We grew our ARR 19% year-over-year to $2.06 billion and delivered strong free cash flow.
— Rajiv Ramaswami, Nutanix President and CEO
03Detailed Report
NTNX
Company NTNX
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
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Executive Summary
Nutanix delivered solid QQ2 2025 results, underscoring resilience in its software-centric cloud platform strategy amid a dynamic enterprise IT landscape. Revenue for the quarter was $654.7 million, up 16% year over year, and non-GAAP gross margin stood at 88.3% with a non-GAAP operating margin of 24.6%, driven by higher revenue and modestly lower operating expenses. The company also demonstrated meaningful ARR progression, ending Q2 at $2.06 billion—a 19% YoY increase—while new logo growth exceeded 50% YoY, signaling continued share gains in a multiyear displacement cycle from VMware and other incumbents. In addition, Nutanix strengthened its balance sheet and liquidity through convertible notes issuance (~$862.5 million) and a $500 million revolving credit facility, while returning capital via stock repurchases. Management raised full-year guidance across all metrics, reflecting confidence in the pipeline, renewals, and expansion opportunities in Global 2000 accounts, multi-cloud deployments, and GenAI/platform AI initiatives. The results also highlight the strategic importance of Nutanix’s AI-focused offerings (NAI) and Kubernetes platform as core differentiators in enterprise modernization and multi-cloud orchestration.
Key Performance Indicators
Revenue
Increasing
654.72M
QoQ: 10.79% | YoY: 15.83%
Gross Profit
Increasing
569.43M
86.97% margin
QoQ: 12.03% | YoY: 17.75%
Operating Income
Increasing
65.44M
QoQ: 140.14% | YoY: 76.64%
Net Income
Increasing
56.43M
QoQ: 88.56% | YoY: 72.06%
EPS
Increasing
0.21
QoQ: 90.91% | YoY: 61.54%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $654.721 million, YoY +16%, QoQ +~11% (Q1 was $590.956 million). - Gross margin: 86.97% GAAP; Non-GAAP gross margin: 88.3%. - Non-GAAP operating margin: 24.6% (guidance range was 20%–21%). - Non-GAAP net income: $165.0 million; diluted EPS: $0.56. - GAAP net income: $56.0 million; GAAP EPS: $0.19. - Free cash flow: $187.1 million; FCF margin: 29%. - ARR: $2.06 billion, up 19% YoY. - Cash & equivalents + short-term investments: $1.743 billion (liquidity positioned for growth and optionality). - Net cash provided by operating activities: $221.7 million. - Capex: $34.6 million; Free cash flow to operations: ~0.70x FCF per share. - Balance sheet: total assets ~$2.989B; total liabilities ~$3.796B; total stockholders’ equity negative at roughly -$0.808B, driven by intangible assets and capitalization of cloud platform investments. - Debt: total debt ~$1.457B; long-term debt ~$1.435B; net debt ~$0.385B. - NRR: 110% (flat QoQ); ACV/land and expand improvements; average contract duration ~3 years.)
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
654.72M
15.83%
10.79%
Gross Profit
569.43M
17.75%
12.03%
Operating Income
65.44M
76.64%
140.14%
Net Income
56.43M
72.06%
88.56%
EPS
0.21
61.54%
90.91%
Key Financial Ratios
Gross Profit Margin
Excellent
87.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Fair
9.99%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
8.62%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.89%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.07%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.77
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
-1.80
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
81.39x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Undervalued
-22.75x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
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