Analysis: Nutanix, Inc. announces Q4 FY2025 and full year financial results

Nutanix, Inc. has announced financial results for the fourth quarter of FY2025, showing a revenue increase of 19.2% year-on-year and 2.2% sequentially. The company closed out the year with its first-ever GAAP profit, representing a turning point for this growing business.

Background

Nutanix, Inc. published financial results for Q4 FY2025 (the period ending 31^st July 2025) on 27^th August 2025. Revenue for the period was $653.3 million and $2.538 billion for the year as a whole. This represents an increase year-on-year of 19.2% for Q4 and 18.1% compared to the full year FY2024.

For the first time, the company declared a GAAP profit for the year of $211.65 million. With an increase in customer numbers and AHV adoption, the Nutanix rollercoaster marches on.

We present the data in 6 graphs, labelled Figures 1 to 6.

Consistency

In our previous reporting (link here), we highlighted how Nutanix continues to grow quarter on quarter, adding new customers and increasing AHV adoption. As Figure 3 shows, since 2021, revenue growth has been remarkably consistent, aligning with the appointment of current CEO, Rajiv Ramaswami. Similarly, the data shown in Figure 4 highlights how, as revenue has increased, losses have been stemmed and turned into a FY2025 profit.

In tandem with the reduction in losses, we can see that the cost of revenue since FY2019 has been flat, highlighting the benefit of moving to a software-only business. The result of this continued transition is the ability to now consistently reach a gross margin of 87% (the last three quarters).

With another 2,700 new customers in the quarter, and adoption of AHV now at 88%, the watchword for the company must be the consistency with which the business continues to grow.

The Architect’s View®

As we highlighted in the previous analysis, we believe Nutanix now needs to out-innovate VMware and build on the private cloud ecosystem. VMware recently held its “Explore” conference in Las Vegas, providing details on VCF9, with a strong focus on on-premises infrastructure. This included new features to bring applications to customers through a marketplace of offerings.

Since our last Nutanix analysis, the company has announced the preview of Cloud Native AOS, the capability to deploy Nutanix data services for the first time outside of the managed hypervisor environment, either AHV or vSphere. What this means is the ability for customers to move data between platforms, including the public cloud, without the need to deploy a Nutanix cluster.

This new feature is compelling, as it enables data to be made more mobile across disparate infrastructure, while retaining the content in Nutanix form, including the benefits of the existing distributed file system on which the first Nutanix solutions were built.

Across the industry, many vendors have implemented a “data layer”, including Pure Storage (with Purity and Portworx), NetApp (physical appliances, plus cloud-native implementations), Dell (ScaleIO), Volumez (see our recent reports here and here), Weka, VAST Data and many others, including container-native solutions.

Data, of course, is the real digital asset for businesses, not physical infrastructure, so controlling how data is moved around a modern, diverse ecosystem is a key target for the myriad storage vendors in the market.

Where Broadcom/VMware is looking to consolidate customers onto fully licensed on-premises solutions, Nutanix is taking an alternative approach, potentially making data more mobile, but also enabling data to be easily moved back on-premises if desired. Rather than implementing lock-in, Nutanix is offering choice, which may prove a powerful differentiator in the battle for the private cloud market.

Background

Consistency

The Architect’s View®

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