Nutanix outlined FY 2027 revenue guidance of $3.18 billion to $3.23 billion, representing 12 percent midpoint growth from the prior year, while identifying external storage and NC2 cloud capabilities as primary expansion drivers.
The guidance, issued in the company's Q4 FY2026 earnings announcement, comes after Nutanix reported 16 percent revenue growth in the fourth quarter. The infrastructure software vendor has maintained profitability within the "Rule of 40" framework, which measures the sum of revenue growth rate and free cash flow margin as a target of 40 or higher, for multiple consecutive quarters.
Nutanix operates as a hyperconverged infrastructure and cloud platform provider. The company bundles compute, storage and virtualization software onto commodity hardware, competing with vendors like VMware and HPE in on-premises deployments while also offering NC2, a managed service that runs Nutanix workloads on public cloud infrastructure.
External storage expansion refers to Nutanix's strategy of selling storage capabilities to customers running workloads on competing hypervisors and cloud platforms, broadening the addressable market beyond its core hyperconverged customers. NC2 represents the company's push into cloud-hosted consumption models, where customers pay subscription fees rather than purchasing perpetual licenses.
The $3.18 billion to $3.23 billion midpoint of $3.205 billion assumes growth from both sustained demand in the core hyperconverged market and revenue contribution from these two newer segments. Management commentary tied the two initiatives directly to the FY 2027 outlook in the earnings presentation materials.
Nutanix trades on the Nasdaq under ticker NTNX. The company ended FY 2026 with recurring revenue representing approximately 76 percent of total revenue.
The guidance assumes that both external storage adoption and NC2 attach rates will accelerate through the fiscal year. If either segment fails to reach management's internal targets by the close of Q2 FY2027, Nutanix would likely adjust the full-year guidance downward in its next earnings call.
The document to watch is Nutanix's Q1 FY2027 earnings release, expected in November 2026, which will show whether external storage revenue and NC2 bookings are tracking to the implied run rates embedded in this full-year guidance.
