Nutanix (NTNX) AI Stock Analysis

• Market Cap: $10.35B
• Dividend Yield: N/A
• Average Volume (3M): 4.93M
• Price to Earnings (P/E): 41.8
• Beta (1Y): 1.34
• Revenue Growth: 17.45%
• EPS Growth: N/A
• Country: US
• Employees: 7,150
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.56
• Shares Outstanding: 270,399,930
• 10 Day Avg. Volume: 5,008,586
• 30 Day Avg. Volume: 4,930,632
• 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: 1.09
• Enterprise Value/Revenue: 4.20
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 33.48
• 1Y Price Target: $56.70
• Price Target Upside: 48.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.79
• Revenue Forecast (FY): $2.84B

• Rating: 58 Neutral
• Price Target: $40.00 ▲(4.49% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is anchored by improving fundamentals and strong cash generation, reinforced by a generally constructive earnings call despite near-term guidance headwinds. These positives are tempered by meaningful balance-sheet risk (negative equity and sizable debt), weak technical trend (below key moving averages with negative MACD), and a relatively expensive P/E with no dividend support.

Positive Factors

High gross margins & improved profitability

Nutanix's software-centric model produces exceptionally high gross margins (88.6%) and has driven a meaningful restoration of profitability (TTM net margin ~10%, strong non‑GAAP operating margins). Such durable margin leverage supports reinvestment, withstands pricing pressure, and lets operating leverage amplify returns as recurring revenue grows.

Robust free cash flow generation

TTM operating cash flow and free cash flow have strengthened materially and convert earnings into cash at a high rate (FCF near net income). Management also targets ~27% FCF margin for FY26, providing a durable internal funding source for R&D, strategic partnerships, and disciplined capital returns without needing frequent external financing.

AMD strategic partnership expands AI roadmap

The multiyear AMD deal supplies capital and co‑development resources (equity + up to $100M R&D/go‑to‑market funding) and aligns Nutanix with a major silicon provider. This structurally bolsters enterprise AI product development, accelerates time‑to‑market for AI infrastructure offerings, and expands the company's addressable market over multiple years.

Negative Factors

Negative shareholder equity & rising debt

Persistent negative equity and an increasing debt load materially reduce financial flexibility and make leverage harder to interpret. That structural balance‑sheet weakness raises refinancing and covenant risk in adverse conditions, constrains capital allocation choices like M&A, and can increase borrowing costs over a multiquarter horizon.

Persistent CPU/memory supply constraints

Industry‑wide shortages of AI compute components are creating multi‑quarter timing risk by delaying customer deployments and shifting bookings into later periods. Because demand for AI compute may remain elevated, these supply issues can chronically disrupt the bookings‑to‑revenue and bookings‑to‑cash conversion that underpins recurring revenue growth and FCF timing.

NRR deceleration & inconsistent revenue growth

A drop in NRR to 107% and uneven revenue trends suggest weaker expansion and renewal dynamics versus prior periods. If revenue compounding from existing customers slows, Nutanix may need to rely more on new logo growth or tighter cost control to sustain margins, making durable revenue growth more vulnerable to macro or sector slowdowns.

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 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

Strong turnaround in profitability (TTM ~10% net margin) and very strong gross margins (high-80%s), supported by robust and improving free cash flow. The key constraint is balance-sheet risk (persistent negative equity and sizable/increasing debt), plus some inconsistency in recent revenue growth.

Income Statement

Profitability has meaningfully improved versus earlier years, with TTM (Trailing-Twelve-Months) showing solid operating profit and a ~10% net margin versus losses in 2021–2023. Gross margin remains exceptionally strong (high-80%s), supporting earnings durability. The key offset is that recent top-line growth appears inconsistent (very strong in TTM but much lower in FY2025), which suggests the profit story is improving faster than the growth story and could be sensitive if demand slows.

Balance Sheet

The balance sheet remains the weak spot: shareholder equity is negative across all periods shown (including TTM), which limits financial flexibility and makes leverage harder to assess in a conventional way. Total debt is sizable and has trended higher versus FY2024, increasing balance-sheet risk despite improving earnings. Total assets are stable, but the persistent equity deficit is a notable structural concern.

