Nutanix (NASDAQ: NTNX) Surges on Strong Q2 Earnings and Upbeat Outlook

Key Highlights:

✅ Revenue Jumps 16% YoY to $654.7M, surpassing estimates
✅ Cloud Growth Fuels Expansion, with ARR rising 19% YoY
✅ Operating Margin Improves, reaching 24.6%
✅ Guidance Raised, reflecting confidence in sustained demand
✅ Stock Hits 52-Week High, rallying over 12%

Nutanix, Inc. (NASDAQ: NTNX) is making waves on Wall Street after delivering stellar second-quarter results, propelling its stock price to fresh highs. The enterprise cloud computing leader reported a 16% YoY revenue increase, totaling $654.7 million, handily beating analyst expectations of $641.9 million. With adjusted EPS at $0.56, well above the projected $0.47, Nutanix has firmly positioned itself as a key player in the hybrid cloud space.

The company’s Annual Recurring Revenue (ARR) grew 19% YoY, reflecting strong customer adoption of its cloud-based services. Nutanix CEO Rajiv Ramaswami highlighted the company’s ability to capitalize on enterprises’ digital transformation efforts, with businesses increasingly relying on Nutanix as a trusted long-term cloud partner.

One of the standout metrics from the earnings report was the expansion of operating margins, which climbed 270 basis points to 24.6%, showcasing Nutanix's focus on profitability. Operating cash flow also surged, reaching $221.7 million, with free cash flow standing at $187.1 million.

Raising the Bar on Guidance

Nutanix also raised its FY25 revenue forecast, now expecting $2.495 billion to $2.515 billion, up from its prior range of $2.435 billion to $2.465 billion. Additionally, the company lifted its free cash flow projection to $650 million-$700 million, signaling strong future growth potential.

This upbeat outlook comes as Nutanix continues to enhance its hybrid cloud and AI-driven enterprise solutions, securing major deals across finance, healthcare, and technology.

Stock Soars on Growth Optimism

Following the earnings beat, Nutanix shares jumped 12%, hitting a 52-week high of $79.81 before settling at $77.96. The stock is now up nearly 80% over the past year, outperforming broader market indices. With analysts suggesting the stock could still be undervalued by as much as 48%, investors are betting on further upside.

With momentum building in cloud computing, AI, and enterprise digitalization, Nutanix is well-positioned for continued growth. As businesses accelerate their shift to hybrid and multi-cloud environments, the company’s innovative platform remains in high demand.