Snowflake and Nutanix Earnings Beat Lifts Cloud Stocks After Hours

Snowflake and Nutanix reported quarterly earnings after the market close on Wednesday, June 23, 2026, with both companies surpassing analyst expectations. Snowflake's product revenue reached $1.12 billion, a 32% year-over-year increase, while Nutanix reported revenue of $659 million, beating estimates by over $20 million. The positive results triggered significant after-hours trading activity, sending Snowflake shares up approximately 8% and Nutanix shares surging over 12%.

Context — [why this matters now]

The cloud software sector has faced investor scrutiny over growth sustainability as interest rates have remained elevated. The Federal Reserve's current policy rate sits at 5.25%-5.50%, increasing the cost of capital and pressuring valuations for growth-oriented companies. These earnings reports provide a critical health check on enterprise digital transformation budgets, a key indicator of broader B2B tech spending.

Previous quarters saw a market rotation toward profitability, punishing companies that missed top-line estimates despite solid bottom-line performance. In May 2026, Salesforce traded down 15% in a single session after issuing lighter-than-expected revenue guidance, highlighting the sector's sensitivity to growth indicators. The current macro backdrop demands that companies demonstrate both revenue expansion and a clear path to operating use.

The catalyst for this earnings event was the market's need for confirmation that cloud consumption trends remain healthy. Investors were watching for signs of optimization efforts plateauing and new workload migration accelerating. Both Snowflake and Nutanix indicated that customer engagement and consumption patterns strengthened throughout the quarter, alleviating near-term fears of a spending slowdown.

Data — [what the numbers show]

Snowflake's financial performance was anchored by its product revenue of $1.12 billion, exceeding the consensus estimate of $1.10 billion. The company reported a non-GAAP earnings per share of $0.35, solidly above the $0.31 forecast. Snowflake's remaining performance obligation, a measure of future revenue, grew 38% to $4.2 billion.

Nutanix delivered revenue of $659 million against expectations of $637 million. Its non-GAAP EPS was $0.40, a significant beat compared to the $0.29 analyst projection. Annual recurring revenue climbed to $2.8 billion, representing a 28% year-over-year increase. The company also raised its full-year revenue guidance to a range of $2.68-$2.70 billion, up from the prior $2.63-$2.66 billion.

Metric	Snowflake	Nutanix
Revenue Beat	+$20M	+$22M
EPS Beat	+$0.04	+$0.11
After-Hours Move	+8%	+12%

The results contrast with the Nasdaq-100 index's performance, which is up 9% year-to-date versus Snowflake's pre-earnings gain of 5% and Nutanix's 18% rise. The magnitude of the after-hours moves indicates that expectations were subdued, and the beats were perceived as high quality.

Analysis — [what it means for markets / sectors / tickers]

The earnings beats are a positive signal for the broader cloud infrastructure and software sector. Direct beneficiaries in Thursday's session are likely to include peers like Datadog, MongoDB, and Cloudflare, which trade on similar growth narratives. The reports suggest that enterprise customers are continuing to invest in data analytics and hybrid cloud platforms, sectors where Snowflake and Nutanix are leaders.

A key risk to the bullish interpretation is that guidance, while raised, may not have been upgraded sufficiently to justify a re-rating of sector multiples. Nutanix's raised outlook was conservative relative to the quarterly beat, potentially reflecting management caution about the second half of the year. The sustainability of consumption growth remains the primary concern for long-term investors.

Positioning data from the options market showed elevated put volume in both names heading into the report, indicating a skeptical or hedged stance among institutional investors. The post-earnings surge will likely force a covering of short positions and a reassessment of underweight allocations by active fund managers. Flow is expected to rotate into the software sector on Thursday.

Outlook — [what to watch next]

The next major catalyst for these names will be their respective investor days, scheduled for late July and early August. Management commentary on long-term margin structures and total addressable market expansion will be critical for sustaining the momentum. The broader cloud sector will be watching Oracle's earnings report on June 27 for corroborating evidence on infrastructure demand.

Technical levels to monitor for Snowflake include the $220 level, which acted as resistance throughout May. A sustained break above this point could open a path toward the 52-week high of $245. For Nutanix, the key resistance sits near $85; a decisive move above this level would signal a breakout from its recent trading range.

Market reaction will also hinge on the U.S. Personal Consumption Expenditures report due on June 27. A cooler-than-expected inflation reading could reinforce the positive sentiment by bolstering the case for Fed rate cuts later in 2026, which would benefit long-duration assets like growth stocks.

Frequently Asked Questions

How do Snowflake's earnings affect other data cloud companies?

Snowflake's results are a leading indicator for the data cloud ecosystem, including companies like Databricks and Confluent. Strong consumption data suggests healthy demand for data analytics, warehousing, and streaming platforms. Partners and vendors in the Snowflake ecosystem, such as dbt Labs and Fivetran, may also see increased investor interest as their total addressable market expands with core platform growth.

What is the significance of Nutanix's annual recurring revenue growth?

Nutanix's 28% growth in annual recurring revenue to $2.8 billion is crucial because it demonstrates the success of its subscription transition and the stability of its future income. This metric is closely watched for hybrid cloud companies as it de-risks the revenue stream and provides visibility. The acceleration in ARR suggests that customer adoption of its hybrid multicloud platform is gaining momentum.

Were there any specific product segments that drove the beats?

Snowflake highlighted strength in its Snowpark platform for developers and its emerging cybersecurity workload as key growth drivers beyond its core data warehousing business. Nutanix cited strong demand for its Acropolis Hypervisor and AHV virtualization solutions, which are gaining market share. Both companies are successfully expanding their product portfolios, which helps mitigate reliance on a single core offering.

Bottom Line

Strong execution by Snowflake and Nutanix signals underlying enterprise cloud spending resilience.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.