Cash Flow

Cash generation is a standout strength. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both high and have grown meaningfully versus prior years, indicating improving business quality and better conversion of profits into cash. Free cash flow is close to net income, which supports earnings credibility. A watch item is that the provided operating cash flow coverage figure is well below 1, implying cash flow may not fully cover certain obligations in the way that metric defines them.

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

• Technical Analysis Sentiment: Negative
• Last Price: 38.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 38.28 is below the 20-day moving average (MA) of 39.86, below the 50-day MA of 45.32, and below the 200-day MA of 64.23, indicating a bearish trend. The MACD of -1.73 indicates Negative momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 43.22 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	$26.73B	-372.41	-3.23%	―	20.93%	68.47%
GDDY	66 Neutral	$11.62B	13.97	192.90%	―	8.79%	-55.15%
ZS	62 Neutral	$23.63B	-344.16	-2.41%	―	23.24%	-8.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OKTA	60 Neutral	$12.85B	66.56	2.96%	―	12.12%	―
NTNX	58 Neutral	$10.35B	41.77	―	―	17.45%	―
RBRK	51 Neutral	$10.40B	-26.54	―	―	48.93%	69.39%

Nutanix Corporate Events

Nutanix, AMD Forge Strategic AI Infrastructure Partnership Deal

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 25, 2026, the companies announced this deal alongside a multi-year strategic partnership under which AMD will provide up to $100 million to support Nutanix’s R&D and go-to-market efforts for integrated AI infrastructure solutions, potentially strengthening Nutanix’s position in the competitive enterprise AI and hybrid cloud markets.

For the quarter ended January 31, 2026, Nutanix reported results ahead of guidance, including 16% year-on-year growth in annual recurring revenue to $2.36 billion, a 10% rise in revenue to $722.8 million and expanded GAAP and non-GAAP operating margins, while free cash flow rose modestly to $191.4 million. Management flagged emerging supply chain constraints leading to longer server lead times that are expected to push some revenue and cash flow into later periods, prompting more cautious revenue and free cash flow guidance for the coming quarters even as bookings expectations increase and the company continues share repurchases and expands its presence in sovereign cloud and U.S. federal markets.

The most recent analyst rating on (NTNX) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Nutanix stock, see the NTNX Stock Forecast page.

Nutanix Elevates Tarkan Maner to President Role

On December 18, 2025, cloud software company Nutanix appointed its Chief Commercial Officer, Tarkan Maner, as President and Chief Commercial Officer, expanding his remit to include oversight of sales, marketing and customer experience while CEO Rajiv Ramaswami remains in his role. Maner, 56, a veteran executive with prior CEO roles at Nexenta Systems and Wyse Technology and senior posts at Dell, CA Technologies, IBM and Sterling Software, takes on the enlarged portfolio without changes to his existing compensation, a move that underscores Nutanix’s emphasis on consolidating commercial leadership and customer-facing functions as it refines its go-to-market strategy, without signaling governance or related-party concerns.

The most recent analyst rating on (NTNX) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Nutanix stock, see the NTNX Stock Forecast page.

Nutanix Announces $300M Accelerated Share Buyback Plan

On December 16, 2025, Nutanix entered into an accelerated share repurchase (ASR) agreement with Bank of America to buy back $300 million of its Class A common stock, funded by its available cash. This move reflects Nutanix’s confidence in its sustained revenue growth and free cash flow generation, aiming to both enhance shareholder value and maintain strategic flexibility for business innovation.

The most recent analyst rating on (NTNX) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Nutanix stock, see the NTNX Stock Forecast page.

Nutanix Stockholders Approve Key Equity Plan Changes

On December 12, 2025, Nutanix, Inc. held its 2025 Annual Meeting of Stockholders, where stockholders approved significant changes to the company’s 2016 Equity Incentive Plan. The amendments include extending the plan’s term, setting a new fixed maximum aggregate share reserve of 19,500,000 shares, and removing the annual evergreen feature. These changes aim to enhance governance by eliminating liberal share recycling and prohibiting dividends on unvested awards. Additionally, stockholders voted on four proposals, including the election of directors and the ratification of Deloitte & Touche LLP as the independent auditor for fiscal year 2026. The approval of these proposals reflects the company’s efforts to strengthen its corporate governance and operational strategies.

The most recent analyst rating on (NTNX) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Nutanix stock, see the NTNX Stock Forecast page.