Nutanix Inc. shares surged following a robust fiscal second quarter and a new enterprise artificial intelligence partnership with Advanced Micro Devices Inc. (AMD).
For the quarter ending January 31, Nutanix announced adjusted earnings per share of 56 cents on revenue of $722.8 million, surpassing analyst expectations. Annual recurring revenue reached $2.36 billion, a 16% year-over-year increase.
The major catalyst for the stock's rise is the multiyear strategic partnership with AMD. The collaboration aims to jointly develop an open, full-stack AI infrastructure platform for agentic AI applications. As part of the agreement, AMD will invest up to $250 million in Nutanix, including a $150 million stock purchase and $100 million for joint development and go-to-market initiatives.
This partnership will integrate AMD's AI software with the Nutanix Cloud Platform, leveraging AMD EPYC CPUs and Instinct GPUs. "Enterprise customers need the freedom to run the models and workloads that matter most to their business, without compromise," stated Dan McNamara, senior vice president at AMD. "Through our partnership with Nutanix, we’re building a scalable, full-stack AI platform rooted in openness."
Separately, Everpure Inc. (formerly Pure Storage) also reported strong fiscal fourth-quarter results, with adjusted earnings per share of 69 cents on $1.1 billion in revenue, a 20% increase year-over-year. The company, which recently rebranded, saw subscription services revenue climb 14% to $440 million, with remaining performance obligations up 40% to $3.7 billion.