Nutanix, Inc. ($NTNX)

All right. Good afternoon, and welcome to Nutanix Investor Day 2026. Thank you all of us for joining us both in person and on the webcast. This time around, we're doing something different with our Investor Day. We're holding it in conjunction with our annual user conference, our .NEXT user conference. We wanted to do that because we thought it'd be a great way for the attendees to get an in-person view of our customers and our partners. For those of you here in person, you got to be in that opening keynote with those 5,000 customers, it's hard not to feel that energy, and I hope we get to explore that more the rest of the day here. So with that said, it's an interesting time to be holding an Investor Day given the current geopolitical and supply chain backdrop, but we thought it was important to give you all an update on the progress we've made over the past roughly 2.5 years since our last Investor Day. First, on the product side, in areas like AI, Kubernetes and external storage, then on the go-to-market side, and Rajiv is going to cover those in his presentation. We also want to give you an update on what we'd consider our medium-term model. And for the purpose of the discussion today, we're going to be focusing on our fiscal '29 as sort of our medium-term time frame. And assuming that we have a normalized supply chain and a stable market backdrop during that time. With that said, I'm going to just -- I want to highlight a few of the many announcements. Hopefully, you've been checking our Press Releases section of our website and seeing all the announcements. There's many more than this. I'm just going to highlight 3 of them here. Our agentic AI full stack solution, making it easier for customers to deploy agentic AI, making it more efficient for them to do it. NKP Metal giving another deployment way for our customers to deploy our NKP or Kubernetes stack. And finally, the one that's probably the most interesting to this room is around external storage. We've heard from a number of you the question, when you guys are going to support NetApp. Now you know the answer. We announced that partnership today, along with one with Lenovo. Both of those should be available by the end of this year. Next, I just want to quickly go through the agenda. Rajiv is going to follow me, go over the strategy update and technology and going to talk about some of the topics I mentioned earlier. Rukmini is going to give you -- I know what you came for, a financial update, and how we're thinking of our model. Then we're going to take a brief break and a Q&A panel. And finally, for those of you in the room here, we'll finish it up with a cocktail hour, where you'll get a chance to chat with Rukmini and Rajiv, among others. So with that, I'd like to welcome our CEO, Rajiv Ramaswami to the stage. Rajiv?

