Nutanix Inc. (NTNX) stock soared 14.04% in pre-market trading on Thursday, February 27th, 2025, following the company's impressive second-quarter fiscal 2025 financial results and upbeat guidance for the remainder of the year.

The enterprise cloud platform services provider reported adjusted earnings of $0.56 per share for the quarter ended January 31, 2025, significantly exceeding analysts' estimate of $0.47 per share. Revenue for the quarter also surpassed expectations, reaching $654.72 million compared to the consensus estimate of $641.86 million.

Nutanix's strong performance was driven by robust Annual Recurring Revenue (ARR) growth of 19% year-over-year to $2.06 billion, reflecting the company's success in acquiring new customers and expanding its strategic partnerships. The company also reported solid progress in key metrics, including a non-GAAP gross margin of 88.3% and a non-GAAP operating margin of 24.6%, exceeding its guidance range.

Encouraged by the strong Q2 results, Nutanix provided an upbeat outlook for fiscal 2025, raising its revenue guidance to a range of $2.495 billion to $2.515 billion, surpassing analysts' projections of $2.46 billion. Additionally, the company raised its free cash flow guidance to $650 million to $700 million, representing a healthy margin of approximately 27% at the midpoint.

Nutanix's impressive performance and optimistic guidance have led several analysts to raise their price targets on the stock, citing factors such as the company's ability to win new customers from competitive platforms, the growing adoption of its cloud solutions, and its strategic partnerships with industry leaders like AWS, Cisco, and Dell.