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Investing.com -- Nutanix Inc. (NASDAQ:NTNX) reported in-line earnings for its first quarter of fiscal 2026, but shares plunged 13.2% in after-hours trading Tuesday as the cloud computing company’s revenue missed estimates and its guidance fell significantly below analyst expectations.
The hybrid multicloud computing provider reported adjusted earnings of $0.41 per share for the quarter ended October 31, matching analyst estimates. Revenue came in at $670.6 million, up 13% YoY but below the consensus estimate of $676.85 million. The company’s Annual Recurring Revenue (ARR) grew 18% YoY to $2.28 billion.
Nutanix’s stock took a significant hit after the company provided disappointing guidance, forecasting second-quarter revenue of $705-715 million, well below analyst expectations of $748.9 million. For the full fiscal year 2026, Nutanix expects revenue between $2.82-2.86 billion, falling short of the $2.92 billion consensus.
"We saw solid demand for our cloud platform in our first quarter, with bookings that were slightly ahead of our expectations, ARR growth of 18% year-over-year, another healthy quarter of new logo additions, and solid free cash flow performance," said Rajiv Ramaswami, President and CEO of Nutanix.
The company explained that some revenue shifted from Q1 into future periods late in the quarter. "We expect that the revenue over time remains unchanged," said Rukmini Sivaraman, CFO of Nutanix. "We expect this dynamic to continue and have factored it in our Q2 and updated full-year revenue guidance."
Despite the revenue miss, Nutanix raised its free cash flow guidance for the full year to $800-840 million and reported first-quarter free cash flow of $174.5 million, up from $151.9 million a year earlier. The company maintained that its underlying demand and business fundamentals remain unchanged.
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