Earnings call transcript: Nutanix surpasses Q4 2025 earnings expectations

Nutanix Inc. (NTNX), a cloud computing company with a market capitalization of $18.71 billion and a "GOOD" Financial Health score according to InvestingPro, reported its fourth-quarter earnings for 2025, exceeding Wall Street expectations with an earnings per share (EPS) of $0.37, compared to the forecasted $0.33. The company’s revenue also surpassed predictions, reaching $653 million against an anticipated $642.19 million. Following the announcement, Nutanix shares rose by 2.2% in after-hours trading, reflecting investor confidence in the company’s performance and future prospects.

Key Takeaways

• Nutanix’s Q4 revenue grew 19% year-over-year, reaching $653 million.
• The company achieved an EPS of $0.37, beating the forecast by 12.12%.
• Nutanix shares increased by 2.2% in after-hours trading.
• The company added 2,700 new customers, including over 50 Global 2,000 accounts.
• Nutanix’s full-year revenue was $2.54 billion, marking an 18% increase from the previous year.

Company Performance

Nutanix demonstrated robust growth in the fourth quarter of 2025, with revenue increasing by 19% year-over-year, building on its impressive 16.11% growth over the last twelve months. This growth was driven by strong customer acquisition and expanded product offerings, supported by the company’s outstanding gross profit margin of 86.37%. The company added 2,700 new customers, including over 50 Global 2,000 accounts, highlighting its appeal to large enterprises. Nutanix’s annual recurring revenue (ARR) rose to $2.223 billion, up 17% from the previous year, and the company maintained a healthy free cash flow of $750 million, representing a 30% margin.

Financial Highlights

• Revenue: $653 million, up 19% year-over-year
• Full Year Revenue: $2.54 billion, up 18% year-over-year
• Earnings per share: $0.37, exceeding forecast by 12.12%
• Free Cash Flow: $750 million, with a 30% margin
• Net Dollar Retention Rate: 108%

Earnings vs. Forecast

Nutanix’s actual EPS of $0.37 surpassed the forecasted $0.33 by 12.12%, while revenue of $653 million exceeded expectations by 1.73%. This marks a significant earnings surprise, reflecting the company’s effective strategies and strong market positioning.

Market Reaction

Following the earnings announcement, Nutanix shares rose by 2.2% in after-hours trading, closing at $69.82. This positive movement reflects investor optimism, supported by the company’s strong financial performance and strategic initiatives. With analyst price targets ranging from $78 to $95 and a relatively low beta of 0.71, indicating lower volatility than the market average, the stock shows promising stability. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with 12 additional ProTips available to subscribers.

Outlook & Guidance

Looking ahead, Nutanix provided a revenue guidance of $2.90 to $2.94 billion for fiscal year 2026, representing a 15% growth at the midpoint. The company anticipates a non-GAAP operating margin of 21-22% and free cash flow between $790 million and $830 million. Nutanix expects to continue acquiring 400-500 new logos per quarter, despite a slight decline in average contract duration.

Executive Commentary

CEO Rajeev Ramaswamy highlighted the company’s early-stage enterprise AI adoption, stating, "We are in the early innings of AI inferencing adoption in the enterprise." He also emphasized the significant opportunity in replacing VMware customers, noting, "The vast majority of the [VMware replacement] opportunity is still in front of us." CFO Rukmini Sivaraman reiterated the company’s commitment to providing accurate guidance, saying, "Our guidance philosophy in general hasn’t changed in that we try to give you our best and reasonable estimate of how the year would play out at this point in time."

Risks and Challenges

• Macro environment uncertainties could impact spending and growth.
• Potential challenges in expanding partnerships with Dell PowerFlex and Pure Storage.
• Competition in the AI and hybrid infrastructure markets remains intense.
• Changes in federal government spending could affect revenue streams.
• Slight decline in average contract duration may impact long-term revenue stability.

Q&A

During the earnings call, analysts inquired about Nutanix’s partnership strategies with PowerFlex and Pure Storage. The company addressed concerns over macroeconomic uncertainties and federal government spending, explaining its methodology for calculating ARR and NRR. Nutanix also discussed its pricing approach and strategies for customer expansion, emphasizing its focus on maintaining competitive positioning in the market.

Full transcript - Nutanix Inc (NTNX) Q4 2025:

Conference Operator: Day, and thank you for standing by. Welcome to Nutanix Fourth Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Please be advised that today’s conference is being recorded.

I would now like to turn the conference over to Rich Farrar, Nutanix’s Vice President of Investor Relations. Please go ahead.

Rich Farrar, Vice President of Investor Relations, Nutanix: Good afternoon, and welcome to today’s conference call to discuss Nutanix’s fourth quarter and fiscal year twenty twenty five financial results. Joining me today are Rajeev Ramaswamy, Nutanix’s President and CEO and Rukmini Sivaraman, Nutanix’s CFO. After the market closed today, Nutanix issued a press release announcing fourth quarter and fiscal year twenty twenty five financial results. If you’d like to read the release, please visit the Press Releases section of our IR website. During today’s call, management will make forward looking statements, including financial guidance.

These forward looking statements involve risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially and adversely from those anticipated by these statements. For a more detailed description of these and other risks and uncertainties, please refer to our SEC filings, including our most recent annual report on Form 10 ks and our subsequent quarterly reports on Form 10 Q as well as our earnings press release issued today. These forward looking statements apply as of today, and we undertake no obligation to revise these statements after this call. As a result, you should not rely on them as predictions of future events. Please note, unless otherwise specifically referenced, all financial measures we use on today’s call, except for revenue, are expressed on a non GAAP basis and have been adjusted to exclude certain charges.

We have provided to the extent available reconciliations of these non GAAP financial measures to GAAP financial measures on our IR website and in our earnings press release. Lieutenants will be participating in the Goldman Sachs Communicopia and Technology Conference in San Francisco on September 8 and the Piper Sandler Growth Frontiers Conference in Nashville on September 10. We hope to see you at these events. We’re also happy to announce that Nutanix will be holding an Investor Day on 04/07/2026 in Chicago in conjunction with our annual .NEXT customer event. So please mark your calendars if you’re interested in attending.

Finally, our first quarter fiscal twenty twenty six quiet period will begin on Monday, October 20. And with that, I’ll turn the call over to Rajiv. Rajiv?

