Nutanix Reports Second Quarter Fiscal 2026 Financial Results

SAN JOSE, Calif., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ:NTNX), a leader in hybrid multicloud computing, today announced financial results for its second quarter ended January 31, 2026.

"Our business performed solidly in the second quarter, including strong bookings, strong new logo additions, and solid free cash flow performance," said Rajiv Ramaswami, CEO of Nutanix. "Our opportunities with AI, modern applications, hybrid multicloud, and support for external storage provide us with a strong foundation for multi-year growth."

"We saw healthy demand in our second quarter, as reflected in results that exceeded the high end of the range for all of our guided metrics. However, as the quarter progressed, we saw supply chain constraints driving longer server lead times for our customers," said Rukmini Sivaraman, CFO of Nutanix. "We expect this dynamic to have some impact on the timing of our near-term revenue and free cash flow. We have factored this in our Q3 and updated full-year guidance. Bookings expectations are higher than before. Revenue and free cash flow from these bookings are expected to be realized later."

Second Quarter Fiscal 2026 Financial Summary

	Q2 FY'26	Q2 FY'25	Y/Y Change
Annual Recurring Revenue (ARR)1	$2.36 billion	$2.03 billion	16%
Average Contract Duration2	3.1 years	3.0 years	0.1 year
Revenue	$722.8 million	$654.7 million	10%
GAAP Gross Margin	87.4%	87.0%	40 bps
Non-GAAP Gross Margin	88.6%	88.3%	30 bps
GAAP Operating Expenses	$547.4 million	$504.0 million	9%
Non-GAAP Operating Expenses	$451.2 million	$417.0 million	8%
GAAP Operating Income	$84.1 million	$65.4 million	$18.7 million
Non-GAAP Operating Income	$189.0 million	$161.3 million	$27.7 million
GAAP Operating Margin	11.6%	10.0%	160 bps
Non-GAAP Operating Margin	26.2%	24.6%	160 bps
Net Cash Provided by Operating Activities	$197.3 million	$221.7 million	$(24.4) million
Free Cash Flow	$191.4 million	$187.1 million	$4.3 million

Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.

Recent Company Highlights

• Nutanix Listed in AWS "ICMP" for the US Federal Government: Nutanix announced that the Nutanix Cloud Platform (NCP) solution has been listed in the AWS Marketplace for the U.S. Intelligence Community (ICMP).
• Nutanix Expands Capabilities to Help Customers Build and Operate Distributed Sovereign Clouds: Nutanix announced new capabilities in its NCP solution to give organizations greater flexibility to deploy and govern their infrastructure across distributed environments without sacrificing unified management or operational simplicity.
• Nutanix Completes $300 Million Accelerated Share Repurchase: Nutanix completed a $300 million accelerated share repurchase of its common stock during the second quarter under its existing share repurchase authorization.
• Reminder for Investor Day 2026: Nutanix will be holding its Investor Day 2026 in conjunction with its annual .NEXT user conference on April 7, 2026 in Chicago.
  
  
  
  

Third Quarter Fiscal 2026 Outlook

Revenue	$680 - $690 million
Non-GAAP Operating Margin	16% to 17%
Weighted Average Shares Outstanding (Diluted)3	Approximately 288 million

Fiscal 2026 Outlook

Revenue	$2.80 - $2.84 billion
Non-GAAP Operating Margin	21% to 22%
Free Cash Flow	$745 - $775 million

Supplementary materials to this press release, including our second quarter fiscal 2026 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.

Webcast and Conference Call Information

Nutanix executives will discuss the Company's second quarter fiscal 2026 financial results on a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.

Footnotes

¹Annual Recurring Revenue, or ARR, is defined as the sum of ACV for all subscription contracts from all customers in effect as of the end of a specific period, assuming any subscription contract that expires is renewed on its existing terms. ARR excludes the value of professional services, non-portable software and support contracts and hardware sales. For the purposes of this calculation, we generally assume that the contract term begins on the date when the software is made available to the customer. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. For comparability purposes, ARR for all prior periods have been adjusted to conform to the updated methodology.

²Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.

³ Weighted average share count used in computing diluted non-GAAP net income per share.

Non-GAAP Financial Measures and Other Key Performance Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), litigation settlement accruals and legal fees related to certain litigation matters, the amortization and conversion of the debt discount and issuance costs related to debt, interest expense related to debt, inducement expense related to the repurchase of convertible senior notes, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the top-line growth of our subscription business (including our ability to acquire subscriptions with new customers and to retain and expand with existing customers), while normalizing for differences in contract durations. Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any subscription contract not to be renewed on its existing terms. ARR is a performance measure that should be viewed independently of revenue and does not represent our revenue under GAAP on an annualized basis or a forecast of GAAP revenue. Investors should not place undue reliance on ARR as an indicator of our future or expected results. ARR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled performance measures presented by other companies. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income, operating margin, and net cash provided by operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned "Reconciliation of GAAP to Non-GAAP Profit Measures" and "Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow," and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our third quarter fiscal 2026 outlook and/or our fiscal 2026 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.