Thank you. Thank you, Rich. Thank you. And welcome, everybody. And I hope those of you in the room got to see at least portions of the keynote that -- how many people were able to cast the keynote? Just so that I don't repeat myself here as much. Thank you. Vast majority of you. Then for those of you on the webcast here, we will summarize some of the key points, but -- and also talk about where we're headed as a company. Now I -- this is a moment in time where I'm actually feeling really excited about our future as a company. We are at a place, an inflection point in the industry with a number of things going on in terms of the opportunity in front of us, modernizing infrastructure, moving to the public cloud, deploying modern applications, a shift to agentic AI. And I believe that Nutanix is very uniquely positioned to be able to capture and benefit from those trends. That's what I'll cover here during my session here. And let's start by really talking to you about the 3 things that I'd like you to walk away from, from this event. First is that Nutanix truly delivers a unified modern platform, powering the apps of tomorrow, the AI apps of tomorrow. But also the mission-critical apps of today, enabling our customers to use us across a wide variety of fronts, running their existing business, modernizing everything and innovating in the AI future. Now this platform enables us to capture an even larger and growing opportunity in the market than what we had a few years ago. And we've done a lot of work on our go-to-market engine, which we'll cover, to be able to best capture that opportunity. At the same time, these two together enable us to also, from an investor perspective, continue to drive durable growth and profitability on the other hand and be a consistent Rule-of-40+ performer. So over the next 40 minutes or so, I will cover these 5 things. What are we seeing from a customer landscape? And what's our fundamental value proposition to our customers? Talk about some of the new growth opportunities, second, in terms of AI and agentic AI and inferencing, we expect these to be significant long-term growth drivers for us. And talk about the core bread and butter of what we do today, which is really a lot of what you folks are here for also. How we're expanding that, how we're capturing more of the market with our external storage platforms, our hybrid cloud opportunity in front of us. And we'll also cover, I'm sure what's on top of your minds in terms of where are we at with respect to this whole Broadcom/VMware situation. And then talk about our go-to-market acceleration, what we're doing about that. And then end with a financial summary, what that means in terms of a financial summary, and Rukmini is going to then come in and give you a lot of details on that piece of it. So let's get cracking. Our value proposition. As we talk to customers today, I mean, there's a lot that's on their minds. On the one side, every CIO that I talk to, every customer that I talk to is thinking about how can they operationalize AI in their enterprise while dealing with the complexity that it brings to the table. There's AI in the public cloud, AI on-prem, AI everywhere, and they struggle to figure out how to deal with it and how to operationalize it in their companies and get tangible ROIs on it. The AI factories are here. But then again, putting it all together to make this thing work for them is not -- no easy task. At the same time, we've got the geopolitical situation that we're all sitting in. What that means for us as a company is that there is a lot more focus on sovereignty. And I hear that everywhere from every company in every industry. And this is a big theme that could play to our benefit as we move forward. And then last but not the least, of course, we're not going to spend a lot of time on the supply chain here. Rukmini will cover some of that. But we are dealing with a supply chain shortage, as we all know, today with respect to memory, and that's impeding the pricing and availability of servers in the market. So customers are dealing with all of this, trying to figure out how to go from today to tomorrow, and that's where we help. Now for those of you who are here and you heard customers on the main stage, there's a certain set of themes that resonate among all of them in terms of what they said and also what we said on the reel here before we got started. The value proposition that they see from Nutanix. We deliver them the simplicity of experience while giving them great total cost of ownership on the other side. We give them the flexibility to use us for many different use cases and give them at the same time, the control, the security they need and the performance they need for their business critical applications, all the while making sure we support them fantastically, in a fantastic way. Our Net Promoter Score, we've talked about this for the last 10 years, and it's remained at 90-plus even as we continue to grow and as you heard from many of those customers, and that leads them to pick us as their long-term partner. They start with us, and they continue to grow with us. And what Nutanix does uniquely, I would say, more so than anybody else in the industry is that we deliver that single unified platform for today and for tomorrow. I mean, you look at the kind of use cases that we can address. If customers want to modernize their infrastructure, we have a solution for them. They want to reuse their existing hardware while modernizing, we have a solution for them. They want to run in the public cloud, we have a solution for them. They want to modernize their applications, go to a cloud native framework, we have a solution. And now with our agentic AI platform, we're enabling them to run their agentic AI applications. And I'll give you a set of customer examples, I'll just summarize what we heard from customers who are at the keynote, especially for the benefit of the folks who are not in the room. So we heard, for example, Wynn casinos. Talk about how they've moved to a modern infrastructure, use Nutanix as their platform. And they chose -- they started with Nutanix in Boston -- in their Boston location. Now they're going to use Nutanix in their new upcoming facility in the UAE. And we are becoming the de facto enterprise standard. You heard about how Blue Cross Blue Shield of Tennessee used us from the beginning. They're using more and more of our platform, and they were one of the early customers to adopt our solution with EverPure. Very soon, right as it came out. We saw one of your financial peers adopting a cloud first mindset, State Street. And they're all in, deploying us at massive scale across both Azure and AWS. We are a key part to enable them on their cloud-first journey. You saw how Tire Rack, an online tire retailer, is moving their e-commerce platform, their critical platform. This is what their business runs on. It's been running on Nutanix as a monolithic application running on virtual machines. And they've been refactoring that to a microservice application now running on the Nutanix Kubernetes Platform. And you heard -- and I summarize, Power International, which is based in the Middle East, in terms of how they are using Nutanix to deliver. They started again with Nutanix for other use cases, but now they're using Nutanix to deliver a shared AI platform across all their entities. This is just a sampling of the way we work with our customers to deliver the experience. And everybody is at a different point in their journey, but we are there with them, to take them from where they are today to where they need to go. And that's something that we do uniquely in the industry. Now when we last got together for our Investor Day in 2023, we talked about our market opportunity for this year in CY '26. And it was already a pretty large opportunity. It was a $76 billion TAM across the areas that we were covering back then, our core, which is a hybrid cloud infrastructure, the Cloud Management, Unified Storage and Database Automation. Together, that already represented a big market. Since then, with all the innovation that we've done, first thing we've done is increase our ability to capture that hybrid cloud infrastructure portion with our support of external storage. Then we've also added significant new TAM with Kubernetes Management and Enterprise AI. So the current TAM with all the innovations that we've done is now already larger than where we were before a few years ago. But this isn't static. This TAM is also growing. It's growing at about a CAGR of 14%. And by CY '29, we expect this to be north of $100 billion TAM, with many of the elements here continuing to grow very nicely. So we're in a large TAM. We are not limited by the market opportunity. It's about how we can execute to capture it. So let's go to the second portion of this, which is let's start with the AI and Kubernetes growth opportunity. Now if you look at the industry, it's making a decisive shift from training to inferencing in agentic. A lot of focus was on training over the last few years. And we were, frankly, not a big part of that training journey that was being done in the public clouds on very large-scale dedicated compute clusters. But even as Jensen said at GTC recently, it's moved decisively now to inferencing and agentic AI, which is, by the way, very much in our sweet spot and where our platform can really help. Now this agentic AI is going to be true hybrid application as well. There's going to be applications that run in the public cloud. There's going to be applications that run in the private cloud and the edges. And there's going to be many applications that run in these so-called neoclouds, which are a whole host of new service providers that provide AI services. And we are focusing on capturing the opportunity across all of these. And the reason that AI will be hybrid is, again, if you look at the private cloud and the edge, you've got data -- you've got sovereignty being a big push. You've got regulation being another big push. You've got the proximity to data being another reason. You've got the need to do real-time inferencing for a lot of these new use cases that are being -- coming up at the edge and in these manufacturing sites and other places. And then there's customers who are going to be consuming this, of course, in the public cloud and in neoclouds as well. They can get there for a good subset of applications, that will also be an option. And we expect that the slew of AI applications will continue to be hybrid, just like today's world is hybrid. Now how are we addressing that? So you've all heard about AI factories, and the AI factory becomes the building block for AI. And when we started with AI factories, they were specialized elements. They were serving the needs of a subset of users. They were kind of a small portion of enterprise. But this is exploding. It's exploding because of scale at which people are now building and deploying these applications is just tremendous. You're servicing more and more business users. You're servicing more and more developers, AI engineers and the number of agents is exploding. This leads to a problem that we know how to solve really well. So you've now got these AI factories that deliver critical infrastructure for all these needs. They need to be operated by the infrastructure admins and the platform engineers. And we know how to do this. It's a constrained resource. We need to optimize it. We need to provide security, governance, all of these things. All of these things we do for the compute-centric world, we can now do for the AI inferencing and agentic world. And that's what our Nutanix agentic AI solution is about. And to put this in perspective today, you have -- when you say -- when Dell says AI factory or Cisco says AI factory, they're really talking about their server platforms with NVIDIA chips inside or other GPUs inside and CPUs. CPUs from Intel or AMD, GPUs mostly from NVIDIA today. And then customers want to run their apps and the models and the models that they choose. And in between is this layer of software that's needed to get all of this to work together properly. And this is not easy to put together. You can start cobbling things together with open source, and some people do, and they are able to integrate it. If you're a very large provider, you might have the resources necessary to go build it all together, but it's not easy to build this enterprise grade stack. And this is where we come in. In summary, what we do in very simple terms is to deliver this -- make this a cloud operating model, for these AI factories. We provide a turnkey experience. So that customers don't have to do the work of integrating everything, and they can start being consumers of infrastructure for their AI use cases rather than trying to go put it all together and run it all themselves. And so this stack has 4 elements to it. At the top is the set of AI services and the underlying Kubernetes platform to run those services, and that includes a catalog of third-party services that are needed to go build these applications. Underneath is our bread and butter. It's the same core platform in terms of how we can optimize the resources, how can we optimize the utilization of expensive GPUs, get great performance out of GPUs? How can we run these things securely? And then next up is a data foundation. Which is really, again, making sure that the data needed for these AI applications can be streamed with low latency, high performance. We can offload key value caches from GPUs on to cheaper storage memory, freeing up GPU memory and also be able to do operations to filter, clean the data and vectorize the data so that AI applications can consume it. And last but not the least, the ability to provide the management of all the shared infrastructure across multiple tenants and multiple users. You don't want your HR agents to share or have common access to data that finance agents have. You want to make sure those are segregated, those are managed. Or if you're a service provider or a neocloud, you have to be able to split your tenants and make sure they are isolated. We do all of that work. And essentially, what we deliver with this cloud operating model is a turnkey platform that allows companies to go run their AI apps -- build and run their AI apps with all the stuff that they need to do so, the security, the control, the governance. Being able to manage all of this, it's all the best performance and drive to the lowest cost per token, which is a unit of intelligence. So that's our -- what we're doing with the AI factories. And what do these AI applications run on? They run on Kubernetes. And we've built this complete Kubernetes platform. And again, one of the unique things that we do at Nutanix is that when people move to cloud native, you typically end up deploying containers and Kubernetes in another silo, in another stack, operated by a different team. And then you have your virtual machines and another stack, another silo managed by another team. And these are all different. Everything about it is different, how you do security, how you operate. Everything is different. We bring it all together into a single experience. Whether it's containers, whether it's virtual machines, whatever the mix of applications. We enable a single team to manage all of this, bring it all together, use the same set of data services, use the same set of networking services, use the same set of security services to put it all together, enabling customers to go deploy this mix, enable them to go from today to tomorrow in a very seamless way, uniquely. That's what we do. And again, we covered this a lot in the keynote. This is more for those folks who were not there for the keynote. Now how does it all translate into reality? What we've seen with a lot of customers, again, the ones who spoke on stage is how they've started using Nutanix for one use case and then over time, they use us for more and more use cases. And here is an example of a customer. They are in EMEA, Europe, Middle East and Africa. They're a sovereign digital services provider. Not -- again, a good team here, right? Sovereignty is very important for them. They are a digital services provider to many people. And they have been a customer for several years now. They started out with a standard use case with us. Modernizing their HCI, they ran all their databases on our platform. And then over time, they consolidated the vast majority of their enterprise applications onto our platform. That was the second stage. And then in the third stage, they're now deploying Nutanix to create a shared AI infrastructure for their multiple tenants. So that again, they can provide a shared service to all their tenants, maximize the utilization of their shared infrastructure and deliver this in a secure way using our agentic AI stack. Now the result of all of this, is that today, they are a multimillion dollar ARR customer. They didn't start out that way. The ARR has grown by a factor of 10 over the last 4 years as they have expanded with us. And that's really, I think, the nature of how we work with a lot of customers over time when they start using us. And you heard that again, like I said, with many people out there on stage who talked, right? They've started with one case, and Blue Cross said that, for example. They were a great example of a customer that keeps moving with us. Tire Rack was another one of those. And it's true with a lot of other customers, including State Street. They started out with the media application on-prem. Then they went to a hybrid multi-cloud way of running their media. And now they're running all their compute workloads on us. And it's the same -- all of this leads to more and more expansion over time. And that's how we grow with the customer, and a common theme is that we support them through this journey very well. Well, let's get to external storage and hybrid cloud, and this is the core part of the conversation around our current business. So I thought I'd give you some numbers in terms of what this means to us and you as investors. Now today, the hybrid cloud infrastructure part of the TAM, the private cloud portion of it, not the public cloud portion of it in 2026 is roughly about a $30 billion market. Now out of that, with just the pure HCI solution that we have to market, we believe that we can -- our served addressable market, which is really the market that we can actually serve and capture with the solutions that we have with HCI only, is about 35% of that market. This means that about 35% of that, we can actually successfully go out there, be able to sell our HCI platform for. Now we've announced a number of external storage platforms. And largely, I would say for this year, PowerFlex and EverPure are -- PowerFlex came on middle of last year. EverPure came on late last year. Those are going to start scaling and deploying. We've already got the initial customer wins this year. And then now we've got Dell's PowerStore, we've got NetApp, and we've got Lenovo ThinkSystem that are coming in later this year. That allows us to expand the served addressable market to about 45% of this $30 billion. And it also reflects an important change in the way we approach this problem, which is at this point, we are not just an HCI company. We are a platform company, and we provide customers choice. Customers can choose to buy our full stack, they can decide whether they want to use our storage or third-party