Nutanix (NTNX) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue reached $639 million, up 22% year-over-year, exceeding guidance, driven by strong demand for the cloud platform, new logo growth, and innovation in external storage, modern applications, and generative AI.

• Annual Recurring Revenue (ARR) grew 18% year-over-year to $2.14 billion, with robust free cash flow generation.

• Added 620 new logos in Q3, bringing the customer base to over 28,000, with notable wins in EMEA and North America.

• Product and partnership announcements included NCI for external storage, partnerships with Dell PowerFlex and Pure Storage, and new AI integrations.

• The .NEXT conference drew over 5,000 attendees and 86 partner sponsors.

Financial highlights

• Q3 revenue was $639 million, up 22% year-over-year, with subscription revenue at $609.7 million.

• Non-GAAP gross margin was 88.2% (up 170–220 bps year-over-year); GAAP gross margin was 87.0%.

• Non-GAAP operating margin was 21.5%; GAAP operating margin was 7.6%.

• Non-GAAP net income was $125 million (EPS $0.42); GAAP net income was $63.4 million (EPS $0.22).

• Free cash flow for Q3 was $203.4 million, with a margin of 32%.

• Cash, equivalents, and short-term investments totaled $1.88 billion at quarter end.

Outlook and guidance

• Q4 FY25 revenue guidance: $635–$645 million; non-GAAP operating margin: 15.5%–16.5%.

• FY25 revenue guidance raised to $2.52–$2.53 billion (17.5% growth at midpoint); non-GAAP operating margin ~20.5%; free cash flow $700–$730 million.

• Company expects continued customer growth, flat-to-slightly-higher contract duration, and ongoing investment in sales, marketing, and R&D.

• Assumes macro environment remains similar to Q3; macroeconomic uncertainty and elongated sales cycles may impact growth.