Rajeev Ramaswamy, President and CEO, Nutanix: Thank you, Rich, and good afternoon, everyone. Our fourth quarter was a solid finish to our 2025 fiscal year. In the fourth quarter, we are happy to have exceeded all of our guided metrics. We delivered quarterly revenue of $653,000,000 up 19% year over year and saw another quarter of strong free cash flow generation. Our full year fiscal twenty twenty five results demonstrated good progress on a number of fronts.

Financially, we delivered solid top line performance, including revenue of $2,540,000,000 up 18% year over year and ARR of $2,220,000,000 which increased 17% year over year. We also saw strong new logo performance across all of our customer tiers, including the Global two thousand, adding over 2,700 new customers, our highest in four years. And finally, we generated free cash flow of $750,000,000 an increase of 26% year over year, yielding a free cash flow margin of 30%. This drove a Rule of 40 score of 48 for the fiscal year, our second year in a row above 40. In FY ’25, we also saw tangible progress on the product and partnership front.

We enhanced the Gen AI capabilities of our platform with the release of GPT in a box two point zero and delivered an enhanced version of Nutanix Enterprise AI that includes a deeper integration with NVIDIA AI Enterprise. We also extended the hybrid multi cloud capabilities of our platform by adding support for Google Cloud, which is now in public preview. Finally, we made progress on a strategic decision to enable customers to utilize their existing external storage hardware. The Nutanix cloud platform now supports both HCI and external storage. And we delivered our first version of this new capability supporting Dell PowerFlex.

We also announced a new partnership with Pure Storage to support their flash array. This offering recently entered early access and remains on track to be generally available by the end of this calendar year. We achieved important industry recognition in the last year, including being named a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure. Last month, we were recognized as a challenger in the 2025 Gartner Magic Quadrant for container management

Conference Operator: and

Rajeev Ramaswamy, President and CEO, Nutanix: as a leader in the Forrester Wave multi cloud container platforms Q3 twenty twenty five. Our most significant wins in the quarter demonstrated the appeal of the Nutanix cloud platform to organizations that are looking for a trusted long term partner in the wake of industry m and a, and to those looking for a platform to seamlessly run both traditional and modern applications. We also saw some initial successes with our cloud platform that supports Dell PowerFix. One of our significant wins in q four was with Finance Informatic or FI, the digitalization partner and central IT service provider for Germany’s Savings Bank Financial Group, serving around 50,000,000 customers in Germany. This is a great example of a win that was motivated by a customer’s desire for a trusted long term partner.

As part of our strategic collaboration, FI plans to migrate their Windows and Linux workloads to the Nutanix platform over the next two years. In our joint press release, FI noted that their decision making criteria for choosing Nutanix included the security, availability and cost effectiveness of the solution as well as a partnership based on trust, intensive exchange and active participation on their part. We are grateful for FI’s trust in us and look forward to a long and productive partnership. Another one of our most significant deals in the quarter was a full stack expansion with a global provider of financial services. This customer was looking to make their private cloud more secure and cost effective with increased automation, standardization, and simplification, and wanted a platform to run their modern applications.

They significantly increased their commitment to Nutanix, both expanding their footprint and adopting additional elements of our cloud platform, including Nutanix Cloud Manager, Nutanix Kubernetes platform to run their modern applications, Nutanix Unified Storage for their unstructured data management needs, and our data lens security offering. This quarter, we also saw our first wins for our cloud platform supporting Dell PowerFlex. This included deals with two North American based global 2,000 companies, one a financial services provider and one a medical equipment provider. In both cases, the customers were looking to modernize their private cloud infrastructure while managing potential risks associated with industry m and a, but wanted to preserve their existing investments in external storage. They both adopted the Nutanix cloud platform with support for Dell PowerFlex, enabling them to achieve these objectives.

While it’s still early days with this new offering, we are encouraged by these initial wins and the broader level of customer interest. In closing, I am pleased with our solid Q4 and fiscal twenty twenty five results and the progress we continue to make on multiple fronts, including our financial model, our partnerships and our ongoing innovation across our cloud platform, including modern applications and AI. We also remain focused on capitalizing on a multi year opportunity to gain share in the face of recent industry disruption and are encouraged by our early successes, including some of the wins I’ve just highlighted. Finally, I would like to express my sincere gratitude to our investors, customers and partners for their trust in us and to our employees for their hard work that led to these results. And with that, I’ll hand it over to Rukmini Sivaraman.

Rukmini?

Rukmini Sivaraman, CFO, Nutanix: Thank you, Rajiv, and thank you everyone for joining us today. I will first discuss our Q4 twenty twenty five results, followed by full fiscal year twenty twenty five results, Q1 twenty twenty six guidance, and finally, our initial fiscal year twenty twenty six guidance. Results in Q4 twenty twenty five were above the high end of our guidance range across all guided metrics. In Q4, we reported quarterly revenue of $653,000,000 higher than the guided range of $635,000,000 to $645,000,000 representing a year over year growth rate of 19%. ARR at the end of Q4 was $2,223,000,000 representing year over year growth of 17%.

NRR or net dollar based retention rate at the end of Q4 was 108%. In Q4, average contract duration was three point two years, slightly higher than our expectations and up slightly quarter over quarter due to a few transactions of longer than average duration. Non GAAP gross margin in Q4 was 88.3%. Non GAAP operating margin in Q4 was 18%, higher than our guided range of 15.5% to 16.5% due to higher gross margins and lower operating expenses than expected. Non GAAP net income in Q4 was $109,000,000 or fully diluted EPS of $0.37 per share based on fully diluted weighted average shares outstanding of approximately $297,000,000 shares.

GAAP net income and fully diluted GAAP EPS in Q4 were $39,000,000 and $0.13 per share, respectively. Free cash flow in Q4 was $2.00 $8,000,000 representing a free cash flow margin of 32%. Moving to the balance sheet, we ended Q4 with cash, cash equivalents and short term investments of $1,993,000,000 up from $1,882,000,000 at the end of Q3. Moving to capital allocation. In Q4, we repurchased $50,000,000 worth of common stock under our existing share repurchase authorization and used about $44,000,000 of cash to retire shares related to our employees’ tax liability for their quarterly RSU vesting.

Both of these help to manage share dilution. Moving to a summary of our results for the full fiscal year 2025. Fiscal year twenty twenty five revenue was $2,538,000,000 higher than the most recent guidance of $2,520,000,000 to $2,530,000,000 and representing a year over year growth rate of 18%. Fiscal year twenty twenty five ending ARR, as mentioned earlier, was $2,223,000,000 representing year over year growth of 17%. We continue to see strength in landing new customers, and we are grateful for the over 2,700 customers who joined our platform this year.

