In the latest trading session, Nutanix (NTNX - Free Report) closed at $70.58, marking a +1.48% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.52%. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 0.21%.
The enterprise cloud platform services provider's shares have seen an increase of 1.4% over the last month, surpassing the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of Nutanix in its forthcoming earnings report. The company is expected to report EPS of $0.6, up 46.34% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $761.76 million, indicating a 13.6% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.31 per share and a revenue of $3.21 billion, demonstrating changes of +13.24% and +12.44%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Nutanix. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Nutanix is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Nutanix is presently being traded at a Forward P/E ratio of 30.12. This valuation marks a premium compared to its industry average Forward P/E of 16.03.
Meanwhile, NTNX's PEG ratio is currently 1.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.38.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Nutanix (NTNX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this enterprise cloud platform services provider have returned +0.6% over the past month versus the Zacks S&P 500 composite's no change. The Zacks Computers - IT Services industry, to which Nutanix belongs, has gained 8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Nutanix is expected to post earnings of $0.60 per share for the current quarter, representing a year-over-year change of +46.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $2.31 for the current fiscal year indicates a year-over-year change of +13.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.64 indicates a change of +14.2% from what Nutanix is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Nutanix is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Nutanix, the consensus sales estimate for the current quarter of $761.76 million indicates a year-over-year change of +13.6%. For the current and next fiscal years, $3.21 billion and $3.63 billion estimates indicate +12.4% and +13.1% changes, respectively.
Last Reported Results and Surprise HistoryNutanix reported revenues of $757.08 million in the last reported quarter, representing a year-over-year change of +15.9%. EPS of $0.6 for the same period compares with $0.37 a year ago.
Compared to the Zacks Consensus Estimate of $737.89 million, the reported revenues represent a surprise of +2.6%. The EPS surprise was +25%.
Over the last four quarters, Nutanix surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Nutanix is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nutanix. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Nutanix and Netris have announced a strategic collaboration to deliver a jointly engineered multitenant infrastructure stack designed specifically for neoclouds and enterprises — combining Nutanix Cloud Platform and its proven capabilities with Netris Network Automation, Abstraction, and Multitenancy (NAAM).The joint solution will enable neoclouds to launch secure, NVIDIA GPU-accelerated IaaS offerings faster, create new revenue opportunities and meet NVIDIA’s technical requirements for delivering multitenant services to neocloud customers.Enterprises will be able to run business-critical AI workloads on multitenant GPU infrastructure with hard isolation (enforced on networking hardware) between tenants.The combined solution will deliver automation and abstraction across compute and networking, enabling infrastructure to be provisioned and consumed through a cloud-like experience. Why It Matters
An offering that integrates Nutanix technology with Netris technology will enable neoclouds and enterprises to bring secure, multitenant GPU services to market faster, expand their service offering, and accelerate time to revenue. By simplifying how AI infrastructure is deployed and consumed across bare-metal and virtualized environments, neoclouds will be able to scale more efficiently and improve margins as their business grows.
BERLIN, Oct. 21, 2026 (GLOBE NEWSWIRE) -- NVIDIA GTC - Nutanix (NASDAQ: NTNX), a hybrid cloud leader and AI platform company, and Netris, the leading provider of Network Automation, Abstraction, and Multitenancy (NAAM) for AI infrastructure, today announced a strategic collaboration to deliver a jointly engineered infrastructure stack designed specifically for neoclouds and enterprises. By combining Nutanix Cloud Platform and Nutanix’s expertise in cloud infrastructure and compute orchestration with the Netris NAAM platform, the joint solution will provide neoclouds and enterprises with a scalable, secure, and multitenant solution across the infrastructure.
As the demand for AI infrastructure accelerates, neoclouds and enterprises are leading the deployment of large GPU clusters to support a broad range of AI workloads. Delivering this infrastructure as a service requires both soft isolation and hard isolation (enforced on networking hardware) that extends across every layer of the infrastructure, from the compute layers and data processing units to the physical switches.
An Automated Multitenant Infrastructure Stack for AI Clouds
Bringing together Nutanix’s cloud infrastructure capabilities with Netris network automation and multitenancy, the joint solution will provide neoclouds and enterprises with a secure, multitenant AI infrastructure stack across bare-metal and virtualized environments, enabling providers to instantly onboard customers, maintain strict isolation between tenants from compute through the physical network, and deliver AI services through a cloud-like self-service experience.
Key highlights of the joint solution for neoclouds and enterprises will include:
Automated Network Fabric Operations: Simplifies AI infrastructure deployment by automatically configuring the physical network as tenant resources are provisioned, reducing manual effort, accelerating time to value, and improving operational consistency.Unified Multitenant Networking: Delivers a consistent networking experience across physical and virtual environments by translating Nutanix tenant requirements into the appropriate underlying network services for bare-metal and virtualized GPU nodes.Self-Service Cloud Networking: Provides cloud-grade networking constructs — VPCs, elastic IPs, NAT, and L4 load balancers — through a web console, REST API, and Terraform, enabling infrastructure to be consumed through a self-service, cloud-like experience.High-Performance AI Factory Networking: Supports the connectivity for demanding AI workloads, enabling efficient edge, East-West, North-South, scale-up, and host-based networking traffic flows.End-to-End Tenant Isolation: Extends secure hard and soft tenant isolation across the entire network — from virtual workloads through the physical switching layer — supporting secure, reliable GPU-as-a-Service offerings on shared infrastructure.
Executive Commentary
"Neoclouds and NVIDIA Cloud Partners are at the forefront of the AI transformation, but building the cloud operating stack required to monetize GPU clusters at scale is remarkably complex," said Ketan Shah, Vice President, Product Management, Nutanix. "By pairing Nutanix’s Agentic AI solution with the Netris NAAM platform, we will provide AI cloud operators with an out-of-the-box solution to accelerate their journey from metals to margins. We chose to partner with Netris, a leader in network automation, abstraction, and multitenancy, to give operators true self-service networking across both bare-metal and virtualized environments. This will enable our partners to deliver secure, multitenant IaaS environments quickly while maintaining the simplicity and enterprise reliability that Nutanix is known for."
“AI infrastructure is scaling incredibly fast, and the network has to scale with it," said Alex Saroyan, CEO and Co-Founder of Netris. "An AI cloud needs two layers working as one — Nutanix's compute orchestration and virtualization, backed by deep operational leadership and experience, and Netris network automation, abstraction, and multitenancy. What makes this collaboration matter is that those layers stay continuously in sync, giving neoclouds and enterprises a single automated stack for secure, multitenant GPU services."
Analyst Commentary
"AI infrastructure providers are evolving beyond GPU capacity to deliver trusted inference environments, workload orchestration, agent lifecycle management, and managed AI services. The differentiator will be a cloud-like operating model that combines performance with control, isolation, and security at every layer of the stack.”
Steve McDowell, Principal Analyst, NAND Research Availability
The joint solution is planned to be available in tech preview in early 2027.
About Nutanix
Nutanix is a hybrid cloud leader and AI platform company, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
About Netris
Netris is the leading provider of network automation and multitenancy for AI infrastructure, purpose-built for neoclouds, sovereign AI operators, and AI factories. The Netris NAAM (Network Automation, Abstraction, and Multitenancy) platform delivers network orchestration for AI clusters, hard multitenancy enforced on networking hardware, and cloud-provider-grade automation across Ethernet, InfiniBand, DPUs, and virtual and edge networking — from Day Zero design and simulation through live operations. Netris enables operators to launch GPU clouds in weeks, provision tenants instantly with isolation configured automatically, and maximize GPU utilization by dynamically reallocating capacity across tenants. Netris is the most widely deployed network automation platform for AI clusters, with 70+ live deployments. Founded in 2018 and backed by Andreessen Horowitz, Netris is headquartered in Santa Clara, California. Learn more at netris.io.
This content may contain express and implied forward-looking statements, including but not limited to statements regarding our plans and expectations relating to new product features and technology under development, the capabilities of such product features and technology, and our plans to release product features and technology. Such statements are not historical facts and are instead based on our current expectations, estimates and beliefs, including statements about The accuracy of such statements involves risks and uncertainties and depends upon future events, including those that may be beyond our control, and actual results may differ materially and adversely from those anticipated or implied by such statements, including, among others: failure to develop, or unexpected difficulties, delays or disruptions in developing, releasing or distributing, new products, services, product features or technology in a timely or cost-effective basis. Any forward-looking statements included speak only as of the date hereof and, except as required by law, we assume no obligation to update or otherwise revise any such forward-looking statements to reflect subsequent events or circumstances. Certain products and features or functionalities described herein remain in varying stages of development and will be offered on a when-and-if-available basis. The development, release, and timing of any such products, features or functionalities are subject to change. Nutanix will not have any liability for any failure to deliver or delay in the delivery of any such products, features or functionalities. Any future product or product feature information is intended to outline general product directions, and is not a commitment, promise, or legal obligation for Nutanix to deliver any functionality. This information should not be used when making a purchasing decision.
Powering Agentic AI with NVIDIA Vera CPU: Nutanix plans to work with NVIDIA toward Day Zero support for Vera, combining its CPU capabilities with Nutanix software. NVIDIA’s high-performance CPU architecture, paired with Nutanix Kubernetes Platform (NKP) on bare metal are expected to provide a predictable, low-latency foundation for running advanced AI agents.Accelerating AI Deployment and AI Cost Control with Supermicro: Nutanix and Supermicro are announcing plans for a jointly engineered system combining standardized Supermicro servers with Nutanix’s Agentic AI full stack software, aiming to help customers simplify and accelerate deployment of private inference for increased security and lower token costs.Multitenant AI Infrastructure on Bare Metal and Virtualized Environments with Netris: The Nutanix Cloud Platform and Netris Network Automation, Abstraction, and Multitenancy (NAAM) platform will simplify multitenant AI infrastructure with network automation, hard tenant isolation, and self-service network operations across bare-metal and virtualized environments. The integrated solution will enable AI cloud providers to deliver GPU infrastructure as a service through a more unified, cloud-like experience. Why it Matters
As demand for production AI grows, organizations are under pressure to deploy increasingly complex infrastructure faster and turn AI investments into real business value. Nutanix is working across a broad ecosystem of infrastructure and silicon partners to simplify that path, planning to help enterprises bring production AI and agentic workloads online more quickly while enabling neoclouds and service providers to scale the multitenant AI services they deliver to customers.
Together, these advancements are intended to combine Nutanix software with leading infrastructure technologies to help reduce deployment complexity, accelerate time to value, reduce AI costs, and provide a consistent foundation for operating AI at scale.
BERLIN, Oct. 21, 2026 (GLOBE NEWSWIRE) -- NVIDIA GTC -- Nutanix (NASDAQ: NTNX), a hybrid cloud leader and AI platform company, today announced it is collaborating with NVIDIA, Supermicro, and Netris to deliver new AI solutions that aim to simplify the infrastructure required for production AI and help organizations bring new capabilities online faster. By combining Nutanix software with leading hardware, networking, and silicon technologies, Nutanix aims to help enterprises deploy and operate production AI environments more efficiently at scale.
As organizations push more AI workloads into production, capacity constraints and operational complexity can make it harder to move quickly. Nutanix and its partners are working to simplify that path to make it easier to bring AI into production faster and accelerate time to value.
“Organizations need more than just advanced infrastructure to move agentic AI into production – we believe they need an AI cloud that simply connects intelligence, agents, enterprise applications, and data across CPUs, GPUs, virtual machines, containers, on-premises environments, and cloud,” said Thomas Cornely, Executive Vice President, Product Management at Nutanix. “Through our collaboration with NVIDIA, Supermicro, and Netris, we plan to help customers accelerate deployments of agents and AI services on a unified platform with built-in security, performance, and governance.”
Extending Agentic AI to the CPU Layer with NVIDIA Vera
As enterprises adopt agentic AI at scale, they are anticipated to require infrastructure that can support increasingly demanding workloads across the full AI environment, not just GPU-intensive tasks. Agentic applications combine inference with tool calls, code execution, retrieval, orchestration, and outcome processing. As these workflows scale, CPU performance is expected to become essential for completing the steps between GPU operations, reducing delays, and maximizing overall AI-factory efficiency. To help ensure this critical compute path does not become a bottleneck, Nutanix plans to work towards Day Zero support for NVIDIA Vera CPUs, beginning with NKP Bare Metal, to serve highly performance-sensitive AI factory environments, with planned expansion to virtualized Nutanix environments.
By pairing NVIDIA’s purpose-built CPU architecture – engineered for high-speed agent execution and reduced latency – and NVIDIA OpenShell to create safe, private runtime environments for agents with NKP, the collaboration aims to give organizations a predictable, high-performance foundation for their most advanced AI agents.
This support is expected to give organizations greater flexibility in how they safely deploy agentic AI while simplifying operations with a consistent cloud operating model.
Nutanix and Supermicro Take on Runaway AI Costs with Jointly Engineered System for Private Inference
Nutanix and Supermicro are announcing plans for a jointly engineered AI infrastructure solution built around validated Supermicro server systems. By combining Supermicro servers and NVIDIA GPUs with Nutanix Agentic AI (NAI) and NVIDIA Spectrum-XTM Ethernet networking, the solution is being designed to help reduce custom configuration and integration delays, with the goal of helping enterprises get on-premises GPU capacity and take on runaway AI costs with a jointly engineered system powered by NAI for private inference.
As AI requirements grow, the architecture is expected to be able to scale GPU capacity to meet evolving requirements. Nutanix provides an AI cloud control plane and AI storage purpose-built to support workloads with resilient operations and high-throughput data workflows. Customers are anticipated to gain a predictable path to deploy, manage, and scale AI inference workloads without assembling and integrating a complex, multivendor environment.
Nutanix and Netris: Making Multitenant AI Infrastructure Easier to Deploy and Operate
For NVIDIA Cloud Partner reference architectures, multitenancy is designed to extend across AI infrastructure, including the physical network. In dynamic neocloud environments, operators also must be able to automate network access and ensure tenant isolation as customers, workloads, and GPU allocations change. Nutanix and Netris are collaborating to automate this network-layer multitenancy and turn complex GPU infrastructure into secure, cloud-like, multitenant AI services.
Nutanix will provide the foundation for compute across virtual machines, containers, CPUs, and GPUs, along with storage, security, Kubernetes, and Nutanix Agent Gateway, model-as-a-service and AI platform services. Netris will provide network automation, abstraction, and multitenancy across the physical network fabric, with hard isolation (enforced on networking hardware) from compute through the physical network. Together, the integrated solution will provide a cloud-like self-service operating experience across bare-metal and virtualized AI infrastructure, helping providers instantly onboard tenants and deliver AI services more efficiently.
Analyst Commentary
“Nutanix built its enterprise business by simplifying virtualized infrastructure and more recently containerized workloads," said Don Gentile, Analyst, Data Platforms and Resiliency, HyperFRAME Research. "Now it's extending that expertise to bare- metal AI systems, agent execution, private inference, and multitenant cloud services. Through innovation and targeted partnerships, Nutanix is advancing a common cloud operating model that enterprises and service providers have long wanted: consistent management, automation, and choice across increasingly diverse infrastructure.”
Ecosystem Commentary
“AI agents need fast CPUs to execute code, use tools and process data between model calls,” said Hannah Coutand, Director of Product Marketing for Vera CPU at NVIDIA. “NVIDIA Vera is purpose-built for this work, and our collaboration with Nutanix will help enterprises bring high-performance agentic AI into production with a consistent cloud operating model.”
Customer Commentary
“Digital and AI transformation is a fundamental pillar supporting the Kingdom’s ambitions to build cutting-edge, resilient, agile, and data-driven public services. Through our collaboration with Nutanix, we look forward to exploring how Nutanix’s platform for hybrid cloud computing across multiple environments can support the adoption of AI technologies and help develop national capabilities in advanced cloud and AI technologies.”
– Ministry of Environment, Water and Agriculture (MEWA) - Kingdom of Saudi Arabia
About Nutanix
Nutanix is a hybrid cloud leader and AI platform company, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
This content may contain express and implied forward-looking statements, including but not limited to statements regarding our plans and expectations relating to new product features and technology under development, the capabilities of such product features and technology, and our plans to release product features and technology. Such statements are not historical facts and are instead based on our current expectations, estimates and beliefs, including statements about our plans to collaborate with NVIDIA, Supermicro, and Netris to deliver new AI solutions and the anticipated capabilities of these offerings, anticipated integrations, collaboration activities, customer benefits, and implementation of contemplated arrangements relating to such offerings. The accuracy of such statements involves risks and uncertainties and depends upon future events, including those that may be beyond our control, and actual results may differ materially and adversely from those anticipated or implied by such statements, including, among others: failure to develop, or unexpected difficulties, delays or disruptions in developing, releasing or distributing, new products, services, product features or technology in a timely or cost-effective basis, failure to complete anticipated integrations or collaboration activities, failure to successfully implement contemplated arrangements relating to such offerings, or failure to achieve the anticipated benefits of such offerings. Any forward-looking statements included speak only as of the date hereof and, except as required by law, we assume no obligation to update or otherwise revise any such forward-looking statements to reflect subsequent events or circumstances. Certain products and features or functionalities described herein remain in varying stages of development and will be offered on a when-and-if-available basis. The development, release, and timing of any such products, features or functionalities are subject to change. Nutanix will not have any liability arising from reliance on this content for any failure to deliver or delay in the delivery of any such products, features or functionalities. Any future product or product feature information is intended to outline general product directions, and is not a commitment, promise, or legal obligation for Nutanix to deliver any functionality. This information should not be used when making a purchasing decision. Certain collaborations, offerings, and related activities described herein remain subject to ongoing development efforts and, where applicable, related commercial arrangements among the parties.
