Shares of Nutanix (NASDAQ:NTNX) climbed more than 23% in premarket trading Thursday after the cloud software company posted stronger-than-expected quarterly results and announced a strategic artificial intelligence partnership with chipmaker AMD (NASDAQ:AMD).
For its fiscal second quarter of 2026, Nutanix reported adjusted earnings per share of $0.56 on revenue of $722.8 million, compared with $654.7 million in the same period last year. Pretax income rose to $205.4 million from $173.9 million a year earlier, reflecting continued operating momentum.
Guidance signals continued growth
Looking ahead, the company expects third-quarter revenue between $680 million and $690 million, alongside a projected non-GAAP operating margin of 16% to 17%.
For the full fiscal year, Nutanix forecast revenue in a range of $2.80 billion to $2.84 billion, with a non-GAAP operating margin of 21% to 22% and free cash flow of $745 million to $775 million. Management also indicated that its “bookings expectations are higher than before.”
AMD partnership targets enterprise AI
Alongside earnings, Nutanix unveiled a multi-year collaboration with AMD aimed at developing an enterprise-focused agentic AI and inferencing platform powered by AMD’s accelerated computing technology.
As part of the agreement, AMD will invest $150 million in Nutanix equity and commit up to $100 million toward joint research, development and commercialization initiatives over several years. The companies expect the first version of the platform to launch in late 2026, with revenue contributions anticipated beginning in the second half of fiscal 2027.
Bank of America analyst Wamsi Mohan said the partnership broadens Nutanix’s GPU ecosystem beyond Nvidia. However, “while similar platform already exists with Nvidia, it remains early days given the slower adoption of AI in enterprises,” he added.
“While F26 is weaker given the delayed starts, we are encouraged by the higher expected bookings growth. We continue to see further share gain against VMWare and long-term upside from the partnerships with AMD, DELL, Cisco and Red Hat,” the analyst wrote.
Bank of America reiterated its Buy rating on Nutanix shares with a $60 price target.