This included organizations of various sizes and across several industry verticals and included over 50 Global 2,000 accounts, a meaningful increase year over year. In fiscal year twenty twenty five, we saw a nice increase in the number of $1,000,000 plus land and expand ACV transactions, more than a 60% increase in fiscal year twenty twenty five relative to fiscal year twenty twenty four, while still remaining a minority of our overall land and expand ACV. For the full year, average contract duration was three point one years, higher than last year’s average contract duration of three years and higher than our expectations. Non GAAP gross margin in fiscal year twenty twenty five was 88.1%, a year over year increase of 140 basis points and which is among industry leading software gross margins. As mentioned in prior calls, gross margins could move around slightly depending on the mix of professional services revenue in a given period.

Non GAAP operating margin in fiscal year twenty twenty five was 21.1%, higher than our most recent guidance of approximately 20.5% and a year over year increase of approximately five percentage points. Non GAAP net income in fiscal year twenty twenty five was $476,000,000 or fully diluted EPS of $1.62 per share based on fully diluted weighted average shares outstanding of approximately $294,000,000 shares. GAAP net income and fully diluted GAAP EPS in fiscal year twenty twenty five were $188,000,000 and $0.65 per share, respectively, representing our first full year of positive GAAP net income. Free cash flow in fiscal year twenty twenty five was $750,000,000 representing a free cash flow margin of 30%. In fiscal year twenty twenty five, our Rule of 40 score, defined as revenue growth rate plus free cash flow margin, was a healthy 48%, reflecting our continued focus on sustainable, profitable growth, driving durable top line growth with improving bottom line margins.

In fiscal year twenty twenty five, we strengthened our balance sheet with the net proceeds from the issuance of $862,500,000 in convertible debt and enhanced our financial flexibility with our inaugural $500,000,000 revolving credit facility. Moving to guidance. Our Q1 twenty twenty six guidance is as follows: revenue of $670,000,000 to $680,000,000 non GAAP operating margin of 19.5% to 20.5% fully diluted weighted average shares outstanding of approximately $296,000,000 shares. Moving to the full year, our initial fiscal year 2026 guidance is as follows: revenue of $2,900,000,000 to $2,940,000,000 representing a year over year growth rate of 15% at the midpoint of the range non GAAP operating margin of 21% to 22%, an increase from fiscal year twenty twenty five at the midpoint free cash flow of $790,000,000 to $830,000,000 representing a free cash flow margin of 27.7% at the midpoint. I will now provide several points of commentary regarding our fiscal year twenty

Rajeev Ramaswamy, President and CEO, Nutanix: twenty six

Rukmini Sivaraman, CFO, Nutanix: guidance. One, we expect to continue landing new customers onto our platform at a rate of approximately mid to high three digits of new logos a quarter in fiscal year twenty twenty six. We also expect some continued uncertainty in the overall macro environment, including in areas such as U. S. Federal government spending and with regard to currency fluctuations.

Two, we expect the renewals ACV cohort or the available to renew pool in fiscal year twenty twenty six to grow year over year, but at a slower pace than in fiscal year twenty twenty five as the overall renewals base gets larger over time. Three, the guidance assumes a slight year over year decline in aggregate average contract duration, because we saw some larger contracts with longer than average duration in fiscal year ’twenty five that may not recur in fiscal year ’twenty six. Four, as we have discussed previously, the vast majority of our customers have licenses provisioned upfront and also pay us multiple years of cash upfront upon purchase. In certain cases, typically larger transactions, we may provision licenses over a period of time rather than all upfront, and or collect cash over time rather than all upfront. Such situations may impact timing of revenue and cash collection and are factored into the guidance we provided.

Five, as Rajeev mentioned, in Q4, we saw our first customer transactions for our cloud platform supporting Dell PowerFlex. We expect this solution to have a small but growing contribution to fiscal year twenty twenty six revenue. We also expect the land and expand ACV contributions from our partners such as Cisco and Dell to grow year over year into fiscal year twenty twenty six. Sixth, with regard to operating expenses, in addition to the annualized run rate of employees we hired during the course of fiscal year twenty twenty five that we have discussed in prior calls, we have some delayed hiring from fiscal year twenty twenty five, which we expect to be approximately $25,000,000 expenses in fiscal year twenty twenty six. Additionally, in prior earnings calls, we have also referenced some nonrecurring partner payments, which are accounted for as contra expense in the R and D line.

These payments are expected to start to taper off in fiscal year twenty twenty six, and we expect this to cause an approximately 10,000,000 to $15,000,000 headwind to operating expenses in fiscal year twenty twenty six. A couple of other notes as we start a new fiscal year. Starting next quarter, that is Q1 twenty twenty six, we are proactively updating our methodology for calculating ARR on a prospective basis to align it more closely with the timing of when licenses are made available to customers. NRR will also align with this updated methodology going forward. While this change will take effect next quarter, we have provided an illustrative historical table in the appendix of our earnings presentation that shows what ARR and NRR would have been under the new methodology for the relevant historical periods for comparison purposes.

The table shows that ARR in any given period would have deferred by no more than 2% under the new methodology. We believe it was important to make this change at the start of a new fiscal year, And as it is possible, we see more large customers looking for deferred license provisioning over time. And finally, from a capital allocation perspective, we announced today that our Board of Directors has approved a $350,000,000 increase to our existing share repurchase authorization, which is in addition to the $111,000,000 remaining under the prior authorization as of 07/31/2025. There is no expiration date for these authorizations, and we intend to continue repurchasing shares over time to manage share count dilution. In closing, we are pleased with our performance in fiscal year twenty twenty five, exceeding the high end of the guidance across all guided metrics.

We look forward to continued progress in fiscal year twenty twenty six. With that, operator, please open the line for questions.

Conference Operator: Thank you. We also ask that due to time restraints, please limit yourself to one question and one follow-up And the first question today is coming from the line of Jason Adler of William Blair. Your line is open.

Jason Adler, Analyst, William Blair: Yes, thank you. Can you talk about the FI win and just the size of the deal? And I don’t know any other kind of opportunities like that out there? Is this kind of a one off? Or do you feel like there’s others that

Analyst: you have in

Jason Adler, Analyst, William Blair: the hopper that you’ll be able to talk about over the next year or so?

