Market Overview - U.S. markets opened with modest gains, with Nasdaq Futures leading at +0.52%, followed by S&P 500 Futures at +0.33% and Dow at +0.22% [5][6] Economic Indicators - Chicago PMI for November reported at 36.3, significantly below the consensus of 44.3, marking the second lowest reading since the pandemic and the 24th consecutive month of decline [2] - U.S. jobless claims decreased to 216,000 for the week of Nov. 22, down from 222,000 the previous week and below expectations of 225,000, indicating potential stabilization in the job market [3] - Durable goods orders for September increased by 0.5%, surpassing the expected 0.3%, driven by a 30.9% rise in defense aircraft/parts, although this growth rate was slower than the 3% gain in August [4] Company Performance Winners - Petco Health saw a significant increase of 21.9% following strong earnings reported after the previous market close [5] - Other notable gainers included Autodesk (+7.7%), Bentley Systems (+6.7%), and Oracle (+6%) [5] Losers - Nutanix experienced a sharp decline of 11.3% after disappointing earnings results [7] - Zscaler fell by 7% due to conservative guidance, while Reynolds and Workday dropped by 6.3% and 6.2% respectively, with Workday providing a weak boost to its full-year guidance [7]

Core Insights - Nutanix, Inc. reported worse-than-expected first-quarter financial results and cut its FY26 sales guidance below estimates [1] - The company posted revenue of $670.58 million, slightly below estimates of $676.75 million, while adjusted EPS was 41 cents, in line with expectations [1] - Nutanix expects second-quarter revenue between $705 million and $740 million, lower than the estimate of $749.09 million, and has revised its full-year revenue outlook for FY26 to $2.82 billion to $2.86 billion, down from the previous estimate of $2.92 billion [2] Analyst Reactions - Needham analyst Mike Cikos maintained a Buy rating on Nutanix but lowered the price target from $80 to $65 [4] - B of A Securities analyst Wamsi Mohan also maintained a Buy rating while reducing the price target from $93 to $75 [4] - Keybanc analyst Brandon Nispel kept an Overweight rating and cut the price target from $95 to $65, while Piper Sandler analyst James Fish reiterated an Overweight rating and lowered the price target from $88 to $72 [4] Market Reaction - Following the earnings announcement, Nutanix shares dipped 15.5% to trade at $49.69 [2]

Core Insights - U.S. stock futures are up, with Nasdaq futures increasing by approximately 50 points [1] - Nutanix Inc reported disappointing first-quarter financial results, leading to a significant drop in its stock price [2] Company Performance - Nutanix reported earnings of 21 cents per share, missing the analyst consensus estimate of 41 cents per share [2] - Quarterly sales for Nutanix were $670.576 million, falling short of the analyst consensus estimate of $676.750 million [2] - Following the earnings report, Nutanix shares fell by 16.8% to $48.86 in pre-market trading [2] Other Stocks Movement - Jiayin Group Inc (ADR) saw a decline of 7.8% to $6.83 in pre-market trading [4] - Zscaler Inc dropped 7.2% to $269.00 after reporting first-quarter financial results [4] - Ambarella Inc's stock fell 6.7% to $84.84 following its quarterly results [4] - Workday, Inc. declined 6.3% to $219.00 after its third-quarter results [4] - Pagerduty Inc decreased by 5.8% to $14.30 after mixed third-quarter results and lowered FY26 sales guidance [4] - HP Inc fell 5.7% to $22.94 after issuing first-quarter EPS guidance below estimates [4] - Deere & Company declined 4.7% to $474.95 after reporting fourth-quarter results and a worse-than-expected FY26 outlook [4] - Vera Therapeutics, Inc. dropped 3.5% to $28.40 in pre-market trading [4]