external storage. And from our perspective, we try and monetize them as close to each other as possible. Whatever customers want, we'll meet them. So it is hard to actually now start talking about the mix of how much of this is HCI, how much of this is external storage, right? Because they start getting mixed up. Because we are now selling a single platform for all these use cases. But what's clear is that we're able to capture more of the market with the products that we're bringing on to board. Now the one thing that I do want you to understand is when we go after the external storage market, that market is divided into two parts. There's a part that is fiber channel connected, technology-wise, and there's a part that is IP connected, IP Internet connected. We are squarely focused on the IP Internet-connected market at this point. Our solutions do not support fiber channel. Why? Because that is a legacy architecture. And as the world moves forward, more and more of it is going to go to IP. And so our solutions address the IP side of the market. Now as we look into the future here into CY '29, we expect to continue to add more and more storage platforms to the mix. So that I do expect that we should be able to cover a good majority of storage platforms by this time frame. And the HCI piece of it will also continue to grow. And the IP addressable portion of the market will also continue to grow. There will be more IP deployed in terms of the mix between IP and fiber channel. What that allows us to do is to increase our served addressable market in 2029 to be able to reflect about 60% of the TAM. So a significant growth in our addressability with the external storage solution that we're bringing to market over the next few years. Okay. Now let's talk about the Broadcom displacement opportunity, which is, again, I'm sure, top of you -- top of mind for all of you. Although from our perspective by the way, it's just one more element in terms of our growth story. So this is a report from Gartner. In 2024, they said 33% of customers, about 1/3 of the customers were negative about Broadcom. In 2025, that number rose to about 64%. And we have an early preview of an upcoming report from Gartner that's going to say it's far more than that. The vast majority of customers, much more than 64% are going to have a negative perception of Broadcom today and are looking to migrate. And they said that about 35% of the workloads will migrate by 2028. And I look at this as multiple waves happening. So the first wave started after the acquisition closed, where a subset of customers started migrating. And many of them have signed multiyear deals with VMware even just prior to the deal closing. So those customers have migrated, and we've done a lot of large-scale migrations. Again, I mean, at the show here, there's many customers talking about how they've migrated. You heard some of them talk about on stage. The Wynn is now fully migrated, for example, in Boston, that's what they said on stage. But there's many large-scale migrations of 100,000 type cores that we've been able to do in less than a year to get customers completely off of Broadcom. So that was the first wave. But there were a number of customers who didn't do anything during the wave, waiting to see what happened and what the shoe dropped. And those customers, after a few years came up on their renewal, and they have not done anything. So they had to go do a renewal with Broadcom at that point. And now a subset of those customers are saying, okay, I saw what's going to happen here with me having to buy the full stack. And I'm starting a migration. And we are in discussions with many of those customers. Many of them will continue to sign up with us, and we're now in the process of migrating those. There's going to be another wave happening as Broadcom starts to force more and more during their next cycle to their newest platform, VCF, and force them to upgrade. I will also say that that's not an easy upgrade. It's almost like a full forklift upgrade at that point. And at that point, you have to wonder, right? Are the customers going to go -- do all that effort to remain on the Broadcom platform? Or would that lead to more people choosing to walk out? So there's going to be another wave after that. And there's going to be multiple waves that keep going after that, right? So this is not all going to happen in one fell swoop. This is going to happen batch by batch of customers coming. And they're not all on the same time line either, but they're all on their time lines based on their renewals with Broadcom. So what does this mean for us? So if you look at the big picture, there's about 300,000-plus customers for Broadcom/VMware, out of which we are really focused on about 165,000 of them that are enterprise and commercial customers. Today, about 30,000 are Nutanix customers. And of these, we've added over 3,000 customers in the last 4 quarters. And these number of customers keep growing, by the way, because last quarter, we added about 1,000 customers roughly. But there's still a fair number of customers here that you realize you can go after. And out of the 30,000 customers we have, by the way, that includes roughly about 1,000 of the Global 2000. And in those Global 2000s, in many cases, we have a piece of the estate. We don't have the entire estate. So there's still plenty of expansion opportunity within the 30,000 customers that we have as well. So we have a long way to go in terms of continuing to capture this opportunity over time across all these multiple waves in the industry. And again, I think, the calculus for customers now is not just price. Price is one element of it, but it's also about can they trust Broadcom as their long-term partner to innovate. And you saw that again in some of the innovations that we brought to market today, for example, with the announcements we made with the broadening set of partner ecosystem that we have. Here's one interesting data point for you folks. Two years ago, this show that we are at here, .NEXT, we had about 25 partners sponsoring that show. Last year, there were about 85 sponsors. This year, there are over 100 sponsors. Our ecosystem continues to grow. Yesterday, we had a partner ecosystem summit here before the show. And they were like about 200 partners or so who were there, and a standing room only. And so our partner ecosystem is broadening. And you can see we are doing more and more solutions with more and more partners and more and more coming to the fold, whether it be channel partners, OEMs, external storage partners, cloud partners, SIs and also service providers. All of these, I think, is a sign of the fact that they're recognizing Nutanix as a platform that they need to do more work with. And why are they doing that? Because they see the customer opportunity. Now the other thing that many of you have articulated is that, hey, these migrations from Broadcom appear to be pretty complex, not easy. And I'll tell you this though. We have been doing a lot of work over the last several years to make these migrations easier and easier and simpler. And every year, it gets better. I mean, if you sort of start ticking off the things that you need to cover. First is, can Nutanix handle all the applications that the customer is running? And the answer is pretty much yes. There are a few outliers here and there. And in fact, we continue to work on getting those third-party applications certified. Like today, we heard about Cisco's Unified Communications. And we are, by the way, one of the first to get Microsoft AVD operating in hybrid mode. VMware doesn't quite have that yet. So these are some of the things that we are working on in terms of the list, right? Pretty much, that's no longer much of a barrier at all. Then we're giving our customers even more choice to run with their existing hardware platforms. Hardware was a barrier. If you have to go do a hardware forklift to go use Nutanix, that typically happened only when there was a hardware replacement cycle. And with every new platform that we are now supporting, we start to increase the ability for us to capture our software footprint on top of what the customers already have by way of hardware. And it's especially important in this world where customers are trying to sweat the hardware and not delay purchasing new hardware, given what they're seeing in the market. The migration itself, it's amazing, once you plan the migration, almost all of it is actually automated. We have automated tooling to make the moves happen. And a lot of the work that goes in, by the way, is in planning those migrations, making sure the environment is ready, and then the actual migration is automated. And for some of those planning and program management services, we also have professional services, especially in the bigger accounts. And we also work with partners to deliver their professional services to customers as well. And the last piece is that we meet the customers where they are, right? They get to purchase what they need. We're not trying to force feed to get them to purchase just everything that they don't need. So they buy what they need. This allows them to also get better TCO. And at the same time, like I said, a major driving factor is what you heard from many customers on stage today, which is they trust that Nutanix can innovate, take them into the journey of the future and make sure that we have their backs protected with the support that we provide. So we're seeing a lot of this, and the proof points, again, is the number of migrations that we've done. And we've done a fair amount for all these customers who are coming on board, we are migrating them, some at very large scale. And there'll be -- and many of them continue to be advocates for us after the fact and grow with us. So if you look at all of this, again, Nutanix uniquely provides this unified platform that runs a gamut. We support today's applications with VMs. We support tomorrow's applications with containers, cloud native and AI. And also, most importantly, we support them anywhere across any public cloud, on servers, on bare metal, in the edge. And we do this uniquely. And you see the list of competitors. I mean, these are all the people that we come up against every day. And it's interesting that in many cases, some of them are also our partners, the public cloud folks are our partners. In fact, at State Street, for example, we worked very closely with both AWS and Azure. It was a joint 3-way engagement to get State Street successful. And they all recognize -- Azure and AWS recognize the value of working with us to enable State Street to accomplish their goals. So sometimes there's -- we compete, but we also collaborate with some of these guys. But at the end, we can work across every one of these platforms, run anywhere. And we can go support all the applications that they need, while at the same time, making sure our customers are super successful and supporting them. So now we've talked about the opportunity in front of us. Let's talk about how we capture that with our go-to-market work. So I'll talk about 3 areas that we're focused on. The first is platform selling. You've seen the broader portfolio that we come to market. Second is the growing partner leverage that we're seeing with all the ecosystem that we have. And the third is around scaling our customer success so that the customers continue to be very successful as they adopt our solutions. So let's talk about each of these. On the first one. So this is a segmented view of how we approach the market with respect to how we sell into the market. Now here's the 165,000 customers that we're going after. And there's about 5,000 customers who are what we consider to be enterprise accounts at the top. And we have specific criteria in terms of revenue sizes and number of employees that determine these customers in these different segments. And about 50% of our addressable market is in those top 5,000 customers. And then we've got the next 20,000-plus customers who are the lower end of the enterprise and the commercial segments. And that's about 30% of our addressable market. And then below that, we have the 140,000-plus accounts that are smaller customers. And that represents a total of about 20% of our market. And of course, we have targeted ways of how we go after these customers. Now at the top end, we go after all the applications, including their business-critical applications and their modern applications and their AI applications. We also position the broader platform with our platform selling approach. Because many of these customers, as you heard, are investing in modern platforms, they're investing in cloud native, they're investing in -- starting to invest in AI. And so the entire platform, selling everything we've got and migrating them from one use case to the other use case is how we grow our footprint within those customers. And then for the 140,000 customers who are at the bottom shown there, they are smaller customers, and they want consumption simplicity. They're not going to have the staff to go do a whole range of things in a very sophisticated way. So we tend to have more of a partner-led motion there. And we tend to focus them on the core platform, getting them simple, up and running very quickly. These are the kind of customers, for example, a law firm in Florida would be in that category. And this law firm, for example, that -- one of these law firms, they were able to do a full VMware migration by themselves to Nutanix in a couple of weeks because they have a relatively small footprint. And it's just a core product. That's the kind of set of customers there. Now we've been doing this for a few years, and we've actually been tilting more upmarket over time. And the net result here -- Rukmini will cover this in more detail -- is that we have doubled the number of customers with $1 million-plus ARR over the last 3 years. And she's going to cover what we are seeing with respect to our deals, getting to higher ASPs, et cetera, as part of this. And then the partner ecosystem. I talked about this a bit earlier, but across all of these vectors, cloud, OEMs, channel, service providers. And you saw at the chip level, you saw the investment from AMD in us in terms of really getting us to take their solutions to market and investing in us to make that happen for them. Because they truly believe that we can help them get to the market for AI inferencing. And they see that we're doing this today with NVIDIA, they want to be part of the game as well. So this continues to grow for us. This ecosystem continues. We have more and more solutions with them together. And from a customer perspective, for example, when we announced a NetApp solution, there were a lot of customers in the room today that really wanted it, and we're already engaged with many of them in early access type of experiences where they talk to us well ahead of time. We get their requirements. We understand that, and we know what it takes to be successful for them. And they're early adopters. And the channel again. Again, we have all the major channel providers now, channel partners coming to us. We do more with them. So all of this is going to help us drive, at the end of the day, leverage and sales productivity, which again, Rukmini will cover with respect to numbers. The third part of our go-to-market is around customer success. And this is both for retention and expansion. We have a pretty good track record of retaining customers. But what we're finding is as we get more and more use cases, as we get more and more sophisticated, we need to have them more adopt, especially the latest products in our portfolio. And so for the top end of the pyramid, those customers at the very top, we have a white glove type experience that we provide, a hands-on engagement where we have a customer success engineer. These are technical people who help them get the best out of their investment in us. With the idea that if they're successfully adopting, they will become champions of us, they will continue to renew and expand with us. As we go further down, it becomes more of a high-touch engagement. And then over time -- or as we go further down, it just becomes more of a digital engagement with these customers. And this is one where the idea being it will lead over time to higher adoption expansion and renewal. So that's the third pillar in our go-to-market strategy. What does this all mean, coming together? So truly, we are the platform of the future. And we talked about how with all the customers that you saw, how we are taking them on a journey across all of this, modernizing their infrastructure with the existing storage or new, running in the public cloud, modernizing their apps cloud native approaches and agentic AI. And here are some stats for you to think about that we haven't necessarily provided all of it in the past. But for example, at HCI, we are still the market leader, about 49% market share. The external storage, we talked about how this helps us grow our addressable market to 60% of the market through CY '29. On public cloud, as you can see from the likes of State Street and so forth, we are starting to drive significant consumption in the public cloud. The platform is the same. It's exactly the same platform, same license, customers can choose to deploy it whatever they want. But what we've seen is that the usage in the public cloud has been growing significantly over time. Over the last couple of years, it's grown by about 5x. And also now with the supply chain constraints, people -- more and more people -- I just had a conversation this morning with a customer who is looking to do a Broadcom migration and thinking, "Oh boy, given that it's probably easier for me to get a bare metal server in the public cloud, I might actually just migrate directly from on-prem into the public cloud with Nutanix." So those are the kind of discussions we're having on that front today. And as we start selling containers and cloud native into the same customer base that are already doing a virtualization, we're able to get more, higher unit economics. You're able to go sell the Kubernetes platform on top of the existing virtualization platform and capture 20% or higher unit economics. And then, of course, as agentic AI is still early days for us, but opening up a pretty large new opportunity to go after. And so we're very much focused on capturing value across all these customer needs. And you've seen a lot of examples of how this is actually turning out in practice today. So what does all this mean in terms of the outlook? So I'll just give you a summary here. With the portfolio that we have and the go-to-market acceleration that we're doing, this is enabling us to accelerate our capture of the market opportunity. We believe that with everything that we've got, we can do a mid- to high teens revenue growth in fiscal '29. At the same time, we're able to drive leverage to the bottom line. With all the work that we're doing in terms of efficiencies, in terms of driving sales productivity, in terms of internal usage of AI, et cetera, why continue to invest to achieve the top line. We believe that we can target non-GAAP operating margin in the mid- to high 20s in FY '29. And then together, the outcome of all that is strong free cash flow and a consistent Rule-of-40+ performance. So with that, thank you, and I'll bring Rukmini up to stage to talk more about the financials. Rukmini, all yours.