Nutanix and Supermicro are expanding their collaboration to help enterprises lower the cost per token of private AI inference and accelerate adoption of open-weight models through a planned engineered, full stack infrastructure solution.The solution will enable enterprises to accelerate AI inference workloads and facilitate securing critical on-premises GPU resources.The solution will combine Supermicro servers with Nutanix Agentic AI full stack software designed to reduce custom-order, configuration, and integration complexity, giving customers a more predictable way to deploy, manage, and scale on-premises GPU infrastructure. Why it Matters
For customers, this means AI cost control and a faster path to putting production AI to work because of operational simplicity due to less time that will be spent assembling and integrating multivendor environments.
BERLIN, Oct. 21, 2026 (GLOBE NEWSWIRE) -- NVIDIA GTC – Nutanix (NASDAQ: NTNX), a hybrid cloud leader and AI platform company, and Super Micro Computer, Inc. (NASDAQ: SMCI), today announced plans for a jointly engineered AI infrastructure solution powered by Nutanix Agentic AI designed to help enterprises take on runaway AI costs with a system for private inference.
Built on the validated Supermicro systems powered by Nutanix Agentic AI, the solution will combine the Nutanix Cloud Platform with Supermicro servers, NVIDIA GPUs, and NVIDIA Spectrum-X networking. Designed to reduce custom configuration and integration complexity, it will simplify the path from infrastructure deployment to production-ready AI. Nutanix delivers a complete, full-stack AI platform engineered to simplify and accelerate the deployment of enterprise AI workloads -- from underlying infrastructure to model execution and the governance of agentic workloads. The solution will help enable seamless provisioning from bare metal to delivering integrated model-as-a-service and a secure Agent Gateway using Nutanix Kubernetes Platform -- the Cloud Native Computing Foundation certified AI conformant Kubernetes distribution -- and Nutanix Enterprise AI. The solution will be supported by Nutanix Unified Storage (NUS) which provides high-performance NVIDIA Enterprise-certified storage for AI workloads, including context caching and model serving. Together, these capabilities are intended to provide the end-to-end performance, resilience, and orchestration required to support modern AI initiatives. The built-in AI catalog will further simplify deployment by providing access to common AI applications.
As AI requirements grow, the architecture is designed to scale GPU capacity while the dedicated Nutanix control plane and storage services will support resilient operations and high-throughput data workflows. With this engineered offering, customers will be able to more easily deploy, manage, and scale AI inference workloads without having to assemble and connect a complex mix of multivendor technologies.
“Collaborating with Nutanix, we want to accelerate time-to-online for enterprise AI,” said Matthew Thauberger, Chief Revenue Officer, Supermicro. “Combining Supermicro’s engineered servers with Nutanix’s full-stack software will deliver a pre-validated, rack-scale solution that bypasses traditional lead-time delays. It will help give organizations predictable access to high-density GPU compute while removing the operational complexity of scaling AI.”
“Moving AI from experimentation into production remains a challenge for many enterprises, with infrastructure complexity and hardware procurement often slowing progress. Our expanded collaboration with Supermicro is a direct response to this barrier,” said Thomas Cornely, Executive Vice President, Product Management, Nutanix. “The Supermicro systems, engineered with our Nutanix Agentic AI full stack software, will help enterprises simplify how AI infrastructure is deployed, operated, and secured, and scaled, enabling them to simply deploy private inference and control the cost per token as AI adoption scales.”
Supermicro with Nutanix Cloud Platform: Reducing the Complexity of Enterprise AI Infrastructure
The engineered solution from Supermicro and Nutanix is intended to provide a hardware foundation that helps eliminate custom-order delays by using the Supermicro server systems which houses eight NVIDIA Blackwell Ultra GPUs per node.The resilient single-tenant control plane is expected to feature a dedicated, resilient Nutanix management cluster (NX-8170-G10) to protect against management plane failure without disrupting GPU execution.For high-performance storage scaling, an integrated NUS cluster (NX-8150-G10) is optimized for high-bandwidth I/O requirements across AI data ingestion, checkpointing, and cache warming.NVIDIA Spectrum-X Ethernet networking combines NVIDIA Spectrum-4 Ethernet switches (SN5610/SN5600) with NVIDIA ConnectX-7/8 SuperNICs for high-performance, predictable GPU-to-GPU scale-out connectivity and NVIDIA BlueField-3 DPUs for infrastructure offloading and in-band management, complementing NVIDIA’s scale-in networking architecture. Analyst Commentary
"The AI imperative is shifting from simply building raw compute capacity to optimizing the cost and efficiency of every inference delivered. Hardware, memory, networking, model optimization, and orchestration all need to be managed as a system if organizations are going to scale inference efficiently and translate AI investment into real business outcomes."
Matt Kimball, Vice President & Principal Analyst, Moor Insights & Strategy Availability
The Supermicro systems powered by Nutanix Agentic AI will be available early 2027 from Supermicro and its channel partners.
About Nutanix
Nutanix is a hybrid cloud leader and AI platform company, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
About Super Micro Computer, Inc.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).
This press release contains express and implied forward-looking statements, including but not limited to statements regarding the expanded collaboration between Nutanix and Supermicro; the planned jointly engineered AI infrastructure solution; anticipated technical integrations; future products, services, features and offerings; anticipated customer benefits; planned technical collaboration and go-to-market activities; customer adoption; the timing, availability and performance of future solutions; and the parties' ability to successfully finalize and implement commercial arrangements supporting the planned solution relating to the expanded collaboration. These forward-looking statements are based on Nutanix's current expectations, estimates, assumptions and projections and involve risks and uncertainties that could cause actual results to differ materially. Actual results may differ materially due to a number of factors, including the parties' ability to finalize and implement commercial arrangements supporting the planned solution, complete anticipated integration efforts, develop and deliver contemplated functionality, successfully execute collaborative activities, achieve customer adoption, and realize the anticipated benefits of the planned solution, as well as other risks and uncertainties described in Nutanix's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other filings. These forward-looking statements speak only as of the date of this press release, and Nutanix undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Many of the anticipated products, services, integrations, offerings, features and functionalities described herein remain in various stages of planning, development, testing and implementation and will be offered on a when-and-if-available basis. The development, release and timing of any such products, features or functionalities are subject to change. Nutanix will not have any liability arising from reliance on this press release for any failure to deliver, or delay in the delivery of, any such products, features or functionalities. Any future product or product feature information is intended to outline general product direction and should not be relied upon in making a purchasing decision. Such information is not a commitment, promise or legal obligation to deliver any functionality, offering or integration. The expanded collaboration, planned solution, offerings and related activities described in this press release remain subject to ongoing development efforts and, where applicable, the finalization and implementation of related commercial arrangements between the parties.
In the latest trading session, Nutanix (NTNX - Free Report) closed at $66.96, marking a -4.32% move from the previous day. This change lagged the S&P 500's 1.09% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 2.15%.
Prior to today's trading, shares of the enterprise cloud platform services provider had gained 0.01% lagged the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. On that day, Nutanix is projected to report earnings of $0.6 per share, which would represent year-over-year growth of 46.34%. At the same time, our most recent consensus estimate is projecting a revenue of $761.76 million, reflecting a 13.6% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.31 per share and a revenue of $3.21 billion, signifying shifts of +13.24% and +12.44%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Nutanix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.3% higher. Nutanix presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Nutanix is presently trading at a Forward P/E ratio of 30.31. For comparison, its industry has an average Forward P/E of 14.61, which means Nutanix is trading at a premium to the group.
We can additionally observe that NTNX currently boasts a PEG ratio of 1.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 40% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nutanix (NTNX - Free Report) .
Nutanix currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 2.00 indicates Buy.
Of the 16 recommendations that derive the current ABR, seven are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 43.8% and 12.5% of all recommendations.
Brokerage Recommendation Trends for NTNX
Check price target & stock forecast for Nutanix here>>>
The ABR suggests buying Nutanix, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in NTNX?In terms of earnings estimate revisions for Nutanix, the Zacks Consensus Estimate for the current year has increased 2.3% over the past month to $2.31.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nutanix. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nutanix may serve as a useful guide for investors.
Investors interested in stocks from the Computers - IT Services sector have probably already heard of Genpact (G - Free Report) and Nutanix (NTNX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Genpact and Nutanix are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
G currently has a forward P/E ratio of 8.36, while NTNX has a forward P/E of 32.32. We also note that G has a PEG ratio of 0.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NTNX currently has a PEG ratio of 1.87.
Another notable valuation metric for G is its P/B ratio of 2.24. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NTNX has a P/B of 28.77.
Based on these metrics and many more, G holds a Value grade of A, while NTNX has a Value grade of F.
Both G and NTNX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that G is the superior value option right now.
Nutanix (NASDAQ:NTNX – Get Free Report) and Via Transportation (NYSE:VIA – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Valuation & Earnings This table compares Nutanix and Via Transportation”s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Nutanix $2.85 billion 7.08 $1.51 billion $5.16 14.46 Via Transportation $434.34 million 6.09 -$96.36 million ($1.14) -28.47 Nutanix has higher revenue and earnings than Via Transportation. Via Transportation is trading at a lower price-to-earnings ratio than Nutanix, indicating that it is currently the more affordable of the two stocks. Insider and Institutional Ownership 85.3% of Nutanix shares are owned by institutional investors. Comparatively, 74.4% of Via Transportation shares are owned by institutional investors. 2.4% of Nutanix shares are owned by company insiders. Comparatively, 39.3% of Via Transportation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations This is a summary of current ratings and target prices for Nutanix and Via Transportation, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Nutanix 0 9 9 0 2.50 Via Transportation 1 0 9 0 2.80 Nutanix currently has a consensus target price of $73.07, suggesting a potential downside of 2.09%. Via Transportation has a consensus target price of $34.75, suggesting a potential upside of 7.08%. Given Via Transportation’s stronger consensus rating and higher probable upside, analysts plainly believe Via Transportation is more favorable than Nutanix.
Profitability This table compares Nutanix and Via Transportation’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Nutanix 52.81% -90.13% 9.09% Via Transportation -20.04% -12.33% -10.47% Summary Nutanix beats Via Transportation on 8 of the 12 factors compared between the two stocks.
About Nutanix (Get Free Report)
Nutanix, Inc. engages in the provision of a cloud platform leveraging web-scale engineering and consumer-grade design. It operates through the following geographic segments: United States, Europe, the Middle East, Africa, Asia Pacific, and Other Americas. The firm also provides software solutions and cloud services to customers’ enterprise infrastructure. The company was founded by Dheeraj Pandey, Ajeet Singh, and Mohit Aron in 2009 and is headquartered in San Jose, CA.
(Get Free Report)
Via transforms antiquated and siloed public transportation systems into smart, data-driven, and efficient digital networks. We are addressing a striking gap in the $545 billion global public transportation market. While billions of people across the globe rely on public transportation, this critical form of mobility has yet to meaningfully benefit from recent advances in technology. Buses still follow fixed routes and schedules planned years, if not decades ago, regardless of actual demand for their service. We can track our pizza from the moment it leaves the oven, but parents of more than 25 million children in the United States have no way of knowing when their child’s school bus will arrive. Some of our most vulnerable citizens, who depend on paratransit to access critical medical care, have no alternative to cumbersome phone reservations that must be made a day or more in advance. Government agencies and private organizations responsible for providing public transportation operate in a complex and demanding environment. They must maintain reliable and affordable service in the face of continuously changing and difficult to predict traffic and ridership patterns. The industry has historically had no option but to rely on fragmented technology systems with limited functional flexibility, aging infrastructure, and poor end-user experience. Rising operating costs and labor shortages have placed a growing strain on budgets. Via’s unified platform of cutting-edge software and technology-enabled services replaces fragmented legacy systems and consolidates operations across silos. When our customers adopt our platform, they can leapfrog years of technology neglect and drive meaningful efficiencies in their operations. Public transportation is deeply local in nature; our highly-configurable vertical stack supports the broad and diverse localization requirements of our customers. The use of machine learning and AI is intrinsic to our platform and underlies continuous improvement in the performance of our software. We offer a curated suite of technology-enabled services that enable customers to more easily adopt our software and benefit from lower-cost operations. In turn, the passengers who live in the communities we serve benefit from an improved rider experience and greater access to opportunity. Our journey to pioneer this category began over a decade ago. We were driven by a simple mission: to create public transportation systems that provide far greater access to jobs, healthcare, and education. Our vision was to reimagine public transit, from a static system of predetermined routes and schedules, to a dynamic network where routes are determined in real time based on passenger demand and data. In 2013, we launched in New York City what was, to our knowledge, the world’s first two-sided marketplace for on-demand shared rides in order to demonstrate the efficacy of this new mode of transportation and begin to build a rich foundation of data to power our algorithms. Out of this marketplace grew a platform so compelling that today it is utilized by hundreds of cities across more than 30 countries. Shaped by feedback from millions of passengers and drivers and informed by data from hundreds of millions of trips, we have developed a proven solution that is reshaping the public transportation landscape. Our platform has expanded well beyond its origins in on-demand shared rides — a new mode of mass transit now known to the world as microtransit — and today offers a comprehensive, end-to-end public transit solution: • Planning and scheduling: Our software enables cities to plan smarter transit networks. By combining multiple disparate operational and demographic data sets, and leveraging billions of data points, our tools provide insights that allow city planners to immediately quantify the impact of potential changes to their transit network. In the Dallas suburbs, the Denton County Transit Authority (“DCTA”) was able to use Via’s planning tools to identify underperforming bus lines and replace them with microtransit. This helped DCTA grow their monthly ridership by approximately five times without increasing operating budget. • Operating Software: We provide a deep, cloud-based vertical platform with the necessary range of tools to manage the operations of dynamic and fixed-route forms of mobility, including microtransit, paratransit, school transport, and non-emergency medical transport. Our technology stack offers modules to digitize and automate workstreams across areas such as program eligibility, government reporting and compliance, real-time dispatch and reservations, and customer support. For example, North Carolina’s GoRaleigh was able to reduce driver overtime by approximately 50% once they switched to Via’s software. • Technology-enabled services: Many of our government customers require additional support in order to adopt modern technology. As a critical part of our go-to-market strategy, we have embedded into our platform a suite of services, vertically integrated into our technology, that complements our powerful software. The services we provide lower barriers to adoption, simplify compliance with complex procurements, support local integration with existing infrastructure, and ultimately meaningfully enhance our ability to deliver successful outcomes. Customers can select from an à la carte menu of services or a full turnkey solution. Examples of services we provide include fleet and driver management, autonomous and electric vehicle management, digital marketing, call center support, and more. In Sarasota, Florida, Breeze Transit used Via to procure a flexible fleet of rental vehicles and independent contractor drivers, allowing them to achieve an approximately 50% reduction in average cost per ride. • Passenger tools: We provide consumer-grade applications for passengers to seamlessly plan, book, and pay for their transit journeys. Our customers have a choice of passenger facing tools. Using Via’s white-labeled apps, governments can engage local audiences with best-in-class, frictionless user experience that faithfully represents their brand. We also offer Citymapper, one of the world’s premier journey planning MaaS (Mobility-as-a-Service) apps, which is used by millions globally. Citymapper achieves arrival / departure time estimates that are, on average, 15% more accurate than industry norms. • Data and insights: We are often able to unlock unprecedented data insights for our customers, allowing them, for example, to understand changing demand patterns and rapidly adapt operational plans to performance reality. Our integrated planning, operating, and passenger tools provide the end-to-end data necessary for the holistic optimization of entire transit systems. Sioux Area Metro was able to increase ridership by 10% while reducing average cost per ride by 13% by leveraging Via’s platform to optimize their network. We are in the early innings of transforming an enormous addressable market. For the quarter ended June 30, 2025, we provided solutions for 689 customers in over 30 countries. This represents approximately 1% of the total addressable market in North America and Western Europe, which we estimate to be approximately 63,000 customers, based on a report commissioned by us from a major consulting firm. Our potential for growth is further evidenced by our current penetration: at our current revenue, we capture less than 1% of our Serviceable Addressable Market (“SAM”) in our two core geographies of North America and Western Europe. More than 90% of our revenue comes from government customers, in most cases represented by a municipality or a local transit agency or authority. We also serve blue-chip corporate and university customers who leverage Via’s platform to power campus transportation solutions. Our founder-led executive team is unique in its long tenure and alignment of mission. We deeply understand the technical and operational challenges that our customers and their end-users face every day. Thanks to our deep knowledge of the complex needs of government customers, we have developed a go-to-market strategy that allows us to efficiently and effectively sell to our customers at scale. We employ a consultative sales process, leveraging our technology to model the impact of our solutions to our customers, allowing them to gain confidence that change can be low-risk and high reward. When customers adopt our platform, the measurable increase in efficiency and ridership can generate a virtuous cycle that leads to growth in contract scope and value over time. Our Platform Net Revenue Retention Rate averaged over 120% in each of the last two years. And, as transit agencies are in many cases part of collaborative multi-government coalitions such as regional planning authorities, customer references are a major driver of our growth. We often see the adoption of our platform by one city or agency quickly leading to adoption by similar customers in the surrounding area. The unique value of our platform is demonstrated by our rapid and sustained growth. From 2021 to 2024, our revenue grew from $100.0 million to $337.6 million, representing a compound annual growth rate of 50%. Our revenue was $248.9 million and $337.6 million for the years ended December 31, 2023 and 2024, respectively, representing a year-over-year increase of 36%. For the six months ended June 30, 2025, our revenue was $205.8 million. Our Platform revenue was $237.3 million and $330.8 million in the year ended December 31, 2023 and 2024, respectively, representing a year-over-year increase of 39%. For the six months ended June 30, 2025, our Platform revenue was $205.8 million. Our Platform segment represented 95%, 98% and 100% of our revenue in the years ended December 31, 2023 and 2024, and the six months ended June 30, 2025, respectively. In addition to our Platform segment, we have one legacy operating segment (which we refer to as our Legacy segment). The Legacy segment had included our historical on-demand shared rides marketplace, which we ceased to operate in 2021, and includes a legacy operational contract, which terminated in June 2024. We no longer earn any revenue from our Legacy segment. Our Platform Annual Run-Rate Revenue of $366.7 million as of December 31, 2024 represented an increase of 37% from December 31, 2023. Our Platform Annual Run-Rate Revenue of $428.5 million as of June 30, 2025 represented an increase of 34% from June 30, 2024. Platform Annual Run-Rate Revenue as of the last date in any quarter represents our Platform revenue for that quarter multiplied by four. Our principal executive offices are located in New York, NY.
