Nutanix (NASDAQ: NTNX) missed revenue expectations in Q3 CY2025, with sales rising 13.5% year on year to $670.6 million. Next quarter’s revenue guidance of $710 million fell 5.1% below analyst estimates. Non-GAAP profit per share was $0.41, in line with expectations. The company’s annual recurring revenue hit $2.28 billion, exceeding analyst estimates by 0.7%. Nutanix grew sales at a 14.9% annual rate over the last five years, but its revenue guidance for the full year is below expectations. The stock price remained flat after the report, at $51.69.

Nutanix provides a unified software platform for hybrid multicloud computing, enabling applications to run across private, public, and hybrid cloud environments. The company’s revenue growth has averaged 16.1% over the last two years, with an 8.4% increase expected next quarter. Sell-side analysts project a 12.2% revenue growth over the next 12 months, reflecting some demand headwinds for its products. Nutanix’s customer acquisition efficiency is high, with a CAC payback period of 18.8 months, indicating strong product differentiation and brand reputation.

In conclusion, Nutanix’s Q3 results showed strengths in annual recurring revenue growth but weaknesses in revenue guidance for the full year and next quarter. The stock price remained unchanged after the report, prompting investors to consider valuation, business qualities, and recent earnings when deciding on investment opportunities.

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