Nutanix entered into an accelerated share repurchase (ASR) agreement on December 17, 2025, to buy back $300 million of its common stock. The transaction is funded with cash on hand and will be completed under the company’s existing share‑repurchase authorization, which was increased to $461 million earlier in the year.
The ASR adds to $82.5 million already repurchased in fiscal year 2026, bringing total repurchases to roughly $382.5 million since the start of the year. The deal is structured to provide liquidity to shareholders while preserving the firm’s strong balance sheet, which currently supports continued investment in cloud and AI initiatives.
Management highlighted that the buyback reflects confidence in Nutanix’s cash‑flow generation. CEO Rajiv Ramaswami said the company’s “strong balance sheet gives us the flexibility to continue to innovate for our customers and invest in the business while also delivering returns to stockholders.” The move follows a Q1 FY25 earnings report that showed 18 % year‑over‑year ARR growth and a non‑GAAP operating margin of 20 %, up from 15 % in the prior quarter.
The share repurchase is part of a broader capital‑allocation strategy that includes a $350 million increase to the repurchase program announced in August 2025. By returning capital, Nutanix aims to support earnings per share and return on equity, while still maintaining sufficient liquidity to fund its subscription‑based software model and strategic partnerships with AWS, Microsoft, and NVIDIA.
Analysts noted that the buyback, combined with the company’s robust free‑cash‑flow profile, signals a strong outlook for the hybrid‑multicloud market, where Nutanix competes with Dell EMC, HPE, Cisco, and the recently acquired VMware. The announcement was well‑received by investors, reflecting confidence in the firm’s ability to sustain growth and deliver shareholder value.
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