Nutanix Shares Drop on Disappointing Guidance

Nutanix (NTNX) sank 16% after the company issued a weaker-than-anticipated revenue outlook for fiscal Q2 and trimmed full-year revenue expectations, overshadowing commentary from management that underlying demand remains strong.

Soft FQ2 Revenue Outlook

Forecast FQ2 revenue: $705M to $715M
Well below Wall Street expectations of $749M
Guidance miss triggered a sharp selloff in after-hours and premarket trading

Lower Full-Year Revenue Projection

Nutanix now expects:

Full-year revenue: $2.82B to $2.86B
Down from prior guidance (and below consensus estimates)
Reduction largely attributed to a shift of FQ1 revenue into later periods, not a demand slowdown

Management Commentary

The company emphasized that:

Demand fundamentals remain strong
The lowered revenue view reflects timing shifts, not cancellations
Nutanix raised full-year free cash flow guidance, signaling improved profitability dynamics

Market Reaction

Shares dropped 16%, among the biggest decliners in the software and cloud infrastructure segment
Analysts noted that investors remain highly sensitive to revenue timing and cloud-spending trends