Key Highlights
- Nutanix stock climbed 6.1% following a solid Q4 earnings performance
- Quarterly revenue reached $757.1 million, reflecting 16% year-over-year growth and surpassing the $738 million consensus
- Adjusted operating profit totaled $198 million, exceeding Wall Street’s $164 million projection
- Strategic collaboration with AMD includes a $150 million stock purchase by the chip giant
- Full-year fiscal 2027 revenue outlook of $3.18-$3.23 billion trails analyst expectations marginally
On August 26, Nutanix delivered impressive fourth-quarter financial results, propelling shares upward by more than 6% during premarket hours on Thursday.
The hybrid cloud infrastructure provider generated $757.1 million in quarterly revenue, marking a 16% increase compared to the year-ago period. This performance exceeded the Street’s consensus forecast of $738 million.
The company’s adjusted operating profit reached $198 million, significantly outpacing the $164 million figure anticipated by market analysts.
In premarket activity, shares traded near $69.39. The stock had already appreciated approximately 34% during the preceding three-month period.
KeyBanc analyst Brandon Nispel maintained his Overweight stance on the shares while lifting his price objective to $79 from $75. He noted robust bookings growth and expressed confidence that revenue expansion will follow suit.
Nispel characterized the equity as “attractively valued amid accelerating growth,” emphasizing the company’s positive trajectory entering fiscal 2027.
AMD Strategic Alliance Strengthens Investment Case
A significant catalyst behind investor enthusiasm for Nutanix stems from its strategic relationship with Advanced Micro Devices. The companies unveiled a partnership in February aimed at constructing an infrastructure platform tailored for agentic AI deployments.
Under the terms of this collaboration, AMD committed to acquiring $150 million worth of Nutanix equity while pledging as much as $100 million in capital to advance platform development.
Nutanix’s technology integrates compute, storage, and networking capabilities into a unified architecture. This approach enables enterprises to oversee their entire application and data ecosystem from a centralized interface.
Chief Executive Rajiv Ramaswami characterized fiscal 2026 as a successful year across the board. The organization onboarded over 3,000 new clients while deepening strategic relationships with AMD, Nvidia, Lenovo, and NetApp.
Annual recurring revenue for fiscal 2026 totaled $2.55 billion, representing 16% growth from the prior year’s $2.20 billion.
Free cash flow for the fiscal period arrived at $840.7 million, improving from $750.2 million in fiscal 2025.
Forward Outlook Falls Marginally Short of Consensus
Looking ahead to fiscal 2027, Nutanix projected revenue in the $3.18 billion to $3.23 billion range. The midpoint of $3.205 billion sits slightly beneath the $3.22 billion analyst consensus.
For the opening quarter of fiscal 2027, the company anticipates revenue between $755 million and $765 million.
Management also provided guidance for a non-GAAP operating margin of 24% to 25% across the full fiscal year.
The company recently introduced its Model Context Protocol server designed for its cloud platform, engineered to facilitate agentic AI deployments across hybrid cloud architectures.
Additional announcements included the general availability of Nutanix Enterprise AI 2.8 alongside a fresh partnership with ChronoScale focused on delivering enterprise-grade AI infrastructure solutions.
Nutanix further disclosed the availability of Dell Private Cloud with PowerStore integration for its cloud infrastructure offering.
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