Nutanix Q3 Revenue Tops Guidance at $703M, ARR Up 15%
NTNX•Nutanix reported Q3 revenue of $703 million, exceeding its $680–$690 million guidance, and added over 700 new customers. ARR rose 15% year-over-year to $2.435 billion while non-GAAP operating margin hit 22.3%, prompting a full-year revenue raise to $2.82–$2.84 billion and a $50 million buyback.
1. Earnings and Revenue Performance
Nutanix delivered Q3 revenue of $703 million, surpassing the $680–$690 million guidance range, while adding over 700 new customers. Annual recurring revenue increased by 15% year-over-year to $2.435 billion, reflecting strong demand for its public cloud deployment and software licensing offerings.
2. Margin Expansion
Non-GAAP gross margin widened to 87.8%, and operating margin reached 22.3%, well above the prior 16–17% forecast. Non-GAAP net income totaled $136 million ($0.47 per share), while free cash flow was $197 million, yielding a margin of 28%.
3. Guidance and Share Repurchase
The company raised full-year revenue guidance to $2.82–$2.84 billion and projected approximately 22.5% non-GAAP operating margin, with free cash flow guidance of $760–$780 million. Nutanix also repurchased $50 million of common shares under its existing authorization.
4. Operational Challenges
Despite strong results, elevated server hardware costs and prolonged lead times have delayed booking conversions, and geopolitical tensions in the Middle East may constrain regional growth. Net dollar-based retention stood at 106%, indicating modest headwinds in account expansions.
