Nutanix beats Q3 revenue estimates, announces $750M buyback, and eyes AI growth opportunities.

Nutanix reported strong Q3 FY2026 results with $703.1 million in revenue, a 10% year-over-year increase, and 15% growth in annual recurring revenue. The company also achieved a non-GAAP operating margin of 22.3%, surpassing guidance on all key metrics. Management authorized a $750 million share buyback, signaling confidence in future growth driven by VMware customer migrations, expanded storage partnerships, and emerging AI inference opportunities. Key risks include customer retention amid Broadcom migration and competition, with close attention needed on new customer growth and revenue retention.