Rajeev Ramaswamy, President and CEO, Nutanix: Yes. Hi, Jason. Bativ here. So if I you know, if you look at the dynamics in Germany, you know, the German population is about 80,000,000 and about 15 f I has about 15,000,000 customers, right, who bank with the German savings banks. And that’s why it provides the IT infrastructure for all those banks in a central manner.

And so for us, this was quite a significant win, you know, fairly large size win as they’re looking to migrate from their existing infrastructure onto Nutanix, and it’s a very long term partnership. It’s an example of a significant deal. We haven’t quantified the size of the deal, but you can imagine that it’s a it’s a significant multiyear deal. Now at any point in time, I mean, Rukmini talked about the fact that, you know, over the last year, we added 15 new global 2,000 customers. So those are the larger end of the customer base.

And at any point in time, you know, we have these like these in the pipeline, but larger deals tend to be a bit more unpredictable in terms of when and how they’re gonna turn out. So, certainly, I mean, we have interest from all ends of the spectrum, and there are, you know, other customers with with larger deals. But, again, it’s hard to predict how and when these will come out. But F5 was a very good example of what we would consider to be a very marquee win for us in Germany.

Jason Adler, Analyst, William Blair: Okay, great. And then one for a quick one

Analyst: for

Jason Adler, Analyst, William Blair: Rukmini. NRR was down a couple of points sequentially. And just maybe you can give us some explanation for that.

Rukmini Sivaraman, CFO, Nutanix: Sure. Hi, Jason. So on the NRR question, we remain focused on driving our expansion business with incremental investments and customer success to help drive retention and expansion in addition to the continued focus that we’ve had on our expansion vectors, namely portfolio attach and workload expansion. One other point to make on this is that our NRR and net new ARR, actually I know your question was on NRR, Jason. But both NRR and net new ARR in any given quarter can be affected by the net impact of ARR contributions from deals that are booked in prior quarters and are credited in the current quarter, and ARR that’s booked in the current quarter but deferred to future periods.

And so there’s a net effect there. And in q four, this dynamic was a net headwind to both our NRR and to net new ARR. And so we expect that such variations could continue going forward. Two other points I’ll make. One is that we’ve seen the average deal size of our new logos increasing over the last few years, which can also potentially be a headwind for the growth rate of expansion within those customers because their initial deal size has has been larger than it has been historically for us.

And then the last point is around more of a numerical kinda law law of large numbers point, which is that as ARR has grown every quarter for us, the ACV dollars required to offset a point of churn increases even at the same churn percentage, which could make it increasingly challenging to achieve the same ARR over time. So a few different dynamics there. And because of those, NRR could still move around somewhat from quarter to quarter, Jason.

Jason Adler, Analyst, William Blair: Thank you. Good luck.

Rukmini Sivaraman, CFO, Nutanix: Thank you.

Conference Operator: Thank you. And our next question will be coming from the line of Meta Marshall of Morgan Stanley. Your line is open.

Meta Marshall, Analyst, Morgan Stanley: Great, thanks. And congrats on the quarter. I guess just as you have a start seeing some of these Dell PowerFlex deals, if you could just give a sense of how we should think of those customers kind of in relation to kind of the more traditional Nutanix customers? And just as we could kind of get any visibility into what the customers looking at Pure Storage’s early access are like versus maybe the Dell PowerFlex customers? And maybe just as a second question, understanding you were kind of talking about more conservatism on the public sector within the guide, but just any kind of more updated commentary on what you’re seeing with the federal government?

Thanks.

Rajeev Ramaswamy, President and CEO, Nutanix: Yeah. Maybe I’ll take the give you some color on this, Meta. Dell PowerFlex is what I would consider to be a solution for the top end of the pyramid. Their customers tend to be, you know, relatively small customer base, but at the very top of the pyramid in terms of big companies. And you you saw that the first two wins that we had were both global 2,000 customers, very large customers.

And so the the customer base tends to be concentrated. These tend to be large customers, and they have significant deployments in their estate. And so for us, it’s a an opportunity for us to land in these accounts and then expand over time. And I was quite happy that we were able to land in two of these fairly quickly after we actually got the product out in in the last quarter. So I do expect that the PowerFlex business will continue.

We will get more wins over the year. With Pure, of course, the their footprint is a bit broader than PowerFlex out there. It’s still early days for us because the solution is not out there. We are in early access now. What that means is that there’ll be a handful of customers who will have access, and they’ll be testing our beta code.

And we expect to be the solution to be available at the end of the calendar year. So we, you know, we could potentially see some small amount of revenue from that over the next, you know, back half of the year. And so both solutions, I think, will be relatively small this year, but having a growing contribution over time to our f I two twenty six revenue and beyond.

Rukmini Sivaraman, CFO, Nutanix: And I take the question on the US Fed. So, Meta, with respect to the US Fed business, while we had a good fourth quarter for US Fed, some of the personnel changes and the additional reviews that we have seen in the US Fed seem to continue and have resulted in longer deal cycles and some increased variability overall in that particular vertical for us. However, as we’ve said before, you know, we remain optimistic on the opportunity for that business to benefit from our platform’s focus on modernization and lowering TCO overall. And as a reminder, we don’t report U. S.

Federal as a percent of our business, but we’ve said previously that over the last few fiscal years, Fed has been the U. S. Fed specifically has been 10 or less of our annual revenue, with seasonal strength in fiscal Q1, which of course is the Fed’s fiscal year end. And we have factored in all of this and some of the overall uncertainty into our Q1 and overall fiscal year 2026 guidance.

Meta Marshall, Analyst, Morgan Stanley: Great. Thank you.

Rukmini Sivaraman, CFO, Nutanix: Thanks, Meta.

Conference Operator: Thank you. One moment, please. Our next question will be coming from the line of Matt Martino of Goldman Sachs. Your line is open.

Matt Martino, Analyst, Goldman Sachs: Yeah. Thanks for taking my question guys. Two for me if I could. Rajeev for you, GPT in a box has been in the market for about two years now. You introduced some new capabilities at Next twenty five.

I’m curious where you think we are in terms of enterprise AI maturity and whether we’re getting closer to an inflection point that can start to benefit Nutanix? And then, Rukmini for you, it sounds like there are some revenue timing dynamics associated with some of these larger deals that Nutanix is landing. Can you help us understand how you may be derisking the multiyear deal activation piece? And how much visibility you have into this dynamic heading into 2026?

