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Nutanix
(NASDAQ:NTNX)
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Rating:64Neutral
Price Target:
$59.00
▲(47.32% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by improving fundamentals and a constructive earnings update (profitability/FCF strength, ARR and bookings momentum, and raised guidance). Offsetting factors include balance-sheet risk (negative equity and meaningful debt) and a relatively rich valuation (P/E ~38). Technicals are moderately positive but not fully confirmed given the stock remains below the 200-day moving average.
Positive Factors
Strong cash generation
Sustained high operating and free cash flow provides durable funding for R&D, partnerships, buybacks and debt servicing. With FCF closely tracking earnings, liquidity supports execution of strategic initiatives and cushions near-term volatility while enabling capital return and reinvestment.
Negative Factors
Weak balance-sheet equity
Meaningful debt combined with negative equity limits financial flexibility for acquisitions or capital-intensive investments. Persistent negative net worth raises refinancing and covenant risk in stressed scenarios and constrains balance-sheet levers relative to better-capitalized software peers.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high operating and free cash flow provides durable funding for R&D, partnerships, buybacks and debt servicing. With FCF closely tracking earnings, liquidity supports execution of strategic initiatives and cushions near-term volatility while enabling capital return and reinvestment.
Read all positive factors
Nutanix Key Performance Indicators (KPIs)
Any
Revenue by Geography
Details how much revenue comes from each region, highlighting where Nutanix captures market share and where it may face headwinds. Tracking regional trends helps assess the company’s international expansion, customer concentration, and sensitivity to local demand or regulatory changes.
Details how much revenue comes from each region, highlighting where Nutanix captures market share and where it may face headwinds. Tracking regional trends helps assess the company’s international expansion, customer concentration, and sensitivity to local demand or regulatory changes.
Data provided by:
The Fly
The FlyNutanix (NTNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.58B
Dividend YieldN/A
Average Volume (3M)4.41M
Price to Earnings (P/E)52.9
Beta (1Y)1.16
Revenue Growth13.04%
EPS Growth1894.19%
CountryUS
Employees7,150
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.02
Shares Outstanding270,320,500
10 Day Avg. Volume3,884,791
30 Day Avg. Volume4,405,296
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 Cap0.92
Enterprise Value/Revenue4.86
Enterprise Value/Gross Profit5.58
Enterprise Value/Ebitda37.87
Forecast
1Y Price Target
$58.21Price Target Upside45.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)1.91
Revenue Forecast (FY)$2.83B
Nutanix Business Overview & Revenue Model
Company Description
Operating across North America, Europe, the Asia Pacific region, the Middle East, Latin America, and Africa, Nutanix, Inc. delivers an enterprise cloud platform. Its foundational Acropolis platform integrates virtualization, enterprise-grade stora...
How the Company Makes Money
Nutanix generates revenue primarily by selling term-based software subscriptions to enterprises and public-sector customers. The company’s main subscription products are packaged within the Nutanix Cloud Platform (including components for infrastr...
Nutanix Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
Overall the call skews positive: the company beat quarterly guidance, grew ARR 15% year-over-year, produced strong free cash flow and margins, reported robust bookings (>20% TCV growth) and raised full-year guidance while announcing strategic product and partner initiatives (AI, external storage, AMD). The primary negatives are persistent supply-chain-driven server price and lead-time headwinds that are delaying revenue conversion, regional challenges (Middle East) and some margin timing effects from deferred hiring. Management articulated clear mitigation levers (external storage support, NC2/public cloud, expanded vendor choices) and raised confidence in bookings and full-year results.Positive Updates
Revenue Beat and Raised Full-Year Guidance
Q3 revenue of $703M exceeded the guided range ($680M–$690M). Company raised fiscal 2026 full-year revenue guidance to $2.82B–$2.84B (midpoint increase vs prior guidance). Q4 revenue guide: $725M–$745M.
