Nutanix Inc Q4 2025 Earnings Call Summary

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

Question: Jason Ader - William Blair & Company - Analyst : Yeah, thank you. Can you talk about the FI win and just the size of the deal and, I don't know any other kind of opportunities like that out there, is this kind of a one off or do you feel like there's others, that you have in the hopper that you that you'll be able to talk about over the next year or so?

Question: Jason Ader - William Blair & Company - Analyst : Okay, great. And then one for quick one for Rukmini, NRR was down a couple of points sequentially and just if you can give us some explanation for that.

Question: Jason Ader - William Blair & Company - Analyst : Thank you. Good luck.

Question: Meta Marshall - Morgan Stanley - Analyst : You're great thanks and congrats on the quarter I guess just as you have start seeing some of these Dell Power flex deals if you could just give a sense of, how we should think of those customers kind of in relation to kind of the more traditional Nutanix customers and just as we could kind of get any visibility into what the. Customers looking at pure storages early access or like versus maybe the Dell PowerFlex customers, and maybe just as a second question, understanding you were kind of talking about more conservatism on the public sector within the guide, but just any kind of more updated commentary on what you're seeing with the federal government. Thanks.

Question: Meta Marshall - Morgan Stanley - Analyst : Great, thank you.

Question: Matthew Martino - Goldman Sachs - Analyst : Yeah, thanks for taking my question, guys. two for me if I could. Raj, for you, GPT in a box has been in the market for about two years now. You introduced some new capabilities at next '25. I'm curious where you think we are in terms of enterprise AI maturity and whether we're getting closer to an inflection point that can. To benefit Newtonics. And then Rukmini, for you, it sounds like there's some revenue timing dynamics associated with some of these larger deals that Newtonix is landing. Can you help us understand how you may be de-risking the multi-year deal activation piece and how much visibility you have into this dynamic heading into 206?

Question: Matthew Martino - Goldman Sachs - Analyst : Thanks guys appreciate the warm welcome.

Question: James Fish - Piper Sandler Companies - Analyst : Hey guys, on the guide Rick me, it seems to imply an acceleration beyond the quarter, beyond fiscal Q1 here. Can you just give us some of the put and take on the fiscal '26 guide as we think more about new ACV growth versus that available to renew with with the installed base or essentially how you're thinking about net retention rate and obviously that we've always talked about ARR is REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2025 / 8:30PM, NTNX.OQ - Q4 2025 Nutanix Inc Earnings Call kind of the metric you guys want to point us to as we think about the annual year, is there a way is, how should we think about the sort of ARR exiting the this year?

Question: James Fish - Piper Sandler Companies - Analyst : Yeah, so maybe then on the larger transactions because it seems like we're all trying to figure this out, you, you're commenting about larger actions looking for deferrals you've told us that you consider the strategy of, more annual billings, let's say as opposed to multi-year billings. Is it that you're seeing large eight figure type deals like you did last year, now in the pipeline more and more, or is it going to be more the kind of strength of of the seven figure type deals and beyond that you're getting sort of that competitive disruption? Thanks.

Question: Michael Cikos - Needham & Company Inc. - Analyst : Hey guys, thanks for taking the questions here, and I'll, PowerFlex is getting a decent amount of attention, so I'll tap into that for a second, but, great to hear on these two initial wins with these large global 2000 customers. Quite frankly, it's earlier than I had expected on my side, but I wanted the temperature check it. What were you guys anticipating as far as Wins with PowerFlex. Can you give us some more granularity as far as how these deals came together? Were they led by new tenants, were they led by Dell? Was it a co-marketing effort? Anything on that front would be incremental, and then I have a follow up.

Question: Michael Cikos - Needham & Company Inc. - Analyst : Thank you for that. And I guess my follow up for Mini, I know that there's a couple of different moving pieces here, on the average contract duration in addition to and thank you for all the assumptions on the guide, but if I look at the average contract duration REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2025 / 8:30PM, NTNX.OQ - Q4 2025 Nutanix Inc Earnings Call specifically, Q4 was slightly higher than what you guys had anticipated. We're talking about this upcoming year average contract duration is expected to see a slight decline. Is there any way you can help us? Conceptualize what that impact to revenue is as a result of these movements around the average contract duration.

Question: Michael Cikos - Needham & Company Inc. - Analyst : Understood. Thank you guys.

Question: Wamsi Mohan - Bank of America - Analyst : Hi, thanks for taking my questions. It's Ruppio filling in for Rammy. I have two questions. First one for Rukmini on margins. If you look at the midpoint of fiscal '26 guidance, 21.5%, that implies only 40 bits of improvement year on year, which would be the lowest in any year so far. Can you help us segment that into how much of that is from tariffs, how much is because you have more employees now and more SGNA? And the other factors that you mentioned, I think you said 30 million or so of other issues. So can you help us segment that and is there any conservatism factored into this?

Question: Wamsi Mohan - Bank of America - Analyst : Okay, so that, Rukmini, for my follow up, I'd like to ask a question on ERR, and I know you don't guide specific ERR, but just as you mentioned, there are different factors that impact that. And one is of course land, which is new logos and new tanics is going to face a tough year on year compare because fiscal '25 was so strong on that front. Then there's expand, which you know we can kind of infer from NRR and then you said pricing also. So maybe I'd like to ask how is the pricing environment? Do you see maybe pricing as a lever you can use that you can raise prices on and maybe Rajit you can use this to gain some share from VMware and then on NRR like. How should we think about what how high NRR can go and how should we think about expansion? So I guess what I'm trying to ask is of these three factors, where do you have the most confidence and how should we think about, this expansion versus pricing versus versus this, the new logo expansion. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2025 / 8:30PM, NTNX.OQ - Q4 2025 Nutanix Inc Earnings Call

Question: Wamsi Mohan - Bank of America - Analyst : Okay, thank you for all the details. I appreciate it.