Nutanix (NTNX) AI Stock Analysis

• Market Cap: $20.82B
• Dividend Yield: N/A
• Average Volume (3M): 3.86M
• Price to Earnings (P/E): 121.5
• Beta (1Y): 1.45
• Revenue Growth: 18.11%
• EPS Growth: N/A
• Country: US
• Employees: 7,150
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.37
• Shares Outstanding: 268,077,450
• 10 Day Avg. Volume: 4,702,277
• 30 Day Avg. Volume: 3,863,129
• 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: 1.05
• Enterprise Value/Revenue: 8.61
• Enterprise Value/Gross Profit: 9.92
• Enterprise Value/Ebitda: 78.41
• 1Y Price Target: $86.36
• Price Target Upside: 11.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: $81.00 ▲(4.30% Upside)

Nutanix's strong revenue growth and strategic advancements in AI and cloud capabilities are significant strengths. However, financial stability concerns due to negative equity and high leverage, coupled with a high P/E ratio, present risks. The positive earnings call and strategic partnerships enhance the outlook, but challenges in the federal sector and retention metrics need monitoring.

Positive Factors

Revenue Growth

Consistent revenue growth of 18% annually indicates strong market demand and effective sales strategies, enhancing long-term business stability.

Strategic Partnerships

Strategic partnerships expand market reach and product offerings, fostering competitive advantages and driving customer acquisition and retention.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling reinvestment in growth initiatives and providing a buffer against economic downturns.

Negative Factors

Financial Stability

Negative equity and high leverage pose risks to financial stability, potentially limiting the company's ability to invest in growth and weather financial challenges.

Retention Metrics

A decline in net dollar-based retention rate suggests challenges in upselling and cross-selling, which could impact future revenue growth and customer lifetime value.

Challenges in Federal Sector

Challenges in the federal sector may lead to unpredictable revenue streams and hinder growth in a key market segment, affecting overall business performance.

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 visualization and security services; Acropolis Hypervisor, an enterprise-grade virtualization solution; Nutanix Karbon for automated deployment and management of Kubernetes clusters to simplify the provisioning, operations, and lifecycle management of cloud-native environments; and Nutanix Clusters solution. It also offers Prism Pro; Nutanix Beam, a cloud governance; and Nutanix Calm, an application marketplace, which provides automation services that streamline application lifecycle management and deliver powerful hybrid cloud orchestration. In addition, the company provides Nutanix Files, an enterprise-grade NFS and SMB files services; Nutanix Objects, a S3-compatible object services; Nutanix Era, a database automation and database-as-a-service solution; and Nutanix Frame, a desktop-as-a-service product to deliver virtual apps or desktops to users from multiple public cloud environments and/or an enterprises private cloud datacenter. Further, it offers products support, and consulting and implementation services. It serves customers in a range of industries, including automotive, consumer goods, education, energy, financial services, healthcare, manufacturing, media, public sector, retail, technology, and telecommunications, as well as service providers. The company was incorporated in 2009 and is headquartered in San Jose, California.

How the Company Makes Money

Nutanix generates revenue primarily through the sale of software licenses, subscriptions, and support services. The company's revenue model consists of a mix of perpetual licensing and a growing subscription-based approach, which provides ongoing recurring revenue. Key revenue streams include the sale of its hyper-converged infrastructure software, cloud management products, and professional services. Nutanix has also established significant partnerships with major cloud providers and technology companies, enhancing its market reach and offering customers comprehensive solutions. These partnerships contribute to Nutanix's earnings by facilitating joint marketing efforts and expanding its ecosystem, thus driving customer adoption and retention.

Nutanix Financial Statement Overview

Summary

Nutanix shows strong revenue growth and gross profit margins, indicating a solid market position and cost management. However, financial stability challenges due to negative equity and high leverage are concerning. Cash flow generation is improving, but sustaining this trend is crucial for long-term financial health.

Income Statement

Nutanix has shown consistent revenue growth over the years, with a 4.33% increase in the latest period. The gross profit margin is strong at 86.81%, indicating efficient cost management. However, the net profit margin is relatively low at 7.42%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The company has a negative stockholders' equity, leading to a high and negative debt-to-equity ratio of -2.14. This indicates financial instability and potential risk. Return on equity is also negative, reflecting challenges in generating returns for shareholders. The equity ratio is not favorable, highlighting a reliance on debt financing.

Cash Flow

Operating cash flow has improved, with a strong operating cash flow to net income ratio of 0.58. Free cash flow growth is negative, but the free cash flow to net income ratio is healthy at 0.91, indicating good cash generation relative to net income. However, the decline in free cash flow growth suggests potential challenges in sustaining cash flow improvements.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.54B	2.54B	2.15B	1.86B	1.58B	1.39B
Gross Profit	2.20B	2.20B	1.82B	1.53B	1.26B	1.10B
EBITDA	278.65M	284.35M	141.26M	-93.08M	-631.00M	-842.80M
Net Income	188.37M	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	1.99B	1.99B	994.34M	1.44B	1.32B	1.21B
Total Debt	1.48B	1.48B	695.22M	1.33B	1.44B	1.19B
Total Liabilities	3.98B	3.98B	2.87B	3.23B	3.17B	3.29B
Stockholders Equity	-694.52M	-694.52M	-728.15M	-707.42M	-800.50M	-1.01B
Cash Flow
Free Cash Flow	750.17M	750.17M	597.68M	207.00M	18.48M	-158.46M
Operating Cash Flow	821.46M	821.46M	672.93M	272.40M	67.54M	-99.81M
Investing Cash Flow	-951.69M	-951.69M	529.59M	-49.78M	-54.19M	-597.15M
Financing Cash Flow	244.09M	244.09M	-1.06B	-112.71M	103.64M	663.85M

Nutanix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 77.66 is above the 20-day moving average (MA) of 72.46, above the 50-day MA of 72.64, and above the 200-day MA of 70.68, indicating a bullish trend. The MACD of 2.08 indicates Negative momentum. The RSI at 62.78 is Neutral, neither overbought nor oversold. The STOCH value of 63.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTNX.

Nutanix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDB	73 Outperform	25.66B	-319.69	-2.67%	―	21.90%	67.81%
ZS	67 Neutral	44.24B	-1,085.42	-2.31%	―	23.31%	31.04%
NTNX	66 Neutral	$20.82B	121.46	6.85%	―	18.11%	―
OKTA	66 Neutral	15.87B	110.36	2.49%	―	12.68%	0.00%
GDDY	59 Neutral	19.95B	26.08	199.93%	―	8.09%	-54.94%
RBRK	51 Neutral	14.59B	-33.21	78.65%	―	47.72%	61.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%