Nutanix Q2 EPS $0.56 Beats by 27%, Revenue Jumps 10.4% to $722.8 M
Nutanix’s fiscal Q2 non-GAAP EPS of $0.56 rose 19.1% YOY and topped estimates by 27%, while revenue climbed 10.4% to $722.8 M, driven by more than 1,000 new customers and a 16% rise in annual recurring revenues to $2.36 B. The company forecasts Q3 revenue of $680-690 M and 16-17% operating margin.
1. Q2 Financial Results
Nutanix reported non-GAAP EPS of $0.56 for fiscal Q2, marking a 19.1% year-over-year increase and exceeding consensus by 27.27%. Total revenue rose 10.4% to $722.8 million, driven by strong demand across its software and services portfolio.
2. Customer Growth and Revenue Mix
The company added more than 1,000 new customers, its highest quarterly new logo count in eight years. Product revenue grew 9.4% to $387.4 million, while support, maintenance and services revenue rose 11.6% to $335.5 million, and annual recurring revenues reached $2.36 billion, up 16%.
3. Profitability and Cash Flow
Non-GAAP gross margin expanded 30 basis points to 88.6%, and operating margin climbed 160 basis points to 26.2% thanks to disciplined expense management. Cash and equivalents totaled $1.87 billion, with free cash flow of $191.4 million for the quarter.
4. Outlook
For fiscal Q3, Nutanix projects revenue of $680–690 million and a non-GAAP operating margin of 16–17%. Full-year fiscal 2026 guidance sets revenue at $2.80–2.84 billion, free cash flow of $745–775 million and a 21–22% non-GAAP operating margin.