Abstract
Nutanix Inc. will report fiscal results on May 27, 2026 Post Market; this preview summarizes last quarter’s performance, current-quarter forecasts on revenue, margin, net income, and adjusted EPS, plus institutional views from January 01, 2026 to May 20, 2026.
Market Forecast
For the current quarter, consensus modeled in the company’s forecast field points to revenue of 686.37 million US dollars, up 9.64% year over year, with EBIT estimated at 115.66 million and EPS at 0.358, implying a 5.90% YoY decline. The company’s revenue mix last quarter was 387.36 million from Products and 335.46 million from Support and Other Services; the outlook centers on continued subscription expansion and stable renewal activity.
Management’s most promising growth engine remains subscription software tied to hybrid multicloud deployments and renewals, with Products at 387.36 million up year over year and Support and Other Services at 335.46 million; momentum reflects larger deal sizes and broader platform adoption.
Last Quarter Review
In the previous quarter, Nutanix Inc. delivered revenue of 722.83 million US dollars with a gross margin of 87.37%, GAAP net income attributable to shareholders of 103.00 million and a net margin of 14.25%, and adjusted EPS of 0.56, with revenue up 10.40% year over year.
A notable highlight was EBIT of 189.04 million, outpacing prior expectations and reflecting disciplined operating expense control alongside scale benefits from subscription renewals. The main business mix saw Products contributing 387.36 million and Support and Other Services contributing 335.46 million, illustrating balanced growth across core offerings.
Current Quarter Outlook
Main business trajectory
Revenue is guided by recurring subscription renewals and land-and-expand motions across core hyperconverged infrastructure and hybrid multicloud deployments. With last quarter’s gross margin at 87.37% and net margin at 14.25%, incremental scale this quarter should hinge on renewal timing and mix, particularly the ratio of software term licenses to hardware pass-through. EBIT is modeled at 115.66 million, down sequentially versus last quarter’s 189.04 million, aligning with seasonality in billings, go-to-market investments, and pipeline conversion patterns typical for Nutanix Inc.’s fiscal cadence.
Most promising growth vector
Subscription software and renewals represent the largest growth lever in the model. The previous mix showed Products at 387.36 million and Support and Other Services at 335.46 million, together reflecting a broad installed base primed for expansion into adjacent modules such as database, storage, and cloud orchestration. The 9.64% projected revenue growth, alongside an EPS estimate of 0.358, implies continued reinvestment as the company scales its platform and pushes larger enterprise deals, with cross-sell into existing accounts viewed as a key driver of annual contract value growth.
Key stock-price swing factors this quarter
- Renewal and large-deal cadence: Upside risk if multi-year expansions and strategic wins close by quarter-end, boosting billings and deferred revenue; downside if conversion rates slip due to elongated approvals.
- Gross margin resilience: Last quarter’s 87.37% gross margin establishes a high bar; any shift in product-support mix or discounting for large consolidations may impact margin trajectory and operating leverage.
- Operating discipline vs growth investments: Consensus EBIT of 115.66 million embeds higher sales and R&D investments; tighter expense control could lift EPS, while accelerated hiring or cloud partnerships could temporarily compress profitability.
Analyst Opinions
Recent institutional commentary through May 20, 2026 skews bullish, with a majority expecting sustained top-line growth from subscription renewals and expanding hybrid multicloud adoption, while acknowledging near-term EPS pressure from reinvestment. Bullish views emphasize resilient demand pipelines and improving enterprise win rates, anticipating revenue growth near the high single digits to low double digits for the quarter. The majority argues that the company’s platform breadth and cross-sell motion should support durable billings and renewal strength, aligning with the modeled 9.64% YoY revenue increase and an EBIT of 115.66 million.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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