Key Highlights
- Nutanix stock climbed 6.1% following fourth-quarter results that exceeded market expectations
- Quarterly revenue reached $757.1 million, representing a 16% year-over-year increase and surpassing the $738 million consensus
- The company delivered adjusted operating income of $198 million, significantly above the anticipated $164 million
- A strategic collaboration with AMD includes a $150 million equity investment from the chip maker
- Full-year fiscal 2027 revenue outlook of $3.18 to $3.23 billion landed marginally under Street expectations
Nutanix delivered impressive fourth-quarter financial results on August 26, propelling its shares upward by more than 6% during Thursday’s premarket session.
The enterprise cloud platform provider reported quarterly revenue of $757.1 million, marking a 16% gain compared to the year-ago period. The figure topped analyst projections of $738 million.
On the profitability front, adjusted operating income totaled $198 million, comfortably exceeding the $164 million Wall Street consensus.
In premarket activity, shares changed hands near $69.39. The equity had already appreciated roughly 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 a previous $75. He noted strong bookings momentum and expects revenue growth to follow suit.
Nispel characterized the stock as offering value at current levels while exhibiting accelerating expansion, highlighting the firm’s positive trajectory entering fiscal 2027.
Strategic AMD Alliance Strengthens Investment Case
A key catalyst supporting enthusiasm around Nutanix involves its strategic alliance with Advanced Micro Devices. In February, the companies unveiled plans to jointly develop an infrastructure platform targeting agentic AI workloads.
Under the terms of this arrangement, AMD committed to acquiring $150 million worth of Nutanix equity while pledging up to $100 million in funding to advance the platform’s development.
Nutanix’s software architecture integrates compute resources, storage capabilities, and networking functions into a unified platform. This enables organizations to oversee their complete application and data environments from a centralized interface.
Chief Executive Rajiv Ramaswami characterized fiscal 2026 as a successful year for the company. Nutanix onboarded over 3,000 new enterprise customers while deepening strategic relationships with AMD, Nvidia, Lenovo, and NetApp.
The company’s annual recurring revenue for fiscal year 2026 totaled $2.55 billion, reflecting 16% growth from the prior year’s $2.20 billion.
Free cash flow for the full fiscal year reached $840.7 million, up from $750.2 million generated in fiscal 2025.
Forward Outlook Falls Marginally Short of Consensus
Looking ahead to fiscal 2027, Nutanix projected revenue in the range of $3.18 billion to $3.23 billion. The midpoint of this guidance stands at $3.205 billion, modestly below the analyst consensus of $3.22 billion.
For the first quarter of fiscal 2027, management forecasts revenue between $755 million and $765 million.
The organization also provided non-GAAP operating margin guidance of 24% to 25% for the complete fiscal year.
Nutanix recently unveiled its Model Context Protocol server for its cloud platform, engineered to enable agentic AI capabilities within hybrid cloud architectures.
Additional announcements included the general availability of Nutanix Enterprise AI version 2.8 and a fresh partnership with ChronoScale focused on delivering enterprise-grade AI infrastructure solutions.
Nutanix also disclosed the availability of Dell Private Cloud with PowerStore integration for its cloud infrastructure offering.
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