Nutanix Inc at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Timothy Long - Barclays - Analyst : So Yes. We got a bunch of stuff to discuss here, but maybe we'll start with some of the hot topics. Obviously, last quarter with the rev rec dynamics. Maybe you can kind of look at this in a few parts to talk about greater flexibility from customers to talk about some of the third-party OEMs. So maybe walk us through kind of the changing dynamics that you guys experienced in those aspects.

Question: Timothy Long - Barclays - Analyst : We're talking about the TCV growth year over.

Question: Timothy Long - Barclays - Analyst : Okay. And then this kind of the scaling of the license is, have you seen a dynamic like this in the past and what do you think under it macro? Is it just -- what's different now with some of these bigger cohort of customers?

Question: Timothy Long - Barclays - Analyst : Okay. Great. And then maybe touch on the mix of third-party OEM and impacts there?

Question: Timothy Long - Barclays - Analyst : Okay. Yes, I was going to ask with the rising mix of OEM partner business, you're now subject to more -- whether it's component availability or if they see demand issues because of rising component costs, nothing to do with your solution. So how does that mix moving higher change like the strategy or the structure of the business?

Question: Timothy Long - Barclays - Analyst : Yes, I was just saying the bigger it gets, the more things that are out of your control somewhat --

Question: Timothy Long - Barclays - Analyst : Great. Great. Yes, a lot of activity, which is in the diversity is great. Maybe if we -- another topic that comes up is AI in kind of hybrid cloud -- maybe give us your sense, obviously, a lot of the AI now has been big data centers, large language model type stuff, but we're starting to see more edge in hybrid. So give us a sense on the Nutanix play there?

Question: Timothy Long - Barclays - Analyst : Okay. Do you think that's a type of evolution that will kind of be accretive to growth rate? Or how does that kind of factor into?

Question: Timothy Long - Barclays - Analyst : Okay. Excellent. Maybe if we pivot a little bit to -- obviously, it's been a topic for five years, the VMware display and market share gains. So maybe just give us a sense of where you view we are in that continuum. And as time has gone on, has the strategy at all changed to try to do some displacements. Obviously, there's been pricing moves by VMware. There's been ignoring smaller -- there's a lot of things that they do. So just curious where you think we are and kind of what's the path forward from there?

Question: Timothy Long - Barclays - Analyst : Okay. And can you talk a little bit -- I think you alluded to kind of like a learning curve, the more innings you get through this game, probably the more automation and the more seamless, you can make these migrations. So is there a scenario where a year or two for now is easier or faster or more economical for you to have a larger displacement?

Question: Timothy Long - Barclays - Analyst : Okay. And there was a lot of drama around pricing when this all happened. Have we gotten to the point where there's a little bit more stability and predictability in your competitor and just industry pricing overall?

Question: Timothy Long - Barclays - Analyst : Okay. And it sounds like the larger enterprise, you mentioned the Fortune 500 financial institution. I imagine those are heavier lips and a little bit more difficult to do a displacement because that's kind of in the wheelhouse of what Broadcom is?

Question: Timothy Long - Barclays - Analyst : Okay. I wanted to touch on partnerships. You mentioned several of them. But if we think about maybe the AWS or that camp of companies and then maybe the storage server vendors as a separate set -- how does the go-to-market work there? Obviously, it allows a lot more at bats. So it's giving you a lot of chances, but curious how meaningful you view these partnerships and ramping. It sounds like there's several more in the pipeline on the --

Question: Timothy Long - Barclays - Analyst : Okay. Great. Shift a little, I do want to talk about kind of the renewals business and kind of the outlook there. Curious how you think that setup is into fiscal '26?

Question: Timothy Long - Barclays - Analyst : Okay. Maybe still on the financials, can you talk about kind of the moving parts around the 21% to 22% operating margin target for the year? -- the revenue disruption? How did that play into it? And what are some of the moving parts there?

Question: Timothy Long - Barclays - Analyst : Okay. Great. Maybe the last one, I probably should more high level should have started with it, but HEI continues to grow and take share of the environment, but still a lot of room to go. So what do you think we'll keep that movement going. It sounds like a lot of these partnerships will help. But just the high level, kind of how do you see just overall industry growth? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 7:35PM, NTNX.OQ - Nutanix Inc at Barclays Global Technology Conference

Question: Timothy Long - Barclays - Analyst : Okay. Excellent. I think we're finished just on time. So thank you so much, both of you. Thank you, everyone, for joining.