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Nutanix (NASDAQ:NTNX – Get Free Report) CEO Rajiv Ramaswami sold 75,045 shares of the business’s stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $74.00, for a total transaction of $5,553,330.00. Following the sale, the chief executive officer directly owned 414,339 shares in the company, valued at approximately $30,661,086. This trade represents a 15.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.
Rajiv Ramaswami also recently made the following trade(s):
On Tuesday, October 6th, Rajiv Ramaswami sold 324,955 shares of Nutanix stock. The shares were sold at an average price of $73.57, for a total value of $23,906,939.35. Nutanix Stock Performance Shares of Nutanix stock opened at $74.63 on Friday. The stock has a market cap of $20.19 billion, a PE ratio of 14.46, a price-to-earnings-growth ratio of 3.70 and a beta of 0.64. The business has a fifty day simple moving average of $67.71 and a 200-day simple moving average of $54.35. The company has a quick ratio of 1.80, a current ratio of 1.80 and a debt-to-equity ratio of 1.92. Nutanix has a 12 month low of $34.01 and a 12 month high of $74.66.
Nutanix (NASDAQ:NTNX – Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The technology company reported $0.60 earnings per share for the quarter, beating analysts’ consensus estimates of $0.49 by $0.11. Nutanix had a negative return on equity of 90.13% and a net margin of 52.81%. The business had revenue of $757.08 million for the quarter, compared to the consensus estimate of $738.27 million. During the same quarter in the previous year, the company posted $0.37 earnings per share. Nutanix’s revenue for the quarter was up 15.9% compared to the same quarter last year. On average, sell-side analysts anticipate that Nutanix will post 1.17 EPS for the current fiscal year. Trending Headlines about Nutanix Here are the key news stories impacting Nutanix this week:
Positive Sentiment: AI-focused customer momentum: Bharat Heavy Electricals Limited (BHEL) and SIS Limited highlighted Nutanix technology in initiatives to modernize infrastructure, support core applications and prepare for artificial-intelligence workloads. The reports did not disclose contract values, but they reinforce the company’s positioning in enterprise hybrid-cloud and AI infrastructure. BHEL accelerates innovation and readies for the AI era with Nutanix SIS Limited Modernizes Core Applications and Drives AI Readiness with Nutanix Positive Sentiment: Institutional support and analyst optimism: Several large investment firms increased their Nutanix holdings, while Needham initiated coverage with a Buy rating and a $90 price target. The broader analyst consensus remains “Moderate Buy,” although the consensus target of approximately $73 is close to the current trading range. Positive Sentiment: Solid operating backdrop: Nutanix’s latest quarterly results exceeded expectations, with adjusted EPS of $0.60 versus the $0.49 consensus and revenue of $757.1 million versus $738.3 million expected. Revenue increased 15.9% year over year, supporting the stock’s valuation and growth narrative. Neutral Sentiment: Short-interest data: Reported short interest was zero shares, implying no measurable short-selling pressure. Investors should treat the figure cautiously because it may reflect a reporting or data anomaly. Negative Sentiment: Heavy insider selling: CEO Rajiv Ramaswami sold 324,955 shares for approximately $23.9 million on October 6 and another 75,045 shares for about $5.6 million on October 7, reducing his holdings by roughly 40% across the reported transactions. Director Teresa Sheppard separately sold 3,500 shares worth approximately $257,845. These sales can raise concerns about insider confidence, although they may also reflect personal diversification or scheduled transactions. Nutanix CEO Rajiv Ramaswami sells shares Wall Street Analysts Forecast Growth NTNX has been the subject of a number of research reports. KeyCorp raised their price objective on Nutanix from $65.00 to $75.00 and gave the stock an “overweight” rating in a research report on Monday, August 24th. Oppenheimer lifted their target price on Nutanix from $80.00 to $85.00 and gave the company an “outperform” rating in a research note on Thursday, August 27th. Zacks Research downgraded Nutanix from a “strong-buy” rating to a “hold” rating in a report on Monday, August 31st. Northland Securities set a $70.00 price target on shares of Nutanix in a research report on Thursday, August 27th. Finally, Rosenblatt Securities increased their price target on shares of Nutanix from $60.00 to $75.00 and gave the stock a “buy” rating in a research report on Tuesday, August 25th. Nine analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, Nutanix has a consensus rating of “Moderate Buy” and a consensus target price of $73.07.
Check Out Our Latest Report on NTNX
Hedge Funds Weigh In On Nutanix Hedge funds have recently bought and sold shares of the business. Assenagon Asset Management S.A. increased its position in Nutanix by 1,535.2% during the second quarter. Assenagon Asset Management S.A. now owns 3,262,231 shares of the technology company’s stock worth $166,243,000 after acquiring an additional 3,062,730 shares during the period. Jericho Capital Asset Management L.P. raised its stake in Nutanix by 27.3% in the 4th quarter. Jericho Capital Asset Management L.P. now owns 3,107,481 shares of the technology company’s stock worth $160,626,000 after purchasing an additional 666,000 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Nutanix by 26.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,589,508 shares of the technology company’s stock worth $60,416,000 after purchasing an additional 331,700 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Nutanix by 628.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,185,120 shares of the technology company’s stock valued at $45,046,000 after purchasing an additional 1,022,516 shares during the period. Finally, Pacer Advisors Inc. boosted its holdings in Nutanix by 308.1% in the 1st quarter. Pacer Advisors Inc. now owns 1,135,857 shares of the technology company’s stock valued at $43,174,000 after purchasing an additional 857,559 shares during the period. 85.25% of the stock is owned by institutional investors.
Nutanix Company Profile (Get Free Report)
Nutanix, Inc develops enterprise cloud software that helps organizations manage applications and data across on-premises infrastructure, public clouds and hybrid multicloud environments. Its platform is designed to simplify the operation of data centers and cloud resources through a unified software experience.
The company’s offerings include hyperconverged infrastructure software, the Nutanix Cloud Infrastructure platform and AHV virtualization. Nutanix also provides services for file and object storage, databases, disaster recovery, Kubernetes and application management, as well as tools that help customers monitor, secure and govern their hybrid and multicloud environments.
Founded in 2009 and headquartered in San Jose, California, Nutanix serves businesses, government organizations and other institutions globally through direct sales and channel partners.
Read More Five stocks we like better than Nutanix 3 Unique ETFs With Strong Momentum for the End of the Year 3 Beaten-Down Biotech Stocks With Triple-Digit Upside and Big Catalysts Ahead Schneider Just Paid Up for PTC—Is the SaaSpocalypse Overdone? Delta Air Lines Faces a Fuel Crisis—But There’s a Silver Lining Receive News & Ratings for Nutanix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nutanix and related companies with MarketBeat.com's FREE daily email newsletter.
Nutanix (NTNX - Free Report) closed the most recent trading day at $74.62, moving +2.07% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.6%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.64%.
Coming into today, shares of the enterprise cloud platform services provider had gained 11.76% in the past month. In that same time, the Computer and Technology sector gained 4.03%, while the S&P 500 gained 1.34%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company's earnings per share (EPS) are projected to be $0.6, reflecting a 46.34% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $761.76 million, up 13.6% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.31 per share and a revenue of $3.21 billion, signifying shifts of +13.24% and +12.44%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Nutanix. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.3% rise in the Zacks Consensus EPS estimate. Right now, Nutanix possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Nutanix is at present trading with a Forward P/E ratio of 31.67. Its industry sports an average Forward P/E of 13.26, so one might conclude that Nutanix is trading at a premium comparatively.
We can also see that NTNX currently has a PEG ratio of 1.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NTNX in the coming trading sessions, be sure to utilize Zacks.com.
Nutanix (NTNX - Free Report) closed at $71.52 in the latest trading session, marking a +1.58% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.2%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.04%.
Shares of the enterprise cloud platform services provider witnessed a gain of 5.33% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.78%, and the S&P 500's loss of 0.35%.
The upcoming earnings release of Nutanix will be of great interest to investors. The company's upcoming EPS is projected at $0.6, signifying a 46.34% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $761.76 million, showing a 13.6% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.31 per share and a revenue of $3.21 billion, indicating changes of +13.24% and +12.44%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nutanix. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.3% increase. As of now, Nutanix holds a Zacks Rank of #2 (Buy).
In terms of valuation, Nutanix is currently trading at a Forward P/E ratio of 30.5. For comparison, its industry has an average Forward P/E of 12.53, which means Nutanix is trading at a premium to the group.
We can also see that NTNX currently has a PEG ratio of 1.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NTNX's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nutanix (NTNX - Free Report) .
Nutanix currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 2.00 indicates Buy.
Of the 16 recommendations that derive the current ABR, seven are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 43.8% and 12.5% of all recommendations.
Brokerage Recommendation Trends for NTNX
Check price target & stock forecast for Nutanix here>>>
While the ABR calls for buying Nutanix, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in NTNX?In terms of earnings estimate revisions for Nutanix, the Zacks Consensus Estimate for the current year has increased 2.3% over the past month to $2.31.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nutanix. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nutanix may serve as a useful guide for investors.
It has been about a month since the last earnings report for Nutanix (NTNX - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Nutanix due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Nutanix Q4 Earnings and Revenues Beat, ARR Growth AcceleratesNutanix reported fourth-quarter fiscal 2026 non-GAAP earnings of 60 cents per share, beating the Zacks Consensus Estimate by 25% and rising from 37 cents in the year-ago quarter.
Nutanix's revenues climbed 16% year over year to $757.1 million, beating the company's guided range of $725-$745 million and representing a significant acceleration from the company's 10% growth rate in the preceding quarters. The figure beat the consensus mark by 2.6%.
The company noted strength across the business, citing broad-based demand for its hybrid multicloud platform through strong uptake of external storage offerings and Nutanix Cloud Clusters, or NC2, which helped customers overcome hardware availability constraints. Management indicated that partnerships with NetApp and others were instrumental in signing several large wins in Q4, including several seven-figure deals. The company added over 3,000 customers in fiscal 2026, demonstrating sustained momentum in customer acquisition.
Top-Line Details of NTNXProduct revenues (51.3% of total revenues) increased to $388.4 million, while support, maintenance & other services revenues (48.7% of total revenues) reached $368.7 million.
Subscription revenues climbed to $719.1 million, while professional services and other revenues reached $37.9 million.
Annual recurring revenues climbed 16% year over year to $2.549 billion, representing acceleration from the prior quarter's growth rate.
NTNX's Operating DetailsIn the fourth quarter, Nutanix's non-GAAP gross margin was 87.7%, down 60 basis points year over year.
Non-GAAP operating expenses increased 2% year over year to $465.6 million.
Non-GAAP operating income was $198 million, up $78.5 million from the year-ago quarter. Non-GAAP operating margin expanded to 26.2%, up 790 basis points compared to the year-ago quarter and well above the company's guidance range of 21-23%. This substantial margin expansion was driven by better-than-expected revenues and operational efficiencies from timing of hiring and strategic investments.
NTNX's Balance Sheet & Cash FlowAs of July 31, 2026, cash and cash equivalents plus short-term investments totaled $2.361 billion.
During the fourth quarter of fiscal 2026, cash generated from operating activities was $315.0 million, and free cash flow was $277.6 million.
For the full fiscal year 2026, free cash flow reached $841 million, representing a 29% free cash flow margin, and the company achieved a Rule of 40 score of 42%, marking its third consecutive year above 40.
Nutanix Offers Q1 and FY27 OutlookFor the first quarter of fiscal 2027, revenues are estimated between $755 million and $765 million.
Non-GAAP operating margin is expected in the band of 26-28%. The company anticipates weighted average shares outstanding (diluted) to be approximately 294 million.
For fiscal 2027, revenues are estimated in the range of $3.180-$3.230 billion. The company expects free cash flow in the range of $850-$950 million.
Non-GAAP operating margin is projected in the 24-25% band.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 29.78% due to these changes.
VGM ScoresCurrently, Nutanix has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Nutanix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Investors looking for stocks in the Computers - IT Services sector might want to consider either Genpact (G) or Nutanix (NTNX). But which of these two stocks presents investors with the better value opportunity right now?
Nutanix is recognized as a Leader in the 2026 Gartner® Magic Quadrant™ for Server Virtualization Platforms. This recognition arrives at a pivotal moment for IT leaders, many of whom are actively reassessing their virtualization strategy amidst industry consolidation, rising costs, and increasingly restrictive licensing models.Nutanix is positioned highest for Ability to Execute and recognized for its Completeness of Vision.As organizations navigate the transition from legacy environments to modern AI-ready hybrid architectures, Nutanix offers a proven, future-ready platform that prioritizes infrastructure freedom, operational simplicity, and technological superiority. Unlike legacy virtualization stacks that are being forced into rigid, “all-or-nothing” enterprise bundles, Nutanix delivers modular licensing that enables organizations to consume capabilities appropriate to their needs and modernize at their own pace. Why it Matters
The recognition evaluates Nutanix’s capabilities in server virtualization and comes as organizations continue to readjust to the changing virtualization industry landscape. Nutanix Cloud Infrastructure (NCI), with its built-in AHV hypervisor based on proven open-source KVM virtualization technology, brings together compute, storage, networking and virtualization as the infrastructure foundation for Nutanix Cloud Platform (NCP), providing a unified way to run, manage, and govern VMs, containers, and AI workloads across distributed environments.
SAN JOSE, Calif., Sept. 16, 2026 (GLOBE NEWSWIRE) -- Nutanix (NASDAQ: NTNX), a hybrid cloud leader and AI platform company, today announced it has been recognized as a Leader in the 2026 Gartner Magic Quadrant for Server Virtualization Platforms.
Nutanix Cloud Infrastructure (NCI), with its built-in AHV hypervisor, provides the infrastructure foundation of Nutanix Cloud Platform (NCP), helping organizations run and manage workloads across hybrid cloud environments. NCI brings together compute, storage, networking, and virtualization capabilities to provide a consistent operating model across different infrastructure environments.
“As organizations modernize their infrastructure and prepare to run agentic AI at scale, they need a platform that gives them flexibility without added complexity and silos,” said Ketan Shah, Vice President of Product Management, Nutanix. “We believe being named a Leader in the 2026 Gartner® Magic Quadrant™ for Server Virtualization Platforms highlights how Nutanix empowers customers to run AI, virtual machines, and containers seamlessly across an expanding choice of clouds, sovereign locations, server and storage architectures, and managed service providers.”