Thank you. Thank you, Rajiv. It's great to be here with everyone, both in the room and on the webcast. Before we get into it, I want to address why now? Why are we doing an Investor Day now and why here? It's an interesting time to do an Investor Day. There is a lot going on in the world, both from a geopolitical perspective, from a macroeconomic perspective and from what's going on in our industry. Supply chain, AI, a lot going on. We thought it was important now for us to take the opportunity to update you all on how we think about the opportunity in the medium term. And we're defining medium term here as fiscal year '29. Because we believe there are many growth drivers that will allow us to grow during that in that time frame, we thought it was important to take you all through that. Why here? This is the first time we're doing our Investor Day in conjunction with our customer conference. And we believe it's powerful for all of you to hear not just from us, but also from our customers firsthand and from the partners. So I hope many of you -- I saw the hands in the room got to attend the keynote. And also I hope you get a chance to walk through a solutions expo and really feel the energy. It's an important event for us, and we're glad that some of you could join us here in person to attend that. And for those who are joining on the webcast, I hope you've seen the announcements and also can feel some of the energy here in person. So with that, I would hope at the end of my 30 minutes here, that you will all take away sort of 3 things. One is that we have a proven track record and a durable business model in a large and growing market. Two, we are ambitious about our growth prospects for the future and achieving those, all while driving expanding operating margins. And three, our intention is to continue to drive significant free cash flow generation. And also be thoughtful and prudent about how we think about using all that cash that we expect to generate, including how we return capital to all of you as our shareholders. So what I'll cover today, a rough agenda for this section will be -- we'll spend a brief amount of time looking back on how we have done relative to what we've told you before and current state. We'll spend the majority of the time looking forward on what the medium-term targets look like, and then we'll wrap up with our approach and framework around capital allocation. So here is what we showed you at our last Investor Day. Hopefully, this looks familiar to many of you in the room, as many of you were there. How did we do against those? Let's start with top line. On revenue, we've delivered a 17% CAGR relative to the 15% that we told you back then, overachieved on that. On ARR, we came close. We did a 19% CAGR relative to the 20% we told you back then. And on bottom line, we did significantly better than what we committed to you all back in 2023. I won't belabor each line here, but you can see on all of the line items, whether it be non-GAAP operating margin, free cash flow margin, free cash flow dollars, significantly above what we said we would do. And the way we accomplish that is by prioritizing growth because we've always said that we have a huge market opportunity and we intend to capture as much of that as we can. So growth remains the priority, doing so in a way that involve prudent investments and efficiencies. So we delivered on our growth targets while doing significantly better on the bottom line. And all of that meant that we got to a Rule-of-40+ score much sooner than we told you we would, 2.5 years ago. So our most recent fiscal year, we did a Rule-of-40 score of 48, relative to what we told you, which was less than 40 back in 2023. So we want you all to know that we take our commitments to you all seriously. And this is reflected in sort of our comparison of how we did relative to our last Investor Day. Now with respect to new customers joining our platform and who we welcomed as our customers, you've heard from us in recent quarters about the nice momentum we've seen in adding new logos onto our platform. What's driving this? You'll see here, one, of course, is a lot of industry disruption happening. And we have really focused and pointed our resources in a way that allows us to capture that market opportunity. So that's the first piece. We've also enabled both our channel partners and our OEM partners to also help us because we can get efficiencies and scale that way. Because they, as many cases, you've heard from many of them today, both on main stage and from Rajiv, many of these are much larger companies than us. And we've done a nice job of getting them to also help us land more customers onto our platform. So more customers. They're also joining us with larger commitments. So if you look on the bottom here, what you see is that the initial ACV deal size of customers joining our platform has grown by 16% CAGR over the last 2 years. So more customers with larger initial commitments. Not only have we added new customers onto our platform, we've also expanded with our existing customers. So this NRR of 107% will look familiar to you all. It's our most recent NRR that we reported as of our last quarter. Now NRR, our net dollar-based retention rate, as most of you know, has 3 components, primarily. One is our ability to retain our existing customers and their installed base with us. Second is our ability to expand with them. And third, and not necessarily in that order, I would say, expansion is bigger, but we also periodically increase prices for our customers. Think of that as more of an inflation type price increases. Now Rajiv talked about customer success, which has always been important to us. We've talked a lot about our Net Promoter Score, and you heard it on main stage as well. And so that is something we take very seriously. And as Rajiv said, we've also made and continue to make some investments around that area as we've gone upmarket. And I want to make sure that our customers are not just purchasing from us, but they're adopting our solutions and being successful with their business outcomes. That's making sure we retain them. Now we also ideally want them to expand with us. And there are 3 vectors of expansion. You've heard us talk about these before, there's customers using more of our solutions. To take that example is if a customer had purchased Virtual Desktops or VDI from us, they may choose to buy more VDI from us. The second vector is where if they purchase VDI initially, they now expand with a different workload that might be an AI workload or it might be a database workload. So that's the second vector of expansion. And the third vector is a customer who may have purchased our core platform, the Nutanix Cloud Infrastructure platform in the beginning and then subsequently expands to our database solution or our Unified Storage Solution. So those are the 3 vectors of expansion. One of the things we've done more recently is added to our portfolio specialist selling team. And these are folks that are experts in those specific products. And they serve to help and support our core sellers to drive that last vector I talked about, which is going to really truly sell a platform. So you've had a lot on platform selling as well. And that's an investment we've made, and those folks are ramping now when we expect them to help our core sellers be more productive. Now Rajiv talked about this move upmarket. And if you remember the sort of pyramid slide that Rajiv talked about, he talked about how we go to market within various segments and our move upmarket, meaning that we have made sure that our resource allocation is done in a way that our sellers can focus on those sort of top part of the pyramid and the middle, while the channel does more and provides us leverage in that more bottom layer of the pyramid. One of the results of that move upmarket has been that we've doubled the number of $1 million-plus ARR customers over the last 3 years. The last time you all saw this chart, we were sort of in the middle of that at the end of fiscal year '23. And you can see that we've continued to add more $1 million-plus customers over time. The other thing I'll say here is that we've also doubled the number of $1 million plus customers in that top of the pyramid that Rajiv talked about. So it's the largest enterprises in the world are choosing Nutanix and spending significant amounts on our platform. So that brings us to today. So we've done a brief look back, and a current state review. And so hopefully, some of that is familiar to you, some of that is recap, some of that is new information that we thought was important to share with you all on this occasion. Now let's look ahead. Now one thing I want to spend a minute on here, and I think it's important, is that, as I said earlier, we are in a dynamic environment. And before I start talking about the medium-term outlook, let's acknowledge that there's a lot of uncertainty out there when it comes to supply chain. Now many of you already know, as a software provider, we are not directly in the middle of the supply chain. However, for the majority of our land and expand opportunities and land and expand customers, customers do need to procure hardware, a server on which to run our software. That's been more difficult more recently, just given what's happening with the supply chain situation in the industry, both from an ability of procuring servers in a timely manner and what prices are doing in the market. What are we doing to help our customers? The first thing we're doing is we're making sure that they have choice, that we have now certified more and more platforms that our customers can run their -- our software on so that wherever they're able to get supply, that they can run Nutanix software on it. You've heard a lot about external storage. That, of course, allows customers to reuse their existing hardware and use that to run Nutanix software on. And of course, there's a public cloud option. Which, again, you heard a lot about where if the customers can run our software using NC2 on the public cloud. In the middle, you can see that we are extending support where needed. So if the customer wants to continue to use their existing platform, they can do so, and we will support that. And then the third piece on the right here is some commercial flexibility that we're offering in certain cases. You've heard us talk about this before. So none of this is new, where we have offered some flexibility around license start dates where customers can tie more closely, the start of their license date, along with when they expect their server. So we thought it was important to acknowledge that there is near-term uncertainty. We'll continue to talk about that as we go through the coming quarters. At the same time, it's important for us to give you an update on what we believe our medium-term drivers are. So the rest of this presentation will be focused on fiscal year '29. And what we're assuming about fiscal year '29 is that it will be a normalized supply chain environment. And what we mean by that is a customer can generally get their hands on a server when they need it. It's not always the case today. So that's what we mean by normalized environment. And we're assuming that will be the case in fiscal year '29, but also assume a stable market backdrop. Okay. So with that, this is the same slide that you saw in Rajiv's section. So I won't repeat what he said, other than to say that this is a rising tide. We are in a market that is large. It's more than $100 billion in terms of the market size. We have done our work to make sure that we are able to address this larger market and created that market opportunity for ourselves, and it's growing nicely. It's growing at a 14% CAGR. Now think of this as a way to map our portfolio to the market opportunity. So the bars here represent the percent of land and expand ACV bookings. They don't represent dollars, they represent a percent of land and expand ACV bookings. And what we wanted to give you a sense of was that in our most recent fiscal year, in fiscal year '25, about 21% of our total land and expand ACV bookings came from what we're calling our portfolio solutions. In fiscal year '29, which, remember, we're using as our reference here for this medium-term outlook, we expect that to be 34%. That's a significant increase in the proportion of our land and expand bookings that's coming from these portfolio solutions. And it's also a significant driver of growth because it's growing faster than the core platform. Not only does this drive growth, there's a strong correlation, as you might imagine, between adoption of these solutions and lower churn. Customers are more committed. They're invested in the platform, and they're likely to stay with us longer. So there's a correlation there as well. Not only is it helping growth, it's also helping lower churn overall. The other point that I think many of you will notice here is look at that bar, that top bar for