Q4 2026 Nutanix, Inc. Earnings Call Transcript
Key Points
- Nutanix Inc (NTNX) exceeded all guided metrics in Q4 FY2026, with record quarterly revenue of $757 million and strong full-year revenue growth of 12% to $2.85 billion.
- The company saw robust momentum in external storage offerings and Nutanix Cloud Clusters (NC2), which helped mitigate supply chain challenges and drove a sharp quarter-over-quarter increase in bookings.
- Nutanix Inc (NTNX) delivered strong free cash flow of $841 million for FY2026, achieving a 29% margin and a Rule of 40 score of 42% for the third consecutive year.
- Strategic partnerships, including agreements with AMD and Cronos Scale, are expanding the company's AI and neocloud market opportunities, with new capabilities like Nutanix Agent Gateway enhancing its AI portfolio.
- The company reported strong new logo performance, adding over 3,000 customers in FY2026, including several seven-figure ACV deals in Q4, particularly in external storage and NC2.
- Nutanix Inc (NTNX) faces ongoing supply chain challenges, including elevated server prices and extended lead times, which are expected to persist throughout FY2027 and may impact customer project timing and sizing.
- The company's FY2027 revenue guidance of 12% growth at the midpoint reflects a slower growth rate compared to the high-teens TCV bookings growth, due to a higher percentage of orders with future start dates.
- Nutanix Inc (NTNX) announced a restructuring impacting approximately 5% of its global workforce, resulting in $33 million to $43 million in nonrecurring charges, which will weigh on free cash flow in FY2027.
- The renewal ACV cohort is expected to grow at a slower rate in FY2027 compared to FY2026, as the renewal base becomes larger, potentially limiting revenue growth from renewals.
- The company's free cash flow guidance for FY2027 implies a margin of 28% at the midpoint, which is lower than the 29% achieved in FY2026, partly due to increased payment plan flexibility for customers.
Thank you for standing by, and welcome to Nutanix fourth quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. Now it's my pleasure to hand the conference to Rich Valera, Vice President of Investor Relations for Nutanix. Please proceed.
Good afternoon, and welcome to today's conference call to discuss fourth quarter fiscal year 2026 financial results. Joining me today are Rajiv Ramaswami, Nutanix CEO; and Rukmini Sivaraman, Nutanix CFO.
After the market closed today, Nutanix issued a press release announcing fourth quarter fiscal year 2026 financial results. If you'd like to read the release, please visit the press releases section of our IR website. During today's call, management will be making forward-looking statements, including financial guidance.
These forward-looking statements involve risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially
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