The quarter beat both published expectations and Nutanix’s own targets. Q4 revenue reached $757.1 million versus published consensus of roughly $737.8 million, while non-GAAP diluted EPS was $0.60 versus roughly $0.49 expected. Against its prior company guidance, revenue exceeded the $725–$745 million range and non-GAAP operating margin reached 26.2% versus 21%–23% guided. (Q4 Financial Summary) 〔0〕
| Metric | Q4 FY26 actual | Comparison | FY26 actual | Comparison |
|---|---|---|---|---|
| Revenue | $757.1M (Q4 Financial Summary) | $653.3M prior year; ~$737.8M consensus | $2.85B (FY26 Financial Summary) | $2.54B prior year; prior guide $2.82–$2.84B |
| ARR | $2.55B (Q4 Financial Summary) | 16% YoY | $2.55B (FY26 Financial Summary) | 16% YoY |
| Non-GAAP operating margin | 26.2% (Q4 Financial Summary) | 790 bps YoY; above 21%–23% guide | 23.7% (FY26 Financial Summary) | Above roughly 22.5% prior guide |
| Free cash flow | $277.6M (Q4 Financial Summary) | $207.8M prior year | $840.7M (Cash Flow statement) | Above $760M–$780M guide |
| Non-GAAP diluted EPS | $0.60 (Reconciliation of GAAP to Non-GAAP Profit Measures) | ~$0.49 consensus | $2.04 (Reconciliation of GAAP to Non-GAAP Profit Measures) | — |
The strongest surprise was profitability and cash generation, not just revenue. Q4 free cash flow rose 34% year over year to $277.6 million, and full-year free cash flow reached $840.7 million—more than $60 million above the top of the company’s prior $760–$780 million range. Non-GAAP operating expenses grew only 2% in Q4 against 16% revenue growth, driving operating margin to 26.2% from 18.3%. (Financial Highlights) 〔1〕
The underlying subscription engine remained healthy, though the new fiscal-year outlook implies slower reported growth. ARR rose 16% to $2.55 billion, subscription revenue increased to $719.1 million from $616.0 million, and remaining performance obligations grew 28% to $3.44 billion. (Annual Recurring Revenue; Disaggregation of Revenue; Remaining Performance Obligations) The FY27 revenue outlook of $3.18–$3.23 billion implies roughly 11%–13% growth from FY26 revenue of $2.85 billion, below the current 16% ARR growth rate. That is not a miss against the disclosed Q4 setup, but it tempers the upside from the quarter’s beat.
Reported GAAP earnings are inflated by a tax accounting release and should not be treated as operating performance. GAAP net income was $1.27 billion in Q4 and $1.51 billion for FY26, driven largely by a $1.19 billion income-tax benefit from releasing a valuation allowance on U.S. deferred tax assets. (Income Statement; Reconciliation of GAAP to Non-GAAP Profit Measures) The recurring read is therefore the $0.60 non-GAAP diluted EPS, expanding operating margin, and $840.7 million of free cash flow—not the headline GAAP EPS of $4.34.
Net read: a broad operational beat with unusually strong cash flow, partially offset by a more measured FY27 growth setup. Revenue, ARR, margin, EPS, and cash flow all cleared the relevant benchmarks; the filing therefore lands as a clear Beat rather than merely an in-line quarter. The main question shifts from execution in FY26 to whether Nutanix can sustain 16% recurring growth while its FY27 revenue guide points to a slower pace.
Read the original 8-K on SEC EDGAR ↗