Rajeev Ramaswamy, President and CEO, Nutanix: Yeah. And and, Matt, welcome to a conference call here. Believe this is the first one with us. And so on DPT in the Box 2.o. So we the 2.0 version became generally available this year, and it also included a component called Nutanix Enterprise AI, NAI, which can be deployed with GPT and above or just stand alone as well on top of cloud native cloud substrates.

I would say enterprise maturity is still pretty early. A lot of people, I think, trying it now, but I think and and we have a few initial set of customers going into production and with good use cases. So it’s still early days, you know, having this notion of turnkey inference endpoints is is what’s driving the interest right now. But then that over time will move to more agentic use cases. So we’ve seen some good use cases in the market.

People are looking at this for fraud detection, for money laundering, a patent detection, for for the classic use cases of support and summarization of documents and content. Those types of use cases are what we see, wherever private data is needed, where they want to run on data that’s that needs to be secured in a in a private way. So I would say we are in the early innings of AI inferencing adoption in the enterprise. And so I think a lot more to come now. We had an inflection point.

I think it’s moving pretty quickly, I would say. But I would say over the next couple of years, I think we certainly would expect to be in see some inflection points. But I would say at this point, it’s still early days.

Rukmini Sivaraman, CFO, Nutanix: And Matt, to your question on revenue timing and visibility, I think was part of your question, Matt. So I’d say we do see customers who want us to give them licenses over a period of time versus all upfront. These tend to be larger transactions because the customer has made a large commitment in many cases and is looking to deploy it over time. And we’re, of course, very happy to to make that, you know, make that available to them in that fashion. And I think to your question, so we, of course, going into any fiscal year so going into fiscal year twenty six now, we have visibility into the transactions that we’ve done that are scheduled to go out or where we believe the customer is going to be looking for those licenses in ’26.

And we’ve made some assumptions, Matt, about about the bookings that we will commit the customers will commit in 2026, but may have future deployment dates. So we have some assumptions built into that, and we feel comfortable that all of that is embedded into the guidance that we provided you today.

Matt Martino, Analyst, Goldman Sachs: Thanks, guys. Appreciate the warm welcome.

Rukmini Sivaraman, CFO, Nutanix: Thank you, Matt.

Conference Operator: Thank you. And our next question will be coming from the line of Jim Fish of Piper Sandler. Your line is open.

Jim Fish, Analyst, Piper Sandler: Hey guys. On the guide, Rick, meaning it seems to imply an acceleration beyond the quarter beyond fiscal Q1 here. Can you

Analyst: just give us some of

Jim Fish, Analyst, Piper Sandler: the puts and takes on the fiscal twenty twenty six guide as we think more about new ACV growth versus that available to renew with the installed base or essentially how you’re thinking about net retention rate? And obviously, we’ve always talked about ARR as kind of the metric you guys want to point us to. As we think about the annual year, is there a way is how should we think about the sort of ARR exiting this year?

Rukmini Sivaraman, CFO, Nutanix: Thank you, Jim. So a few things that I’ll try to address. So first on renewals cohort, as we as I said in the prepared remarks, it is growing year over year, but at a slower pace relative to what we saw in fiscal year twenty five, for example. Right? So it is growing year over year.

The reason we called it out was because it is at a slower pace, it does impact revenue. And as you know, Jim, you know, ARR is more of a stock metric, whereas revenue is slow. Right? So while that impacts revenue, ARR only gets credit when that ARR actually grows. Right?

There’s renewal is almost sort of in the base of the ARR. So ARR can only grow either when we have more land and expand or price increases on renewals and things like that. Right? So there’s sort of a flow versus a stock metric difference there between revenue and ARR. We don’t guide to ARR, Jim, so I I’m not gonna be able to give you sort of a specific answer on how to think about ARR expectations for the year other than kind of the things we’ve alluded to here where some of these timing of deals and so on can move ARR around from period to period as we go through as we go through the year.

And then similarly for NRR, right, some similar dynamics there in terms of timing, but also the new logo point I made where we have we have seen that we’re landing the new logos at a larger deal size than before, which could mean that potential future expansion for those particular customers can be lower. So yeah. So few puts and takes there, Jim, and I I’ll leave it there because, you know, we are not quantifying a particular ARR expectation for the full year.

Jim Fish, Analyst, Piper Sandler: Yes. So maybe then on the larger transactions because it seems like we’re all trying to figure this out. You’re commenting about larger transactions looking for deferrals. You’ve told us that you consider the strategy of more annual billings, let’s say, as opposed to multiyear billings. Is it that you’re seeing large 8 figure type deals like you did last year now in the pipeline more and more?

Or is it going to be more strength of the 7 figure type deals and the onset you’re getting from sort of that competitive disruption? Thanks.

Rukmini Sivaraman, CFO, Nutanix: Thank you, Jim. I think we would just leave it as large deals, Jim. Are there deals in both of those category categories that you mentioned? You know, yes. And our intention is to continue to do more of those over time.

I what I would not wanna do is get too granular on it. It’s 7 figure or 8 figure. Right? I think we’re referring to look they’ve been We’ve continued to close more of these large deals over time. I gave one statistic around the million plus dollar land and expand ACV deals that has increased nicely in the number of those that we closed in ’25 relative to ’24.

And so our intention is to continue to do more of those and the pipeline there continues to be good as we enter fiscal year 2026.

Conference Operator: Thank you. And the next question will be coming from the line of

Rajeev Ramaswamy, President and CEO, Nutanix: Matt Hedberg of RBC. Hey,

Rukmini Sivaraman, CFO, Nutanix: This is Simran on for Matt Hedberg. Just thinking more on a macro level for a second, could you dig a bit deeper into the demand trends that you’re seeing and what you’re incorporating into guidance?

Rajeev Ramaswamy, President and CEO, Nutanix: Yes. I’ll give you a high level view, Rupini can talk about the guidance here, Simran. So the overall macro is fairly still dynamic. It’s evolving. I mean, there’s also recent and, you know, potential actions with the new administration.

And then another part of the macro is the commentary that Rupini gave on the federal US federal business. Right? So we had a good fourth quarter there, but still, you know, lots of changes there and some additional reviews, of course, means longer deal cycles and some variability. But, again, I think I would say I we feel optimistic about the longer term view of, like, the fact that we have a platform that can be very helpful as for modernization of the IT infrastructure and a lot of these government organizations. Now in terms of the macro itself, I mean, we have factored in some macro uncertainty into our updated outlook, but we are seeing pretty solid demand for our solutions as well.

