Nutanix earnings surpass expectations and partner with AMD, causing the stock price to soar

2026-02-26 02:12:44

Investing.com – Nutanix Inc. (NASDAQ: NTNX) announced second-quarter results that exceeded analyst expectations, along with a strategic partnership with AMD, including a $150 million equity investment, causing the company’s stock to rise 17.2% in after-hours trading on Wednesday.

The hybrid multi-cloud computing company reported adjusted earnings of $0.56 per share, beating analyst estimates of $0.44 by $0.12. Revenue reached $722.8 million, surpassing the consensus estimate of $710.35 million and up 10% from $654.7 million in the same period last year. Strong performance was driven by solid order volume and new customer growth, despite supply chain constraints affecting server delivery cycles.

Nutanix CEO Rajiv Ramaswami stated, “Our business performed well in the second quarter, with strong order volume, robust new customer growth, and healthy free cash flow. The opportunities we see in AI, modern applications, hybrid multi-cloud, and external storage support lay a solid foundation for our long-term growth.”

However, the company’s third-quarter revenue guidance of $680 million to $690 million was below the analyst consensus of $698.6 million. The midpoint of $685 million is $13.6 million lower than expected. For fiscal year 2026, Nutanix projects revenue of $2.8 billion to $2.84 billion, with a midpoint of $2.82 billion, slightly below the market consensus of $2.84 billion.

CFO Rukmini Sivaraman explained that as the quarter progressed, supply chain constraints began to impact the timing of recent revenue and free cash flow, although order expectations remain higher than previous levels.

The company announced a multi-year partnership with AMD (NASDAQ: AMD) to jointly develop an open AI infrastructure platform. AMD will invest $150 million in Nutanix at a price of $36.26 per share and provide up to $100 million in funding for joint engineering and marketing initiatives. Annual recurring revenue grew 16% year-over-year to $2.36 billion, with free cash flow reaching $191.4 million.

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