Nutanix (NTNX): Strong Revenue Forecast and Solid Q2 Results

By Patricia Miller

Feb 27, 2025

2 min read

Nutanix (NTNX) raised its revenue outlook, beat Q2 estimates, and posted strong recurring revenue growth—key signals for investors eyeing cloud stocks.

A digital representation of cloud computing, featuring a glowing cloud hovering above a network of circuits, symbolizing data transfer and technology

#What You Need to Know

Nutanix Inc (NASDAQ: NTNX) has raised its revenue forecast for the fiscal year and surpassed estimates in its second quarter results. The company now expects revenue to range from $2.50 billion to $2.52 billion. Previously, the forecast was between $2.44 billion and $2.47 billion. Analysts had projected a revenue of $2.46 billion.

For the upcoming third quarter, Nutanix anticipates revenue between $620 million and $630 million, higher than the estimate of $594.5 million.

In its second quarter, Nutanix reported an adjusted EPS of 56 cents compared to 46 cents year over year, exceeding the estimate of 47 cents. Revenue for the quarter reached $654.7 million, reflecting a 16% year-over-year increase, again beating the forecast of $641.7 million. Subscription revenue stood at $624.4 million, 17% higher year over year and also surpassing expectations.

The strong performance is evident in billings of $776.4 million, significantly exceeding the predicted $688.2 million. Nutanix also reported annual recurring revenue of $2.06 billion, a growth of 19% year over year.

In summarizing the outlook, the CFO communicated that the results reflect a commitment to sustained and profitable growth through robust cash flow generation.

Sign up for Investing Intel Newsletter

Get the latest news and updates from our team.

I agree to the privacy policy.

#Why This Is Important for Retail Investors

  • Strong Revenue Growth – Nutanix reported $654.7 million in Q2 revenue, exceeding expectations and reflecting strong demand for its hybrid cloud solutions.

  • Rising Recurring Revenue – The 19% year-over-year increase in Annual Recurring Revenue (ARR) to $2.06 billion signals long-term financial stability and customer retention.

  • Stock Price Gains – Shares surged after earnings, showing investor confidence in the company’s growth trajectory and ability to outperform market forecasts.

  • Financial Flexibility – The issuance of $862.5 million in convertible senior notes and a $500 million credit facility strengthens liquidity and supports future investments.

  • AI-Driven Market Potential – The company’s Enterprise Cloud Index report highlights that over 80% of organizations are adopting Generative AI, positioning Nutanix as a key player in AI-driven cloud infrastructure.

#Relevant ETFs

  • First Trust Cloud Computing ETF

  • Global X Cloud Computing ETF

  • SPDR S&P Software & Services ETF

  • Invesco QQQ Trust

  • iShares Expanded Tech Sector ETF

  • ARK Next Generation Internet ETF

How to Invest in Cryptocurrency

Related Articles:

Explore more on these topics:

Growth Investing Stocks Quarterly Earnings Software Information Technology

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.