Rukmini, do you wanna talk about our guide?

Rukmini Sivaraman, CFO, Nutanix: I think you covered it, Rajiv. We factored all of that into the guidance we provided.

Rajeev Ramaswamy, President and CEO, Nutanix: Okay. Okay.

Rukmini Sivaraman, CFO, Nutanix: Great. And then just one more. So realizing the VMware replacement opportunity continues to be a multiyear journey, can you walk us through how much of the opportunity remains and what you’re assuming for share shift throughout fiscal year twenty six?

Rajeev Ramaswamy, President and CEO, Nutanix: Yeah. So, Simone, I think the vast majority the opportunity is still in front of us. If you were to characterize this as a multi innings baseball game, you know, I’d probably say we’re in the second innings at this point. And there’s still a lot of customers out there with with VMware, and it’s gonna take time in terms of these migrations. We are seeing mean, the fact that we’ve added, you know, 2,700 customers over the last year is a is a good sign that there are people moving.

But there’s 200,000 customers out there for VMware. So there’s still a lot to go through here, and it’s gonna take time. And for the bigger customers, it’s gonna take even longer. So we’ve done a fair number of migrations and completed them for customers ranging anywhere if you were to look at the sizing of their environment, say, from 20,000 cores to maybe even sixty, seventy thousand core, you know, that those types of customers, which I would call you know, they can be medium to large enterprises. Those types of migrations, we’ve actually done some.

Now the real big ones out there, think, will take a long time to to migrate. And so the smaller you are, the the faster it is to migrate. The longer you are the bigger you are, the longer it’s gonna take. So I would still say we’ve got a lot of runway still in front of us, and it’s gonna be a gradual multiyear journey.

Rukmini Sivaraman, CFO, Nutanix: Great. Thanks, guys. Thank you.

Conference Operator: Thank you. And the next question will be coming from the line of Samik excuse me, Mike Chikos of Needham. Please go ahead.

Mike Chikos, Analyst, Needham: Hey, guys. Thanks for taking the questions here. And I know PowerFlex is getting a decent amount of attention, so I’ll tap into that for a second. But great to hear on these two initial wins with these large Global 2,000 customers. Quite frankly, it’s earlier than I had expected on my side, but I wanted to temperature check it.

What were you guys anticipating as far as wins with PowerFlex? And can you give us some more granularity as far as how these deals came together? Were they led by Nutanix? Were they led by Dell? Was it a co marketing effort?

Anything on that front would be incremental. And then I have a follow-up.

Rajeev Ramaswamy, President and CEO, Nutanix: Yes. I would say, Mike, we were actually pleasantly surprised at how quickly we were able to land these customers. You should also deem that these customers also were interested early on. They participated in our early access program. So they’ve been kicking the tires on this for a bit.

But it is usually you know, these types of customers are also fairly conservative, and they typically tend to wait. They don’t go all in on the first release. They wait for the next release and a couple of releases done before they go. So we were very happy to have secured these deals in q four. So to your point, I think it came in a bit earlier than we had anticipated.

And then there’s a perfect basis of, like I said, it’s concentrated at the top of the pyramid. These are large customers. With all of these, I think there’s a very collaborative relationship with Dell. So we are very directly engaged in these accounts with these customers, you know, that they need, you know, solid support that we provide directly. And Dell has been a very collaborative partner in these accounts, and I expect that to continue as we look at these other big customers.

Mike Chikos, Analyst, Needham: Thank you for that. And I guess my follow-up for Rukmini, I know that there’s a couple of different moving pieces here on the average contract duration in addition to and thank you for all the assumptions on the guide. But if I look at the average contract duration specifically, Q4 was slightly higher than what you guys had anticipated. We’re talking about this upcoming year where average contract duration is expected to see a slight decline. Is there any way you can help us conceptualize what that impact to revenue is as a result of these movements around the average contract duration?

Rukmini Sivaraman, CFO, Nutanix: Yeah. Hi, Mike. So on contract duration, in the short term, our average contract duration can vary based on the mix of business in a given quarter. And, for example, could be elevated by a few larger and longer than average duration contracts. And so you’re seeing some of that, Mike.

And the reason we called it out is because, you know, the what’s assumed going forward for fiscal year twenty six is that we expect the duration year on year to be down slightly, which as you know, does impact our revenue because the license portion of revenue we do take upfront, and that is impacted by or affected by the by contract duration. We’re not quantifying that because there’s a lot of moving things in here, Mike, but it you know, that’s one of the things we did wanna call out in terms of thinking about ’26 revenue versus ’25. The one other dynamic that we’ve also discussed in prior calls is that over time, we could see some compression of duration as renewals continue to increase as a percentage of billings because renewals tend to have lower average contract duration relative to land and expand. So, you know, a couple of moving pieces there. One on these sort of maybe we have a few larger contracts that are longer than average versus this impact of renewals.

We you know, given we put all that and factored all of that in and kinda conveying that for ’26, we expect the total average contract duration to be down slightly, which does have somewhat of an impact on that revenue line.

Mike Chikos, Analyst, Needham: Understood. Thank you, guys.

Rukmini Sivaraman, CFO, Nutanix: Thank you, Mike.

Conference Operator: Thank you. One moment for the next question. And the next question will be coming from the line of Samik Shiji of JPMorgan. Your line is open.

Analyst: Yes. Hi. Thanks for taking my questions here. Maybe just on a couple of fronts. I believe you expanded your platform on Google Cloud in the summer.

So if you can just give us an update on how, the customer engagement has been on that front? And on the Pure Storage partnership, I think the last sort of update you gave was, we would see something available in the by the end of the year. Anything more specific that you can share in terms of timing on that front? And then I have a quick follow-up for Rukmini, please. Thank you.

Rajeev Ramaswamy, President and CEO, Nutanix: Yeah. Hey, Samik. Also, welcome. I know this is your first call as well. And, let me let me start with Pure and then Google Cloud.

Pure, again, I think we are an early access customer starting to kick the tires on on on a beta version. And then I think we are on track. We we set in the calendar year for the GA release, generally available release, and we are on track to deliver that. And for Pure, there is a, you know, broad base of customers that Pure has, and many of them, I think, are interested over time in terms of exploring alternative platforms which our offer offering provides. So so I expect that, you know, again, as we get into the second half of this fiscal, it’s when we we will be able to tell you more about how that how that offering is coming along.