Nutanix continues to support a broad range of workloads by offering flexible deployment architectures across an expanding list of server and storage hardware as well as public cloud locations, giving customers more flexibility and enabling them to leverage their existing investments when supply chains are constrained. Recent milestones include the general availability of support for Dell PowerStore, major updates for Everpure FlashArray and Dell PowerFlex, as well as limited availability of NetApp ONTAP, extending the range of infrastructure options customers can use while maintaining a consistent operating model.
Nutanix also recently introduced a full-stack Agentic AI solution that includes a secure, high-performance virtualization foundation for AI infrastructure. The solution brings together compute, networking, storage, and Kubernetes services to run AI workloads efficiently across hybrid cloud environments.
Nutanix also recently announced a strategic neocloud partnership with ChronoScale to extend its platform capabilities into accelerated compute and AI services.
In total, these advancements are designed to help customers modernize infrastructure while maintaining flexibility, consistent operations, and control across AI, VMs, and container workloads.
Customer Commentary
“We didn't just want a replacement for legacy virtualization; we needed a future-proof foundation for our ambitious AI and cloud-native initiatives. With Nutanix, we have a platform that supports our new initiatives right alongside our core enterprise applications and removes a lot of hurdles from our journey.”
- Bhart Panwar, Additional General Manager, BHEL (Bharat Heavy Electricals Limited)
“Nutanix has been instrumental in our infrastructure modernization journey at Ente Autonomo Volturno. By providing a unified operating model that seamlessly bridges our virtualization and container environments, Nutanix allows us to efficiently manage our mission-critical applications and disaster recovery sites. The platform's proven reliability and ease of use have given our IT team the confidence to innovate and scale our services, while ensuring high availability and operational resilience for the transportation system of the Campania Region.”
— Luciano Ragazzi, IT Director and CISO, Ente Autonomo Volturno
“Nutanix Cloud Platform gave us the freedom to move away from VMware after it was acquired by Broadcom and deliver a true hybrid cloud model. It allowed us to have a dual-native capacity where services like security, networking, and data protection are unified across both VMs and containers. Finally, it also accelerates our journey to AI with Nutanix Enterprise AI, offering a cloud-native control plane and platform for innovation via a familiar, easily manageable, and integrated environment.”
– Jasim Abdul Rahman, group CIO, Power International Holding
“Our Nutanix journey started more than a decade ago as a move away from traditional three-tier infrastructure, and today the platform supports around 90% of our on-premises environment. We've progressively moved from VMware to AHV, consolidated our core enterprise applications, and expanded the platform to support GPU-enabled teaching and research, self-service infrastructure, and hybrid cloud. What has worked particularly well for us is having a platform that can reliably support the University's critical systems while continuing to evolve with our needs in areas such as AI, automation, and cloud native.”
– Justin Mason, Associate Director, Technology Services, University of Canberra
“AI and cloud native initiatives are critical to our business, but they also place significant demands on our IT infrastructure. Birlasoft needed a future-ready platform that went beyond simply replacing legacy virtualization. With Nutanix, we now have a modern foundation that supports our innovation roadmap while continuing to run and scale our core enterprise applications.”
– Vinod Krishnan, Global Head - IT, Birlasoft Limited
Gartner, Inc, Magic Quadrant for Server Virtualization Platforms, Tony Harvey, Daniel Bowers, Paul Delory, Tony Iams, Owen Marino, 14 September 2026
Gartner Disclaimer
Gartner and Magic Quadrant are trademarks of Gartner, Inc. and/or its affiliates.
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
About Nutanix
Nutanix is a hybrid cloud leader and AI platform company, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
MarketBeat Week in Review – 08/24 - 08/28Nutanix NASDAQ: NTNX is positioning itself as a broader cloud-platform provider rather than solely a hyperconverged infrastructure, or HCI, company, as it pursues growth through external storage, public cloud, Kubernetes, database management and enterprise artificial intelligence offerings.
Chief Executive Officer Rajiv Ramaswami said the company’s platform now operates on-premises and across multiple public clouds, supports both built-in and third-party storage, and includes capabilities for Kubernetes, databases and AI inference. The broader portfolio allows Nutanix to address infrastructure modernization, hybrid-cloud deployments, modern application development and enterprise AI use cases, he said.
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Fiscal 2027 Outlook Includes Supply-Chain Headwind Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes ShapeChief Financial Officer Rukmini Sivaraman said Nutanix enters fiscal 2027 with growth drivers that include its core hybrid-cloud platform, external storage, cloud-native and AI capabilities, and its partner ecosystem. However, the company expects supply-chain conditions to remain a headwind throughout the fiscal year.
According to Sivaraman, customers that need to procure servers to run Nutanix software are facing higher prices and longer delivery times. Nutanix expects a higher percentage of orders with future start dates in fiscal 2027 than in fiscal 2026. The company also expects its renewals cohort to grow at a slower rate in fiscal 2027 than it did in fiscal 2026.
From CrowdStrike to Chewy, These Tanking Stocks Are Announcing BuybacksRamaswami said server prices have risen to roughly four to five times their levels from a year earlier, pressuring customer budgets. Mission-critical workloads may still require customers to refresh infrastructure, while other projects can be delayed if budget is unavailable, particularly among public-sector customers.
Nutanix is seeking to mitigate those pressures through support for external storage and cloud offerings that can run on bare metal. Sivaraman said an easing in supply conditions or stronger-than-expected adoption of external storage could improve results relative to the company’s current expectations. Ramaswami also cited broader hybrid-cloud and public-cloud adoption as potential upside factors.
External Storage Seen as Near-Term Growth Driver Ramaswami described external-storage support as Nutanix’s largest expected growth driver in fiscal 2027 and for the next several years. He said HCI represents about 20% of the installed base, while the remaining 80% consists of external storage connected to third-party servers.
External-storage capabilities allow customers to deploy Nutanix software without changing their existing hardware architecture, Ramaswami said. That approach can be particularly relevant while hardware costs remain elevated and customers seek to extend the use of existing server and storage investments.
He said HCI adoption has progressed gradually because it requires organizational and operational changes, including consolidating teams that separately manage servers and storage. Nutanix can now “meet” customers in their existing environments through external storage rather than requiring an architectural shift to HCI, he said.
The company also discussed growing use of its NC2 public-cloud offering. Ramaswami said customers are using NC2 for permanent cloud migrations, temporary capacity expansion, disaster recovery and global expansion without owning data centers. He said retention rates have been high once customers begin using the platform, though Nutanix did not provide specific figures.
VMware Migration Opportunity Remains Multi-Year Ramaswami said customers continue to evaluate alternatives to VMware following Broadcom’s acquisition of VMware, though the migration opportunity will unfold over a number of years. Customers are expected to migrate in waves based on renewal timing, hardware refresh cycles and their broader priorities, he said.
Nutanix has focused on making migrations easier by enabling customers in some cases to migrate without replacing their existing hardware. Sivaraman said the company’s VMware-related pipeline remains healthy and that the opportunity should continue to be a core growth driver in coming years.
Beyond VMware, Ramaswami said customers are increasingly looking for platforms that can support AI, modern applications and hybrid cloud. He identified public-cloud providers as both partners and competitors, while also naming Red Hat and, less frequently, Microsoft as competitors in on-premises deployments. He said customer inertia remains Nutanix’s largest competitive obstacle.
AI, Cloud-Native Products and Sales Investment Nutanix is also investing in AI infrastructure and specialist sales resources. Ramaswami said enterprise AI deployments involve running applications and agents near data, consuming intelligence from frontier or open-weight models, and using a gateway or model router to manage access, cost, governance and security.
He said Nutanix invested $20 million in internal clusters running open-weight AI models, expecting them to serve about 80% of the company’s AI needs over roughly five years while relying on frontier models for the remaining 20%. The company expects to recover some of that investment within a year, he said.
Sivaraman said Nutanix expects the share of land-and-expand bookings from products including Kubernetes, database automation, cloud management and AI to rise from the low 20% range two fiscal years ago to about one-third by fiscal 2029. The company is adding salespeople and technical specialists while targeting operating margins of 24% to 25% in the current fiscal year, compared with its longer-term goal of more than 30%.
Ramaswami said Nutanix is partnering with NVIDIA and AMD for AI infrastructure and is working with neocloud providers, including ChronoScale, to help enterprises access AI capacity and deploy Nutanix’s AI stack. He said the company expects to announce additional neocloud partnerships.
About Nutanix (NASDAQ:NTNX)Nutanix, Inc is a cloud computing software company that provides infrastructure and management solutions for enterprise data centers, private clouds, public clouds and hybrid multicloud environments. Its platform is designed to simplify the deployment, operation and management of applications and workloads across on-premises infrastructure and multiple cloud providers.
The company's offerings include the Nutanix Cloud Infrastructure platform, which combines compute, storage and virtualization capabilities; the Nutanix Cloud Manager suite for monitoring, automation, governance and cost management; and Nutanix Unified Storage.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Nutanix is recognized as a Leader in the 2026 Gartner® Magic Quadrant™ for Distributed Hybrid Infrastructure. Nutanix is recognized for its Ability to Execute and Completeness of Vision. Why it Matters
Enterprise infrastructure is becoming more distributed as organizations balance AI adoption, hybrid cloud expansion, sovereignty requirements, and the need to keep existing applications running efficiently and securely across a growing mix of environments. SAN JOSE, Calif., Sept. 10, 2026 (GLOBE NEWSWIRE) -- Nutanix (NASDAQ: NTNX), a hybrid cloud leader and AI platform company, today announced it has been recognized as a Leader in the 2026 Gartner Magic Quadrant for Distributed Hybrid Infrastructure.
Nutanix Cloud Platform (NCP) gives organizations a unified platform to run and manage AI workloads, applications, and data across on-premises, cloud, and edge environments, while maintaining flexibility in how and where they deploy infrastructure.
Over the past year, Nutanix has expanded NCP with new capabilities for agentic AI, advanced its Kubernetes capabilities with the introduction of NKP Metal, broadened support for external storage and server infrastructure, expanded deployment options for sovereign and regulated environments, and added a slew of new capabilities in a recent release.
“Organizations are rethinking their infrastructure strategies as hybrid cloud environments become more complex and new requirements around AI, application modernization, and sovereignty emerge,” said Thomas Cornely, Executive Vice President of Product Management, Nutanix. “We believe our recognition as a Leader in the Gartner Magic Quadrant for Distributed Hybrid Infrastructure reflects the continued evolution of the Nutanix Cloud Platform, giving customers a consistent cloud operating model with the flexibility and control to run AI workloads, applications, and data across the environments that best meet their needs.”
Nutanix continues to expand NCP to give customers greater flexibility and control in how they deploy, protect, and manage applications and data across distributed hybrid environments. Nutanix Cloud Clusters (NC2) is available across AWS, Google Cloud, and Microsoft Azure, with additional deployment options across sovereign cloud and service provider environments, giving customers more choice in where they run and manage workloads while maintaining a consistent operating model. Combined with flexible licensing and deployment options, these capabilities give customers greater choice in how they adopt and expand NCP across environments while maintaining operational simplicity and consistency.
Nutanix has also expanded infrastructure flexibility to support customer choice and maximize hardware re-use, with broad support for enterprise servers as well as expanded support for external storage, including general availability for Dell PowerStore, new updates for Everpure FlashArray and Dell PowerFlex, and limited availability for NetApp ONTAP.
Nutanix continues to build on its abilities in virtualization while expanding support for cloud native applications through a dual-native architecture that brings virtual machines and containers together under a consistent operating model. Additional innovations include the introduction of NKP Metal, which will extend the Nutanix operating model to bare-metal Kubernetes environments. The NKP Metal deployment option is available for early access by NKP PRO and NKP ULT license users now, and is expected to become generally available in the second half of 2026.
Nutanix further strengthened its platform with new agentic AI capabilities for model governance, security, and agent-driven operations. Nutanix also recently announced a strategic neocloud partnership with ChronoScale to extend its platform capabilities into accelerated compute and AI services.
Together, these advancements continue to broaden the range of workloads and environments NCP can support, from traditional enterprise applications to cloud native and AI workloads, while giving customers a consistent way to operate across them.
Nutanix Customer Commentary
“As a cybersecurity managed service provider delivering Industrial Data Center (IDC) management to our customers, I appreciate that our partnership with Nutanix allows us to co-innovate and deploy Nutanix Cloud Platform in Operational Technology environments. These IDCs support critical production operations across both discrete and process industries, from hosting manufacturing software applications that help food & beverage companies run production or creating the infrastructure that enables energy or refining operations. With the adoption of containers in manufacturing and the rise of AI workloads, we’re excited to explore the Nutanix Kubernetes Platform in our latest IDC platform to support customers running containerized applications.”
Gartner, Inc, Magic Quadrant for Distributed Hybrid Infrastructure, Julia Palmer, Daniel Bowers, Adrian Wong, Elaine Zhang, 7 September 2026
Gartner Disclaimer
Gartner and Magic Quadrant are trademarks of Gartner, Inc. and/or its affiliates.
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
About Nutanix
Nutanix is a hybrid cloud leader and AI platform company, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NTNX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Cloud and enterprise software company Nutanix (NTNX -0.16%) probably doesn't want the summer to end, given how well its stock did in August. Boosted by the estimates-trouncing fiscal fourth-quarter and full-year report it posted toward the end of the month and a subsequent wave of analyst price targets, its shares exited August with a more than 16% gain.
A fabulous final frame The month didn't exactly start on a high note for Nutanix. Four days into it, the company divulged in a regulatory filing that it aimed to reduce its workforce by roughly 5%. Stating that this decision was reached after a review of its business structure, Nutanix said the move will cost it roughly $33 million to $43 million. The reductions should be complete by the end of October.
Image source: Getty Images.
The company had better news to impart with that earnings report. The final frame of its 2026 fiscal year saw it book just over $757 million in revenue, up 16% year over year. Annual recurring revenue at the end of the quarter and year was also 16% higher, at $2.55 billion.
Net income not under generally accepted accounting principles (non-GAAP, or adjusted) was more than $175 million, or $0.60 per diluted share. That was a robust 61% higher than the fourth quarter of fiscal 2025 result.
It was also far above the consensus analyst estimate of $0.49. The same could be said for the company's revenue that quarter, which well exceeded the average pundit expectation of slightly more than $738 million.
In its earnings release, Nutanix quoted CEO Rajiv Ramaswami as saying the quarter "was a strong finish to fiscal 2026, a year in which we delivered solid top and bottom line performance and added over 3,000 new customers."
Management clearly doesn't believe that will be the last time the company will outperform.
It proffered strong guidance for both revenue and free cash flow (FCF) for the entirety of fiscal 2027. The top-line is forecast at $3.18 billion to $3.23 billion, while the outlook for FCF is $850 million to $950 million.
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A bunch of bulls For obvious reasons, investors liked what they heard about the quarter and reacted by driving Nutanix's stock higher in the days that followed. Some were probably influenced by the series of analyst price target raises immediately following earnings. The raisers included pundits from top financial companies Bank of America, Morgan Stanley, and Wells Fargo.
I'd be inclined to agree with those prognosticators and the bullish investors buying in at the end of the month. Nutanix continues to have a compelling business proposition with its "hyperconverged infrastructure," which bundles advanced compute, networking, and storage on a single platform. I think this stock has quite a high ceiling these days.
Wells Fargo is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Nutanix. The Motley Fool has a disclosure policy.
Nutanix is recognized in the 2026 Gartner® Magic Quadrant™ for Container Management for the second year in a row.Nutanix Kubernetes Platform (NKP) is a full-scale enterprise platform designed to simplify Kubernetes operations across a wide range of environments.NKP can run independently or as part of Nutanix Cloud Platform (NCP), supporting Kubernetes across virtualized and bare-metal infrastructure, public cloud, edge, and air-gapped environments. Why it Matters
Enterprises are looking to reduce operational complexity and make it easier for platform teams to manage applications at scale. NKP helps standardize operations, improve efficiency, and provide greater consistency across modern application environments. NKP is also a Cloud Native Computing Foundation certified Kubernetes AI conformant platform, with built-in extensions for enterprises to safely build and run agentic AI anywhere. SAN JOSE, Calif., Sept. 08, 2026 (GLOBE NEWSWIRE) -- Nutanix (NASDAQ: NTNX), a hybrid cloud leader and AI platform company, today announced it has been recognized in the 2026 Gartner Magic Quadrant for Container Management. This marks the second consecutive year Nutanix has been recognized as a Challenger in this Magic Quadrant, following the 2024 launch of NKP.
NKP can operate independently or as part of NCP, enabling Kubernetes across virtualized and bare-metal infrastructure, public cloud, edge, and air-gapped environments. It helps organizations simplify the management of cloud native applications across distributed, stateful, and disconnected environments while providing a unified infrastructure foundation for traditional, modern and AI workloads.
“As organizations modernize their applications and embrace AI, they need infrastructure that gives them greater simplicity and flexibility without creating new silos,” said Thomas Cornely, Executive Vice President, Product Management, Nutanix. “We believe our recognition for the second consecutive year reflects the progress we’ve made with NKP, and our broader approach to helping customers run traditional, cloud native and AI workloads on a unified platform.”