Forward-Looking Statements

This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business trends, momentum and prospects; the opportunities that provide us with a strong foundation for multi-year growth; the expected impact of supply chain constraints on the timing of our revenue and free cash flow; our third quarter fiscal 2026 outlook; and our fiscal 2026 outlook.

These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, objectives, momentum, prospects and outlook; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, including due to supply chain constraints or component availability, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 24, 2025 and subsequent quarterly reports. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2026, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

About Nutanix

Nutanix is a hybrid multicloud computing leader, offering organizations a unified software platform for running applications and AI and managing data anywhere. With Nutanix, organizations can simplify operations for traditional and modern applications, freeing them to focus on business goals. Trusted by more than 30,000 customers worldwide, Nutanix helps empower organizations to transform digitally and power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media.

© 2026 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. ("Nutanix") in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.

Investor Contact:

Richard Valera

[email protected]

Media Contact:

Jennifer Massaro

[email protected]

NUTANIX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
		As of
		July 31, 2025				January 31, 2026
		(in thousands)
Assets
Current assets:
Cash and cash equivalents		$	769,502			$	603,402
Short-term investments			1,223,234				1,270,647
Accounts receivable, net			337,967				260,597
Deferred commissions—current			153,072				147,491
Prepaid expenses and other current assets			105,391				184,007
Total current assets			2,589,166				2,466,144
Property and equipment, net			142,814				131,677
Operating lease right-of-use assets			134,526				191,068
Deferred commissions—non-current			189,221				187,010
Intangible assets, net			2,615				2,227
Goodwill			185,235				185,235
Other assets—non-current			39,617				113,572
Total assets		$	3,283,194			$	3,276,933
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable		$	81,599			$	96,120
Accrued compensation and benefits			230,498				214,909
Accrued expenses and other current liabilities			24,187				27,020
Deferred revenue—current			1,054,023				1,119,455
Operating lease liabilities—current			23,234				33,059
Total current liabilities			1,413,541				1,490,563
Deferred revenue—non-current			1,058,731				1,077,643
Operating lease liabilities—non-current			115,754				163,671
Convertible senior notes, net			1,343,818				1,346,260
Other liabilities—non-current			45,870				30,083
Total liabilities			3,977,714				4,108,220
Stockholders' deficit:
Common stock			7				7
Additional paid-in capital			4,200,466				4,151,032
Accumulated other comprehensive income			700				4,057
Accumulated deficit			(4,895,693	)			(4,986,383	)
Total stockholders' deficit			(694,520	)			(831,287	)
Total liabilities and stockholders' deficit		$	3,283,194			$	3,276,933

NUTANIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended January 31,								Six Months Ended January 31,
		2025				2026				2025				2026
		(in thousands, except per share data)
Revenue:
Product		$	354,187			$	387,364			$	656,106			$	736,367
Support, maintenance and other services			300,534				335,461				589,571				657,034
Total revenue			654,721				722,825				1,245,677				1,393,401
Cost of revenue:
Product (1)(2)			8,823				5,674				17,193				9,966
Support, maintenance and other services (1)			76,465				85,599				150,765				168,777
Total cost of revenue			85,288				91,273				167,958				178,743
Gross profit			569,433				631,552				1,077,719				1,214,658
Operating expenses:
Sales and marketing (1)(2)			261,382				277,543				514,783				562,776
Research and development (1)			182,785				202,259				356,744				389,741
General and administrative (1)			59,828				67,613				113,504				128,669
Total operating expenses			503,995				547,415				985,031				1,081,186
Income from operations			65,438				84,137				92,688				133,472
Other (expense) income, net			(355	)			13,368				9,218				29,607
Income before provision for (benefit from) income taxes			65,083				97,505				101,906				163,079
Provision for (benefit from) income taxes			8,656				(5,517	)			15,553				(2,039	)
Net income		$	56,427			$	103,022			$	86,353			$	165,118
Net income per share attributable to Class A common stockholders, basic		$	0.21			$	0.38			$	0.32			$	0.61
Net income per share attributable to Class A common stockholders, diluted		$	0.19			$	0.36			$	0.30			$	0.57
Weighted average shares used in computing net income per share attributable to Class A common stockholders, basic			267,138				268,282				266,842				269,077
Weighted average shares used in computing net income per share attributable to Class A common stockholders, diluted			293,351				291,910				291,086				294,214