On Google Cloud, we had a fair amount of initial interest from customers who had chosen Google Google as their cloud provider. I mean, typically, these larger ones tend to pick one or two main cloud providers, and certainly, Google has been on that list after AWS and Azure for us for a while. So now that we are in what we call public preview, what that means is that early customers can have access to this offering. And we do have people kicking the tires. And, again, I think once it’s generally available, again, we hope that towards the end of the year, and it’s also dependent on Google’s bare metal being available in the regions that we need to be offering our software on top of, then I think we should be able to give you some more color in terms of the actual adoption and how things are going.

Analyst: Got it. Got it. And Rukmi, just a quick follow-up on the cash flow. Maybe if you could dive into seems like the cash flow for the year came in a bit better than you initially thought. And when I’m trying to sort of square to your cash flow guide for fiscal twenty twenty six, my math indicates operating income going up by about $90,000,000 or so.

And it looks like that would generally put cash flow at the higher end of your guide, if not for other offsetting factors. If you can just walk through what the moving pieces there? Thank you.

Rukmini Sivaraman, CFO, Nutanix: Yes. Hi, Samik. Welcome from me as well. So on the free cash flow, yes, we’re happy with the performance in Q4 and in fiscal year twenty twenty five, dollars $750,000,000 of free cash flow. And so really happy with that performance.

And, you know, I think there’s when you think about next year, as you think about fiscal year twenty six and the guide there, I think the dynamic around contract duration does also impact free cash flow because our standard practice is to collect multiple years of cash upfront. And customers will often use CapEx budgets to to purchase our software because we are infrastructure software, and often they may be purchasing hardware as well. And so duration does have can have an impact on free cash flow as well. And as I said earlier in answer to in response to another question, that we expect duration in the aggregate to go down year over year into fiscal year twenty twenty six.

Analyst: Got it. Okay. Thank you. Thanks for taking my questions.

Rukmini Sivaraman, CFO, Nutanix: Thank you, Samik.

Conference Operator: Thank you. And the next question will come from the line of Wamsi Mohan of Bank of America. Your line is open.

Rich Farrar, Vice President of Investor Relations, Nutanix0: Hi. Thanks for taking my questions. It’s Ruplu filling in for Wamsi. I have two questions. First one for Rukmini on margins.

If you look at the midpoint of fiscal twenty twenty six guidance 21.5% that implies only 40 bps of improvement year on year, which would be the lowest in any year so far. Can you help us segment that into how much of that is from tariffs? How much is because you have more employees now, more SG and A? And the other factors that you mentioned, I think you said $30,000,000 or so of other issues. So can you help us segment that?

And is there any conservatism factored into this?

Rukmini Sivaraman, CFO, Nutanix: Hi, Ruplu. Thanks for that question. So you’re correct that at the midpoint of the guidance ’26 is slightly above what we reported for fiscal year twenty twenty five. One thing I called out in my prepared remarks was some delayed hiring that we have and that we intend to catch up in fiscal year twenty six. And I said that’s about 25,000,000 in fiscal year twenty six.

It, you know, could have been depending on when those folks might have been hired in in ’25, right, those numbers can move around. But to give you an order of magnitude or a sense of what that amount is is is like in terms of delayed hiring that we have going into next year. The other headwind I called out were these nonrecurring part term payments, which we do expect to taper off in fiscal year twenty six, and that could potentially be a headwind of another 10 to 15,000,000 as I said in the in the prepared remarks. And then there are, of course, all of the folks that we’ve hired in fiscal year twenty five, Ruplu, and we’ve talked about the investments and where we’re making them, and I’m, you know, happy to summarize that in sales and marketing, for example, where we wanted to hire a few more reps to get to our target rep headcount and associate people to support that rep, and we came very close on that actually to meeting our target by the end of fiscal ’25. So those folks will all be annualized in fiscal year twenty six, as you know.

Right? Because they they won’t be able to full year in ’25, but they will be in ’26. So those are all some of the things that I sort of call out when you think about margin going into into next year relative to fiscal year twenty five. And then in terms of is there conservatism baked in there? I would say, look.

Our guidance philosophy in general hasn’t changed, Ruplu, in that we try to give you our best and reasonable estimate of how the year would play out at this point in time. And so that’s a similar approach we’ve taken this year as well.

Rich Farrar, Vice President of Investor Relations, Nutanix0: Okay. Thanks for that, Ruplu. For my follow-up, I’d like to ask a question on ARR. And I know you don’t guide specific ARR, but just as you mentioned there are different factors that impact that. And one is of course land which is new logos and Nutanix is going to face a tough year on year compare because fiscal twenty twenty five was so strong on that front.

Then there’s expand, which we can kind of infer from NRR. And then you said pricing also. So maybe I’d like to ask, how is the pricing environment? Do you see maybe pricing as a lever you can use that you can raise prices on and maybe Rajiv you can use this to gain some share from VMware? And then on NRR, like how should we think about what how high NRR can go and how should we think about expansion?

So I guess Ned, what I’m trying to ask is of these three factors, where do you have the most confidence and how should we think about this expansion versus pricing versus this the new logo expansion? Thank you.

Rukmini Sivaraman, CFO, Nutanix: Thank you, Ruplu. There was a lot in there. Let me try to unpack that. And, Rajiv, you’re welcome to add as well. So you’re right, Ruplu, that, you know, if you think of the the main components of an increase in ARR, it’s those three things.

Right? So one is, of course, we need to make sure we’re retaining the ARR base that we do have and doing as much of that as we can. And if you set that aside, then you have expansion with existing customers, landing new customers onto the platform, and and, you know, potential price increases with the existing customers as well. Right? So I would say, look, I think we’re happy with the land performance.

We’ve talked about the the 2,700 plus new logos that were that joined our platform in fiscal year twenty five. And I gave you a sense of roughly what we expect that to be in fiscal year twenty six. I think we touched on expansion, one of the earlier questions around NRR, which is that there’s some mechanical ins and outs there, including the fact that new logos coming in at a higher initial deal size could impact that percentage of expansion in the future because the initial purchase has been higher than it than it used that’s really lost. And so there’s some dynamics there around NRR, and we, of course, we have continued focus on some of the expansion initiatives that they have going on, but NRR could move around from peer to peer going forward. And then on pricing, our approach has been that on a renewal, we want to make sure that our customers love the platform and and want to renew with us.

