• Nutanix blamed some of the revenue shift from the quarter into the future periods for the shortfall.
• The company said underlying demand and its view of business fundamentals remain unchanged.
• Year-to-date, Nutanix stock has lost about 4%.

Nutanix, Inc. (NTNX) shares plunged more than 16% in Tuesday's extended session after the enterprise cloud platform provider reported mixed results and issued a downbeat forecast, citing a shift in revenue recognition to future periods. 

If the after-hours losses are sustained in Wednesday's regular session, Nutanix stock is on track to break below $50 for the first time since August 2024 and record its biggest single-day loss since May 2024. 

Nutanix Q1 Earnings Snapshot

San Jose, California-based Nutanix said its adjusted earnings per share (EPS) for the first quarter of fiscal year 2026 rose to $0.41 from $0.36 a year ago. The result aligned with the Fiscal consensus estimate.

Revenue grew 13% year over year (YoY) to $670.6 million, slowing from the 19% reported in the previous quarter. The topline missed the consensus estimate of $676.65 million and came in line with the lower end of the company's forecast issued in late August. The company blamed some of the revenue shift from the quarter into the future periods for the shortfall.

Among key metrics, the annual recurring revenue (ARR) rose 18% YoY to $2.28 billion, accelerating from the 17% growth in the fourth quarter of 2025.

CEO Rajiv Ramaswami said,“We saw solid demand for our cloud platform in our first quarter, with bookings that were slightly ahead of our expectations, ARR growth of 18% year-over-year, another healthy quarter of new logo additions, and solid free cash flow performance.”

The company said first-quarter bookings were slightly higher than expected.

Nutanix's Outlook

CFO Rukmini Sivaraman, CFO of Nutanix, said the company has factored anticipated revenue pushback into future periods in its second-quarter outlook, while also updating its full-year guidance. 

Nutanix guided second-quarter revenue to $705 million to $715 million, below the $748.70 million consensus. It expects adjusted operating margin to expand to 20.5%-21.5%. It reduced its full-year revenue outlook to $2.82 billion to $2.86 billion, down from $2.90 billion to $2.94 billion. Analysts currently model $2.93 billion in average revenue.

The company, however, raised its full-year free cash flow guidance.“Underlying demand and our view of business fundamentals for Nutanix remain unchanged,” said Sivaraman.

What Retail Feels About Nutanix

On Stocktwits, retail sentiment toward Nutanix improved to 'extremely bullish' as of late Tuesday from 'bullish' the day before. Retail buzz increased to 'extremely high' levels. The seven-day message volume change leading up to late Tuesday was 3,800%.

A bullish user said they bought the stock at a price below $50.

Another user also expressed an intention to buy more of the stock under $50.“Strong bookings and free cash flow; Still gaining share from VMWare and long runway still ahead,” they said. “Not very concerned by the timing issue related to revenue recognition, bookings, free cash flow and RPO growth all strong.”

The user expects the stock to be back above $70 sometime next year.

Year-to-date, Nutanix stock has lost about 4%.

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