Negative Updates
Persistent Supply Chain Headwinds
Ongoing supply-chain issues: higher server prices and generally longer lead times for server hardware from partners are pressuring customer budgets and timelines; management expects elevated server prices and supply dynamics to continue into fiscal 2027.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Beat and Raised Full-Year Guidance
Q3 revenue of $703M exceeded the guided range ($680M–$690M). Company raised fiscal 2026 full-year revenue guidance to $2.82B–$2.84B (midpoint increase vs prior guidance). Q4 revenue guide: $725M–$745M.
Read all positive updates
Company Guidance
Nutanix said Q3 results beat guidance, with revenue of $703M (vs. guided $680M–$690M), ARR of $2.435B (+15% YoY), NRR 106%, average contract duration 3.4 years, non‑GAAP gross margin 87.8% and non‑GAAP operating margin 22.3% (above prior guided 16%–17%); Q3 non‑GAAP net income was $136M (EPS $0.47) vs. GAAP net income $72M (EPS $0.25) on ~287M diluted shares, and free cash flow was $197M (28% margin) with cash & short‑term investments of $2.018B (up from $1.874B in Q2); the Board increased buyback authorization by $750M, repurchased $50M and used ~$32M to retire shares for RSU taxes. For Q4 fiscal 2026 management guided revenue of $725M–$745M, non‑GAAP operating margin of 21%–23% and ~292M diluted shares; updated FY26 guidance is revenue $2.82B–$2.84B, non‑GAAP operating margin ~22.5%, and free cash flow $760M–$780M (≈27% margin at midpoint). Management also said TCV bookings were stronger (Q3 TCV bookings growth >20%) and raised full‑year bookings expectations versus the prior call, while noting ongoing server supply/pricing headwinds—factored into the guidance—and reiterated a medium‑term target of mid‑ to high‑teens revenue and ARR growth by FY29.Nutanix Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
34
Negative
Cash Flow
73
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.75B | 2.54B | 2.15B | 1.86B | 1.58B | 1.39B |
| Gross Profit | 2.39B | 2.20B | 1.82B | 1.53B | 1.26B | 1.10B |
| EBITDA | 353.11M | 292.73M | 141.26M | -93.08M | -631.00M | -842.80M |
| Net Income | 275.86M | 188.37M | -124.78M | -254.56M | -797.54M | -1.03B |
Balance Sheet | ||||||
| Total Assets | 3.42B | 3.28B | 2.14B | 2.53B | 2.37B | 2.28B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 1.99B | 994.34M | 1.44B | 1.32B | 1.21B |
| Total Debt | 1.53B | 1.48B | 695.22M | 1.33B | 1.44B | 1.19B |
| Total Liabilities | 4.14B | 3.98B | 2.87B | 3.23B | 3.17B | 3.29B |
| Stockholders Equity | -725.61M | -694.52M | -728.15M | -707.42M | -800.50M | -1.01B |
Cash Flow | ||||||
| Free Cash Flow | 770.88M | 750.17M | 597.68M | 207.00M | 18.48M | -158.46M |
| Operating Cash Flow | 821.20M | 821.46M | 672.93M | 272.40M | 67.54M | -99.81M |
| Investing Cash Flow | -333.55M | -951.69M | 529.59M | -49.78M | -54.19M | -597.15M |
| Financing Cash Flow | -640.87M | 244.09M | -1.06B | -112.71M | 103.64M | 663.85M |
Nutanix Technical Analysis
Positive
40.05
Price Trends
47.74
Positive
43.62
Positive
50.89
Positive
Market Momentum
1.10
Negative
66.20
Neutral
85.20
Negative
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 49.56, below the 50-day MA of 47.74, and below the 200-day MA of 50.89, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $25.51B | 104.84 | 3.59% | ― | 11.75% | 85.38% | |
73 Outperform | $28.91B | -999.72 | -0.99% | ― | 23.64% | 68.36% | |
71 Outperform | $11.51B | 13.60 | 366.90% | ― | 7.96% | 19.77% | |
68 Neutral | $23.21B | -299.06 | -3.71% | ― | 24.61% | -91.58% | |
65 Neutral | $17.37B | -57.81 | 55.24% | ― | 45.73% | 48.87% | |
64 Neutral | $14.58B | 52.87 | -37.79% | ― | 13.04% | 1894.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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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...
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.