Description
Nutanix’s Pivotal Shift — Dell, NetApp And External Storage Open New Growth Paths!
Nutanix Inc. reported its fourth quarter and full fiscal year 2026 financial results, demonstrating stronger-than-expected top-line growth amid ongoing supply chain constraints and macroeconomic uncertainty. The company posted Q4 revenue of $757 million, surpassing guidance, with a year-over-year annual recurring revenue (ARR) growth of 16% reaching $2.55 billion, and a net dollar retention rate (NRR) of 106%, stable from the prior quarter. Fiscal year 2026 revenue totaled $2.85 billion, growing 12% year-over-year, outpacing previous guidance. Non-GAAP gross margin remained robust at 88%, with operating margin improving to 23.7%, supported by controlled operating expenses and higher revenue. Free cash flow for FY26 was $841 million, yielding a 29% free cash flow margin, contributing to a Rule of 40 score above 40 for the third consecutive year. GAAP net income was notably impacted by a one-time $1.2 billion valuation allowance release related to U.S. deferred tax assets, which inflated reported earnings.