Nutanix continues to expand its cloud native capabilities with the introduction of NKP Metal, extending NKP to provide unparalleled simplicity to Kubernetes deployments directly on bare-metal infrastructure. NKP Metal is designed to bring automated deployment, lifecycle management and enterprise data services to physical infrastructure, giving organizations greater flexibility to run modern and AI workloads across virtualized and bare-metal environments.
Gartner, Inc., Magic Quadrant for Container Management, Dennis Smith, Tony Iams, Wataru Katsurashima, Lucas Albuquerque, Carolin Zhou, 2 September 2026
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Gartner and Magic Quadrant are trademarks of Gartner, Inc. and/or its affiliates.
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
About Nutanix
Nutanix is a hybrid cloud leader and AI platform company, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
Investors with an interest in Computers - IT Services stocks have likely encountered both ExlService Holdings (EXLS) and Nutanix (NTNX). But which of these two stocks is more attractive to value investors?
With earnings season winding down, Movado Group (MOV - Free Report) ) and Nutanix (NTNX - Free Report) ) stand out as two highly ranked stocks worth watching ahead of their quarterly reports this week.
Both stocks currently sport a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate revisions, and are scheduled to report on Wednesday, August 26.
Movado's Earnings Rebound and Lofty DividendMovado, one of the world’s premier watchmakers, will report its Q2 results before the market opens on Wednesday. The Zacks Consensus is calling for quarterly EPS of $0.36, which would be an impressive 56% year-over-year increase, with Q2 revenue expected to be up over 1% to $164.18 million.
The luxury watchmaker is coming off an encouraging Q1 in which sales increased 8% YoY to $142.4 million, adjusted EPS surged to $0.32 from $0.08 a year ago, and gross margin expanded 320 basis points to 57.3%. Movado also finished Q1 with $225.3 million in cash and no long-term debt, giving the company considerable financial flexibility.
Reflecting its strong Q1 results and improving outlook, MOV has been one of the market’s better performers, with shares surging more than 60% year to date.
Image Source: Zacks Investment Research
Income investors have another reason to take notice. Movado recently raised its quarterly dividend 14% to $0.40 per share, or $1.60 annually. That equates to a lofty dividend yield of roughly 4.6%, with MOV trading at around $34 a share and at a reasonable 18X forward earnings multiple.
Image Source: Zacks Investment Research
Nutanix's Double-Digit Cloud GrowthNutanix will release results for its fiscal fourth quarter after the closing bell on Wednesday. The innovative tech company provides an enterprise cloud platform that combines compute, storage, virtualization, and networking into one integrated solution.
Q4 EPS is expected at $0.48, representing nearly 30% growth from the prior-year quarter, while revenue is projected to rise roughly 13% to $737.89 million. The Zacks Consensus also calls for full-year EPS of $1.93, up 19%, on more than 11% revenue growth to $2.83 billion.
Image Source: Zacks Investment Research
Nutanix's recurring-revenue momentum remains particularly attractive. Fiscal Q3 annual recurring revenue (ARR) climbed 15% YoY to $2.43 billion, while quarterly revenue rose 10% and non-GAAP operating margin expanded to 22.3% from 21.5%. Management subsequently raised its fiscal 2026 outlook to $2.82-$2.84 billion in revenue and $760-$780 million in free cash flow.
Wall Street will be looking for more of the same Wednesday, as Q4 ARR is expected to reach roughly $2.51 billion, compared with $2.22 billion a year ago.
Adding to Nutanix’s growth story is rising enterprise AI spending, with its hybrid-cloud infrastructure increasingly being used to deploy and manage GPU-powered generative and agentic AI workloads.
That expanding opportunity is helping justify NTNX’s 30X forward earnings multiple, with shares trading above $60 and up around 30% YTD to handily outperform many of its IT-services peers.
Image Source: Zacks Investment Research
Bottom LineMovado and Nutanix offer two different but attractive growth stories heading into earnings. NTNX provides exposure to durable hybrid-cloud and recurring-revenue growth, while MOV combines a sharp earnings recovery with a compelling dividend yield and a virtually debt-free balance sheet.
Reports 16% YoY ARR Growth and Strong Free Cash Flow for Fiscal 2026
Delivers Outperformance Across All Fourth Quarter Guided Metrics
SAN JOSE, Calif., Aug. 26, 2026 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a hybrid cloud leader and AI innovator, today announced financial results for its fourth quarter and fiscal year ended July 31, 2026.
“Our fourth quarter was a strong finish to fiscal 2026, a year in which we delivered solid top and bottom line performance and added over 3,000 new customers,” said Rajiv Ramaswami, CEO of Nutanix. “In FY26, we made good progress with respect to partnerships, signing new or enhanced agreements with AMD, Lenovo, NetApp and NVIDIA. We also delivered innovation across our cloud platform, especially with respect to AI and broadening our support for external storage.”
“Our fiscal 2026 results demonstrated a good balance of top and bottom line performance with 16% year-over-year ARR growth and strong free cash flow generation,” said Rukmini Sivaraman, CFO of Nutanix. “We remain focused on delivering sustainable growth and improving profitability.”
FY’26FY’25Y/Y ChangeAnnual Recurring Revenue (ARR)1$2.55 billion$2.20 billion16%Average Contract Duration23.2 years3.1 years0.1 yearsRevenue$2.85 billion$2.54 billion12%GAAP Gross Margin86.8%86.8%0 bpsNon-GAAP Gross Margin88.0%88.1%(10) bpsGAAP Operating Expenses$2.20 billion$2.03 billion8%Non-GAAP Operating Expenses$1.84 billion$1.70 billion8%GAAP Operating Income$274.0 million$172.5 million$101.5 millionNon-GAAP Operating Income$675.4 million$536.1 million$139.3 millionGAAP Operating Margin9.6%6.8%280 bpsNon-GAAP Operating Margin23.7%21.1%260 bpsNet Cash Provided by Operating Activities$916.7 million$821.5 million$95.2 millionFree Cash Flow$840.7 million$750.2 million$90.5 million Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.
Recent Company Highlights
Nutanix Announces the Model Context Protocol (MCP) Server for Nutanix Cloud Platform (NCP): Nutanix announced the launch of its MCP server for NCP, bringing secure, natural-language, agentic AI automation to hybrid cloud environments without sacrificing control.Nutanix Announces Availability of Dell PowerStore: Nutanix announced that Dell Private Cloud with PowerStore for NCP is now available with Nutanix Cloud Infrastructure (NCI) 7.6.Nutanix Unveils New Regulated Industry Data from Its Eighth Annual Enterprise Cloud Index (ECI) Survey: Nutanix unveiled new regulated industry data from its eighth annual ECI survey shared earlier this year, which showed that Healthcare, Financial Services, and Public Sector industries face the greatest risks in shadow AI, data sovereignty, compliance, and organizational silos.Nutanix and ChronoScale Announce Strategic Partnership to Accelerate Enterprise AI Adoption: Nutanix and ChronoScale announced a strategic partnership to jointly deliver enterprise-ready AI infrastructure and help accelerate adoption of AI servers across global markets.Nutanix Gives Enterprises the Freedom to Run Production Agentic AI Their Way: Nutanix announced the general availability of Nutanix Enterprise AI (NAI) 2.8, and the upcoming general availability of Nutanix Kubernetes Platform (NKP) 2.19, along with new incentives, programs, and resources designed to help partners accelerate growth on emerging AI opportunities. First Quarter Fiscal 2027 Outlook
Revenue$755 - $765 millionNon-GAAP Operating Margin26% to 28%Weighted Average Shares Outstanding (Diluted)3Approximately 294 million Fiscal 2027 Outlook
Revenue$3.180 - $3.230 billionNon-GAAP Operating Margin24% to 25%Free Cash Flow$850 - $950 million Supplementary materials to this press release, including our fourth quarter and fiscal 2026 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.
Webcast and Conference Call Information
Nutanix executives will discuss the Company’s fourth quarter and fiscal 2026 financial results on a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.
Footnotes
1Annual Recurring Revenue, or ARR, is defined as the sum of ACV for all subscription contracts from all customers in effect as of the end of a specific period, assuming any subscription contract that expires is renewed on its existing terms. ARR excludes the value of professional services, non-portable software and support contracts and hardware sales. For the purposes of this calculation, we generally assume that the contract term begins on the date when the software is made available to the customer. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. For comparability purposes, ARR for all prior periods have been adjusted to conform to the updated methodology.
2Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.
3Weighted average share count used in computing diluted non-GAAP net income per share.
Non-GAAP Financial Measures and Other Key Performance Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation, costs associated with our acquisitions (such as amortization of acquired intangible assets and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization of the debt discount and issuance costs related to debt, interest expense related to debt, inducement expense related to the repurchase of convertible senior notes, changes in the fair value of convertible notes receivable, valuation allowance releases, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the top-line growth of our subscription business (including our ability to acquire subscriptions with new customers and to retain and expand with existing customers), while normalizing for differences in contract durations. Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any subscription contract not to be renewed on its existing terms. ARR is a performance measure that should be viewed independently of revenue and does not represent our revenue under GAAP on an annualized basis or a forecast of GAAP revenue. Investors should not place undue reliance on ARR as an indicator of our future or expected results. ARR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled performance measures presented by other companies. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income, operating margin, and net cash provided by operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our first quarter fiscal 2027 outlook and/or our fiscal 2027 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.
Forward-Looking Statements
This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business trends, momentum and prospects; our expectations regarding demand for our solutions; our ability to capitalize on market opportunities through our partnerships, cloud platform innovations, AI offerings and support for external storage; our focus on delivering sustainable growth and improving profitability; our first quarter fiscal 2027 outlook; and our fiscal 2027 outlook.
These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; supply chain constraints, component availability and related impacts on the timing of orders, shipments and customer deployments; any failure to successfully implement or realize the anticipated benefits of our business plans, strategies and initiatives, or unexpected difficulties or delays in doing so; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions (including AI-related offerings), products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to successfully implement and realize the anticipated benefits of our recently announced restructuring initiatives; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 24, 2025 and subsequent quarterly reports. Additional information will be set forth in our Annual Report on Form 10-K for the fiscal year ended July 31, 2026, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.
About Nutanix
Nutanix is a hybrid cloud leader and AI innovator, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
NUTANIX, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
As of July 31,
2025 July 31,
2026 (in thousands) Assets Current assets: Cash and cash equivalents$769,502 $777,308 Short-term investments 1,223,234 1,584,155 Accounts receivable, net 337,967 289,251 Deferred commissions—current 153,072 156,316 Prepaid expenses and other current assets 105,391 221,483 Total current assets 2,589,166 3,028,513 Property and equipment, net 142,814 134,887 Operating lease right-of-use assets 134,526 164,427 Deferred commissions—non-current 189,221 217,606 Intangible assets, net 2,615 1,837 Goodwill 185,235 185,235 Deferred tax asset(1) 16,974 1,215,823 Other assets—non-current 22,643 125,357 Total assets$3,283,194 $5,073,685 Liabilities and Stockholders’ (Deficit) Equity Current liabilities: Accounts payable$81,599 $96,508 Accrued compensation and benefits 230,498 269,181 Accrued expenses and other current liabilities 24,187 36,117 Deferred revenue—current 1,054,023 1,246,575 Operating lease liabilities—current 23,234 35,713 Total current liabilities 1,413,541 1,684,094 Deferred revenue—non-current 1,058,731 1,176,794 Operating lease liabilities—non-current 115,754 134,310 Convertible senior notes, net 1,343,818 1,348,711 Other liabilities—non-current 45,870 27,211 Total liabilities 3,977,714 4,371,120 Stockholders’ (deficit) equity: Common stock 7 7 Additional paid-in capital 4,200,466 4,416,059 Accumulated other comprehensive income (loss) 700 (4,895)Accumulated deficit (4,895,693) (3,708,606)Total stockholders’ (deficit) equity (694,520) 702,565 Total liabilities and stockholders’ (deficit) equity$3,283,194 $5,073,685 __________________________
(1) Prior to the fourth quarter of fiscal 2026, this was included within Other assets—non-current. Prior period amounts have been updated to conform to the current period presentation.
NUTANIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) Three Months Ended
July 31, Fiscal Year Ended
July 31, 2025 2026 2025 2026 (in thousands, except per share data) Revenue: Product$339,789 $388,388 $1,341,374 $1,489,693 Support, maintenance and other services 313,478 368,690 1,196,553 1,363,852 Total revenue 653,267 757,078 2,537,927 2,853,545 Cost of revenue: Product(1)(2) 4,372 5,661 28,341 21,443 Support, maintenance and other services(1) 79,461 100,066 306,441 355,306 Total cost of revenue 83,833 105,727 334,782 376,749 Gross profit 569,434 651,351 2,203,145 2,476,796 Operating expenses: Sales and marketing(1)(2) 281,280 303,897 1,056,465 1,150,278 Research and development(1) 193,666 205,053 736,823 790,892 General and administrative(1) 63,280 72,412 237,316 261,656 Total operating expenses 538,226 581,362 2,030,604 2,202,826 Income from operations 31,208 69,989 172,541 273,970 Other income, net 13,935 12,726 39,107 53,138 Income before provision for (benefit from) income taxes 45,143 82,715 211,648 327,108 Provision for (benefit from) income taxes 6,493 (1,186,917) 23,282 (1,179,729)Net income$38,650 $1,269,632 $188,366 $1,506,837 Net income per share attributable to Class A common stockholders, basic$0.14 $4.69 $0.70 $5.61 Net income per share attributable to Class A common stockholders, diluted$0.13 $4.34 $0.65 $5.17 Weighted average shares used in computing net income per share attributable to Class A common stockholders, basic 268,659 270,570 267,479 268,691 Weighted average shares used in computing net income per share attributable to Class A common stockholders, diluted 297,456 292,736 294,083 292,183 __________________________
(1) Includes the following stock-based compensation expense:
Three Months Ended
July 31, Fiscal Year Ended
July 31, 2025 2026 2025 2026 (in thousands) Product cost of revenue$399 $400 $2,824 $1,550 Support, maintenance and other services cost of revenue 6,814 8,058 27,582 28,190 Sales and marketing 19,372 22,332 80,930 82,402 Research and development 42,872 45,481 175,361 180,844 General and administrative 15,714 18,254 64,893 64,681 Total stock-based compensation expense$85,171 $94,525 $351,590 $357,667 __________________________
(2) Includes the following amortization of intangible assets:
Three Months Ended
July 31, Fiscal Year Ended
July 31, 2025 2026 2025 2026 (in thousands) Product cost of revenue$105 $106 $2,185 $424 Sales and marketing 88 90 353 354 Total amortization of intangible assets$193 $196 $2,538 $778 NUTANIX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Fiscal Year Ended
July 31, 2025 2026 (in thousands) Cash flows from operating activities: Net income$188,366 $1,506,837 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 72,701 70,640 Stock-based compensation 351,590 357,667 Amortization of debt discount and issuance costs 3,877 5,452 Inducement expense from partial repurchase of the 2027 Notes 11,347 — Operating lease cost, net of accretion 29,029 34,946 Deferred income taxes 3,639 (1,198,850)Other (8,468) (4,792)Changes in operating assets and liabilities: Accounts receivable, net (71,886) (39,170)Deferred commissions 16,517 (31,630)Prepaid expenses and other assets (8,101) (130,217)Accounts payable 30,018 19,443 Accrued compensation and benefits 33,286 44,492 Accrued expenses and other liabilities (4,269) 709 Operating leases, net (29,954) (33,813)Deferred revenue 203,764 314,974 Net cash provided by operating activities 821,456 916,688 Cash flows from investing activities: Maturities of investments 476,173 805,208 Purchases of investments (1,359,593) (1,167,799)Sales of investments 3,016 2,750 Purchases of property and equipment (71,283) (76,013)Net cash used in investing activities (951,687) (435,854)Cash flows from financing activities: Proceeds from sales of shares through employee equity incentive plans 68,935 61,447 Proceeds from sales of shares through private placement — 150,000 Taxes paid related to net share settlement of equity awards (256,636) (195,534)Proceeds from the issuance of convertible notes, net of issuance costs 848,010 — Payment of third-party debt issuance costs (3,448) — Partial repurchase of the 2027 Notes (95,453) — Payment of revolver issuance costs (2,794) — Repurchases of common stock (307,900) (483,543)Other financing activities, net (6,628) (5,399)Net cash provided by (used in) financing activities 244,086 (473,029)Net increase in cash, cash equivalents and restricted cash$113,855 $7,805 Cash, cash equivalents and restricted cash—beginning of period 655,662 769,517 Cash, cash equivalents and restricted cash—end of period$769,517 $777,322 Restricted cash(1) 15 14 Cash and cash equivalents—end of period$769,502 $777,308 Supplemental disclosures of cash flow information: Cash paid for income taxes$32,537 $30,274 Supplemental disclosures of non-cash investing and
financing information: Purchases of property and equipment included in accounts payable and
accrued and other liabilities$6,945 $2,412 Unpaid taxes related to net share settlement of equity awards included
in accrued expenses and other liabilities$13,423 $7,615 __________________________
(1) Included within other assets—non-current in the consolidated balance sheets.