AI and Kubernetes. That is driving a huge portion of the growth here as we go from fiscal year '25 to '29. So hope it's not a surprise to anyone. Of course, that's a nascent market today for us. And it is one of the growth drivers as we think about going out to fiscal year '29. So if I put all that together and if you combine all the product drivers we talked about here, which are these 3 things that are listed here -- and Rajiv, you heard a lot from Rajiv about this as well, and our go-to-market drivers. So meaning all the innovation we're doing on the product front, now all the acceleration we are driving on the go-to-market side, we believe that our targeted growth rate in fiscal year '29, I want to repeat that this is not a CAGR, this is a growth rate in fiscal year '29. Our target for that is mid- to high teens percent growth in both revenue and in ARR. We're excited about this opportunity ahead of us. We think there's significant growth to be had, mid- to high-teens percent revenue and ARR growth in fiscal year '29. Again, we're assuming a normalized backdrop in terms of supply chain and a stable backdrop. Now let's move to how will we get there from an investment perspective. And I'll talk about the sales and marketing investment and the R&D investment. On the sales and marketing side, we believe that we're going to continue to invest on our frontline sellers. You heard from Rajiv about the 165,000 plus accounts out there that we are aiming to go and capture over time. And so we intend to make investments to make sure that our people are targeting those, all those right accounts and those right markets. Channel and partner ecosystems. We talked about that a lot today. You heard them on main stage as well. So we intend to continue to leverage that because not only is that going to help us drive growth, it's also a leverage way for us to do it. Customer success, again, hopefully self-evident in terms of why that's important for us as we continue to grow that, our customers are successful with the solutions they're buying from us. On the R&D side, I won't read all of these, should all be very familiar to you all by now in terms of how we think about where our innovation will come from. And think of these two as sort of two sides of the same coin. These are not separate kind of pillars. When we think about planning internally, we think of them very much as going together and making sure that our platform innovations and our go-to-market priorities are very much aligned. If you put that top line growth and these investments that we expect to make, what that leads to from a non-GAAP operating margin in fiscal year '29 is a mid- to high 20s percent non-GAAP operating margin. Now I just told you about the investments we will make, and there will be some investments required here to attain that kind of growth. But we do target that our operating expenses will grow slower than revenue, allowing us to get from the 21%, 22% margins that we've guided for this fiscal year to the mid- to high 20s percent in fiscal year '29. In addition to the investments, there are some areas where we're driving efficiencies as well. And you can see them here, one is increased sales productivity. We've talked in the past about how we've driven increasing sales productivity with our frontline sellers, our sales reps. While we've seen good improvements there, we think there is opportunity for more to get to what we would consider market-level benchmarks. And how will we do that? Through more portfolio selling, platform selling, through more OEM and channel partner enablement, through more enablement of our sellers themselves as they go out and sell the platform. AI enhancements, this is, of course, top of mind for everyone here, and it is for us as well. And I would say the 2 main areas, and Rajiv touched on this as well, that we have seen improvements on efficiencies from AI are on the customer support side. We have been able to maintain our really high NPS scores and drive productivity. And on the developer side, so our R&D team has been more productive as a result of AI. Now every department in the company does have AI use cases, and all of that and all of the benefits of that are baked into this target for fiscal year '29. And then last, this is the mix of renewals is one we've talked about before. And as we've said that it is more efficient for us to acquire a dollar of renewal, as you would expect, than it is to go and acquire a dollar of land and expand. And so as that mix evolves, we expect that to contribute as well. Now two other important points I want to make here while we are on the operating margin line. The first one is that structurally, we believe that we can get to 30-plus percent non-GAAP operating margin here in the long term beyond fiscal year '29. We are driving towards that. And the second thing is we know that you all are quite focused on stock-based compensation. And the biggest difference between our GAAP and non-GAAP margin is, of course, stock-based compensation. So I'll talk more about that a little later. What I do want to make sure we cover here is that we do expect that GAAP margins will expand faster than non-GAAP operating margins. We've talked about growth on revenue and ARR, expenses and operating margin. Let's talk about free cash flow. So first, I'll start with the target. We're saying that our target in fiscal year '29 on free cash flow is the high 20s percent of free cash flow margin. Now there are a few things here that I want you all to think about. First is that our standard process in terms of invoicing and collecting cash from customers, as many of you know, is a multiyear all upfront process. So if a customer is signing up with us for a 3-year duration, we typically -- and our standard procedure is to collect all of those 3 years of cash up front. And we believe that our customers do that, and that's been our standard process because often, their budgets for Nutanix come from their CapEx budgets. We've also talked about how in certain circumstances, we have provided flexibility from that standard process, whether it be annual payments or more flexible options. Today, those nonstandard payments, the non-upfront payments are just about a double-digit percent of our TCV. And we expect that to evolve over time. And in fiscal year '29 though, we still expect that the significant majority of our TCV will come from the standard upfront payments from customers. So today, it's just about double-digit percent of our TCV, the nonstandard payment options, and we expect that to grow as a proportion. By the time we get to fiscal year '29, the standard option will still be the significant majority in fiscal year '29. So because that is an evolving portfolio, we intend to manage it as a portfolio. And what that means for you all is that this free cash flow margin target of the high 20s percent is more or less where we are today. And so we expect to maintain that. Of course, you will see a growth in free cash flow dollars as revenue grows. And you'll see leverage in the model more in the operating margin line. As I talked about, we expect operating margins to go from the low 20s to the mid- to high 20s. While we maintain free cash flow in this high 20s percent from a free cash flow margin perspective. Here's a summary of our medium-term targets. Fiscal year '29, normalized environment from a supply chain perspective and from a stable market backdrop. Revenue and ARR going in the mid- to high teens, expanding operating margins. And free cash flow in the high 20s percent from a free cash flow margin. You put all that together, you've got a Rule-of-40 score in the low to mid-40s. So really excited about the market opportunity ahead and how we intend to execute to achieve these targets. Okay. Now let's talk about what we're going to do with all of that cash that we intend to generate. Let's talk about capital allocation. So this is a fairly, hopefully, simple and straightforward framework. There's only so many things that companies can do with their cash. So first and foremost, we're ambitious about growth. We want to make sure that our growth is our first priority. So we intend to make sure that we continue our organic investments. We also intend to make sure we keep our eyes open for opportunistic M&A opportunities. The most recent acquisition we did was a little over 2 years ago of a company called D2iQ, and they allowed us to really accelerate our road map around Kubernetes management. So we were able to integrate them very quickly and bring to market what is today, our Nutanix Kubernetes Platform or NKP. And we also acquired some great talent as part of that acquisition. So we intend to keep our eyes open for acquisitions like that, where it can either accelerate our road map in some way or be an adjacency in terms of what we'd like to do and what our customers need from us. So that's the first pillar. It's continuing to invest in growth. The second piece, again, fairly straightforward. I think as most of you know, we have 2 convertible notes on our balance sheet, with the first one being due in 2027. And we intend to make sure we have sufficient liquidity to maintain flexibility around the repayments of those notes. And then importantly, capital return. We intend to continue our ongoing and opportunistic repurchase program. As many of you know, in December, we did our first ever accelerated share repurchase of $300 million. And you should look at that as a continuation of our commitment and our conviction around the long-term future of the company. We also intend to continue to use cash to settle RSU taxes for our employees. I think many of you know this, just to give you 30 seconds on what that is. So if you have an employee who has 100 shares vesting and they owe 30 shares of that in taxes, in the past, more than a few years ago, we would sell those shares in the open market and use that cash to fulfill the IRS obligation. What we're doing -- we've been doing for the last couple of years is instead, retiring those shares, those 30 shares, and instead using our cash from the balance sheet to fund the IRS obligation of employees. So it has the effect of those 30 shares not being in the market, which they would have been if we weren't using our cash for that obligation. So we intend to continue doing that. And then finally, we're targeting a net dilution from a share perspective of less than 2% going forward. It's actually been less than that. I think this year, for example, but we're targeting less than 2% from a net dilution perspective going forward. Let's talk about stock-based compensation. I know this is top of mind for a lot of folks. So we thought we'd take this opportunity to summarize where we've been and how far we've come. Our stock-based comp was more than 20% of revenue not that long ago. And in the most recent full fiscal year, it was 14%. And we know our work is not done here. Our intent is to continue to drive this to be a lower percent of revenue going forward. And our goal is to balance two objectives. One is we need to continue to be able to hire and retain great talent. At the same time, make sure we're disciplined about the use of RSUs and equity, make sure that we are doing the right thing here from a stock-based compensation perspective. And I think it's important for all of you to know that we think of stock-based compensation in our P&L like any other expense line. It gets budgeted for, it gets reviewed by our Board. It gets approved as part of our annual plan. So it is very much like any other expense in our P&L. And our intent is to balance those two objectives, making sure we can hire and retain great talent while making sure that we're managing SBC appropriately as an expense. And again, we're committed to making sure that our net share dilution is less than 2% here going forward. Hopefully, many of you saw this announcement that came out, I think, at the start of our session here. Today, we announced a $750 million increase in our share repurchase authorization. This is by far the biggest share repurchase authorization the company has had and the Board has approved. And it's actually more than double any other prior share repurchase authorization that we have had. And again, you should view this as a conviction that we have in our opportunity ahead of us and in our ability to go and execute and capture that opportunity. This is the same slide that I started with. What would I like to leave you all with as we wrap up sort of the prepared remarks portion of this? Our intention is to grow both revenue and ARR in the mid- to high-teens percent in fiscal year '29. We have a large opportunity, the market is a rising tide, and we intend to capture more than our fair share of that market. And we will do so by expanding operating margins and making sure that we're thoughtful about capital return to you all, our shareholders. Thank you for being here. And I think we'll do a short break and plan to be back for Q&A at 5:00 p.m. Thank you. [Break]