________________________

(1)   Includes the following stock-based compensation expense:

		Three Months Ended January 31,								Six Months Ended January 31,
		2025				2026				2025				2026
		(in thousands)
Product cost of revenue		$	812			$	427			$	2,024			$	786
Support, maintenance and other services cost of revenue			7,325				8,167				14,145				14,422
Sales and marketing			21,397				22,754				42,045				40,514
Research and development			46,765				51,105				90,327				90,606
General and administrative			17,129				20,111				33,636				33,996
Total stock-based compensation expense		$	93,428			$	102,564			$	182,177			$	180,324

(2)   Includes the following amortization of intangible assets:

		Three Months Ended January 31,								Six Months Ended January 31,
		2025				2026				2025				2026
		(in thousands)
Product cost of revenue		$	767			$	106			$	1,534			$	212
Sales and marketing			88				88				176				176
Total amortization of intangible assets		$	855			$	194			$	1,710			$	388

NUTANIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Six Months Ended January 31,
		2025				2026
		(in thousands)
Cash flows from operating activities:
Net income		$	86,353			$	165,118
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			36,427				36,422
Stock-based compensation			182,177				180,324
Amortization of debt discount and issuance costs			1,185				2,724
Inducement expense from partial repurchase of the 2027 Notes			11,347				—
Operating lease cost, net of accretion			13,962				15,875
Other			(2,130	)			(5,822	)
Changes in operating assets and liabilities:
Accounts receivable, net			(72,745	)			(10,515	)
Deferred commissions			20,577				7,792
Prepaid expenses and other assets			(5,833	)			(68,206	)
Accounts payable			(334	)			17,182
Accrued compensation and benefits			7,792				(8,720	)
Accrued expenses and other liabilities			(1,680	)			(12,031	)
Operating leases, net			(15,754	)			(14,675	)
Deferred revenue			122,077				88,703
Net cash provided by operating activities			383,421				394,171
Cash flows from investing activities:
Maturities of investments			162,139				431,724
Purchases of investments			(493,156	)			(472,824	)
Sales of investments			—				2,000
Purchases of property and equipment			(44,438	)			(28,247	)
Net cash used in investing activities			(375,455	)			(67,347	)
Cash flows from financing activities:
Proceeds from sales of shares through employee equity incentive plans			29,300				29,035
Taxes paid related to net share settlement of equity awards			(148,194	)			(137,024	)
Proceeds from the issuance of convertible notes, net of issuance costs			848,010				—
Payment of third-party debt issuance costs			(2,771	)			—
Partial repurchase of the 2027 Notes			(95,453	)			—
Repurchases of common stock			(220,100	)			(383,098	)
Other financing activities, net			(1,945	)			(1,837	)
Net cash provided by (used in) financing activities			408,847				(492,924	)
Net increase (decrease) in cash, cash equivalents and restricted cash		$	416,813			$	(166,100	)
Cash, cash equivalents and restricted cash—beginning of period			655,662				769,517
Cash, cash equivalents and restricted cash—end of period		$	1,072,475			$	603,417
Restricted cash (1)			314				15
Cash and cash equivalents—end of period		$	1,072,161			$	603,402
Supplemental disclosures of cash flow information:
Cash paid for income taxes		$	19,283			$	19,813
Supplemental disclosures of non-cash investing and financing information:
Purchases of property and equipment included in accounts payable and accrued and other liabilities		$	1,601			$	4,285
Unpaid taxes related to net share settlement of equity awards included in accrued expenses and other liabilities		$	11,460			$	6,554

________________________

(1)   Included within other assets—non-current in the condensed consolidated balance sheets.

Disaggregation of Revenue (Unaudited)
		Three Months Ended January 31,								Six Months Ended January 31,
		2025				2026				2025				2026
		(in thousands)
Disaggregation of revenue:
Subscription revenue		$	624,418			$	690,531			$	1,185,114			$	1,328,371
Professional services and other revenue (1)			30,303				32,294				60,563				65,030
Total revenue		$	654,721			$	722,825			$	1,245,677			$	1,393,401

_________________________

(1)   Prior to fiscal 2026, these amounts were presented as separate line items, Professional services and Other non-subscription product, as described below. Prior period amounts have been updated to conform to the current period presentation.



Subscription revenue — Subscription revenue includes any performance obligation which has a defined term, and is generated from the sales of software entitlement subscriptions, support subscriptions, subscription software licenses and cloud-based software-as-a-service, or SaaS, offerings.

