Nutanix, Inc. Q2 FY2026 earnings call

Management noted healthy demand driven by business modernization, hybrid cloud adoption, and AI deployment. Strategic partnership with AMD focusing on agentic AI. Q2 results exceeded guidance with strong bookings, ARR growth, and new customers. Supply chain challenges impacted near-term revenue and free cash flow. Highlighted market wins, progress in supporting external storage, and enhancements to Nutanix Start Platform.

In Q2 2026, Nutanix reported quarterly revenue of $723 million, above the guidance range. ARR grew 16% year over year to $2.36 billion. Over 1000 new customers were added, the strongest quarterly new logo additions in eight years. GAAP net income was $103 million, GAAP EPS was $0.36 per share. Free cash flow was $191 million with a margin of 26%.

Q3 guidance: revenue $680-690 million, non-GAAP operating margin 16%-17%. Full-year guidance: revenue $2.8-$2.84 billion, non-GAAP operating margin 21%-22%, free cash flow $745-$775 million. Supply chain challenges delay revenue and free cash flow timing.

Risks include supply chain shortages of memory and CPUs, leading to price increases and longer server lead times, impacting near-term revenue and free cash flow.

Our first question will be coming from Sadi Sultan of UBS... Thank you, Mike. Thank you. And this concludes today's program. Thank you for participating. You may now disconnect. Thank you all.