Disaggregation of Revenue
(Unaudited)
Three Months Ended
July 31, Fiscal Year Ended
July 31, 2025 2026 2025 2026 (in thousands) Disaggregation of revenue: Subscription revenue$615,974 $719,111 $2,410,751 $2,712,274 Professional services and other revenue(1) 37,293 37,967 127,176 141,271 Total revenue$653,267 $757,078 $2,537,927 $2,853,545 __________________________
(1) Prior to fiscal 2026, these amounts were presented as separate line items, Professional services and Other non-subscription product. Prior period amounts have been updated to conform to the current period presentation.
Annual Recurring Revenue
(Unaudited)
As of July 31, 2025 2026 (in thousands) Annual Recurring Revenue (ARR) (1)$2,201,672 $2,548,797 __________________________
(1) Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. Prior period amounts have been updated to conform to current quarter methodology.
Remaining Performance Obligations
(Unaudited)
As of July 31, 2025 2026 (in thousands) Remaining performance obligations: Current$1,328,328 $1,686,685 13-36 months 977,341 1,293,675 Thereafter 386,892 460,051 Total$2,692,561 $3,440,411 Reconciliation of GAAP to Non-GAAP Profit Measures
(Unaudited) GAAP Non-GAAP Adjustments Non-GAAP Three Months Ended July 31, 2026 (1) (2) (3) (4) (5) (6) (7) (8) Three Months Ended July 31, 2026 (in thousands, except percentages and per share data) Gross profit$651,351 $8,458 $106 $3,706 $— $— $— $— $— $663,621 Gross margin 86.0% 1.2% — 0.5% — — — — — 87.7%Operating expenses: Sales and marketing 303,897 (22,332) (90) (17,597) — — — — — 263,878 Research and development 205,053 (45,481) — (5,173) — — — — — 154,399 General and administrative 72,412 (18,254) — (1,162) (5,248) (408) — — — 47,340 Total operating expenses 581,362 (86,067) (90) (23,932) (5,248) (408) — — — 465,617 Income from operations 69,989 94,525 196 27,638 5,248 408 — — — 198,004 Operating margin 9.2% 12.5% — 3.7% 0.7% 0.1% — — — 26.2%Net income$1,269,632 $94,525 $196 $27,638 $5,248 $5,868 $3,001 $(1,208,216) $(22,539) $175,353 Weighted shares outstanding, basic 270,570 270,570 Weighted shares outstanding, diluted (9) 292,736 292,736 Net income per share, basic$4.69 $0.36 $- $0.10 $0.02 $0.02 $0.01 $(4.47) $(0.08) $0.65 Net income per share, diluted (10)$4.34 $0.60 __________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Restructuring charges
(4) Legal fees
(5) Change in fair value of convertible note receivable and other
(6) Amortization of debt issuance costs and interest expense related to debt
(7) Valuation allowance release related to our U.S. deferred tax assets
(8) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(9) Includes 22,166 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(10) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes
GAAP Non-GAAP Adjustments Non-GAAP Fiscal Year Ended July 31, 2026 (1) (2) (3) (4) (5) (6) (7) (8) Fiscal Year Ended July 31, 2026 (in thousands, except percentages and per share data) Gross profit$2,476,796 $29,740 $424 $3,706 $— $— $— $— $— $2,510,666 Gross margin 86.8% 1.1% — 0.1% — — — — — 88.0%Operating expenses: Sales and marketing 1,150,278 (82,402) (354) (17,597) — — — — — 1,049,925 Research and development 790,892 (180,844) — (5,173) — — — — — 604,875 General and administrative 261,656 (64,681) — (1,162) (14,899) (408) — — — 180,506 Total operating expenses 2,202,826 (327,927) (354) (23,932) (14,899) (408) — — — 1,835,306 Income from operations 273,970 357,667 778 27,638 14,899 408 — — — 675,360 Operating margin 9.6% 12.6% — 1.0% 0.5% — — — — 23.7%Net income$1,506,837 $357,667 $778 $27,638 $14,899 $5,868 $11,986 $(1,208,216) $(120,702) $596,755 Weighted shares outstanding, basic 268,691 268,691 Weighted shares outstanding, diluted(9) 292,183 292,183 Net income per share, basic$5.61 $1.34 $- $0.10 $0.06 $0.02 $0.04 $(4.50) $(0.45) $2.22 Net income per share, diluted(10)$5.17 $2.04 __________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Restructuring charges
(4) Legal fees
(5) Change in fair value of convertible note receivable and other
(6) Amortization of debt issuance costs and interest expense related to debt
(7) Valuation allowance release related to our U.S. deferred tax assets
(8) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(9) Includes 23,492 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(10) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $4,403 of interest expense related to the convertible senior notes
GAAP Non-GAAP Adjustments Non-GAAP Three Months Ended July 31, 2025 (1) (2) (3) (4) (5) (6) Three Months Ended July 31, 2025 (in thousands, except percentages and per share data) Gross profit$569,434 $7,213 $105 $— $— $— $— $576,752 Gross margin 87.2% 1.1% — — — — — 88.3%Operating expenses: Sales and marketing 281,280 (19,372) (88) — — — — 261,820 Research and development 193,666 (42,872) — — — — — 150,794 General and administrative 63,280 (15,714) — (2,971) — — — 44,595 Total operating expenses 538,226 (77,958) (88) (2,971) — — — 457,209 Income from operations 31,208 85,171 193 2,971 — — — 119,543 Operating margin 4.8% 13.0% — 0.5% — — — 18.3%Net income$38,650 $85,171 $193 $2,971 $(100) $3,008 $(20,784) $109,109 Weighted shares outstanding, basic 268,659 268,659 Weighted shares outstanding, diluted(7) 297,456 297,456 Net income per share, basic$0.14 $0.33 $- $0.01 $- $0.01 $(0.08) $0.41 Net income per share, diluted(8)$0.13 $0.37 __________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Legal fees
(4) Other
(5) Amortization of debt issuance costs and interest expense related to debt
(6) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(7) Includes 28,797 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(8) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes
GAAP Non-GAAP Adjustments Non-GAAP Fiscal Year Ended July 31, 2025 (1) (2) (3) (4) (5) (6) (7) Fiscal Year Ended July 31, 2025 (in thousands, except percentages and per share data) Gross profit$2,203,145 $30,406 $2,185 $— $— $— $— $— $2,235,736 Gross margin 86.8% 1.2% 0.1% — — — — — 88.1%Operating expenses: Sales and marketing 1,056,465 (80,930) (353) — — — — — 975,182 Research and development 736,823 (175,361) — — — — — — 561,462 General and administrative 237,316 (64,893) — (9,451) — — — — 162,972 Total operating expenses 2,030,604 (321,184) (353) (9,451) — — — — 1,699,616 Income from operations 172,541 351,590 2,538 9,451 — — — — 536,120 Operating margin 6.8% 13.8% 0.1% 0.4% — — — — 21.1%Net income$188,366 $351,590 $2,538 $9,451 $(310) $11,347 $8,377 $(95,646) $475,713 Weighted shares outstanding, basic 267,479 267,479 Weighted shares outstanding, diluted(8) 294,083 294,083 Net income per share, basic$0.70 $1.32 $0.01 $0.04 $- $0.04 $0.03 $(0.36) $1.78 Net income per share, diluted(9)$0.65 $1.62 __________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Legal fees
(4) Other
(5) Inducement expense related to partial repurchase of the 2027 Notes
(6) Amortization of debt issuance costs and interest expense related to debt
(7) Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(8) Includes 26,604 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $3,172 of interest expense related to the convertible senior notes
Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow
(Unaudited) Three Months Ended
July 31, Fiscal Year Ended
July 31, 2025 2026 2025 2026 (in thousands) Net cash provided by operating activities$219,529 $315,013 $821,456 $916,688 Purchases of property and equipment (11,750) (37,443) (71,283) (76,013)Free cash flow$207,779 $277,570 $750,173 $840,675
Nutanix (NTNX - Free Report) came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +25.00%. A quarter ago, it was expected that this enterprise cloud platform services provider would post earnings of $0.35 per share when it actually produced earnings of $0.47, delivering a surprise of +34.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Nutanix, which belongs to the Zacks Computers - IT Services industry, posted revenues of $757.08 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 2.60%. This compares to year-ago revenues of $653.27 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Nutanix shares have added about 28.5% since the beginning of the year versus the S&P 500's gain of 12.2%.
What's Next for Nutanix?While Nutanix has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Nutanix was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $753.24 million in revenues for the coming quarter and $2.18 on $3.19 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, SAIC (SAIC - Free Report) , has yet to report results for the quarter ended July 2026. The results are expected to be released on August 31.
This information technology company is expected to post quarterly earnings of $2.25 per share in its upcoming report, which represents a year-over-year change of -38%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
SAIC's revenues are expected to be $1.75 billion, down 1.2% from the year-ago quarter.
Nutanix (NTNX - Free Report) reported $757.08 million in revenue for the quarter ended July 2026, representing a year-over-year increase of 15.9%. EPS of $0.60 for the same period compares to $0.37 a year ago.
The reported revenue represents a surprise of +2.6% over the Zacks Consensus Estimate of $737.89 million. With the consensus EPS estimate being $0.48, the EPS surprise was +25%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Nutanix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Annual Recurring Revenue (ARR): $2.55 billion versus the nine-analyst average estimate of $2.51 billion.Remaining Performance Obligations- Total: $3440.41 billion versus the three-analyst average estimate of $3302 billion.Revenue- Support, maintenance and other services: $368.69 million versus the 12-analyst average estimate of $356.78 million. The reported number represents a year-over-year change of +17.6%.Revenue- Product: $388.39 million versus the 12-analyst average estimate of $378.94 million. The reported number represents a year-over-year change of +14.3%.Disaggregation of Revenue- Professional services revenue: $37.97 million compared to the $38.21 million average estimate based on seven analysts. The reported number represents a change of +31.4% year over year.Disaggregation of Revenue- Subscription revenue: $719.11 million versus the seven-analyst average estimate of $699.92 million. The reported number represents a year-over-year change of +16.7%.View all Key Company Metrics for Nutanix here>>>
Shares of Nutanix have returned +12.5% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
From CrowdStrike to Chewy, These Tanking Stocks Are Announcing BuybacksNutanix NASDAQ: NTNX reported fourth-quarter fiscal 2026 results above its guided ranges, citing broad-based demand for its hybrid multicloud platform, external storage support, public-cloud offering and portfolio products despite continued server supply constraints.
Fourth-quarter revenue reached a record $757 million, exceeding the company’s guidance of $725 million to $745 million. Annual recurring revenue, or ARR, totaled $2.549 billion at quarter-end, up 16% from a year earlier and representing an acceleration from the prior quarter’s growth rate. Net dollar-based retention remained at 106% sequentially.
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MarketBeat Week in Review – 12/15 - 12/19Chief Executive Officer Rajiv Ramaswami said the company saw strong uptake for external storage offerings and Nutanix Cloud Clusters, or NC2, which he said are helping customers address hardware availability and pricing challenges. Nutanix also reported notable performance in its Kubernetes and database management products.
Full-Year Growth and Profitability For fiscal 2026, Nutanix reported revenue of $2.854 billion, up 12% year over year, and ARR of $2.549 billion, up 16%. The company added more than 3,000 customers during the year, including customers across its Global 2000, enterprise and other customer tiers.
Is Nutanix the Best Comeback Trade Left in 2025? The Setup Says YesFree cash flow for the year was $841 million, equal to a 29% free-cash-flow margin. Nutanix said its Rule of 40 score, calculated as revenue growth plus free-cash-flow margin, was 42%, marking its third consecutive year above 40.
Non-GAAP operating margin was 23.7% for the fiscal year, up about 2.6 percentage points from the prior year and above the company’s most recent outlook of approximately 22.5%. Non-GAAP net income was $597 million, or $2.04 per diluted share.
GAAP net income for fiscal 2026 was $1.507 billion, or $5.17 per diluted share. However, Chief Financial Officer Rukmini Sivaraman said the result included a one-time $1.2 billion income-tax benefit from the release of a valuation allowance related to U.S. deferred tax assets. Excluding that benefit, GAAP net income would have been $299 million, or $1.04 per diluted share.
In the fourth quarter, non-GAAP operating margin was 26.2%, above the company’s 21% to 23% guidance range. Sivaraman attributed the outperformance to revenue above expectations and lower operating expenses, including the timing of hiring. Fourth-quarter free cash flow totaled $278 million, or a 37% margin.
External Storage, NC2 and AI Initiatives Management highlighted external storage support as an increasingly important avenue for customer adoption. Nutanix added support for Dell PowerStore, which became generally available earlier in the month, while support for Pure Storage’s FlashArray had been generally available for about two quarters. The company also announced agreements to support NetApp and Lenovo storage platforms.
Ramaswami said Nutanix’s NetApp integration remains in limited availability but helped secure several large deals in the fourth quarter. He said the company expects all three storage relationships — Dell, Pure Storage and NetApp — to be meaningful growth drivers in fiscal 2027.
The company described several seven-figure annual contract value wins involving external storage. These included a Global 2000 aerospace, defense and security customer that selected Nutanix Cloud Platform and Nutanix Cloud Manager while retaining its NetApp storage, as well as a North American hospital system that plans to use existing Dell PowerFlex arrays.
NC2 bookings and deployed cores also increased sharply from the prior quarter, according to management. One seven-figure expansion involved a North American financial-services customer planning to deploy Nutanix Database Service on NC2 running on Amazon Web Services. Nutanix also added an automotive technology customer in Europe that plans to use NC2 on OVHcloud.
The company continued to build its artificial intelligence portfolio during the year, including the launch of Nutanix Agentic AI, Agent Gateway and a Model Context Protocol server for Nutanix Cloud Platform. Nutanix also entered a strategic agreement with AMD to deploy its Agentic AI platform on AMD GPU solutions, complementing its existing NVIDIA integration.
Ramaswami said enterprise adoption of agentic AI remains in its early stages, though AI has become a topic of discussion with customers. He said demand for governance, cost controls and AI infrastructure is growing, while the company’s AI products are expanding from a small base.
Fiscal 2027 Outlook Reflects Supply Constraints For the first quarter of fiscal 2027, Nutanix forecast revenue of $755 million to $765 million and non-GAAP operating margin of 26% to 28%.
For the full fiscal year, the company projected:
Revenue of $3.18 billion to $3.23 billion, representing 12% growth at the midpoint. Non-GAAP operating margin of 24% to 25%. Free cash flow of $850 million to $950 million, representing a 28% margin at the midpoint. Sivaraman said the outlook assumes server supply constraints and elevated hardware prices will persist through fiscal 2027, potentially affecting the timing and size of customer projects. Nutanix expects a moderately higher percentage of orders to carry future license start dates as customers await server deliveries, and it expects to continue accommodating phased migrations for larger customers.
Management said external storage and NC2 provide offsets to those challenges by enabling customers to move to Nutanix while retaining existing storage hardware or using public-cloud infrastructure. The company also expects cloud-native products, AI offerings, database services and its partner ecosystem to contribute to growth.
Nutanix’s fiscal 2027 outlook includes the impact of a restructuring announced earlier in the month that affected about 5% of its global workforce. The company expects restructuring charges of $33 million to $43 million, including $30 million to $35 million of cash payments in the first quarter. Sivaraman said Nutanix plans to reinvest most resulting savings into Agentic AI, cloud-native products, sales coverage, digital sovereignty investments and other growth areas.
The company also said it plans to offer customers more payment flexibility through third-party financing and annual payment structures. In fiscal 2026, annual-payment arrangements accounted for roughly a double-digit percentage of total contract value bookings, according to Sivaraman.
About Nutanix (NASDAQ:NTNX)Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments.
The company's product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management.
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Should You Invest $1,000 in Nutanix Right Now?Before you consider Nutanix, you'll want to hear this.
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Nutanix Inc (NASDAQ:NTNX) on Wednesday reported better-than-expected results for the fourth quarter of fiscal 2026.
The company’s revenue came in at $757.08 million, versus estimates of $738.08 million. Adjusted earnings came in at 60 cents, versus estimates of 49 cents per share.
"Our fourth quarter was a strong finish to fiscal 2026, a year in which we delivered solid top and bottom line performance and added over 3,000 new customers," said Rajiv Ramaswami, CEO of Nutanix.
Nutanix guided for fiscal first-quarter revenue of $755 million to $765 million versus estimates of $754.72 million. The company further guided for fiscal 2027 revenue of $3.18 billion to $3.23 billion versus estimates of $3.19 billion.
Nutanix shares jumped 6.1% to $69.40 in pre-market trading.