• Ratable — We recognize revenue from software entitlement subscriptions, support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software entitlement subscriptions and support subscriptions.
• Upfront — We generally recognize revenue from our subscription software licenses upfront upon the transfer of control to the customer. For sales of our software purchased alongside a server from an OEM or other partner, revenue is typically recognized upon shipment of the server. For sales of software sold separately from a server, revenue is typically recognized when the software is made available to the customer.

Professional services and other revenue — Includes Professional services revenue and Other non-subscription product revenue, as described below:

• Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed. Professional services revenue was approximately $28.0 million and $55.3 million for the three and six months ended January 31, 2025, respectively, and $30.4 million and $59.3 million for the three and six months ended January 31, 2026, respectively.
• Other non-subscription product revenue — Includes Non-portable software revenue and Hardware revenue, which were immaterial for the periods presented.

Annual Recurring Revenue (Unaudited)
		As of January 31,
		2025				2026
		(in thousands)
Annual Recurring Revenue (ARR) (1)		$	2,027,337			$	2,355,623

________________________

(1)   Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. Prior period amounts have been updated to conform to current quarter methodology.

Remaining Performance Obligations (Unaudited)
		As of January 31,
		2025				2026
		(in thousands)
Remaining performance obligations:
Current		$	1,226,382			$	1,438,311
13-36 months			888,098				1,101,497
Thereafter			221,571				357,054
Total		$	2,336,051			$	2,896,862

Reconciliation of GAAP to Non-GAAP Profit Measures (Unaudited)
		GAAP				Non-GAAP Adjustments																				Non-GAAP
		Three Months Ended January 31, 2026				(1)				(2)				(3)				(4)				(5)				Three Months Ended January 31, 2026
		(in thousands, except percentages and per share data)
Gross profit		$	631,552			$	8,594			$	106			$	—			$	—			$	—			$	640,252
Gross margin			87.4	%			1.2	%			—				—				—				—				88.6	%
Operating expenses:
Sales and marketing			277,543				(22,754	)			(88	)			—				—				—				254,701
Research and development			202,259				(51,105	)			—				—				—				—				151,154
General and administrative			67,613				(20,111	)			—				(2,143	)			—				—				45,359
Total operating expenses			547,415				(93,970	)			(88	)			(2,143	)			—				—				451,214
Income from operations			84,137				102,564				194				2,143				—				—				189,038
Operating margin			11.6	%			14.3	%			—				0.3	%			—				—				26.2	%
Net income		$	103,022			$	102,564			$	194			$	2,143			$	2,995			$	(46,597	)		$	164,321
Weighted shares outstanding, basic			268,282																								268,282
Weighted shares outstanding, diluted (6)			291,910																								291,910
Net income per share, basic		$	0.38			$	0.38			$	-			$	0.01			$	0.01			$	(0.17	)		$	0.61
Net income per share, diluted (7)		$	0.36																							$	0.56

______________________

(1)   Stock-based compensation expense

(2)   Amortization of intangible assets

(3)   Legal fees

(4)   Amortization of debt issuance costs and interest expense related to debt

(5)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, we adopted a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.

(6)   Includes 23,628 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans

(7)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,098 of interest expense related to the convertible senior notes

		GAAP				Non-GAAP Adjustments																				Non-GAAP
		Six Months Ended January 31, 2026				(1)				(2)				(3)				(4)				(5)				Six Months Ended January 31, 2026
		(in thousands, except percentages and per share data)
Gross profit		$	1,214,658			$	15,208			$	212			$	—			$	—			$	—			$	1,230,078
Gross margin			87.2	%			1.1	%			—				—				—				—				88.3	%
Operating expenses:
Sales and marketing			562,776				(40,514	)			(176	)			—				—				—				522,086
Research and development			389,741				(90,606	)			—				—				—				—				299,135
General and administrative			128,669				(33,996	)			—				(6,703	)			—				—				87,970
Total operating expenses			1,081,186				(165,116	)			(176	)			(6,703	)			—				—				909,191
Income from operations			133,472				180,324				388				6,703				—				—				320,887
Operating margin			9.6	%			12.9	%			—				0.5	%			—				—				23.0	%
Net income		$	165,118			$	180,324			$	388			$	6,703			$	5,988			$	(73,335	)		$	285,186
Weighted shares outstanding, basic			269,077																								269,077
Weighted shares outstanding, diluted (6)			294,214																								294,214
Net income per share, basic		$	0.61			$	0.68			$	-			$	0.02			$	0.02			$	(0.27	)		$	1.06
Net income per share, diluted (7)		$	0.57																							$	0.97

______________________

(1)   Stock-based compensation expense

(2)   Amortization of intangible assets

(3)   Legal fees

(4)   Amortization of debt issuance costs and interest expense related to debt

(5)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, we adopted a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.

