leader said the quarter was a strong finish to fiscal 2026, a year in which it added more than 3,000 new customers. Chief Executive Rajiv Ramaswami said the company signed new or enhanced agreements with AMD, Lenovo, NetApp and NVIDIA and delivered innovation across its cloud platform, especially with respect to AI and broadening support for external storage.
Annual recurring revenue was $2.55 billion, up 16% from $2.20 billion a year earlier. That year-over-year rate accelerated from 15% in the third quarter, when ARR was $2.43 billion. Average contract duration was 3.3 years, down from 3.4 years in the prior quarter.
Subscription revenue was $719.1 million in the three months ended July 31, 2026, compared with $616.0 million a year earlier. Professional services and other revenue was $38.0 million.
Non-GAAP operating margin expanded to 26.2% from 22.3% in the third quarter, matching the 26.2% level two quarters earlier. Non-GAAP operating income was $198.0 million, up from $156.5 million in the prior quarter. GAAP operating margin was 9.2%, versus 10.0% sequentially. GAAP operating income was $70.0 million.
GAAP gross margin was 86.0% and non-GAAP gross margin was 87.7%, both down from 86.9% and 87.8%, respectively, in the prior quarter. GAAP operating expenses were $581.4 million, up 8% from a year earlier. Non-GAAP operating expenses were $465.6 million, up 2%.
Free cash flow was $277.6 million, up from $197.2 million in the third quarter and $191.4 million two quarters earlier. Net cash provided by operating activities was $315.0 million, up from $207.5 million in the prior quarter.
In the second quarter, Chief Financial Officer Rukmini Sivaraman said supply chain constraints were driving longer server lead times and that the company had factored that dynamic into third-quarter and full-year guidance, with bookings expected to convert to revenue and free cash flow later. The fourth-quarter cash and operating-margin recovery followed that period.
Remaining performance obligations were $3.44 billion as of July 31, 2026, including $1.69 billion current, versus $2.69 billion total and $1.33 billion current a year earlier.
Cash and cash equivalents were $777.3 million, and short-term investments were $1.58 billion. Deferred revenue was $1.25 billion current and $1.18 billion non-current. Convertible senior notes, net, were $1.35 billion.
For the three months ended July 31, 2026, GAAP net income was $1.27 billion, or $4.34 a share on a diluted basis. A $1.21 billion valuation-allowance release related to U.S. deferred tax assets was included among non-GAAP adjustments. Non-GAAP net income was $175.4 million, or $0.60 a share on a diluted basis.
Recent product and partnership announcements included an MCP server for Nutanix Cloud Platform, availability of Dell Private Cloud with PowerStore on NCI 7.6, a strategic partnership with ChronoScale on enterprise AI infrastructure, and general availability of Nutanix Enterprise AI 2.8.
The company guides first-quarter fiscal 2027 revenue of $755 million to $765 million and non-GAAP operating margin of 26% to 28%. For fiscal 2027, it expects revenue of $3.180 billion to $3.230 billion, non-GAAP operating margin of 24% to 25%, and free cash flow of $850 million to $950 million.