Okay. We're going to -- oh, everybody's has gone back. Hands up. Everyone knows the drill.

Okay. So we're going to kick over Q&A, a few instructions first. So you need to speak into the handheld mic. So when you raise your hand, we'll try to point to you, and you get the handheld mic. And then please state your name and company affiliation before you actually ask your question. So Matt, do you want to kick things off?

Matt Martino, Goldman Sachs. Thanks a lot for doing this today. Rukmini, the question is for you. So you laid out a midterm target for mid- to high teens growth in fiscal '29. So first of all, you acknowledge that the backdrop today is highly uncertain, right? So maybe a multipart here. Like one, the Street is considerably below that target from a growth perspective as it stands today. So maybe walk us through what informed the decision to provide this target today? And then the second piece is, if the path to your fiscal '29 target is to be nonlinear, how should we think about framing fiscal '27 and fiscal '28 revenue, which ultimately had to be a consideration when developing these midterm targets?

Yes. Thank you, Matt. Fair question. And I'll start by saying what we intended to give you in fiscal '29 as I think, I've said a few times, have a normalized supply chain, stable market backdrop, is what we think is the sort of fundamental normalized growth of the business, assuming we didn't have some of the uncertainty that we have today. So that's why we gave you fiscal year '29. And I also said that it is not a CAGR, precisely for the reasons you're saying Matt, which is that the near term does look uncertain. And you've heard from us in the last few quarters. And so it does look uncertain. We don't know how long the supply chain situation will last. And to your point on fiscal year '27, we do expect to guide to that in less than 6 months here as we get into our August earnings call when we finish Q4 '26 and look forward into '27. So I'm not really going to comment on that, rather than to say that the near term does look uncertain. We do expect to guide to '27 here in less than 6 months. And you should take this mid- to high teens growth as our view based on all the drivers we talked about today, right, which are multiple, it's not sort of either just AI or just the Broadcom displacement or just external storage, it's a combination of all of those things and what we think we can execute too in that -- within that market growth opportunity in a normalized world.

Okay. Ruplu? Right there, sorry. Yes.

It's Ruplu Bhattacharya from Bank of America. I'm filling in for Wamsi Mohan today. Rajiv, you talked about a lot of different avenues for growth, and it seems that Nutanix is really moving beyond just an HCI storage company into more of a cloud infrastructure software company. So can you help us size all of the different product growth vectors and go-to-market vectors you talked about? So you talked about AI revenue growth, OEM partner revenue. You talked about land and expand, renewals. How should we size all of this over the next couple of years? What gets you the most excited? Which do you think is the biggest revenue growth opportunity?

Look, I mean, I think you got a hint of that in the portfolio slides that Rukmini showed, right? I mean if you look at it, we're -- certainly from a growth rate perspective, we expect those portfolio products to be growing faster than our core, right? And that shows up in the attach going from 21% to 34%, based on what you can see. And you can see in that, that there's a lot of growth in some of these nascent things, right? In Kubernetes, cloud native and -- albeit off a small base, right, going up a small base at a faster growth rate on both Kubernetes and then AI -- agentic AI and inferencing, which are early days for us. So that's the, I would say, the highest growth rate components. But then I think the bulk of the revenue, I think, is still the remaining 60 something, 66% is still the core. And within the core, it's coming from this combination of external storage being added to the mix and truly becoming that cloud platform, like you said, where we can handle all kinds of different use cases there with that. The combination of, I would say, the core HCI plus the external storage plus the public cloud portion of it, all that represents that 66% of our core. So I would say that's the framing that we have for you.

Simon? In the chair back there.

Simon Leopold with Raymond James. I hear you on the supply chain constraints. And there's another variable here that I want to understand if it's factored into that comment is around hardware cost inflation. So if IT organizations, your enterprise customers have to pay more money for their servers and for their PCs, is that squeezing the budget available for Nutanix? Or when you're talking about the supply chain constraints, are you suggesting that can't get the servers because there's no memory and so they have nothing to run our software on?

So in the medium-term environment, what we are saying is supply chain is back to normal, okay? Normal meaning, I do expect like as more memory -- look, we know -- all know the semi industry is a cyclical industry, right? So if you look at memory, for example, now there's a massive shortage, and you're seeing this massive price inflation. Now do we believe -- and when we say normal, we do think that there will be a normalization of that, right, as demand starts keeping up -- catching up to supply as new fabs get built and so forth, right? So when we look at the normal situation, we are expecting that there will be a normalcy both in terms of lead times, but also pricing of servers and components over time.

Yes. Sanjit?

Sanjit Singh, Morgan Stanley. I wanted to get, Rajiv, your perspective on the agentic AI side of the equation and what gives Nutanix essentially the right to win, particularly in terms of your framing around unified governance policy enforcement. There's a number of vendors speaking to the sort of similar value proposition. And so the right to win in there. And then Rukmini, if you had any updates for us on the -- where we sort of stand with those supply chain issues and -- that you could speak to versus what you reported last quarter?

