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Investing.com -- Nutanix Inc (NASDAQ:NTNX) reported better-than-expected fourth quarter results on Tuesday, but shares tumbled 6% as investors focused on the company’s first quarter guidance that fell short of expectations at the midpoint.
The hybrid multicloud computing company posted adjusted earnings per share of $0.37, exceeding analyst estimates of $0.33, while revenue rose 19% year-over-year to $653.3 million, surpassing the consensus forecast of $642.19 million. Despite these strong results, the market reacted negatively to Nutanix’s outlook for the current quarter.
For the first quarter of fiscal 2026, Nutanix projected revenue between $670 million and $680 million, with the midpoint of $675 million falling slightly below analyst expectations of $678 million. This cautious guidance overshadowed the company’s full-year outlook, which called for fiscal 2026 revenue of $2.9 billion to $2.94 billion, in line with the consensus estimate of $2.91 billion.
"Our fourth quarter was a good finish to a fiscal year in which we delivered high-teens top line growth and added over 2,700 new customers," said Rajiv Ramaswami, President and CEO of Nutanix. "In fiscal 2025, we also made progress with respect to partnerships, signing new or enhanced agreements with AWS, Pure Storage, NVIDIA and Google."
For the full fiscal year 2025, Nutanix reported an 18% YoY increase in revenue to $2.54 billion, while annual recurring revenue grew 17% to $2.22 billion. The company generated $750.2 million in free cash flow, up from $597.7 million in the previous year.
Non-GAAP operating margin improved significantly, reaching 18.3% in the fourth quarter compared to 12.9% in the same period last year. For fiscal 2025, the non-GAAP operating margin expanded to 21.1% from 16.2% in fiscal 2024.
Nutanix also announced an increase of $350 million to its existing share repurchase program, signaling confidence in its long-term prospects despite the near-term guidance concerns.