Description

Nutanix’s $2.84 Billion Guidance Raise: Can Hybrid Cloud Offset Supply-Chain Pain?

Nutanix’s third quarter fiscal year 2026 results demonstrated solid operational execution amid ongoing macroeconomic challenges, particularly supply chain constraints impacting server hardware availability and pricing. The company reported revenue of $703 million, surpassing guidance, and achieved a 15% year-over-year increase in annual recurring revenue (ARR) to $2.435 billion. Net dollar-based retention rate remained steady at 106%, and free cash flow was robust at $197 million, representing a 28% margin. Non-GAAP operating margin improved to 22.3%, above guidance, driven partly by timing of hiring and expenses. The company ended the quarter with over $2 billion in cash and cash equivalents, underscoring a strong balance sheet. Notably, Nutanix added more than 700 new customers, reflecting continued demand for its hybrid cloud and modern IT infrastructure solutions. The supply chain environment remains a significant headwind, causing longer lead times and elevated server prices that pressure customer budgets and delay revenue recognition.