Nutanix Inc (NTNX)
NASDAQ:NTNX
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Nutanix
(NASDAQ:NTNX)
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Rating:68Neutral
Price Target:
$53.00
▲(32.33% Upside)
Action:Reiterated
Date:05/06/26
The score is driven primarily by improving fundamentals—profitability and especially free-cash-flow strength—plus a generally supportive earnings call with strong execution and bookings momentum. Offsetting factors are meaningful balance-sheet risk (negative equity and debt), supply-chain constraints delaying revenue/FCF timing, and only moderate valuation attractiveness at a ~25.7 P/E.
Positive Factors
Strong free cash flow generation
Improved and high trailing‑12‑month operating and free cash flow indicate durable cash conversion from operations. This strengthens internal funding for R&D, product investment, and capital returns, reduces reliance on external financing, and supports long‑term strategic flexibility.
Negative Factors
Weak balance sheet: negative shareholder equity
A persistent negative equity position and rising debt create structural financial fragility. This limits conventional borrowing capacity, increases refinancing and covenant risk, and reduces the firm's buffer against downturns, constraining long‑term strategic and capital allocation options.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Improved and high trailing‑12‑month operating and free cash flow indicate durable cash conversion from operations. This strengthens internal funding for R&D, product investment, and capital returns, reduces reliance on external financing, and supports long‑term strategic flexibility.
Read all positive factors
Nutanix Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyNutanix (NTNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.50B
Dividend YieldN/A
Average Volume (3M)3.40M
Price to Earnings (P/E)25.7
Beta (1Y)1.27
Revenue Growth15.85%
EPS GrowthN/A
CountryUS
Employees7,150
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.99
Shares Outstanding265,212,100
10 Day Avg. Volume4,211,482
30 Day Avg. Volume3,404,487
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)-28.95
Price to Sales (P/S)7.92
P/FCF Ratio26.80
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue5.00
Enterprise Value/Gross Profit5.74
Enterprise Value/Ebitda39.85
Forecast
1Y Price Target
$55.42Price Target Upside38.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)1.83
Revenue Forecast (FY)$2.82B
Nutanix Business Overview & Revenue Model
Company Description
Nutanix, Inc. provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa. The company offers Acropolis converges virtualization, enterprise storage services, and networking visualiz...
How the Company Makes Money
Nutanix makes money primarily by licensing and subscribing its software platform to enterprises that need to build, modernize, and operate private cloud and hybrid multicloud environments.
Key revenue streams include:
1) Software subscriptions (p...
Nutanix Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call reflects solid operational performance and momentum: revenue beat, ARR growth of 16%, strong margins, meaningful free cash flow and exceptional new-logo additions, plus a strategic AMD partnership that expands the AI opportunity. Offsetting these positives are meaningful near-term headwinds from industry-wide CPU and memory supply constraints that are delaying hardware deliveries and shifting revenue and free cash flow timing, a lowered near-term revenue guide, and some retention/renewal timing impacts. Management characterizes the supply issues as timing-related (not demand-related) and has actions to mitigate impact, but visibility into normalization is limited.Positive Updates
Revenue Beat and ARR Growth
Q2 revenue of $723M, above guidance of $705M–$715M; ARR reached $2.356B, up 16% year-over-year.
Negative Updates
Supply-Chain Constraints Driving Revenue/FCF Timing Risk
Worsening shortages of CPUs and memory led to longer server lead times (CPU availability cited as the larger immediate issue), delaying customers' ability to procure servers and shifting the timing of revenue and free cash flow recognition.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and ARR Growth
Q2 revenue of $723M, above guidance of $705M–$715M; ARR reached $2.356B, up 16% year-over-year.
