Nutanix shares jumped in premarket trading on February 26 after the company reported stronger fiscal second-quarter 2026 results and announced a multi-year AI partnership with AMD, including a $150 million equity investment.
The move pushed Nutanix stock higher as investors weighed near-term earnings strength against a slower revenue outlook and supply-chain delays that management said may shift some revenue and cash flow timing.
Nutanix reported adjusted earnings per share of $0.56 and revenue of $722.8 million for the quarter, up from $654.7 million a year earlier. The company also posted pretax income of $205.4 million, compared with $173.9 million in the prior-year period, while annual recurring revenue reached $2.36 billion based on company disclosures and earnings reports.
The earnings release arrived alongside a strategic partnership with AMD that immediately changed market focus. AMD said it will invest $150 million in Nutanix stock at $36.26 per share and provide up to $100 million more for joint engineering and go-to-market work tied to an enterprise AI platform. The planned platform targets agentic AI and inference workloads across data centers, hybrid environments, and edge locations.
The Nutanix-AMD partnership centers on an open AI infrastructure approach. The companies said they plan to combine Nutanix cloud and Kubernetes capabilities with AMD EPYC CPUs, Instinct GPUs, and ROCm software. This structure targets enterprise buyers who want interoperability and flexibility instead of a single-vendor stack.
AMD executive Dan McNamara said enterprise customers need freedom in how they run AI models and workloads, while Nutanix Chief Executive Rajiv Ramaswami said the partnership expands Nutanix’s opportunity in the enterprise AI market.
Analysts also highlighted the signaling effect of the deal. Raymond James analyst Simon Leopold described the announcement as a “halo effect” for Nutanix shares, while noting the long-term business impact remains uncertain at this stage.
Also Read: AMD Stock Drops 9% After Earnings as Q1 Guidance Misses AI Demand Hopes
Nutanix guided third-quarter revenue to $680 million to $690 million and projected a non-GAAP operating margin of 16% to 17%. For fiscal 2026, the company forecasts revenue of $2.80 billion to $2.84 billion, a non-GAAP operating margin of 21% to 22%, and free cash flow of $745 million to $775 million. Management also said booking expectations have increased.
At the same time, management flagged longer server lead times and supply chain constraints that could push some revenue and cash flow into later periods. That point remains important for investors because the AMD platform will not contribute revenue until later, with the first version expected in late calendar 2026 and revenue contribution starting in the second half of fiscal 2027. The equity investment also remains subject to regulatory approvals and customary closing conditions.
Bank of America analyst Wamsi Mohan maintained a Buy rating and a $60 price target while noting enterprise AI adoption remains early and that Nutanix continues to pursue share gains against VMware. Investors now appear focused on whether Nutanix can sustain bookings momentum, manage supply chain timing issues, and convert the AMD partnership into measurable enterprise AI demand.