Nutanix Stock Earnings Reports

Nutanix reported a strong Q3 FY25: revenue $639M (+22% YoY), ARR $2.14B (+18% YoY), NRR 110%, non-GAAP gross margin 88.2%, non-GAAP operating margin 21.5%, GAAP EPS $0.22, non-GAAP EPS $0.42, and free cash flow $203M (32% margin). Management beat guidance across metrics and raised full‑year FY25 guidance to revenue $2.52–$2.53B, non‑GAAP operating margin ~20.5%, and free cash flow $700–$730M, signaling strong cash generation and margin expansion. Key operational drivers: robust new‑logo wins (including large enterprise displacements tied to competitor M&A), continued go‑to‑market leverage from OEM/channel partnerships, and product progress — GA of NCIC supporting Dell PowerFlex, Pure Storage partnership, Google Cloud early access, Cloud Native AOS, and GA of Nutanix Enterprise AI with NVIDIA integration. Management noted a dynamic macro/federal environment causing some longer deal cycles, confirmed ongoing hiring ramp (impacting Q4 op margin) and a change in the non‑GAAP effective tax rate policy to 20% (no expected change in cash tax profile). Balance sheet and capital allocation: cash & short‑term investments ~$1.882B, $38M share repurchase in Q3 and continued buyback/RSU-related share activity. Overall, results reflect durable demand, improved profitability and strong FCF, while execution on new products, external storage support, and partner channels are the main levers for future ARR and expansion.