Read all positive updates
Company Guidance
Nutanix provided Q3 FY26 guidance of revenue $680–690M, non‑GAAP operating margin 16–17% and fully diluted weighted average shares of ~288M; for full FY26 it guided revenue $2.80–2.84B, non‑GAAP operating margin 21–22% (unchanged), and free cash flow $745–775M (≈27% FCF margin at the midpoint). Management said TCV bookings growth is expected to exceed revenue growth and bookings expectations for the year are higher than before, but supply‑chain constraints (CPU/memory lead times) will delay the timing of revenue and free‑cash‑flow conversion—shifting more FCF into the back half and Q4—despite a strong Q2 (Q2 revenue $723M, ARR $2.356B, NRR 107%, Q2 FCF $191M).Nutanix Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
38
Negative
Cash Flow
86
Very Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.69B | 2.54B | 2.15B | 1.86B | 1.58B | 1.39B |
| Gross Profit | 2.34B | 2.20B | 1.82B | 1.53B | 1.26B | 1.10B |
| EBITDA | 337.21M | 292.73M | 141.26M | -93.08M | -631.00M | -842.80M |
| Net Income | 267.13M | 188.37M | -124.78M | -254.56M | -797.54M | -1.03B |
Balance Sheet | ||||||
| Total Assets | 3.28B | 3.28B | 2.14B | 2.53B | 2.37B | 2.28B |
| Cash, Cash Equivalents and Short-Term Investments | 1.87B | 1.99B | 994.34M | 1.44B | 1.32B | 1.21B |
| Total Debt | 1.54B | 1.48B | 695.22M | 1.33B | 1.44B | 1.19B |
| Total Liabilities | 4.11B | 3.98B | 2.87B | 3.23B | 3.17B | 3.29B |
| Stockholders Equity | -831.29M | -694.52M | -728.15M | -707.42M | -800.50M | -1.01B |
Cash Flow | ||||||
| Free Cash Flow | 777.11M | 750.17M | 597.68M | 207.00M | 18.48M | -158.46M |
| Operating Cash Flow | 832.21M | 821.46M | 672.93M | 272.40M | 67.54M | -99.81M |
| Investing Cash Flow | -643.58M | -951.69M | 529.59M | -49.78M | -54.19M | -597.15M |
| Financing Cash Flow | -657.68M | 244.09M | -1.06B | -112.71M | 103.64M | 663.85M |
Nutanix Technical Analysis
Positive
40.05
Price Trends
41.34
Positive
42.27
Positive
53.94
Negative
Market Momentum
1.57
Negative
61.18
Neutral
35.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTNX, the sentiment is Positive. The current price of 40.05 is below the 20-day moving average (MA) of 44.41, below the 50-day MA of 41.34, and below the 200-day MA of 53.94, indicating a neutral trend. The MACD of 1.57 indicates Negative momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 35.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTNX.
Nutanix Risk Analysis
Nutanix disclosed 62 risk factors in its most recent earnings report. Nutanix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nutanix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $26.25B | 485.87 | -2.41% | ― | 22.79% | 50.50% | |
70 Outperform | $11.98B | 12.87 | 366.90% | ― | 7.96% | 19.77% | |
70 Outperform | $16.17B | 59.44 | 3.45% | ― | 11.84% | 730.76% | |
69 Neutral | $29.32B | -232.70 | -3.48% | ― | 23.91% | -326.25% | |
68 Neutral | $12.50B | 25.68 | -36.77% | ― | 15.85% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $13.70B | -31.60 | 64.45% | ― | 48.46% | 72.42% |
* Technology Sector Average
NTNX
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Nutanix Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Nutanix Raises $150 Million Through AMD Equity Investment
Positive
May 5, 2026
On May 4, 2026, Nutanix, Inc. completed a private placement of 4,136,789 shares of its Class A common stock to Advanced Micro Devices, Inc. at $36.26 per share, raising approximately $150 million in cash. The transaction, executed under a February...
Business Operations and StrategyStock Buyback
Nutanix Expands Share Repurchase Authorization, Signaling Confidence
Positive
Apr 7, 2026
On April 7, 2026, Nutanix announced that its board had increased the company’s existing share repurchase program by $750 million, bringing total authorization to approximately $779 million when combined with remaining capacity. Management fr...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Nutanix, AMD Forge Strategic AI Infrastructure Partnership Deal
Positive
Feb 25, 2026
On February 23, 2026, Nutanix agreed to sell 4,136,789 Class A shares to Advanced Micro Devices in a $150 million private placement, with no special governance rights for AMD and closing contingent on customary regulatory clearances. On February 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.