Nutanix (NTNX) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue reached $722.8M, up 10% year-over-year, exceeding guidance, with ARR up 16% to $2.36B and strong free cash flow generation.

• Over 1,000 new customers were added, marking the strongest new logo additions in nearly eight years, with the end customer base surpassing 30,000.

• Net income for Q2 FY26 was $103M, nearly doubling year-over-year.

• Strategic partnership with AMD announced, including a $150M equity investment and up to $100M for R&D and go-to-market initiatives.

• Supply chain constraints, especially CPU shortages, are delaying server procurement and impacting near-term revenue and cash flow timing.

Financial highlights

• Q2 FY26 revenue was $722.8M, above guidance, with ARR at $2.36B, up 16% year-over-year.

• Non-GAAP gross margin was 88.6%; non-GAAP operating margin was 26.2%, both up year-over-year.

• Non-GAAP net income per diluted share was $0.56; GAAP net income was $103M (EPS $0.36).

• Free cash flow for Q2 FY26 was $191.4M, with a margin of 26%.

• Cash, equivalents, and short-term investments totaled $1.874B at quarter-end.

Outlook and guidance

• Q3 FY26 revenue guidance: $680–$690M; non-GAAP operating margin: 16–17%.

• FY26 revenue guidance: $2.8–$2.84B; non-GAAP operating margin: 21–22%; free cash flow: $745–$775M.

• Bookings expectations for the year are higher, but some revenue and cash flow will shift out of FY26 due to supply chain delays.

• Free cash flow in the second half expected to be more weighted toward Q4.

• Continued investment in sales, marketing, and R&D to support long-term growth.