Nutanix (NTNX) AI Stock Analysis

• Market Cap: $13.67B
• Dividend Yield: N/A
• Average Volume (3M): 5.01M
• Price to Earnings (P/E): 67.5
• Beta (1Y): 1.38
• 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: 2,410,165
• 30 Day Avg. Volume: 5,012,895
• 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: 1.50
• Enterprise Value/Revenue: 7.85
• Enterprise Value/Gross Profit: 9.02
• Enterprise Value/Ebitda: 67.00
• 1Y Price Target: $70.42
• Price Target Upside: 39.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.8
• Revenue Forecast (FY): $2.84B

• Rating: 62 Neutral
• Price Target: $54.00 ▲(6.80% Upside)

The score is driven primarily by solid operating and cash-flow performance and a generally constructive earnings update (ARR growth and higher free-cash-flow guidance). These positives are tempered by balance-sheet risk (negative equity), weak longer-term technical trend signals, and a high P/E valuation.

Positive Factors

Revenue Growth

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

Free Cash Flow

Rising free cash flow enhances Nutanix's financial flexibility, enabling investment in growth opportunities and shareholder returns.

Leadership Expansion

Leadership consolidation under an experienced executive can streamline operations and improve strategic execution, benefiting long-term growth.

Negative Factors

Negative Equity

Negative equity indicates financial instability, potentially limiting Nutanix's ability to raise capital and invest in growth initiatives.

Revenue Guidance Reduction

Reduced revenue guidance suggests potential challenges in demand forecasting and customer engagement, impacting future revenue visibility.

US Federal Business Variability

Variability in a key segment like US Federal can lead to unpredictable revenue streams, affecting overall business stability.

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

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: 50.56
• 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 50.56 is above the 20-day moving average (MA) of 50.06, below the 50-day MA of 57.70, and below the 200-day MA of 68.77, indicating a neutral trend. The MACD of -1.24 indicates Negative momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 36.82 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	$34.25B	-477.12	-3.23%	―	20.93%	68.47%
NTNX	62 Neutral	$13.67B	67.51	―	―	17.45%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GDDY	60 Neutral	$16.03B	20.43	369.45%	―	8.79%	-55.15%
OKTA	60 Neutral	$15.54B	80.53	2.96%	―	12.12%	―
ZS	60 Neutral	$35.52B	-848.93	-2.41%	―	23.24%	-8.83%
RBRK	50 Neutral	$14.71B	-37.54	―	―	48.93%	69.39%

Nutanix Corporate Events

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.

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.

The most recent analyst rating on (NTNX) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Nutanix stock, see the NTNX Stock Forecast page.