Sanjit, that's a good question on the right to win, right? I mean you heard from a sampling of our customers as to how they like to evolve with the platform that they already have that can be used for other things to grow. And that's kind of one of our things, which is the fact, as they already have a platform that they trust to run their critical applications. Now we are providing them a lot more capabilities on this platform in an integrated way, right? We are not just providing a point product. We're providing an infrastructure stack. Yes, there are -- I mean -- and there's a reason why I laid out competitors that I laid out in my deck, right? Those are the big ones that they are like similar from a platform perspective. But then, yes, at every layer in the stack here, yes, there are -- so many startups are looking at focusing on cost and governance, right? There's -- at every layer in the stack, there's individual pieces and competitors. But the value of actually a platform right, that they have today that can evolve to the future with consistent operations that they don't need to go train a whole bunch of new people to go run on. I mean, that is part 1 of that -- why we can win. The second, I think, there's a natural -- this has to do with -- I do believe fundamentally, there's a thesis that AI will be hybrid, right? And to the extent that it is hybrid, I mean, again, by way of where we are, sitting there today, it's a natural sweet spot for us, right? And if you look at sort of, frankly, sort of the order of sweet spots for us today, out of all those 3 deployment modes, of course, on-prem is our sweet spot, right? It's been historically our sweet spot, on-prem and edge. And then the second sweet spot with the investments we're making now will be the service providers and the neoclouds who are actually building this. And the third is a public cloud, right.

If I can do the second part of that question, I think, Sanjit, on supply chain in the near term. So things are more or less as we told you at our last earnings call, Sanjit. I would say we still have a few more weeks left to go in the quarter, and a lot can happen in those weeks. But more or less, supply chain situation remains largely as what we had told you when we did our last earnings call.

Great. Yes, if we can move to Radi over on the -- yes. Right there.

Yes, Radi Sultan, UBS. Thank you guys for having us, first of all. Rajiv, I want to start with you. Talking to customers on the floor, NC2 seems to be sort of the biggest area of focus. I'd love for you to just unpack, like what are the biggest growth drivers there? And then maybe Rukmini, if you could just on the other side of that, like how much is NC2 contributing to growth? Do you think about the outlook over the next few years? And sort of you kind of gave the 5x of the public cloud core count. But how is the actual revenue contribution tracking there?

Yes. So on the drivers or rather the use cases for NC2, the first one, of course, is you want to go cloud first and you want to go take your existing applications and move them to the cloud and run them well. You saw State Street doing that very effectively. And they're actually operating in a hybrid world, right, running both in multiple public clouds and in their colos, right. Colos [ equal to one ] pretty much for us. So that's use case number one. Use case number two is disaster recovery, be it using the cloud as a disaster recovery piece. Use case number three is global scale, right? You're operating in one region, you want to operate in another region. You can easily set up and deploy all virtually, right, without having any feet on the ground and get going in whatever region you'd like to. So that's use case number three. And then this new use case that is emerging really is VMware migrations. And now we've done already VMware migrations cloud to cloud. So customers who were on VMware Cloud on AWS, we migrated to Nutanix and AWS. That's another use case. So that's a more recent use case that's picked up. But now we were also seeing interest in customers who have on-prem. VMS waits to migrate potentially to the public cloud. And that's, in turn, also somewhat triggered by the supply chain situation that they're seeing with respect to server availability. And so that's actually a fifth driver. Now -- which I would say we haven't really seen much of yet, to be fair, right? We've onesies and twosies, but it is an interesting twist, right? It used to be that you could -- most of our customers could get lower price servers on-prem compared to going to the cloud, which is in their minds, almost always more expensive. But now at least in this kind of imbalance, because the cloud guys have gotten these massive contracts for supply, they may be able to get better pricing. And they are today providing, in some cases, better pricing for bare metal servers compared to what the customer might be able to buy. So we haven't seen a lot of them, but those are the drivers.

Maybe to your question on quantification, Radi. So what I would say, I think it's important to point out that it's the same license. And in that, it's the same license for a customer using our platform on-prem as it might be to use them on the cloud. So in State Street case, for example, as Rajiv said, they're using it in a hybrid way and so it's sort of -- they can use it anywhere. And so in terms of how many -- if I were to maybe answer your question in a different way, how many -- how much of our -- how many customers or what's -- how do you quantify the people that are using our platform on the cloud. I would still say it's a minority today, but it's harder for us to quantify because again, it's the same license. And it's not like we're selling them a different product. Also, worth clarifying that in that portfolio attach slide that we had, there was no NC2 in there, if you go back and look at that, and we will post the slides on our website. By the way, if it's not already up there, of that same reason, where it's not sort of a separate thing. It's part of the core motion, and it gives customers flexibility to adopt it and to use it wherever they'd like to.

Param, right here at the front table.

Mic. Mic here, please.

Yes. Right there. Thank you.

Param Singh, Oppenheimer. So I appreciate all the color, Rajiv, that you gave on the expansion of the technical capabilities to address agentic AI and AI inferencing workloads. But when I look at your TAM revenue and portfolio attach slides, it appears to me that you're viewing this mostly as a cross-sell opportunity to your typical installed base. However, Rajiv, as you mentioned, that neoclouds could be an additional opportunity. So as they look to expand into inferencing workloads, is that something that you could help them with? And if so, wouldn't that significantly expand your TAM and your revenue growth?

Absolutely. In fact, I mean, one of the key things that we announced today as part of the agentic AI stack is what we call Service Provider Central. That feature is targeted at the neoclouds, okay? It enables them to provide these shared environments across multiple tenants for a GPU-based infrastructure. Now I'll give you a little bit more color on the neoclouds. There's many different tiers of neoclouds. There's -- at the very top end of the pyramid, you've got the CoreWeaves and the Lambdas and the Nebius'. And then you've got a set of what I would call Tier 2 neoclouds. And then -- and these are -- and these include, in many cases, sovereign clouds. Outside the country, for example, they have been set up with GPU clusters. As an example, in the Middle East, we have Core42, but there are many like that, right? In different countries, Deutsche Telekom has a sovereign cloud. Everybody has 1 of these that they're looking to build. And then the third category is existing service providers who are delivering compute-centric services, many of them are looking to go offer AI-based services as well. So out of these 3 categories, I think, the top tier guys like CoreWeave and so forth, I think, largely had their own big software teams, they have actually done a lot of their integration, build their own homegrown stack in many cases, Crusoe, CoreWeave, all these guys. But the second tier of neoclouds, including some of the sovereign clouds, they don't have that. So that's an opportunity for us. And then the other tier of existing service products that we are building are the -- our compute centric business, but we can also help them go into these AI services. So those 2 are definitely categories that we are targeting with our agentic AI stack.

Okay. Jason, in the back table there. Thank you.

Jason Ader with William Blair. I have 2 questions, 1 for Rukmini, 1 for Rajiv. Rukmini, for the FY '29 target, the revenue growth target, what are you assuming for NRR there? You're at 107% today. I assume that it's going to be higher. So I'd love to get an answer to that. And then for Rajiv, a big part of the NRR story is going to be the portfolio attach, the portfolio selling. But that's not a new story for Nutanix. I mean I've covered the company since the IPO. Why will it be different this time? Why you think you're going to have more success selling more of these sort of add-on solutions than what you've had in the past?

Sure.

I'll start. Thanks, Rajiv. And thanks, Jason, for the question. So when you think about the '27 growth rate, and specifically, I'll focus on the ARR growth rate. Jason, perhaps I think your question is more around NRR. For us, we think that both the addition of new logos and NRR are both important to get to that mid- to high teens ARR target that we -- our growth target we put out. And I would say, I think, as we think about the mix of contribution from NRR, which is contribution from new logos, we think it will more or less be the same as what it is today. So our most recent ARR growth, we put out for 16%, and 107% was NRR. And so yes, will we expect to move around a little bit? In '29, it could, but the composition between new logos, landing new logos, NRR, we think will be more or less the same in '29 as it is today. And remember that, of course, we've talked about in the near term that ARR is impacted by some of the dynamics in supply chain, but so was NRR, right? And so there's some of that in the near term. But in '29, contribution more or less similar to the contribution today to ARR growth. And then Rajiv, you want to comment on why we think...

The portfolio, yes.

Platform selling.

So yes, so we have been doing platform selling. But I'll tell you a few things that have changed over the last couple of years. First is many of these portfolio products are now more mature than they were. For example, we have a very mature Kubernetes platform that we didn't quite have a couple of years ago. So we have that. Of course, I would say the AI solution is still early, so I wouldn't put that in the mature category yet. Our cloud management solution is very mature right now out of that. Our database solution is actually getting better and better every day and capable of handling enterprise-grade scale now. So maturity is a platform. That's one. Portfolio products is number one. Number two is we have actually, for the first time or since over the last couple of years, invested in a portfolio specialist team of sellers who can effectively represent this portfolio in the market and complement our core sellers. So we made that investment, and that's starting to pan out. And we've seen that in recent quarters in terms of showing faster growth for our portfolio of products. So that's second. Third is that we are seeing recent success from our full stack motion. For example, when we sell our Kubernetes platform today, a lot of it, a good chunk of it is actually sold as a full stack, not just as a Kubernetes piece by itself, but Kubernetes along with the rest of the stack, right? So the portfolio is selling -- what I'm saying is it's more effective. We're able to now actually go in there and just attach these portfolio products to the stack, right, as opposed to try and sell them individually in pieces as well. And that's a part of the platform, right? That's a part of the platform selling. So those 3 things, I think, are different. And we are basing our projection there on the fact that we've seen more of this in recent times, that this is actually working for these 3 reasons.

Aaron, middle table there.

Yes. Aaron Rakers at Wells Fargo. I want to ask about, like, I think, the Dell PowerFlex solution came out with support back early part of '25, FlashArray came out in the latter part of '25. I'm trying to conceptualize, if I do the math, like you've got an implied SAM growth of about 20%, right, $30 billion going to $40 billion, and you're expanding piece of that. So how do I gauge success in terms of that market? Can you give us any evidence of like the success you've seen in the Dell relationship and attaching in current environments of PowerFlex? And how are you thinking about that NetApp relationship in that context as we move forward?

