Nutanix delivered a solid QQ4 2025 quarter, with revenue of $653.3 million representing a 19.2% year-over-year increase and 2.2% quarter-over-quarter growth. The company posted a robust gross margin of 87.17%, driving an operating income of $31.2 million and net income of $38.65 million for the quarter, with diluted earnings per share of $0.13. Free cash flow reached $207.8 million for the quarter, highlighting strong cash generation despite ongoing reinvestment in product development and go-to-market capabilities. These results reflect Nutanix’s positioning as a premier enterprise cloud platform supplier, benefiting from a large deferred revenue backlog that supports revenue visibility and a high-margin software mix.
On the balance sheet, Nutanix carries significant liquidity, with cash and short-term investments of approximately $1.993 billion and a reported net debt figure of $713 million in the dataset. The company also reports sizable current and non-current deferred revenue (~$2.11 billion combined), underscoring recurring revenue characteristics and long-term customer commitments. However, reported stockholders’ equity is negative at approximately -$694.5 million, signaling accumulated deficits and potential accounting considerations that investors should monitor over time. Management commentary around QQ4 calls typically emphasizes acceleration in multi-cloud and hybrid cloud adoption, platform automation, and cost discipline to sustain margin and FCF expansion.
Looking ahead, Nutanix faces a competitive landscape with peers pursuing hybrid/multi-cloud strategies. The core investment thesis remains intact if Nutanix can sustain its high gross margins, optimize operating leverage, and convert deferrals into recurring revenue while continuing to scale R&D and go-to-market efficiency. Investors should monitor the cadence of renewal rates (as inferred from deferred revenue), product adoption in Kubernetes and hybrid cloud deployments, and the trajectory of free cash flow as a more durable indicator of profitability.