(6)   Includes 25,137 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans

(7)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $2,197 of interest expense related to the convertible senior notes

		GAAP				Non-GAAP Adjustments																												Non-GAAP
		Three Months Ended January 31, 2025				(1)				(2)				(3)				(4)				(5)				(6)				(7)				Three Months Ended January 31, 2025
		(in thousands, except percentages and per share data)
Gross profit		$	569,433			$	8,137			$	767			$	—			$	—			$	—			$	—			$	—			$	578,337
Gross margin			87.0	%			1.2	%			0.1	%			—				—				—				—				—				88.3	%
Operating expenses:
Sales and marketing			261,382				(21,397	)			(88	)			—				—				—				—				—				239,897
Research and development			182,785				(46,765	)			—				—				—				—				—				—				136,020
General and administrative			59,828				(17,129	)			—				(1,568	)			—				—				—				—				41,131
Total operating expenses			503,995				(85,291	)			(88	)			(1,568	)			—				—				—				—				417,048
Income from operations			65,438				93,428				855				1,568				—				—				—				—				161,289
Operating margin			10.0	%			14.3	%			0.1	%			0.2	%			—				—				—				—				24.6	%
Net income		$	56,427			$	93,428			$	855			$	1,568			$	(20	)		$	1,674			$	11,347			$	(26,131	)		$	139,148
Weighted shares outstanding, basic			267,138																																267,138
Weighted shares outstanding, diluted (8)			293,351																																293,351
Net income per share, basic		$	0.21			$	0.35			$	-			$	0.01			$	-			$	0.01			$	0.04			$	(0.10	)		$	0.52
Net income per share, diluted (9)		$	0.19																															$	0.47

_____________________

(1)   Stock-based compensation expense

(2)   Amortization of intangible assets

(3)   Legal fees

(4)   Other

(5)   Amortization of debt issuance costs and interest expense related to convertible senior notes

(6)   Inducement expense related to partial repurchase of the 2027 Notes

(7)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we adopted a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.

(8)   Includes 26,213 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans

(9)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $691 of interest expense related to the convertible senior notes

		GAAP				Non-GAAP Adjustments																												Non-GAAP
		Six Months Ended January 31, 2025				(1)				(2)				(3)				(4)				(5)				(6)				(7)				Six Months Ended January 31, 2025
		(in thousands, except percentages and per share data)
Gross profit		$	1,077,719			$	16,169			$	1,534			$	—			$	—			$	—			$	—			$	—			$	1,095,422
Gross margin			86.5	%			1.3	%			0.1	%			—				—				—				—				—				87.9	%
Operating expenses:
Sales and marketing			514,783				(42,045	)			(176	)			—				—				—				—				—				472,562
Research and development			356,744				(90,327	)			—				—				—				—				—				—				266,417
General and administrative			113,504				(33,636	)			—				(2,935	)			—				—				—				—				76,933
Total operating expenses			985,031				(166,008	)			(176	)			(2,935	)			—				—				—				—				815,912
Income from operations			92,688				182,177				1,710				2,935				—				—				—				—				279,510
Operating margin			7.4	%			14.7	%			0.1	%			0.2	%			—				—				—				—				22.4	%
Net income		$	86,353			$	182,177			$	1,710			$	2,935			$	(130	)		$	11,347			$	2,419			$	(44,920	)		$	241,891
Weighted shares outstanding, basic			266,842																																266,842
Weighted shares outstanding, diluted (8)			291,086																																291,086
Net income per share, basic		$	0.32			$	0.69			$	0.01			$	0.01			$	-			$	0.04			$	0.01			$	(0.17	)		$	0.91
Net income per share, diluted (9)		$	0.30																															$	0.83

_____________________

(1)   Stock-based compensation expense

(2)   Amortization of intangible assets

(3)   Legal fees

(4)   Other

(5)   Inducement expense related to partial repurchase of the 2027 Notes

(6)   Amortization of debt issuance costs and interest expense related to convertible senior notes

(7)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we adopted a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.

(8)   Includes 24,244 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans

(9)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $975 of interest expense related to the convertible senior notes

Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (Unaudited)
		Three Months Ended January 31,								Six Months Ended January 31,
		2025				2026				2025				2026
		(in thousands)
Net cash provided by operating activities		$	221,670			$	197,346			$	383,421			$	394,171
Purchases of property and equipment			(34,607	)			(5,928	)			(44,438	)			(28,247	)
Free cash flow		$	187,063			$	191,418			$	338,983			$	365,924