Nutanix Beats Guidance on Every Metric, Stock Jumps 8% as Rule of 40 Streak Continues

Nutanix reported fourth-quarter fiscal 2026 results on August 26, 2026, with revenue of $757.1 million, up 16% year-over-year and surpassing its own guidance range of $725-745 million.

A Positive Reaction This Time

Unlike several other software vendors this earnings season that beat estimates but still saw their stock fall, Nutanix shares rose 8.15% in after-hours trading, from $65.39 to $70.72, as the company outperformed across all guided metrics.

Key Highlights

• Nutanix added over 3,000 new customers during the quarter
• The company achieved its third consecutive year of Rule of 40 performance — combined revenue growth and profit margin exceeding 40%
• Full fiscal 2026 revenue reached $2.85 billion, up 12% year-over-year, with EPS of $5.61, up sharply from $0.70 in fiscal 2025

Strategic AI Partnership

On August 18, 2026, Nutanix announced a strategic partnership with ChronoScale Holdings to jointly deliver enterprise-ready AI infrastructure, combining Nutanix's agentic AI solutions portfolio with ChronoScale's accelerated compute capabilities.

A Note of Caution on FY2027

Nutanix indicated that server supply constraints will continue into fiscal 2027, potentially affecting the size and timing of customer projects, with a moderately higher percentage of orders expected to carry future start dates compared to fiscal 2026. Management also noted that the renewals ACV pool is expected to keep growing year-over-year but at a slower rate than in fiscal 2026, as the overall renewals base grows larger over time.

What This Means for Hybrid Cloud Infrastructure Buyers

Nutanix's third consecutive year of Rule of 40 performance is a specific, durable signal of balanced growth and profitability rather than growth achieved at the expense of margin, or vice versa — a useful comparison point for organizations evaluating hybrid cloud infrastructure vendors on long-term financial sustainability rather than a single quarter's headline number.