# Nutanix’s regular revenue rise repeats > Source: > Published: 2026-05-28 13:44:54+00:00 # Nutanix’s regular revenue rise repeats [Nutanix](https://www.blocksandfiles.com/hci/2026/04/07/nutanix-pushes-agentic-ai-bare-metal-kubernetes-at-next-2026/5214682) worships financial consistency. As regular as clockwork, for 15 successive quarters, it has recorded a 10 to 12 percent or so revenue rise, and it has done it again in its latest quarter. It beats its $670 million high-end guidance with $703.1 million in revenues, up 20 percent annually, with GAAP net income of $72.1 million, up 13.8 percent, and it’s raising its full year guidance CEO Rajiv Ramaswami said: “We saw solid demand in the third quarter, including strong bookings, healthy new logo additions, and good free cash flow performance. We also announced significant new innovations and partnerships in the areas of AI, modern applications and support for external storage, which will help us pursue the substantial market opportunity in front of us.” Financial summary - Gross margin: 86.9 percent vs year-ago 87 percent - Operating cash flow: $207.5 million vs year-ago $218.5 million - Free cash flow: $197.2 million vs $203.4 million last year - ARR: $2.43 billion vs year-ago $2.14 billion, up 15 percent The company’s customer count rose by 730, up 18 percent Y/Y, to 31,710, and the average contract duration was 3.4 years, up by 0.3 years annually. William Blair analyst Jason Ader told subscribers the results reinforced “durable demand for the Nutanix platform and steady execution against a multi-year VMware displacement opportunity.” Ramaswami commented on current market conditions in the [earnings call](https://www.fool.com/earnings/call-transcripts/2026/05/27/nutanix-ntnx-q3-2026-earnings-transcript/), saying: “Supply chain challenges continue to drive higher prices and generally longer lead times for server hardware from our partners. Which are pressuring customer budgets and timelines. However, Nutanix's focus on customer choice helps mitigate some of this impact, and enables customers to better manage their deployment timelines and budgets. These include choice of server vendors, choice of running in the public cloud Nutanix cloud clusters or NC2. And in particular, choice of adopting our cloud platform with a growing number of external storage options.” And then this: “Note that the majority of current data center infrastructure is based on external storage and legacy hypervisors on servers. Our support of external storage platforms is simplifying migrations to Nutanix.” It’s ironic that this originally hyper-converged infrastructure (HCI) company is now seeing growth in converged infrastructure. The company plans to integrate its Nutanix Cloud Platform (NCP) software with NetApp’s Intelligent Data Infrastructure and support NCP on Lenovo ThinkSystem servers and storage, with availability expected later this year. This adds to existing deals with [Dell and Everpure](https://www.blocksandfiles.com/hci/2026/04/07/nutanix-pushes-agentic-ai-bare-metal-kubernetes-at-next-2026/5214682). Ramaswami said: “It is a small portion of our business at this point in time, but it is rapidly growing. And we expect it to be a more and more significant chunk of our business, especially since it makes it much easier to adopt our solution without having to change our hardware in a supply chain-constrained environment.” Nutanix is not, unlike Everpure, Dell and other server/storage hardware companies, seeing a surge in AI-related demand. But it is making progress with AI, supporting AMD GPU servers and Neocloud GPU service providers, for example. Ramaswami said it is still early days in AI adoption for Nutanix’ customers; “But we do think this is a significant long term opportunity for, and a tailwind to, our overall business over time.” The revenue outlook for its final fy2026 quarter is $735 million +/1 $10 million; a 12.5 percent increase at the mid-point. Full fy2026 guidance is raised from $2.82 billion ± $20 million to $2.83 million ± $10 million, an 11.4 percent Y/Y rise at the mid-point. Ader had a comment about this: “The updated outlook embeds greater conservatism due to, 1) ongoing supply chain constraints, which have led to persistent component pricing inflation and elongated server lead times (pressuring deployment timelines and delaying revenue conversion from bookings) and, 2) softer visibility in the Middle East (historically a mid-single-digit contributor to revenue), where new business formation has been increasingly challenging.”