Core Insights - U.S. stock futures are showing positive movement, particularly with Nasdaq futures gaining approximately 50 points [1] - Nutanix Inc reported disappointing first-quarter financial results, leading to a significant drop in its stock price [2] Company Performance - Nutanix's quarterly earnings were reported at 21 cents per share, falling short of the analyst consensus estimate of 41 cents per share [2] - The company's quarterly sales amounted to $670.576 million, which also missed the analyst consensus estimate of $676.750 million [2] - Following the earnings report, Nutanix shares plummeted by 16.8%, reaching a pre-market price of $48.86 [2] Other Stocks Movement - Jiayin Group Inc saw a decline of 7.8%, trading at $6.83 in pre-market [4] - Zscaler Inc's shares fell by 7.2% to $269.00 after reporting its first-quarter financial results [4] - Ambarella Inc experienced a 6.7% drop to $84.84 following its quarterly results [4] - Workday, Inc. declined by 6.3% to $219.00 after its third-quarter results [4] - Pagerduty Inc's stock dipped 5.8% to $14.30 after mixed third-quarter results and a lowered FY26 sales guidance [4] - HP Inc fell 5.7% to $22.94 after issuing first-quarter EPS guidance below estimates [4] - Deere & Company declined by 4.7% to $474.95 after reporting fourth-quarter results and a worse-than-expected FY26 outlook [4] - Vera Therapeutics, Inc. saw a 3.5% decrease to $28.40 in pre-market trading [4]

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Core Viewpoint - Nutanix's stock dropped nearly 18% in pre-market trading following the release of its Q1 fiscal year 2026 earnings report, which showed mixed results compared to analyst expectations [1] Financial Performance - Adjusted earnings per share for Q1 were $0.41, an increase from $0.36 a year ago [1] - Revenue rose from $591 million to $670.6 million year-over-year [1] Future Guidance - The company expects Q2 revenue to be between $705 million and $715 million, while analysts had anticipated $748.8 million [1] - Nutanix has lowered its full-year revenue guidance to between $2.82 billion and $2.86 billion, down from a previous estimate of $2.9 billion to $2.94 billion, with analyst expectations at $2.92 billion [1]

Core Viewpoint - Nutanix reported quarterly earnings of $0.41 per share, matching the Zacks Consensus Estimate, but down from $0.42 per share a year ago [1] - The company posted revenues of $670.58 million for the quarter ended October 2025, missing the Zacks Consensus Estimate by 0.86%, but up from $590.96 million year-over-year [2] Financial Performance - Nutanix has surpassed consensus EPS estimates three times over the last four quarters [2] - The company had a surprise of +15.63% in the previous quarter, with actual earnings of $0.37 per share compared to an expected $0.32 [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.54, with expected revenues of $748.98 million, and for the current fiscal year, the EPS estimate is $1.89 on revenues of $2.92 billion [7] Stock Performance - Nutanix shares have declined approximately 4.7% since the beginning of the year, contrasting with the S&P 500's gain of 14% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Computers - IT Services industry, to which Nutanix belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Nutanix's stock performance [5]

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Financial Data and Key Metrics Changes - The company reported quarterly revenue of $671 million, representing a year-over-year growth rate of 13% and within the guided range of $670-$680 million [10][11] - Annual Recurring Revenue (ARR) grew 18% year over year to $2.284 billion [5][11] - Non-GAAP net income for Q1 was $121 million, translating to a fully diluted EPS of $0.41 per share [12] - Free cash flow in Q1 was $175 million, with a free cash flow margin of 26% [12] Business Line Data and Key Metrics Changes - The company experienced a shift in revenue recognition due to a higher proportion of bookings with future start dates, impacting Q1 revenue [10][11] - The average contract duration increased to 3.1 years [11] - Non-GAAP gross margin was reported at 88%, while non-GAAP operating margin was 19.7% [11] Market Data and Key Metrics Changes - The U.S. Federal business saw double-digit year-over-year growth, although it remains a small portion of total revenue [20][21] - The company continues to add large customers, including a significant new logo in the U.S. federal sector focused on AI and modernization [8][9] Company Strategy and Development Direction - The company is focused on modernizing IT infrastructures and adopting hybrid multi-cloud operating models [6][9] - There is an emphasis on flexibility in license start dates to align with customer adoption timelines, particularly in light of Broadcom migrations [14][58] - The company plans to support additional external storage solutions, enhancing its hybrid cloud capabilities [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the fundamentals of the business remain strong despite the revenue timing issues [9][15] - The company expects to see more revenue deferred than previously planned, but the overall revenue recognized over time remains unchanged [10][14] - Management remains optimistic about the demand for their solutions and the potential for growth in the federal sector [20][21] Other Important Information - The company has raised its free cash flow guidance for the full year to $800-$840 million, reflecting a free cash flow margin of 28.9% at the midpoint [13][14] - The company is participating in several upcoming technology conferences, indicating ongoing engagement with investors [2] Q&A Session Summary Question: NRR flat quarter over quarter dynamics - Management explained that new logos do not directly affect NRR, and the stability in NRR reflects good retention and expansion dynamics [17][18] Question: Performance of U.S. Federal business - The U.S. Federal business experienced double-digit growth, but variability is expected due to recent changes in personnel and policies [20][21] Question: RPO bookings growth rate - Management clarified that RPO captures future revenue expectations and noted a year-over-year growth of 26% in RPO [26][28] Question: Supply chain issues and push-outs - Management indicated that supply chain constraints were not a significant factor in Q1 results, but they are monitoring potential impacts going forward [32][34] Question: Customer spending plans and hardware costs - Management has not seen a drop in demand despite rising hardware costs and is focused on providing flexibility to customers [45] Question: Structural changes in bookings - Management confirmed that the increase in bookings with future start dates is likely a structural change driven by customer needs for flexibility [58][61]