These analysts made changes to their price targets on Nutanix following earnings announcement.
Needham analyst Mike Cikos maintained the stock with a Buy and raised the price target from $60 to $85. Keybanc analyst Brandon Nispel maintained the stock with an Overweight rating and raised the price target from $75 to $79. Morgan Stanley analyst Meta Marshall maintained the stock with an Equal-Weight rating and raised the price target from $55 to $63. Trending
Considering buying NTNX stock? Here’s what analysts think:
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It's been a rough week for Nutanix (NTNX -0.97%) stock. Before today, shares of the cloud stock had closed lower than in each of the previous market sessions. That trend, however, doesn't seem likely to continue. With the company reporting fourth-quarter 2026 financial results and strong fiscal 2027 guidance yesterday after the market closed, investors have found plenty of reason to click the buy button.
As of 10:54 a.m. ET, shares of Nutanix are up 6.9%, retreating from an earlier 13.8% rise.
Image source: Getty Images.
Growing free cash flow is just part of the story Beating analysts' estimates of $738.3 million, Nutanix reported Q4 2026 revenue of $757.1 million, a 16% year-over-year increase. At the bottom of the income statement, the company also exceeded expectations, reporting diluted earnings per share of $0.60 -- better than the $0.49 that analysts anticipated.
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Nutanix also reported stronger free cash flow. In Q4 2026, the company generated $277.6 million in free cash flow, up from $207.8 million in the same period last year.
In addition to the Q4 2026 financial results, management provided an auspicious outlook for fiscal 2027: revenue of $3.18 billion to $3.23 billion and free cash flow of $850 million to $950 million. For fiscal 2026, Nutanix reported revenue and free cash flow of $2.85 billion and $840.7 million, respectively.
What's a cloud investor to do now? While Nutanix's stock is jumping today, those interested in cloud computing stocks haven't missed the boat. Shares of Nutanix are changing hands at 24.8 times operating cash flow -- a valuation that may seem pricey but is, in fact, lower than their five-year average cash flow multiple of 36.4.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Nutanix. The Motley Fool has a disclosure policy.
SAN JOSE, Calif., Aug. 27, 2026 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a hybrid cloud leader and AI innovator, today announced that its management will present at the following upcoming financial community event:
Goldman Sachs Communacopia + Technology Conference
Tuesday, September 8, 2026
2:25 p.m. PDT; 5:25 p.m. EDT A live webcast and replay of the presentation will be accessible on the Nutanix Investor Relations website at ir.nutanix.com
About Nutanix
Nutanix is a hybrid cloud leader and AI innovator, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
Vancouver, British Columbia--(Newsfile Corp. - August 24, 2026) - Carrier Connect Data Solutions Inc. (TSXV: CCDS) (OTCQB: CCDSF) (WKN: A40XB1) (the "Company" or "Carrier"), a data center company on a mission to roll up Tier II/III data centers internationally that specialize in delivering co-location is pleased to announce the appointment of Mr. Aleem Nathwani to lead the Company's Corporate Development efforts, effective immediately.
Mr. Nathwani brings more than 20 years of private and public market experience, with a significant focus on the data center, cloud and technology sectors. Throughout his career, he has been involved with early-stage and growth-stage companies and has held a number of senior positions where he has played pivotal roles in business development, corporate development, commercialization and strategic partnerships.
At TELUS Communications (TSX: T), Mr. Nathwani was involved in the early development and commercialization of the company's data center portfolio, helping drive business development initiatives that contributed to the portfolio scaling to multi-million-dollar revenues.
Mr. Nathwani was also one of the earliest employees at Nutanix (NASDAQ: NTNX), a leader in cloud infrastructure, prior to its initial public offering. During his more than seven years with the data center technology company, he played key roles across business development, sales and channel partnerships during a period of significant growth. During his tenure, Nutanix raised in excess of $300 million in private capital and achieved a valuation in excess of $1 billion prior to becoming a publicly traded company.
Mr. Nathwani commented, "Carrier is at an exciting inflection point, with a significant pipeline of customer demand and a clear opportunity to expand its data center capacity to meet that demand. The Company has built a strong operational platform and an experienced team positioned to scale. I look forward to supporting Carrier's capital markets strategy, expanding key industry relationships and identifying strategic opportunities to accelerate growth and create long-term shareholder value."
Mark Binns, Chief Executive Officer of Carrier, commented, "The addition of Mr. Nathwani comes at an important time as we continue to scale the business and pursue our growth strategy. Aleem brings extensive experience across the public and private capital markets, along with a strong network of institutional investors, strategic partners and industry relationships. His experience in corporate development, capital formation and technology infrastructure will be highly valuable as we evaluate new opportunities, strengthen our access to capital and position Carrier for its next stage of growth. We are very pleased to welcome Aleem to the team."
The Company also announces that it has granted 100,000 incentive stock options (the "Options") to Mr. Nathwani in accordance with its stock option plan. Such Options are exercisable at a price of $1.36 until August 21, 2036 of which 25,000 vest at six months following the date of grant, 25,000 vest at twelve months following the date of grant, 25,000 vest at eighteen months following the date of grant, and 25,000 vest at twenty four months following the date of grant, all subject to applicable hold periods.
About Carrier Connect Data Solutions Inc.
Carrier Connect Data Solutions' mission is to roll up Tier II/III data centers internationally that specialize in delivering co-location and data center solutions to AI companies, service providers, enterprises and small businesses. Data centers are the physical locations that store computing machines and their related hardware equipment, such as servers, data storage drives, and network equipment. As a carrier-neutral organization, Carrier's systems are fully independent and owned outright within its leased space. The current principal markets for the Company are Vancouver, Ottawa and Saint John, Canada, Rochester NY and Perth, Australia, where it serves clients who use its facilities either as their primary data center or as an ancillary site depending on their needs.
ON BEHALF OF THE BOARD OF DIRECTORS
"Mark Binns"
Mark Binns, CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "estimates", "intends", "anticipates", or "believes" or the negative connotation thereof. Such forward-looking information is based on numerous assumptions, including among others, that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward-looking information are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information also involves known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310882
Source: Carrier Connect Data Solutions Inc
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The upcoming report from Nutanix (NTNX - Free Report) is expected to reveal quarterly earnings of $0.48 per share, indicating an increase of 29.7% compared to the year-ago period. Analysts forecast revenues of $737.46 million, representing an increase of 12.9% year over year.
The consensus EPS estimate for the quarter has been revised 3.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Nutanix metrics that are commonly monitored and projected by Wall Street analysts.
Analysts predict that the 'Revenue- Support, maintenance and other services' will reach $356.78 million. The estimate indicates a change of +13.8% from the prior-year quarter.
Analysts forecast 'Revenue- Product' to reach $378.94 million. The estimate indicates a year-over-year change of +11.5%.
Analysts expect 'Disaggregation of Revenue- Professional services revenue' to come in at $38.21 million. The estimate points to a change of +32.3% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Disaggregation of Revenue- Subscription revenue' of $699.92 million. The estimate points to a change of +13.6% from the year-ago quarter.
The combined assessment of analysts suggests that 'Geographic Revenue- Europe, the Middle East and Africa' will likely reach $183.39 million. The estimate suggests a change of +1.5% year over year.
The average prediction of analysts places 'Geographic Revenue- U.S.' at $413.80 million. The estimate suggests a change of +13.9% year over year.
Based on the collective assessment of analysts, 'Geographic Revenue- Other Americas' should arrive at $22.42 million. The estimate indicates a year-over-year change of +93.7%.
It is projected by analysts that the 'Annual Recurring Revenue (ARR)' will reach $2.51 billion. The estimate is in contrast to the year-ago figure of $2.22 billion.
View all Key Company Metrics for Nutanix here>>>
Nutanix shares have witnessed a change of +26% in the past month, in contrast to the Zacks S&P 500 composite's +2.8% move. With a Zacks Rank #1 (Strong Buy), NTNX is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Nutanix (NTNX - Free Report) closed at $66.33 in the latest trading session, marking a +1.39% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.87%. Elsewhere, the Dow lost 1.32%, while the tech-heavy Nasdaq lost 1%.
The enterprise cloud platform services provider's shares have seen an increase of 22.6% over the last month, surpassing the Computer and Technology sector's gain of 3.23% and the S&P 500's gain of 3.48%.
Investors will be eagerly watching for the performance of Nutanix in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 26, 2026. The company's upcoming EPS is projected at $0.48, signifying a 29.73% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $737.46 million, indicating a 12.89% upward movement from the same quarter last year.
NTNX's full-year Zacks Consensus Estimates are calling for earnings of $1.93 per share and revenue of $2.83 billion. These results would represent year-over-year changes of +19.14% and +11.57%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nutanix. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.1% higher within the past month. Nutanix is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Nutanix is holding a Forward P/E ratio of 30.08. This signifies a premium in comparison to the average Forward P/E of 13.65 for its industry.
Investors should also note that NTNX has a PEG ratio of 1.87 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.23.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Nutanix (NTNX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Nutanix currently has an average brokerage recommendation (ABR) of 1.94, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 17 brokerage firms. An ABR of 1.94 approximates between Strong Buy and Buy.
Of the 17 recommendations that derive the current ABR, eight are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 47.1% and 11.8% of all recommendations.
Brokerage Recommendation Trends for NTNX
Check price target & stock forecast for Nutanix here>>>
While the ABR calls for buying Nutanix, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in NTNX?Looking at the earnings estimate revisions for Nutanix, the Zacks Consensus Estimate for the current year has increased 3.1% over the past month to $1.93.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nutanix. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nutanix may serve as a useful guide for investors.
Nutanix and ChronoScale plan to integrate their platforms so enterprises can extend into ChronoScale GPU-as-a-Service, pre-paid inference tokens through ChronoScale Token Factory, and a locally-deployed ChronoScale Foundry for enterprise agentic AI workflowsChronoScale to leverage Nutanix Agentic AI software solution for neoclouds to deliver broad portfolio of accelerated compute and AI servicesCollaboration extends to go-to-market, joint solution development, technical integration, and customer engagement programs SAN JOSE, Calif. and Menlo Park, Calif., Aug. 18, 2026 (GLOBE NEWSWIRE) -- Nutanix (NASDAQ: NTNX), a hybrid cloud leader and AI innovator, and ChronoScale Holdings Corporation (NASDAQ: CHRN), an accelerated compute platform purpose-built to support demanding artificial intelligence workloads, today announced a strategic partnership to jointly deliver enterprise-ready AI infrastructure and help accelerate adoption of AI services across global markets.
The partnership brings together complementary capabilities enterprise customers have historically had to assemble themselves — combining Nutanix's full portfolio of agentic AI solutions with ChronoScale's accelerated compute, enterprise AI foundry, and outcome-driven delivery model.
ChronoScale and Nutanix Platform Integration
ChronoScale plans to leverage Nutanix software within its AI infrastructure platform to help deliver a broad portfolio of accelerated compute and AI services. The parties expect Nutanix software to help support customer onboarding, tenant management, service automation, virtualized infrastructure, managed Kubernetes environments, and advanced AI service offerings. ChronoScale's platform is designed to support a broad ecosystem of technology partners. The companies also intend to jointly maintain demonstration and proof-of-concept environments to support customer evaluations and accelerate adoption of agentic AI solutions in the enterprise.
Extended GPU capacity, on-premises and beyond
ChronoScale plans to extend the Nutanix on-premises cloud footprint with elastic access to modern GPU capacity. Customers are expected to be able to procure reserved capacity through ChronoScale GPU-as-a-Service (GPUaaS) for predictable workloads, or draw on ChronoScale Token Factory — pre-paid inference tokens backed by leading open-source models — for burst and experimental workloads. The parties intend to integrate both offerings with the Nutanix enterprise AI offerings, including Agent Gateway and Private Inferencing, with the goal of providing customers a single control plane across their on-premises environment and ChronoScale capacity.
ChronoScale Foundry, delivered through Nutanix
Nutanix will enable the deployment of ChronoScale Foundry, an enterprise AI foundry, inside the customer's own environment, giving enterprises a managed platform to build, run, and govern agentic workflows locally. Agents, enterprise data, and workflow state remain within the customer's boundary. Enterprise customers are expected to be able to deploy Foundry directly through the Nutanix Kubernetes Platform Catalog, extending Nutanix's AI portfolio into managed agentic workloads.
The partnership is designed to help enterprises globally deploy production-scale AI environments faster, with greater operational simplicity, sovereignty, security, and scalability.
The partnership being announced today is underpinned by the strategic relationship and technology partnership that both ChronoScale and Nutanix have with NVIDIA. Chronoscale is an NVIDIA Cloud Partner (NCP), delivering an accelerated computing platform, built and optimized using NVIDIA-validated reference designs to deliver consistent performance at scale. Nutanix is an NVIDIA technology partner and ISV that has a suite of NVIDIA validated software to operate enterprise AI factories.
Together, ChronoScale and Nutanix intend to deliver an integrated platform built on NVIDIA AI economics that is designed to reduce operational complexity and accelerate time-to-value for enterprises adopting AI at scale. ChronoScale plans to deploy NVIDIA HGX B300 systems interconnected via NVIDIA Spectrum-X networking and NVIDIA AI Enterprise software, including NVIDIA NIM microservices and NVIDIA NeMo to deliver a production-ready stack.
Executive Commentary
"The next phase of AI is about making enterprise-grade infrastructure easier to consume and faster to deploy. This partnership with Nutanix brings together two complementary strengths — Nutanix's proven cloud platform and ChronoScale's accelerated compute, AI services, and Enterprise AI Foundry — to give customers a shorter, more sovereign path to production AI. It is an important milestone in our mission to become the platform where the global AI ecosystem converges."
"Organizations are looking for a simpler path to deploying AI at scale. ChronoScale is building an impressive global AI infrastructure platform designed for the demands of modern AI workloads. Together, we will help enterprises accelerate their AI transformation by combining high-performance infrastructure with the operational simplicity, flexibility, and security that Nutanix delivers."
— Tarkan Maner, President and Chief Commercial Officer, Nutanix
The partnership also establishes a framework that includes joint marketing activities, sales enablement, technical collaboration, joint solution development, and customer engagement programs. Nutanix and ChronoScale intend to work together to target Global 2000 organizations and other enterprise customers seeking scalable AI infrastructure and sovereign AI services. The companies intend to jointly maintain demonstration and proof-of-concept environments to support customer evaluations and accelerate enterprise adoption of Agentic AI solutions. The partnership is expected to be implemented through one or more definitive agreements.
About ChronoScale
ChronoScale Holdings Corporation (NASDAQ: CHRN) is an accelerated compute platform purpose-built to support demanding artificial intelligence workloads. Focused on large-scale deployments, ChronoScale delivers dedicated compute environments — including GPU-as-a-Service, Token Factory, and the ChronoScale Foundry for enterprise agentic AI — optimized for performance, sovereignty, and long-term operational execution, with the ability to scale capacity alongside accelerating AI demand.
About Nutanix
Nutanix is a hybrid cloud leader and AI innovator, offering organizations a unified infrastructure software platform to safely run applications, data, and AI anywhere. Trusted by customers worldwide, Nutanix empowers more than 50% of the Global 2000 to innovate faster with AI, while modernizing infrastructure, simplifying operations, and controlling costs. Learn more at www.nutanix.com or follow us on social media.
ChronoScale Forward-Looking Statements
Statements in this Press Release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to: statements regarding the Company, its plans and objectives and anticipated future economic performance; statements about the cloud compute industry; statements regarding the Company's ability to expand capacity and meet accelerating demand; statements regarding future leadership of the Company; and statements of assumptions underlying other statements and statements about the Company or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations. These risks, uncertainties, and other factors include: limitations on the Company's ability to attract and retain key personnel, including executive officers and Board members of the Company; customer concentration, and an inability to renew existing customer agreements; the success of the Company's risk management activities, including any failure by the Company to implement and maintain effective internal controls; litigation, including the potential litigation concerning the business combination; cash flow and access to capital; conditions in the debt and equity capital markets; slower than anticipated growth in the cloud compute industry; uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the SEC on February 23, 2026, as amended on April 10, 2026, subsequently filed Quarterly Reports on Form 10-Q, the definitive Information Statement on Schedule 14C filed with the SEC on April 3, 2026, and the risks described in other filings that the Company may make from time to time with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by applicable law.
