Nutanix (NTNX) AI Stock Analysis

• Market Cap: $18.26B
• Dividend Yield: N/A
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 97285.7
• Beta (1Y): 1.47
• Revenue Growth: 16.11%
• EPS Growth: N/A
• Country: US
• Employees: 7,150
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 0.37
• Shares Outstanding: 268,077,450
• 10 Day Avg. Volume: 2,541,614
• 30 Day Avg. Volume: 2,215,384
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 8.22
• Enterprise Value/Gross Profit: 9.52
• Enterprise Value/Ebitda: 95.91
• 1Y Price Target: $86.38
• Price Target Upside: 24.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 63 Neutral
• Price Target: $73.00 ▲(4.89% Upside)

Nutanix's overall stock score reflects strong financial performance improvements and positive earnings call outcomes, offset by technical analysis concerns and high valuation metrics. The company's strategic initiatives and robust cash flow generation are positive, but balance sheet risks and macroeconomic challenges need careful management.

Positive Factors

Market Share

Ongoing VMware displacement activity is corroborated by a recent VAR survey, which supports Nutanix's growth potential.

Partnerships

Partnership developments and expansions are expected to enhance Nutanix's results, with Cisco and Dell partnerships playing a significant role.

Valuation

The valuation of Nutanix shares is considered attractive as they have pulled back 18% from their high in May and are trading at 6x EV/C26E sales.

Negative Factors

Federal Market Uncertainty

There is ongoing uncertainty in the U.S. federal vertical, which constitutes about 10% of Nutanix's revenue.

Guidance Expectations

There is limited upside to Street expectations for FY26 guidance, prompting a cautious approach in the near term.

Revenue Growth

The available-to-renew customer pool is decelerating, impacting future growth estimates.

Nutanix Business Overview & Revenue Model

Company Description

Nutanix (NTNX) is a global leader in enterprise cloud computing, specializing in hyper-converged infrastructure (HCI) solutions. Founded in 2009 and headquartered in San Jose, California, the company provides a software-centric platform that integrates compute, storage, and virtualization resources into a single solution for data centers. Nutanix targets various sectors, including healthcare, financial services, government, and education, offering products like Nutanix Cloud Platform, which enables businesses to manage and scale their IT infrastructure efficiently across public and private clouds.

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 has demonstrated strong improvements in profitability and cash flow, with a significant increase in revenue and gross profit margins. However, the balance sheet remains a concern due to negative equity and high leverage, which could impact financial stability.

Income Statement

Nutanix has shown substantial improvement in its income statement metrics. The TTM (Trailing-Twelve-Months) gross profit margin is strong at approximately 86.4%, with a notable improvement in net profit margin to 0.97% compared to a net loss in previous years. Revenue growth rate from 2024 to TTM is approximately 13.2%, indicating healthy top-line growth. EBIT and EBITDA margins have also improved significantly, indicating better operational management.

Balance Sheet

The balance sheet reflects some concerns, mainly due to negative stockholders' equity, which indicates that liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, but the high level of debt relative to assets suggests potential leverage risks. Return on equity calculation is not feasible due to negative equity; however, improvements in net income suggest potential future stability.

Cash Flow

Cash flow metrics for Nutanix are strong, highlighted by a 28.3% increase in free cash flow in the TTM period. The operating cash flow to net income ratio of approximately 35.8 indicates efficient cash generation relative to net income. Free cash flow to net income ratio is high, further confirming the company's ability to generate cash relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.43B	2.15B	1.86B	1.58B	1.39B	1.31B
Gross Profit	2.10B	1.82B	1.53B	1.26B	1.10B	1.02B
EBITDA	208.57M	141.26M	-57.73M	-594.09M	-806.71M	-730.14M
Net Income	23.61M	-124.78M	-254.56M	-797.54M	-1.03B	-872.88M
Balance Sheet
Total Assets	3.10B	2.14B	2.53B	2.37B	2.28B	1.77B
Cash, Cash Equivalents and Short-Term Investments	1.88B	994.34M	1.44B	1.32B	1.21B	719.78M
Total Debt	1.50B	695.22M	1.33B	1.44B	1.19B	643.59M
Total Liabilities	3.81B	2.87B	3.23B	3.17B	3.29B	2.04B
Stockholders Equity	-711.43M	-728.15M	-707.42M	-800.50M	-1.01B	-274.98M
Cash Flow
Free Cash Flow	766.65M	597.68M	207.00M	18.48M	-158.46M	-249.37M
Operating Cash Flow	846.62M	672.93M	272.40M	67.54M	-99.81M	-159.88M
Investing Cash Flow	-22.66M	529.59M	-49.78M	-54.19M	-597.15M	24.56M
Financing Cash Flow	-551.49M	-1.06B	-112.71M	103.64M	663.85M	57.80M

Nutanix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTNX, the sentiment is Neutral. The current price of 69.6 is below the 20-day moving average (MA) of 70.46, below the 50-day MA of 73.00, and below the 200-day MA of 70.45, indicating a bearish trend. The MACD of -1.48 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 41.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTNX.

Nutanix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZS	72 Outperform	$41.68B	―	-2.68%	―	25.46%	49.20%
OKTA	71 Outperform	$16.03B	142.15	2.61%	―	12.68%	―
CYBR	70 Neutral	$22.08B	1,777.39	-10.35%	―	39.45%	-982.51%
NET	70 Neutral	$69.19B	―	-11.04%	―	27.32%	-11.94%
IOT	67 Neutral	$19.13B	―	-11.77%	―	31.72%	57.55%
NTNX	63 Neutral	$18.26B	97,285.71	6.85%	―	16.11%	―
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%

Nutanix Corporate Events

Nutanix Announces Strong Fiscal Year 2025 Results

On August 27, 2025, Nutanix announced a significant financial performance for its fiscal year 2025, with an 18% year-over-year revenue growth and strong free cash flow. The company also revealed a $350 million increase in its share repurchase program, indicating robust financial health and confidence in its market position. Nutanix’s strategic collaborations and recognition in multicloud container platforms further solidify its industry standing, with a notable contract signed with Finanz Informatik, a major European banking-IT service provider.

Nutanix Appoints Eric K. Brandt to Board

On May 16, 2025, Nutanix announced the addition of Eric K. Brandt to its board of directors, effective May 15, 2025. Brandt brings extensive leadership and finance experience, having held significant roles in major companies such as Broadcom and Avanir Pharmaceuticals. His expertise is expected to contribute to Nutanix’s focus on sustainable and profitable growth. Concurrently, David Humphrey resigned from the board, with his tenure marked by significant transformation and growth for Nutanix since Bain Capital’s investment in 2020. Despite his departure, Bain Capital remains a significant stakeholder, with Max de Groen continuing on the board.