Dismal revenue outlook crushes optimism around Nutanix and its stock tanks

Shares of Nutanix Inc. tanked in late trading today after the company cut its full-year revenue outlook and delivered mixed financial results, with sales falling short of Wall Street’s estimates. The stock was down more than 16%, wiping out modest gains it had made earlier in the year. For fiscal 2026, the company said it’s looking at sales of between $2. 82 billion and $2. 86 billion, down from its previous outlook of $2. 9 billion to $2. 94 billion. The midpoint of that range is just shy of Wall Street’s target of $2. 93 billion. The current quarter forecast looks even worse, with Nutanix projecting sales of between $705 million and $715 million, way below the analyst consensus estimate of $748. 8 million. Nutanix Chief Executive Rajiv Ramaswami (pictured) told analysts on a conference call that the company saw solid demand during the first quarter, with bookings outpacing expectations. But he said those bookings haven’t translated into revenue within the company’s expected timeframe. “Late in the quarter, we saw more business than expected with start dates outside of the quarter,” Ramaswami explained. “This resulted in some revenue being shifted out of quarter one. As we evaluated the impact of this recent change in our business mix on our fiscal 2026 outlook, we now expect to see more revenue deferred than we had previously planned, driving a reduction in our full-year revenue guidance.” The revised guidance was a massive disappointment for investors. Many of them have been optimistic that the company’s presence in enterprise data center environments would enable it to cash in on the ongoing artificial intelligence boom. The company sells software for managing data centers and hybrid multicloud environments, integrating storage, compute and virtualization in a way that simplifies infrastructure operations and enhances performance. In recent months, Nutanix has attempted to position itself as a provider of “AI-ready infrastructure” that can simplify the deployment and management of AI applications across hybrid environments, but so far its ambitions haven’t really panned out. That much was evident in its most recent results. For the first quarter, it delivered earnings before certain costs such as stock compensation of just 41 cents per share, in-line with Wall Street’s forecast. But the delayed implementation of some bookings meant that it only posted $670. 6 million in revenue, up 13% from a year ago but well below the analysts’ consensus estimate of $676. 6 million. If there’s one ray of sunshine, it’s that Nutanix at least did well to increase its bottom line, with net income more than doubling. It reported a profit of $62. 1 million in the quarter, up from just $29. 9 million a year earlier. Still, that wasn’t enough to disperse the doom and gloom around its disappointing revenue forecast, and today’s after-hours crash means Nutanix’s stock is now down 4% in the year to date. Photo: Nutanix.
https://siliconangle.com/2025/11/25/dismal-revenue-outlook-crushes-optimism-around-nutanix-stock-tanks/

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