Cloud computing firm Nutanix's Q1 revenue slightly misses estimates

Overview

• Nutanix fiscal Q1 revenue grows 13% yr/yr but slightly misses analyst expectations

• Adjusted operating income for fiscal Q1 misses analyst estimates

• Company reports 18% increase in annual recurring revenue, indicating strong demand

Outlook

• Company expects Q2 revenue between $705 mln and $715 mln

• Nutanix sees FY 2026 revenue at $2.82 bln to $2.86 bln

• Company raises FY 2026 free cash flow guidance to $800 mln - $840 mln

Result Drivers

• CLOUD PLATFORM DEMAND - Nutanix saw solid demand for its cloud platform, with bookings slightly ahead of expectations, contributing to ARR growth of 18% yr/yr

• REVENUE SHIFT - Some revenue shifted from Q1 into future periods, affecting quarterly revenue, but expected to remain unchanged over time

• PARTNERSHIP EXPANSIONS - Nutanix expanded partnerships with Dell and Microsoft to enhance its cloud platform capabilities

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Nutanix Inc is $89.00, about 34.5% above its November 24 closing price of $58.32

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release: ID:nGNX8hMlvz

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