Nutanix shares soar 23% on AMD partnership, solid quarterly report

Investing.com -- Shares of Nutanix surged more than 23% in premarket trading on Thursday after the cloud data storage company delivered solid fiscal second-quarter 2026 results and unveiled a new strategic partnership with AMD.

Nutanix reported adjusted EPS of $0.56 for the quarter, with revenue of $722.8 million, up from the $654.7 million in the year-ago quarter. Pretax income for the quarter came in at $205.4 million, up from $173.9 million a year earlier.

Looking ahead, the company expects revenue of $680 million to $690 million and a non-GAAP operating margin of 16% to 17% in the third quarter.

For the full year, it guided to revenue 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.

Nutanix also said its "bookings expectations are higher than before."

Alongside the results, Nutanix also announced a multi-year partnership with AI chipmaker AMD. Under the agreement, the companies will co-develop and market an enterprise agentic AI and inferencing platform built on AMD’s accelerated compute.

AMD plans to invest $150 million in Nutanix equity and fund up to $100 million in joint R&D and go-to-market efforts over several years. The first version of the platform is expected in late calendar 2026, with revenue contribution 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.

BofA reiterated its Buy rating on the stock with a $60 price objective.

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