Nutanix shares rise as Q3 results beat expectations

Published 28/05/2025, 21:32
© Reuters

Investing.com -- Nutanix Inc (NASDAQ:NTNX) saw its shares jump 4% after the hybrid multicloud computing company reported third-quarter earnings and revenue that surpassed analyst estimates.

For the quarter ended April 30, 2025, Nutanix posted adjusted earnings per share of $0.42, beating the consensus forecast of $0.38. Revenue climbed 22% YoY to $639 million, exceeding analyst expectations of $594.44 million.

The company’s strong performance was driven by robust demand for its cloud platform. Annual Recurring Revenue (ARR) grew 18% YoY to $2.14 billion, while the average contract duration increased slightly to 3.1 years.

"We delivered solid third quarter results, above the high end of our guided ranges, driven by the strength of the Nutanix Cloud Platform and demand from businesses looking for a trusted long-term partner," said Rajiv Ramaswami, President and CEO of Nutanix.

Looking ahead, Nutanix provided guidance for the fourth quarter, projecting revenue between $635 million and $645 million, in line with the consensus estimate of $638.94 million. For the full fiscal year 2025, the company expects revenue of $2.52-2.53 billion, slightly above analyst expectations of $2.51 billion.

The company’s non-GAAP operating margin improved significantly, reaching 21.5% compared to 14% in the same quarter last year. Free cash flow more than doubled to $203.4 million from $78.3 million in the prior-year period.

Nutanix also announced several new initiatives at its recent NEXT conference, including support for external storage and partnerships to enhance its AI capabilities.

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