Yes. I mean, for example, if you were -- I mean, we've already got several PowerFlex customers in production today. One of them actually talked at .NEXT last year, that was Moody's, and you saw that in the reel here as well. And there are other customers. And then Pure just came out -- EverPure, I should say now, came out in December. And you saw, for example, Blue Cross Blue Shield talk about how they've adopted it, and they were able to get it running within a day. And so we've got a good pipeline building on those. Now I think NetApp and PowerStore are early, right? PowerStore really is going GA soon, and NetApp has to be at the end of the year. So there's a time lag also between the time we have GA and broad-scale adoption as customers go through testing, it takes a couple of years to build. But it will continue to build. And now we're looking at 3 years out and all of these will be very mature offerings and part of the portfolio at that time. So we certainly feel good about where we are on this external storage in terms of the customer traction we are seeing. And now especially like we're seeing with customers saying anything you can do to help us run on existing hardware, we'd love to do that. And so we've got that added impetus in the near term, at least with the supply chain stuff that is also making it easier for customers to adopt the external storage piece.

Jim, in the back there.

Jim Fish with Piper Sandler. Wanting to build off of Jason's question before. Is there a way to think about how big the portfolio specialist team is, their quotas, any accelerators that they have for the kind of buckets of portfolio products? As it seems like a large reason for this growth to mid- to high teens or this reacceleration at some point is based on this attach going higher. And I don't know if all of us got the sense of why that actually should increase given the kind of limited success we have seen historically on the portfolio side. And then Rajiv, you did say something early on today, where you had mentioned like, hey, large customers, they could look at open source. And obviously, there's a huge debate as to custom development and I don't think many here think like, hey, there's going to be a big swing off of you guys to sort of custom development. But what creates that moat that makes it so that large enterprise customers aren't going to start looking at developing this themselves.

Yes. I'll give you that. Do you want to take the first one?

Yes, I think the first point, I think, Jim, was around the portfolio. And why do we think that's going to do what we expect it to do in terms of the growth rate. And I would say, I think a few things that we are doing differently. As Rajiv said, I do want to emphasize -- and we won't give you sort of the size necessarily, Jim, I think you were looking for kind of sizing of the portfolio, selling team. Of course, they're smaller than our core selling team. These are folks that are much more targeted and focused on specific products in the portfolio. So we might have, for example, NDB specialists because that is quite a different sale and a different -- sometimes even a different persona who's engaging with us on that from a customer perspective than our core platform. And so the way we've thought about that is making sure we have the right capabilities, both mainly on the technical side to make sure that our core sellers have the support they need when they're going to try and make a platform sale as opposed to what they're used to, which is the traditional HCI Nutanix Cloud Infrastructure Platform. And as Rajiv alluded to, one of the things we did think long and hard about as we thought about fiscal '29 sort of goalpost is what have we seen some early success in. So this team has been -- some investments we've made are fairly recent in the last 12 to 18 months, they have just started to come into ramp. And we have seen that attach rate tick up even in the recent periods. And so as we thought about where we think and where we believe that growth will come in the future, a lot of this is from this area. The other thing I will say on this, and this came up -- I pointed this out when we went through that slide as well is that there are some markets -- that there are some of those solutions like AI and Kubernetes, that's quite small today. And we've seen good growth, for example, in NKP, as Rajiv has talked about. And so that is baked into that growth as we think about the opportunity and our ability to capture that going forward. I think you also had a question in there in terms of just quotas and things like that. Absolutely, these folks have quota only on those. So the specialists have quotas only on those solutions. And so that's what they're there to do and go and drive. Now they, of course, have to partner with the core sellers. So there's also -- we make sure that, that is aligned that when those sellers can work as one team when they go out to the market, but they are focused on selling those specialists.

Before I get to the moat, I'll also add 2 things to what she said. The first is that on some of these portfolio products, the market is growing and there's demand coming, right? We certainly see that for Kubernetes already today, right? There's more and more of our customer base that want to move to cloud native. You heard from Tire Rack today, for example, they're an existing customer. They want to modernize their application. They want to run Kubernetes in the same platform. So there is some pull there. Instead of us this time, we're going to have to push it, right? So on some of these products, certainly on the Kubernetes side, we are seeing that. And then the only other thing I will just say is that on some elements of this portfolio, we have specialist teams. And we expect, depending on like how this evolves over the next few years, when you look at specialists, there's specialist sellers and there's specialist sales engineers. And so over time, we might as -- the intent with some of these is to move them to be more mainstream and core as just becomes more and more of our business as well. I could see that happening. I don't think it's happening today with Kubernetes, but I could see that happening over time with Kubernetes. As it becomes just mainstream and part of the core, like -- today, for example, I think, a lot of customers that we talk to with NC2, it's like more of an extension of the core. But with Kubernetes, I would expect that's also going to go and get there in at some period of time, where we might then say, we don't need specialists for selling. We might need to keep some specialist sales engineers. And over time, even that could be mainstream, right? So that's the way we think about this. So now going back to your question around the moat and open source. There is no doubt that some of the large customers could try doing this and building -- and certainly, larger neoclouds are doing this today. That's how they're doing. They're building this based on open source platforms. They have a fairly large software team that does this. And I would just say that the components of this are not that easy, right? We spend, for example, we've been at -- with our hypervisor for 10-plus years and then looking to building all the capabilities to go take an open source hypervisor, KVM, okay? And then on top of that, add all the resiliency capabilities, all the optimization, utilization capabilities. It's not easy and then building an ecosystem around that. The same stuff has to be done for GPU workloads. So there is -- it's not easy to take pieces that are open source and put them together. Of course, if people put the effort, they can do it. I'm not saying they can't do it, but it's just not easy. And yes, could large organizations try to? And by the way, the other thing I will just say is the closer you are to the hardware, the more you need a limit -- to lean on a limited set of expertise. I mean, if you are at the very top of the stack, you could imagine AI white-coding being able to do some of that stuff, okay? Like if you're building user interfaces and user experiences. But if you're trying to do real-time work, optimizing how software can be used on top of the hardware, the skill sets are far and few, and it's not something that AI can help that much, today at least, to go to. So there is a fairly significant moat to get all of this working, put them together. And in fact, as we look at our team, by the way, that's doing all of this, the way we are doing this is taking all our core team and getting them to move over time from CPU-centric work to GPU-centric work effectively. And that includes a core virtualization team, the core networking team, the core Kubernetes team, everybody. And so we have the expertise across all of these to be able to go take those skill sets and apply them to GPU workloads. In fact, some of the optimization of AHV that we talked about today are exactly coming from that mindset. We've optimized how CPUs get utilized. Now they're using the same team, same capabilities and skill sets to go optimize GPUs. So it's not an easy thing to do.

One thing I'd add to that is ecosystems, I think you have to obviously...

Yes, I covered the ecosystem on the HV side, right, it took us 10 years to go add to that ecosystem. And the GPU ecosystem is evolving very rapidly, too, and you've got to make the investment to keep up with that ecosystem. Rich?

Okay. Matt, please. Yes.

Are there people who haven't gotten questions in?

Matt had asked one.

Matt Calitri, sitting in for Mike Cikos over at Needham. In regards to the fiscal year '29 free cash flow target compared to where we are today. So that's helpful color on the expectation for a greater shift to billings, flexibility and understood how customers not paying the entirety of the deal upfront creates a headwind there. But if it weren't for that dynamic, would you have expected the free cash flow margin to rise in tandem with the operating margins? Or how should we be thinking about that?

Thank you. I think if we weren't managing that optionality for our customers that I talked about earlier, that I think it's -- we would have expected the free cash flow margin to be higher than what I said it would be. Now we haven't quantified the sort of a what-if over there, Matt. And also know that there's obviously now we have some of that, so there's a waterfall coming in as well, right, from prior periods. So we haven't quantified it, but yes, it would have been higher than the high 20s percent that I talked about. And look, I think, we'd encourage all of you to look at the operating margin line, both GAAP and non-GAAP, to measure us on leverage in the model and how we're driving growth while maintaining leverage to the P&L. And on the free cash flow side, like I said, we're going to maintain it as a portfolio, one, between continuing our standard upfront payments, which you said will be a significant majority of TCV even in '29. We'll have some nonstandard payment with customers. And the third thing, which I -- I don't think I mentioned actually, but it's worth mentioning is it's also an option that customers have to get third-party financing, meaning that they can do so with channel partners who might provide third-party financing, we might facilitate that. But that allows us to -- allows a customer to see periodic payments, and it allows us to get most of the cash up front. And so that's another option, and we manage those as a portfolio. And where it makes sense, we'll offer flexibility, but significant majority in '29 will still be upfront. But short answer to your question is yes, it would have been higher than the high 20s percent that we gave you as a target for '29 if not for this flexibility.

Okay. Well, I think we'll have to -- we're at time. So we're going to have to wrap it up there. Thanks, everyone, for attending and for your participation in the Q&A, and look forward to chatting with you now in the cocktail hour. Thanks very much.

Thank you.

Thank you very much.