Financial Data and Key Metrics Changes - The company reported quarterly revenue of $671 million, representing a year-over-year growth rate of 13% and within the guided range of $670 million to $680 million [10][12] - Annual Recurring Revenue (ARR) grew 18% year-over-year to $2.284 billion [5][12] - Non-GAAP net income for Q1 was $121 million, translating to a fully diluted EPS of $0.41 per share [13] - Free cash flow in Q1 was $175 million, with a free cash flow margin of 26% [13] Business Line Data and Key Metrics Changes - The company experienced a shift in revenue recognition due to a larger-than-expected proportion of bookings with future start dates, impacting revenue timing but not overall revenue expectations [3][10] - Non-GAAP gross margin for Q1 was 88%, while non-GAAP operating margin was 19.7%, towards the lower end of the guided range [12] Market Data and Key Metrics Changes - The U.S. Federal business saw double-digit year-over-year growth, although it remains a small portion of total revenue [21] - The company continues to see strong demand for its cloud platform, with notable wins in various sectors including agriculture and government [6][7] Company Strategy and Development Direction - The company is focused on modernizing IT infrastructures and adopting hybrid multi-cloud operating models, which aligns with customer needs for flexibility [6][9] - There is an ongoing initiative to support external storage solutions, with plans to support Dell's PowerStore expected in summer 2026 [8][9] - The company aims to balance prudent investments for growth while expanding margins over time [16][61] Management's Comments on Operating Environment and Future Outlook - Management indicated that the fundamentals of the business remain healthy, with unchanged bookings growth expectations despite revenue timing shifts [4][9] - The company is optimistic about the U.S. Federal business benefiting from modernization efforts and lowering total cost of ownership [22] - Management acknowledged potential supply chain tightness impacting future business but emphasized that demand remains strong [35][36] Other Important Information - The company has raised its free cash flow guidance for the full year to $800 million to $840 million, reflecting a free cash flow margin of 28.9% at the midpoint [14][15] - The company plans to participate in several upcoming technology conferences, indicating ongoing engagement with investors [2] Q&A Session Summary Question: NRR dynamics and new logos versus expansions - Management explained that new logos do not directly affect NRR, and while average deal sizes for new logos have increased, this may lead to longer migration timelines for larger customers [18][20] Question: Performance of U.S. Federal business - The U.S. Federal business experienced double-digit growth in Q1, but variability is expected due to recent changes and the government shutdown [21][22] Question: RPO bookings growth rate - Management clarified that RPO captures future revenue expectations and noted a year-over-year growth of 26% in RPO for Q1 [28][30] Question: Supply chain issues and push-outs - Management indicated that while supply chain constraints were not a significant factor in Q1 results, they are monitoring potential impacts going forward [33][35] Question: Revenue guidance adjustments - The company provided updated revenue guidance for FY26, reflecting shifts in revenue recognition due to customer flexibility needs and increased third-party OEM business [14][15][49] Question: Competitive environment - Management stated that competitive dynamics remain unchanged, with no significant shifts in the competitive landscape [50][51] Question: Large deals pipeline - The company continues to see a healthy pipeline of large deals, with expectations for growth in revenue from third-party OEM partners [54][56]