Nutanix (NTNX) AI Stock Analysis

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Nutanix

(BMV:NTNX)

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Positive Factors

Recurring Revenue GrowthStrong ARR growth and broad customer additions support a durable subscription base and demonstrate continued platform adoption. Expansion across customer tiers, including Global 2000 accounts, can improve renewal potential and create opportunities to sell additional modules over time.

Negative Factors

Elevated LeverageElevated leverage reduces financial flexibility relative to a largely software-based business and can constrain capital allocation if operating performance weakens. It also increases sensitivity to refinancing conditions, making sustained profitability and cash generation important for preserving balance-sheet resilience.

Nutanix (NTNX) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 16.17B
Dividend Yield: ―
Average Volume (3M): 182
Price to Earnings (P/E): 10.6
Beta (1Y): -0.11
Revenue Growth: 12.44%
EPS Growth: 692.05%
Country: Mexico
Employees: 8,350
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

Nutanix Business Overview & Revenue Model

Company Description

Operating across North America, Europe, the Asia Pacific region, the Middle East, Latin America, and Africa, Nutanix, Inc. delivers an enterprise cloud platform. Its foundational Acropolis platform integrates virtualization, enterprise-grade storage,...

Nutanix Earnings Call Summary

Earnings Call Date:Aug 26, 2026(Q4-2026)|% Change Since:15.89%|Next Earnings Date:Nov 24, 2026

Earnings Call SentimentPositive

The call reported multiple strong operational and financial outcomes — record quarterly revenue, double‑digit ARR and revenue growth, robust free cash flow, strong bookings and large deal wins, and momentum in AI, external storage and public cloud offerings. Management acknowledges meaningful headwinds from ongoing server supply constraints, higher hardware prices, and the near‑term impact of restructuring and payment flexibility on cash flow and timing. However, FY27 guidance shows continued growth and margin improvement while incorporating conservative assumptions for supply challenges and payment mix. Overall, the positives (record results, strong cash generation, product and partnership momentum, and constructive guidance) outweigh the headwinds tied largely to external supply dynamics and one‑time items.

Positive Updates

Record Quarterly and Strong Full-Year Revenue

Q4 revenue was a record $757M (above guided $725M–$745M). Fiscal 2026 revenue was $2.854B, up 12% year‑over‑year.

Negative Updates

Ongoing Server Supply Constraints and Higher Hardware Prices

Management expects server supply constraints and elevated server prices to continue through FY27, potentially impacting project sizing and timing and resulting in more orders with future start dates.

Company Guidance

Nutanix guided Q1 FY27 revenue of $755–765M with non‑GAAP operating margin of 26–28% and fully diluted weighted average shares of ~294M; for full‑year FY27 it guided revenue of $3.18–3.23B (≈12% y/y at the midpoint), non‑GAAP operating margin of 24–25%, and free cash flow of $850–950M (implying a ~28% free cash flow margin at the midpoint). The guidance reflects assumptions of continued server supply constraints (a moderately higher percentage of orders with future start dates), a renewals ACV pool that grows y/y but more slowly, average contract duration flat to slightly higher, and more payment‑plan flexibility (third‑party financing/annual payments) baked into cash flow; it also incorporates $33–43M of nonrecurring restructuring charges (≈5% workforce reduction) with $30–35M cash paid in Q1.

Nutanix Risk Analysis

Nutanix disclosed 62 risk factors in its most recent earnings report. Nutanix reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

2 New Risks

1.Servicing and repaying our debt, including the 2027 Notes and 2029 Notes and any borrowings under the Revolver, may require a significant amount of cash, and we may not have sufficient cash to pay our indebtedness.Q1, 2025

2.Our revolving credit facility contains a financial covenant and other covenants that may restrict our actions, and a failure to comply with these covenants could have a material adverse effect on our financial condition.Q1, 2025

Nutanix Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:NTNX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSFT	80Outperform	$3.96T	27.77	33.21%	0.68%	17.91%	36.06%
RBRK	70Outperform	$22.67B	-86.09	50.26%	―	42.45%	46.36%
ORCL	64Neutral	$356.74B	18.20	42.58%	1.70%	21.62%	45.95%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DOCN	58Neutral	$9.38B	189.33	4.27%	―	27.63%	-84.88%
RXT	45Neutral	$704.97M	-4.65	11.57%	―	-1.80%	46.47%

* Technology Sector Average

Performance Comparison

MX:NTNX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:NTNX	Nutanix Inc	1294.49	-95.84	-6.89%
MSFT	Microsoft	533.16	26.19	5.17%
ORCL	Oracle Corporation	117.98	-106.01	-47.33%
RXT	Rackspace Technology, Inc.	2.68	1.49	125.21%
DOCN	Digitalocean Holdings, Inc.	79.52	31.15	64.40%
RBRK	Rubrik, Inc. Class A	109.34	35.39	47.86%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Nutanix AI Stock Analysis