Nutanix, Inc. Q3 FY2025 earnings call

• Q3 results exceeded guidance, with ARR growing 18% YOY to $2.14 billion and strong free cash flow. - Saw strong new logo growth across customer segments, with large wins including a Fortune Global 500 provider in EMEA, an EMEA-based IT solutions provider, and a large North American asset manager. - Held the annual .NEXT conference, announcing progress on enabling existing external storage hardware with the Nutanix cloud platform, a new partnership with Pure Storage, expansion to support Google Cloud in early access, and general availability of Cloud Native AOS and a new version of Nutanix Enterprise AI.

In Q3 2025, Nutanix reported quarterly revenue of $639 million, which was higher than the guided range. ARR grew 18% year-over-year to $2.14 billion. Non-GAAP gross margin was 88.2%, non-GAAP operating margin was 21.5%, and free cash flow was $203 million (32% margin). Revenue contribution by segment wasn't explicitly broken down further in the transcript beyond overall figures.

• Q4 2025 guidance: Revenue $635 million to $645 million, non-GAAP operating margin 15.5% to 16.5%. - Full-year 2025 guidance: Revenue $2.52 billion to $2.53 billion (17.5% YOY growth), non-GAAP operating margin ~20.5%, free cash flow $700 million to $730 million.

• Macro environment is dynamic with changing conditions and longer deal cycles in federal business. - Uncertainties related to industry M&A and potential impacts on customer decisions. - Variability in deal cycles and market conditions affecting business performance.

Q: Walk us through the linearity throughout the quarter and macro impact?

A: Rajiv discussed macro dynamics with longer deal cycles in federal business and Rukmini addressed linearity noting no meaningful impact from tariffs.

Q: Comment on NCIC, Dell PowerFlex pipeline and operating margin guide?

A: Rajiv talked about NCIC and Dell PowerFlex early access and traction, Rukmini discussed operating margin guide citing timing of hiring and investment ramp-up.

Q: Traction with Dell, Cisco channel partners and .NEXT customer requests?

A: Rajiv spoke about Cisco reselling and Dell PowerFlex progress, and .NEXT highlights on external storage support and modern applications.

Q: Pricing environment, share gains vs VMware, renewals?

A: Rajiv noted stable pricing and strong new logo growth, Rukmini discussed renewals and large deal pipeline.

Q: Competitive displacements in VMware Broadcom deals and hiring?

A: Rajiv and Rukmini discussed similar deal progress and hiring to plan.

Q: ARR results, incremental ARR vs expectations?

A: Rukmini discussed ARR not being guided and stable net new ARR.

Q: Partnerships, Dell, Cisco contribution and profitability?

A: Rajiv discussed partner ecosystem and Rukmini addressed profitability guidance.

Q: Customer thoughts on traditional vs HCI, VMware renewals?

A: Rajiv talked about HCI vs three-tier and VMware renewal dynamics.

Q: ARR diversification, tax rate?

A: Rajiv and Rukmini discussed ARR vectors and non-GAAP tax rate transition.