Hybrid multicloud computing company Nutanix (NASDAQ: NTNX) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 15.9% year on year to $757.1 million. Guidance for next quarter’s revenue was better than expected at $760 million at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $0.60 per share was 23.6% above analysts’ consensus estimates.

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StockStory’s Take

Nutanix delivered a positive second quarter, with results that surpassed Wall Street’s expectations on both revenue and profit. The company’s performance was underpinned by increased adoption of its external storage offerings and Nutanix Cloud Clusters (NC2), which management highlighted as key factors helping customers navigate ongoing supply chain constraints. CEO Rajiv Ramaswami pointed to strong momentum across portfolio products, such as Kubernetes and database management solutions, as well as several large customer wins leveraging Nutanix’s hybrid multi-cloud platform. Management also noted that the company’s ability to support customers’ existing hardware proved advantageous during a period of elevated hardware prices and availability challenges.

Looking forward, Nutanix’s guidance reflects confidence in continued demand for its hybrid cloud platform, expansion of cloud-native and AI-driven offerings, and the growing impact of its partnerships with hardware and cloud providers. CFO Rukmini Sivaraman emphasized that server supply constraints are expected to persist, influencing the timing and structure of customer projects. Management intends to mitigate these headwinds by providing flexible purchase options and reinvesting in growth areas such as AI solutions and cloud-native capabilities. Ramaswami remarked, “We feel good about all the growth vectors while also providing us some levers to handle the supply chain issues, which are real and will continue this year.”

Key Insights from Management’s Remarks

Nutanix’s management credited the quarter’s outperformance to product portfolio expansion, new customer wins, and the strategic flexibility offered through partnerships and external storage support.

• External storage momentum: Management emphasized strong adoption of external storage solutions, with notable new wins across industries. Customers were drawn to the ability to leverage existing hardware, particularly during periods of hardware scarcity, allowing for less disruptive migrations to Nutanix’s platform.
• NC2 and public cloud traction: The Nutanix Cloud Clusters offering saw a sharp quarter-over-quarter increase in bookings, with customers using NC2 to shift workloads to the public cloud and automate database management. This flexibility appealed to organizations seeking alternatives to traditional on-premises deployments amid supply chain challenges.
• AI and agentic solutions: Nutanix introduced its Agentic AI platform and announced a strategic partnership with AMD, complementing its existing integration with NVIDIA. Management expects these developments to support future growth, especially as enterprises look for simplified, cost-effective AI deployment in hybrid environments.
• Broader partnership ecosystem: Strategic alliances with storage vendors such as Dell, EverPure, and NetApp expanded Nutanix’s hardware compatibility, which was instrumental in securing several large contracts. These partnerships increase the company’s ability to serve customers with diverse infrastructure needs and preferences.
• Portfolio product strength: Growth in portfolio products—including Kubernetes, database services, and hybrid application management—was highlighted by management as contributing to both new customer acquisition and expansion within existing accounts.

Drivers of Future Performance

Nutanix expects ongoing demand for hybrid cloud, AI, and cloud-native offerings to offset supply chain headwinds and support margin improvement.

• Hybrid cloud and external storage growth: Management anticipates that continued demand for its hybrid cloud platform, especially among customers seeking to migrate with existing hardware or avoid vendor lock-in, will drive revenue and underpin overall growth. Expansion of external storage solutions is expected to be a leading contributor this year.
• AI and cloud-native acceleration: Investments in Agentic AI, cloud-native solutions, and expanded partnerships are expected to accelerate growth, though these lines are growing from a smaller base. Management sees these offerings as increasingly relevant as enterprises modernize workloads and seek operational efficiency.
• Supply chain and payment flexibility: Persistent server supply constraints are expected to remain a headwind, causing some customers to delay project start dates or adopt phased migrations. To address this, Nutanix is offering flexible payment and contract terms, and management expects these measures to help sustain bookings and conversion to revenue despite external challenges.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) the pace of external storage and NC2 adoption, (2) customer migration activity in response to ongoing supply chain and pricing pressures, and (3) the impact of new AI and cloud-native product launches on deal sizes and customer expansion. Execution on flexible payment structures and partnership-driven growth will also be important indicators of Nutanix’s ability to sustain momentum.

Nutanix currently trades at $69.43, up from $66.49 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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