Nutanix Surges Past Targets Amid Supply Chain Woes

Nutanix reported strong fourth-quarter fiscal 2026 financial results that surpassed its own guided ranges. The company achieved a record revenue of $757 million, driven by broad-based demand for its hybrid multicloud platform and associated services. This performance occurred even as the company continued to face server supply constraints.

Annual recurring revenue, a key metric for subscription-based businesses, reached $2.549 billion by the end of the quarter, marking a 16% increase from the previous year. This represents an acceleration in growth compared to the prior quarter. Net dollar-based retention remained robust at 106% sequentially.

CEO Rajiv Ramaswami noted significant customer uptake for the company's external storage solutions and Nutanix Cloud Clusters (NC2). These offerings are reportedly helping clients navigate hardware availability and pricing challenges. The company also saw notable success with its Kubernetes and database management products.

For the full fiscal year 2026, Nutanix reported total revenue of $2.854 billion, a 12% increase year-over-year. The company expanded its customer base by over 3,000 during the year across various tiers, underscoring its market penetration and growth trajectory.