And so, historically, we’ve had more inflation type pricing increases on on renewal. And, of course, it depends on what else that customer is is doing with us. Are they also expanding? Right? Like, what is the overall picture of that particular account?

And then I will say in terms of competitive pricing, I think was part of your question, that remains quite dynamic. And, Rajiv, I don’t know if you wanna comment on that as we think about pricing relative to the competition.

Rajeev Ramaswamy, President and CEO, Nutanix: Yeah. I mean, I think it it kind of I think very much depends on the kind of customer, the volume. Of course, we have volume based pricing for very large deals with lots of volumes. The pricing is lower. We you know, as a matter of fact, we did also, even for this year, take up our list pricing.

As Rukmini pointed out, only on inflation kind of in line with inflation type of basis. So so we we also think, for example, having our, you know, external storage offering can give us some pricing advantages. Right? Because we don’t have to necessarily try and where we can potentially see somewhat of a lower price point, but get in the door without compromising and upsell into the rest of our portfolio. So there are levers here that we will, of course, attach.

And then there’s portfolio attach, which, of course, the more portfolio we attach, the more our our ASPs go up. We have seen an increase in ASPs of our deals in terms of total size of the deals. The individual pricing elements vary very much depending on the situation.

Rich Farrar, Vice President of Investor Relations, Nutanix0: Okay. Thank you for all the details. Appreciate it.

Conference Operator: You. And the next question will be coming from the line of Victor Chiu of Raymond James. Your line is open.

Rich Farrar, Vice President of Investor Relations, Nutanix1: Hey guys, this is Victor in for Simon Leopold. I just wanted to follow-up on the Pure partnership. Can you remind us which elements Nutanix provides? Is it primarily the hypervisor for compute? And I guess also what competitive opportunities does the combined solution target strategically, I guess?

Rajeev Ramaswamy, President and CEO, Nutanix: Yeah. Hi, Victor. So it’s so, yeah, it’s if you look at the Nutanix cloud platform today, it has a hypervisor. It has networking. It has operations and cost management.

It has some security built in. It also does unified storage. And when we look at the platform with Pure, the part that’s not there is the HCI storage. Right? Everything else about the platform is still very much there.

We have the hypervisor. We have the networking. We have the security. We have the operations management. All of that is sold together with Pure.

Right? Except the storage is now Pure Storage as opposed to us. So that is the that is the portfolio. Now, again, for a lot of these customers, they’re they’re connecting Pure Storage to servers running VMware. And so these customers are looking to replace that VMware option with with the Nutanix option.

Right? That’s our opportunity there in terms of getting in on those accounts. And they wanna preserve their pure hardware. Right? They they’ve invested in the pure architecture, the pure storage.

They wanna keep that at least for some period of time, and therefore, we can then essentially do a software change on their servers to be able to allow them to use Nutanix instead of VMware on those in those deployments.

Rich Farrar, Vice President of Investor Relations, Nutanix1: Okay. Got it. Great. That that makes a lot sense. And then just along those lines, Broadcom issued a cease and desist.

When they issued cease and desist letters in May, I think, to customers that were using VMware without paying for support. Does that specifically open up any incremental opportunities, or is that just kinda consistent, you know, part of the course with their overall kind of, you know, recent competitive posture?

Rajeev Ramaswamy, President and CEO, Nutanix: I mean, again, I think most customers running mission critical applications would wanna make sure that their their deployments are supported. Right? So so they, you know, they don’t typically most customers don’t run unsupported in these types of mission critical deployment. So I I don’t think that’s changing the picture that much.

Rich Farrar, Vice President of Investor Relations, Nutanix1: Great. Thank you.

Conference Operator: Thank you. And the next question will be coming from the line of Brandon Nesspel of KBCM. Your line is open.

Rich Farrar, Vice President of Investor Relations, Nutanix2: Great. Thank you for taking the question. I guess my question is for Ruth Mani and mainly just a follow-up on margins. I mean just doing the math, it seems to imply operating expenses are $1,900,000,000 You called out a couple of one timers in terms of accelerating headcount and partner contributions. But OpEx, excluding that, up quite a bit.

And it looks like your contribution margins from an operating income perspective are it looks like implied is just 24%, which is much lower than it’s been. So what are you spending sort of the rest of the money on?

Rajeev Ramaswamy, President and CEO, Nutanix: Are you

Rich Farrar, Vice President of Investor Relations, Nutanix2: guys maybe changing some channel payments or comp for employee base? Just trying to understand why OpEx would be up so materially and contribution margins would be down so materially implied by the guidance? Thanks.

Rukmini Sivaraman, CFO, Nutanix: Yes. Hi, Brandon. So a few, I think, thoughts on fiscal year twenty twenty six OpEx. So one, like I said, I the onetime items that I called out in my prepared remarks, won’t repeat because I feel like we’ve covered that in enough detail already. In terms of other things, there is the run rate of the folks that we’ve hired for this year in fiscal year twenty five, carrying over 26 is a meaningful chunk of that because a lot of that hiring did happen later in the year and towards the second half of the year.

Those folks are all being analyzed annualized going into fiscal year twenty six. We have, of course, raises that we give for employees that is factored in there. And then in terms of incremental investments, there’s a there’s some that we’ve baked in there, Brandon. It’s not a ton in the grand scheme of things or even in the incremental amount. It’s it’s still a minority.

It’s more around areas around r and d and innovation that we’ve said we continue to innovate, you know, in areas like the support of external storage, in areas like our Kubernetes platform, NKP, where we’re seeing a lot of interest, and we think it’s important that we continue to invest incrementally in those areas. And then some in sales and marketing as well, around areas where we think there is more opportunity for us to get that return. Like I said, we came very close to hitting our target rep headcount in at the end of fiscal year twenty five. And so there’s gonna be a little more we have to do there, but that’s not a huge huge amount. And then if investments in areas like IAEs, where we’re gonna add a few more inside folks, some adjustments to our portfolio, like that.

So incrementally, it’s still a small amount, that is being added over and about with the delayed hiring that we had in fiscal year twenty five going into ’26.

Rich Farrar, Vice President of Investor Relations, Nutanix2: Thank you for taking the question.

Rukmini Sivaraman, CFO, Nutanix: Thank you, Brandon.

Conference Operator: Thank you. And this does conclude today’s conference call. Thank you so much for joining. You may all disconnect. Have a great evening.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.