Nutanix (NTNX) AI Stock Analysis

• Market Cap: $12.95B
• Dividend Yield: N/A
• Average Volume (3M): 4.08M
• Price to Earnings (P/E): 63.3
• Beta (1Y): 1.37
• Revenue Growth: 17.45%
• EPS Growth: N/A
• Country: US
• Employees: 7,150
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.41
• Shares Outstanding: 270,399,930
• 10 Day Avg. Volume: 4,162,809
• 30 Day Avg. Volume: 4,082,456
• PEG Ratio: -0.45
• Price to Book (P/B): -28.95
• Price to Sales (P/S): 7.92
• P/FCF Ratio: 26.80
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 7.85
• Enterprise Value/Gross Profit: 9.02
• Enterprise Value/Ebitda: 67.00
• 1Y Price Target: $71.17
• Price Target Upside: 50.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.8
• Revenue Forecast (FY): $2.85B

• Rating: 61 Neutral
• Price Target: $50.00 ▲(5.49% Upside)

Nutanix's overall stock score reflects strong financial performance in terms of revenue growth and cash flow, but is tempered by high leverage and negative equity. Technical indicators suggest bearish momentum, and the high P/E ratio indicates a rich valuation. Positive developments from the earnings call and corporate events provide some support, but challenges in revenue recognition and guidance weigh on the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Nutanix's offerings, supporting long-term business expansion and market presence.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling Nutanix to invest in growth opportunities and manage debt effectively.

Strategic Partnerships

Partnerships with major players like AWS expand market reach and enhance Nutanix's position in government sectors, driving sustainable growth.

Negative Factors

High Leverage

High leverage can limit Nutanix's ability to invest in growth and weather economic downturns, posing long-term financial risks.

Revenue Recognition Challenges

Challenges in revenue recognition can impact financial predictability and investor confidence, affecting long-term strategic planning.

Negative Equity

Negative equity reflects financial instability, potentially affecting Nutanix's ability to secure financing and invest in future growth.

Nutanix Business Overview & Revenue Model

Company Description

Nutanix (NTNX) is a cloud computing company that specializes in hyper-converged infrastructure (HCI) solutions, enabling businesses to manage their data centers more efficiently. Founded in 2009, Nutanix provides a software-defined approach to IT infrastructure, combining storage, computing, and virtualization into a single solution. Its core offerings include the Nutanix Enterprise Cloud Platform, which allows organizations to run applications in a private, public, or hybrid cloud environment, and various related services such as cloud management and virtualization solutions.

How the Company Makes Money

Nutanix primarily generates revenue through the sale of its software and subscription services. The company’s revenue model includes software licenses, which are sold as perpetual licenses or as part of a subscription model, allowing customers to pay for ongoing access to their solutions. Additionally, Nutanix offers support and maintenance services, which provide a steady stream of recurring revenue. Key revenue streams include both software subscriptions and professional services, such as consulting and implementation. The company has established significant partnerships with major players in the technology sector, including Dell Technologies, IBM, and AWS, which enhance its market reach and contribute to overall earnings through collaborative offerings and integrated solutions.

Nutanix Financial Statement Overview

Summary

Nutanix demonstrates strong revenue growth and profitability improvements, particularly in cash flow generation. However, the negative equity and high leverage pose financial risks. Continued focus on improving operational efficiency and reducing leverage will be crucial for long-term stability.

Income Statement

Nutanix has demonstrated strong revenue growth with a TTM increase of 3.14%. Gross profit margins are robust at 87%, indicating efficient cost management. The net profit margin has improved to 8.43%, reflecting enhanced profitability. However, the EBIT margin of 6.44% suggests room for improvement in operational efficiency.

Balance Sheet

The company faces challenges with a negative stockholders' equity, resulting in a high debt-to-equity ratio of -2.21. This indicates potential financial instability. Despite this, the company has managed to improve its return on equity, although it remains negative.

Cash Flow

Nutanix has shown strong cash flow performance with a free cash flow growth rate of 3.01%. The operating cash flow to net income ratio is healthy at 0.61, and the free cash flow to net income ratio is high at 0.90, indicating efficient cash generation relative to net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.54B	2.15B	1.86B	1.58B	1.39B
Gross Profit	2.20B	1.82B	1.53B	1.26B	1.10B
EBITDA	292.73M	141.26M	-93.08M	-631.00M	-842.80M
Net Income	188.37M	-124.78M	-254.56M	-797.54M	-1.03B
Balance Sheet
Total Assets	3.28B	2.14B	2.53B	2.37B	2.28B
Cash, Cash Equivalents and Short-Term Investments	1.99B	994.34M	1.44B	1.32B	1.21B
Total Debt	1.48B	695.22M	1.33B	1.44B	1.19B
Total Liabilities	3.98B	2.87B	3.23B	3.17B	3.29B
Stockholders Equity	-694.52M	-728.15M	-707.42M	-800.50M	-1.01B
Cash Flow
Free Cash Flow	750.17M	597.68M	207.00M	18.48M	-158.46M
Operating Cash Flow	821.46M	672.93M	272.40M	67.54M	-99.81M
Investing Cash Flow	-951.69M	529.59M	-49.78M	-54.19M	-597.15M
Financing Cash Flow	244.09M	-1.06B	-112.71M	103.64M	663.85M

Nutanix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTNX, the sentiment is Negative. The current price of 47.4 is below the 20-day moving average (MA) of 53.82, below the 50-day MA of 63.44, and below the 200-day MA of 70.33, indicating a bearish trend. The MACD of -5.39 indicates Positive momentum. The RSI at 22.37 is Positive, neither overbought nor oversold. The STOCH value of 46.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTNX.

Nutanix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDB	75 Outperform	$33.70B	―	-3.23%	―	20.93%	68.47%
OKTA	70 Neutral	$15.92B	83.17	2.96%	―	12.12%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NTNX	61 Neutral	$12.95B	63.29	―	―	17.45%	―
GDDY	60 Neutral	$17.05B	22.11	369.45%	―	8.79%	-55.15%
ZS	60 Neutral	$38.80B	―	-2.41%	―	23.24%	-8.83%
RBRK	50 Neutral	$18.93B	―	―	―	48.93%	69.39%

Nutanix Corporate Events

Nutanix Grants Annual Equity Awards to Executives

Nutanix, Inc.’s Compensation Committee has decided to maintain the current annual base salaries for its executive officers for fiscal year 2026. On November 10, 2025, the company granted annual equity awards to its executives, consisting of time-based and performance-based restricted stock units, which are contingent on the company’s total shareholder return relative to the NASDAQ Composite Index.

Nutanix Appoints Greg Lavender to Board of Directors

On September 17, 2025, Nutanix appointed Greg Lavender to its Board of Directors, recognizing his extensive experience in software, cloud, AI, and enterprise infrastructure. Lavender, who previously served as CTO at Intel and held senior roles at VMware, Cisco, and Citigroup, brings valuable expertise in technology strategy and innovation to Nutanix. His appointment is expected to enhance Nutanix’s strategic positioning in the enterprise technology sector, particularly in advancing its multicloud and AI capabilities.