Nutanix, Inc.NTNX delivered third-quarter fiscal 2026 non-GAAP earnings of 47 cents per share, which topped the Zacks Consensus Estimate by 34.29% and improved 11.9% year over year.
Revenues rose 10% year over year to $703.1 million, beating the consensus mark by 2.53%.
The average contract duration increased to 3.4 years from 3.1 years in the year-ago quarter. Longer contract duration can help improve revenue visibility for a subscription-heavy model while reflecting customers’ willingness to commit to longer-term platform deployments.
NTNX’s Top-Line Details for Q3
Product revenues (51.9% of total revenues) increased 5.6% year over year to $364.9 million. Support, maintenance & other services revenues (48.1% of total revenues) rose 15.2% to $338.1 million.
Nutanix Price, Consensus and EPS Surprise
Nutanix price-consensus-eps-surprise-chart | Nutanix Quote
Subscription revenues (94.6% of total revenues) climbed 9% to $664.8 million from the year-ago quarter’s figure. Professional services and other revenues (5.4% of total revenues) improved 30.5% to $38.3 million.
Annual recurring revenues (ARR) grew 15% year over year to $2.43 billion, reflecting continued momentum in the company’s subscription model.
Nutanix added 730 new logos, up 18% year over year, signaling continued customer acquisition despite what management described as a dynamic environment. The company’s cumulative customer count rose to 31,710 by the end of the quarter, reflecting the steady expansion of its installed base.
NTNX’s Operating Details for Q3
In the fiscal third quarter, Nutanix’s non-GAAP gross margin contracted 40 basis points year over year to 87.8%.
Non-GAAP operating expenses increased 8% year over year to $460.5 million.
Non-GAAP operating income totaled $156.5 million, up 14.2% from the year-ago quarter.
Non-GAAP operating margin was 22.3%, up 80 bps from the year-ago quarter. The company highlighted that operating income expanded from the prior-year period, driven by improved operating leverage alongside revenue growth.
NTNX’s Balance Sheet & Cash Flow
As of April 30, 2026, cash and cash equivalents plus short-term investments totaled $2.01 billion, up from $1.87 billion as of Jan. 31, 2026.
During the third quarter of fiscal 2026, cash generated from operating activities was $207.5 million and free cash flow was $197.2 million, underscoring the company’s ability to translate operating execution into cash even as it continues investing in growth initiatives.
Shareholder returns also received an incremental lift. Nutanix announced that its board authorized an additional $750 million of common stock under the company’s existing share repurchase program, expanding capacity for potential buybacks going forward.
NTNX Raises FY26 Guidance
NTNX raised its fiscal 2026 guidance across metrics, reflecting confidence in business momentum. For the fourth quarter of fiscal 2026, the company guided revenues to $725-$745 million and non-GAAP operating margin to 21-23%, with diluted weighted average shares outstanding expected to be approximately 292 million.
For fiscal 2026, NTNX now expects revenues of $2.82-$2.84 billion, non-GAAP operating margin of approximately 22.5% and free cash flow of $760-$780 million. Management noted that server hardware shortages and partner pricing increases continue to affect the timing of converting bookings into revenues, an impact that the updated outlook incorporates into expectations for the fiscal fourth quarter and into fiscal 2027.
Zacks Rank and Stocks to Consider
Currently, NTNX carries a Zacks Rank #3 (Hold).
Micron Technology MU, Ciena CIEN and Credo Technology Group CRDO are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. MU carries a Zacks Rank #2 (Buy), while CIEN and CRDO each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here
Micron Technology shares have soared 225.3% in the year-to-date period. MU is scheduled to release third-quarter 2026 results on June 24. .
Ciena shares have surged 148.9% in the year-to-date period. CIEN is scheduled to release its second-quarter 2026 results on June 4.
Credo Technology Group shares have gained 53.7% in the year-to-date period. CRDO is set to report its fourth-quarter fiscal 2026 results on June 1.
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