Nutanix Forward-Looking Statements
This press release contains express and implied forward-looking statements, including but not limited to statements regarding the referenced partnership; planned technical integrations; future products, services, and offerings; anticipated customer benefits; joint go-to-market activities; referral arrangements; customer adoption; the timing and availability of future solutions; and the parties' ability to successfully negotiate, execute, and implement definitive agreements relating to the contemplated collaboration. These forward-looking statements are based on Nutanix's current expectations, estimates, assumptions and projections and involve risks and uncertainties that could cause actual results to differ materially. Actual results may differ materially due to a number of factors, including the parties' ability to negotiate and enter into definitive agreements, complete anticipated integration efforts, develop and deliver contemplated functionality, successfully execute go-to-market activities, achieve customer adoption, and realize the anticipated benefits of the collaboration, and other risks and uncertainties described in Nutanix’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10‑K for the fiscal year ended July 31, 2025 and subsequent Quarterly Reports on Form 10‑Q and other filings. These forward‑looking statements speak only as of the date of this press release, and Nutanix undertakes no obligation to update or revise any forward‑looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Many of the anticipated products, services, integrations, offerings, features and functionalities described herein remain in various stages of planning, development, testing and implementation and will be offered on a when-and-if-available basis. The development, release, and timing of any such products, features or functionalities are subject to change. Nutanix will not have any liability arising from reliance on this press release for any failure to deliver, or delay in the delivery of, any such products, features or functionalities. Any future product or product feature information is intended to outline general product directions, and is not a commitment, promise or legal obligation for Nutanix to deliver any functionality. This information should not be used when making a purchasing decision.
ChronoScale Investor Relations & Media Contacts
Matt Glover or Ralf Esper
Gateway Group, Inc.
+1 949 574 3860 [email protected]
Nutanix, Inc. is rated a constructive Hold, with valuation and decelerating growth tempering near-term upside despite resilient fundamentals. Current catalysts - VMware migrations, deferred revenue, and AI partnerships - are positive but insufficient to offset slowing core growth or justify a Buy. NTNX stock valuation has rebounded to near historical averages (~5.4x EV/forward revenue), removing the prior deep value opportunity but not enabling a high-conviction Buy.
Handelsbanken Fonder AB raised its stake in shares of Nutanix (NASDAQ: NTNX) by 12.3% during the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 78,800 shares of the technology company's stock after purchasing an additional 8,600 shares during the
Nutanix (NTNX - Free Report) closed at $66.61 in the latest trading session, marking a -1.98% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.28%.
The enterprise cloud platform services provider's stock has climbed by 21.67% in the past month, exceeding the Computer and Technology sector's gain of 4.05% and the S&P 500's gain of 3.84%.
Analysts and investors alike will be keeping a close eye on the performance of Nutanix in its upcoming earnings disclosure. The company's earnings report is set to go public on August 26, 2026. It is anticipated that the company will report an EPS of $0.48, marking a 29.73% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $737.46 million, up 12.89% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.91 per share and a revenue of $2.83 billion, signifying shifts of +17.9% and +11.57%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% higher. Right now, Nutanix possesses a Zacks Rank of #2 (Buy).
Investors should also note Nutanix's current valuation metrics, including its Forward P/E ratio of 31.49. This represents a premium compared to its industry average Forward P/E of 13.76.
One should further note that NTNX currently holds a PEG ratio of 1.96. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 1.19 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
The hybrid multicloud platform vendor- NTNX, which has outperformed its software and cloud computing peers by 1.5-1.8x since April, is due to announce Q4 results on the 26th of August. I expect Q4 revenue to likely beat consensus by around 2.4-4%, but supply chain constraints and hardware lead times may continue to delay revenue recognition and FCF generation. Operating margins may be volatile near-term due to hiring and restructuring, with FY27 guidance likely to prioritize revenue growth over margin expansion.
Nutanix (NTNX - Free Report) ended the recent trading session at $60.12, demonstrating a -1.38% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq lost 0.06%.
Shares of the enterprise cloud platform services provider have appreciated by 13.03% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.48%, and the S&P 500's gain of 3.33%.
Investors will be eagerly watching for the performance of Nutanix in its upcoming earnings disclosure. The company is expected to report EPS of $0.48, up 29.73% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $737.46 million, showing a 12.89% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.91 per share and revenue of $2.83 billion, indicating changes of +17.9% and +11.57%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nutanix. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. Right now, Nutanix possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 28.25. This denotes a premium relative to the industry average Forward P/E of 14.29.
Meanwhile, NTNX's PEG ratio is currently 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.15.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nutanix (NTNX - Free Report) .
Nutanix currently has an average brokerage recommendation (ABR) of 1.94, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 17 brokerage firms. An ABR of 1.94 approximates between Strong Buy and Buy.
Of the 17 recommendations that derive the current ABR, eight are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 47.1% and 11.8% of all recommendations.
Brokerage Recommendation Trends for NTNX
Check price target & stock forecast for Nutanix here>>>
While the ABR calls for buying Nutanix, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is NTNX Worth Investing In?Looking at the earnings estimate revisions for Nutanix, the Zacks Consensus Estimate for the current year has increased 0.4% over the past month to $1.91.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nutanix. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nutanix may serve as a useful guide for investors.
Nutanix (NTNX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this enterprise cloud platform services provider have returned +15.9%, compared to the Zacks S&P 500 composite's +1.9% change. During this period, the Zacks Computers - IT Services industry, which Nutanix falls in, has gained 10.6%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Nutanix is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of +29.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $1.91 for the current fiscal year indicates a year-over-year change of +17.9%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.16 indicates a change of +12.9% from what Nutanix is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Nutanix.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Nutanix, the consensus sales estimate of $737.46 million for the current quarter points to a year-over-year change of +12.9%. The $2.83 billion and $3.18 billion estimates for the current and next fiscal years indicate changes of +11.6% and +12.4%, respectively.
Last Reported Results and Surprise HistoryNutanix reported revenues of $703.07 million in the last reported quarter, representing a year-over-year change of +10%. EPS of $0.47 for the same period compares with $0.42 a year ago.
Compared to the Zacks Consensus Estimate of $685.75 million, the reported revenues represent a surprise of +2.53%. The EPS surprise was +34.29%.
Over the last four quarters, Nutanix surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Nutanix is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Nutanix. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Arrowstreet Capital Limited Partnership lifted its holdings in shares of Nutanix (NASDAQ:NTNX – Free Report) by 628.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,185,120 shares of the technology company’s stock after purchasing an additional 1,022,516 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.45% of Nutanix worth $45,046,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also modified their holdings of the company. Vanguard Group Inc. boosted its holdings in Nutanix by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 27,514,943 shares of the technology company’s stock worth $1,422,247,000 after purchasing an additional 832,468 shares in the last quarter. AQR Capital Management LLC increased its position in Nutanix by 72.8% during the fourth quarter. AQR Capital Management LLC now owns 11,452,714 shares of the technology company’s stock worth $591,991,000 after buying an additional 4,826,443 shares during the last quarter. Geode Capital Management LLC raised its holdings in Nutanix by 2.6% during the fourth quarter. Geode Capital Management LLC now owns 5,283,964 shares of the technology company’s stock valued at $272,452,000 after buying an additional 135,533 shares in the last quarter. FIL Ltd raised its holdings in Nutanix by 180.1% during the fourth quarter. FIL Ltd now owns 4,333,937 shares of the technology company’s stock valued at $224,021,000 after buying an additional 2,786,929 shares in the last quarter. Finally, First Trust Advisors LP lifted its position in shares of Nutanix by 14.0% in the fourth quarter. First Trust Advisors LP now owns 3,647,276 shares of the technology company’s stock worth $188,528,000 after buying an additional 447,806 shares during the last quarter. Institutional investors and hedge funds own 85.25% of the company’s stock.
Analyst Upgrades and Downgrades Several analysts have recently issued reports on NTNX shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Nutanix in a research note on Wednesday, June 24th. KeyCorp reissued an “overweight” rating on shares of Nutanix in a research note on Thursday, May 28th. Wells Fargo & Company boosted their target price on Nutanix from $50.00 to $55.00 and gave the stock an “equal weight” rating in a report on Thursday, May 28th. UBS Group upped their target price on Nutanix from $60.00 to $62.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Nutanix in a report on Thursday, May 28th. Ten analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $60.00.
Get Our Latest Stock Report on Nutanix
Nutanix Price Performance Shares of NTNX opened at $56.85 on Tuesday. The company has a market capitalization of $15.37 billion, a PE ratio of 59.84, a price-to-earnings-growth ratio of 4.85 and a beta of 0.61. Nutanix has a one year low of $34.01 and a one year high of $82.42. The company’s fifty day moving average price is $51.13 and its 200 day moving average price is $44.95.
Nutanix (NASDAQ:NTNX – Get Free Report) last released its quarterly earnings results on Wednesday, May 27th. The technology company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.12. The company had revenue of $703.07 million during the quarter, compared to analysts’ expectations of $686.34 million. Nutanix had a net margin of 10.03% and a negative return on equity of 38.96%. The business’s quarterly revenue was up 10.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.22 earnings per share. Analysts anticipate that Nutanix will post 0.71 earnings per share for the current year.
About Nutanix (Free Report)
Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments.
The company’s product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management.
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Entropy Technologies LP acquired a new stake in Nutanix (NASDAQ:NTNX – Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 58,192 shares of the technology company’s stock, valued at approximately $2,212,000.
Several other institutional investors and hedge funds also recently made changes to their positions in NTNX. Utah Retirement Systems boosted its position in Nutanix by 0.6% during the 4th quarter. Utah Retirement Systems now owns 42,355 shares of the technology company’s stock worth $2,189,000 after buying an additional 257 shares during the period. International Assets Investment Management LLC increased its position in Nutanix by 5.8% in the 1st quarter. International Assets Investment Management LLC now owns 4,700 shares of the technology company’s stock valued at $179,000 after acquiring an additional 259 shares during the period. Asset Management One Co. Ltd. increased its position in Nutanix by 0.3% in the 4th quarter. Asset Management One Co. Ltd. now owns 93,016 shares of the technology company’s stock valued at $4,868,000 after acquiring an additional 260 shares during the period. Summit Securities Group LLC raised its stake in shares of Nutanix by 26.4% during the fourth quarter. Summit Securities Group LLC now owns 1,356 shares of the technology company’s stock valued at $70,000 after acquiring an additional 283 shares during the last quarter. Finally, Covestor Ltd raised its stake in shares of Nutanix by 73.1% during the fourth quarter. Covestor Ltd now owns 767 shares of the technology company’s stock valued at $40,000 after acquiring an additional 324 shares during the last quarter. Institutional investors and hedge funds own 85.25% of the company’s stock.
Nutanix Stock Performance Shares of NTNX opened at $55.04 on Monday. The firm has a market cap of $14.88 billion, a PE ratio of 57.94, a price-to-earnings-growth ratio of 4.85 and a beta of 0.61. Nutanix has a 52-week low of $34.01 and a 52-week high of $82.42. The business’s 50 day moving average price is $50.94 and its two-hundred day moving average price is $44.92.
Nutanix (NASDAQ:NTNX – Get Free Report) last announced its quarterly earnings data on Wednesday, May 27th. The technology company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.35 by $0.12. The company had revenue of $703.07 million during the quarter, compared to the consensus estimate of $686.34 million. Nutanix had a net margin of 10.03% and a negative return on equity of 38.96%. The company’s quarterly revenue was up 10.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.22 EPS. Research analysts predict that Nutanix will post 0.71 EPS for the current fiscal year.
Wall Street Analyst Weigh In Several analysts recently weighed in on NTNX shares. The Goldman Sachs Group reissued a “buy” rating on shares of Nutanix in a research note on Thursday, May 28th. Royal Bank Of Canada raised their target price on Nutanix from $55.00 to $58.00 and gave the stock an “outperform” rating in a research report on Thursday, May 28th. Rosenblatt Securities reaffirmed a “buy” rating and set a $60.00 target price on shares of Nutanix in a report on Friday, May 29th. Piper Sandler reaffirmed an “overweight” rating on shares of Nutanix in a report on Wednesday, June 24th. Finally, Morgan Stanley upped their price target on Nutanix from $53.00 to $55.00 and gave the company an “equal weight” rating in a research report on Thursday, May 28th. Ten analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Nutanix has an average rating of “Moderate Buy” and a consensus price target of $60.00.
Check Out Our Latest Stock Report on Nutanix
Nutanix Profile (Free Report)
Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments.
The company’s product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management.
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California Public Employees Retirement System lifted its stake in Nutanix (NASDAQ:NTNX – Free Report) by 7.4% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 551,375 shares of the technology company’s stock after purchasing an additional 38,153 shares during the period. California Public Employees Retirement System owned 0.21% of Nutanix worth $20,958,000 at the end of the most recent reporting period.
A number of other institutional investors also recently bought and sold shares of NTNX. AQR Capital Management LLC lifted its position in Nutanix by 72.8% during the fourth quarter. AQR Capital Management LLC now owns 11,452,714 shares of the technology company’s stock valued at $591,991,000 after purchasing an additional 4,826,443 shares in the last quarter. Norges Bank purchased a new stake in Nutanix in the fourth quarter worth about $187,169,000. FIL Ltd increased its position in Nutanix by 180.1% in the fourth quarter. FIL Ltd now owns 4,333,937 shares of the technology company’s stock worth $224,021,000 after buying an additional 2,786,929 shares in the last quarter. Alyeska Investment Group L.P. raised its stake in shares of Nutanix by 926.8% in the fourth quarter. Alyeska Investment Group L.P. now owns 2,687,387 shares of the technology company’s stock worth $138,911,000 after buying an additional 2,425,665 shares during the period. Finally, Victory Capital Management Inc. raised its stake in shares of Nutanix by 592.3% in the fourth quarter. Victory Capital Management Inc. now owns 1,601,351 shares of the technology company’s stock worth $82,774,000 after buying an additional 1,370,047 shares during the period. 85.25% of the stock is owned by institutional investors.
Nutanix Trading Down 1.5% Shares of NTNX opened at $53.36 on Thursday. The business’s 50 day moving average is $50.62 and its 200 day moving average is $44.87. Nutanix has a 12-month low of $34.01 and a 12-month high of $82.42. The company has a market capitalization of $14.42 billion, a PE ratio of 56.17, a price-to-earnings-growth ratio of 4.78 and a beta of 0.61.
Nutanix (NASDAQ:NTNX – Get Free Report) last posted its quarterly earnings results on Wednesday, May 27th. The technology company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.12. Nutanix had a negative return on equity of 38.96% and a net margin of 10.03%.The business had revenue of $703.07 million during the quarter, compared to the consensus estimate of $686.34 million. During the same period in the prior year, the company posted $0.22 EPS. The firm’s revenue for the quarter was up 10.0% compared to the same quarter last year. Equities research analysts predict that Nutanix will post 0.71 earnings per share for the current year.
Analysts Set New Price Targets A number of brokerages recently issued reports on NTNX. UBS Group boosted their price objective on Nutanix from $60.00 to $62.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Needham & Company LLC raised their target price on shares of Nutanix from $55.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. KeyCorp restated an “overweight” rating on shares of Nutanix in a research note on Thursday, May 28th. Wells Fargo & Company lifted their price target on shares of Nutanix from $50.00 to $55.00 and gave the company an “equal weight” rating in a report on Thursday, May 28th. Finally, Northland Securities set a $47.00 price target on shares of Nutanix in a research report on Thursday, May 28th. Ten analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $60.00.
Read Our Latest Report on Nutanix
About Nutanix (Free Report)
Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments.
The company’s product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management.
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Nutanix (NTNX - Free Report) closed at $54.19 in the latest trading session, marking a -1.67% move from the prior day. This change lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
Heading into today, shares of the enterprise cloud platform services provider had gained 18.24% over the past month, outpacing the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
Investors will be eagerly watching for the performance of Nutanix in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.48, signifying a 29.73% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $737.46 million, indicating a 12.89% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.91 per share and revenue of $2.83 billion, indicating changes of +17.9% and +11.57%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Nutanix is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Nutanix currently has a Forward P/E ratio of 28.84. This represents a premium compared to its industry average Forward P/E of 12.98.
One should further note that NTNX currently holds a PEG ratio of 1.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 0.99.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Nutanix (NTNX - Free Report) San Jose, CA-based Nutanix Inc. provides enterprise cloud operating system that combines server, storage, virtualization and networking software into one integrated solution. Nutanix’s solution can be delivered either as an appliance that is configured to order or as software only. The company currently offers two software product families — Acropolis and Prism.
NTNX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. NTNX has a Growth Style Score of A, forecasting year-over-year earnings growth of 17.9% for the current fiscal year.
For fiscal 2026, 13 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.10 to $1.91 per share. NTNX boasts an average earnings surprise of +19.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, NTNX should be on investors' short list.
In the latest close session, Nutanix (NTNX - Free Report) was down 1.6% at $54.58. This change lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.62%.
Shares of the enterprise cloud platform services provider witnessed a gain of 14.8% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.53%, and the S&P 500's gain of 1.61%.
The upcoming earnings release of Nutanix will be of great interest to investors. The company is predicted to post an EPS of $0.48, indicating a 29.73% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $737.46 million, up 12.89% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.91 per share and a revenue of $2.83 billion, demonstrating changes of +17.9% and +11.57%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nutanix presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 29.03. For comparison, its industry has an average Forward P/E of 12.97, which means Nutanix is trading at a premium to the group.
Meanwhile, NTNX's PEG ratio is currently 1.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 0.99.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
