San Jose, August 26, 2026, 17:35 (EDT)
- Nutanix was up 7.2% at $70.10 in after-hours trading as of 17:22 EDT.
- Revenue for the quarter climbed 16% to $757.1 million, surpassing the consensus estimate by $18.8 million.
- The midpoint of fiscal-2027 revenue guidance suggests growth of approximately 12.5%.
- The rise after trading hours increased the company’s equity value by about $1.27 billion.
Nutanix Inc. (NASDAQ:NTNX) shares rose 7.2% in after-hours trading on Wednesday. The hybrid-cloud firm surpassed analyst forecasts for both revenue and profit in the quarter.
The action pushed shares to $70.10 as of 17:22 EDT. The rise increased its market value by approximately $1.27 billion, based on 270.32 million shares outstanding after-hours quote and share count.
This increase amounts to about 1.5 times Nutanix’s projected free cash flow for fiscal 2026. Investors, as a result, paid a premium for signs that growth and profitability are achievable together.
Revenue for the fourth quarter rose 16% to $757.1 million, surpassing the consensus estimate of $738.3 million by $18.8 million earnings estimates.
Adjusted earnings came in at $0.60 per share, above analysts’ forecast of $0.49.
The more distinct indicator came from profitability. Non-GAAP operating margin jumped 790 basis points to reach 26.2%. Free cash flow climbed 34% to $277.6 million company results.
| Metric | Q4 FY2026 | Q4 FY2025 | Change |
|---|---|---|---|
| Revenue | $757.1 million | $653.3 million | +16% |
| Annual recurring revenue | $2.55 billion | $2.20 billion | +16% |
| Non-GAAP operating margin | 26.2% | 18.3% | up 790 basis points |
| Free cash flow | $277.6 million | $207.8 million | increased 34% |
Chief Executive Rajiv Ramaswami described the quarter as a “strong finish to fiscal 2026.” Over the year, Nutanix gained more than 3,000 new customers.
Annual recurring revenue increased by 16% to $2.55 billion, keeping pace with quarterly sales growth and maintaining transparency on subscription demand.
Nutanix projected its fiscal-2027 revenue in the range of $3.18 billion to $3.23 billion. The midpoint, $3.205 billion, signals a 12.5% increase over fiscal 2026.
The company anticipates a non-GAAP operating margin between 24% and 25%. Projected free cash flow is expected to be in the range of $850 million to $950 million.
The implied equity value reached roughly $18.95 billion at $70.10, representing 5.9 times projected midpoint revenue for fiscal-2027 and 21.1 times the midpoint for free cash flow.
Wall Street was split on valuation ahead of the report. The Moderate Buy consensus came from eighteen analysts, with an average target price of $64.21 analyst recommendations.
UBS increased its target to $80 ahead of earnings, and Rosenblatt established a $75 target.
In fiscal 2026, Nutanix broadened its collaborations with AMD, Lenovo, NetApp and Nvidia. The expanded partnerships increase distribution channels for its cloud platform.
Risks: Adjusted gross margin decreased by 60 basis points. Server supply shortages may postpone deployments, affecting revenue and cash flow. Trading outside regular hours is less liquid compared to standard trading sessions.
The focus now shifts to first-quarter performance. The company projects revenue between $755 million and $765 million, with an adjusted operating margin forecast of 26% to 28%.
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