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Nutanix
(NASDAQ:NTNX)
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Rating:77Outperform
Price Target:
$74.00
▲(11.38% Upside)
Action:Reiterated
Date:08/27/26
The score is driven primarily by strong financial momentum and cash generation alongside constructive FY27 guidance (continued growth, margin expansion, and strong free-cash-flow outlook). Technicals also support the view with a clear uptrend. Offsetting factors are balance-sheet leverage and the risk that recent GAAP profitability was aided by non-recurring items, plus ongoing server supply constraints that can create revenue timing lumpiness.
Positive Factors
Recurring Revenue Expansion
Strong ARR growth and broad customer additions support a durable subscription base. Expansion across enterprise tiers, including Global 2000 customers, can improve renewal visibility and create opportunities to sell additional platform modules over time.
Negative Factors
Elevated Leverage
Leverage remains high relative to the company’s equity base and limits financial flexibility. If profitability weakens or refinancing conditions tighten, debt obligations could constrain investment, cash deployment and the ability to absorb operational setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Expansion
Strong ARR growth and broad customer additions support a durable subscription base. Expansion across enterprise tiers, including Global 2000 customers, can improve renewal visibility and create opportunities to sell additional platform modules over time.
Read all positive factors
Nutanix Key Performance Indicators (KPIs)
Any
Revenue by Geography
Details how much revenue comes from each region, highlighting where Nutanix captures market share and where it may face headwinds. Tracking regional trends helps assess the company’s international expansion, customer concentration, and sensitivity to local demand or regulatory changes.
Details how much revenue comes from each region, highlighting where Nutanix captures market share and where it may face headwinds. Tracking regional trends helps assess the company’s international expansion, customer concentration, and sensitivity to local demand or regulatory changes.
Data provided by:
The Fly
The FlyNutanix (NTNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.68B
Dividend YieldN/A
Average Volume (3M)3.49M
Price to Earnings (P/E)12.5
Beta (1Y)1.15
Revenue Growth12.44%
EPS Growth692.05%
CountryUS
Employees7,800
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)5.57
Shares Outstanding270,320,500
10 Day Avg. Volume2,401,275
30 Day Avg. Volume3,493,411
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)22.73
Price to Sales (P/S)5.60
P/FCF Ratio18.99
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$75.38Price Target Upside13.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)2.2
Revenue Forecast (FY)$3.20B
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 stora...
How the Company Makes Money
Nutanix makes money primarily by selling subscriptions to its enterprise software platform and related services. The company’s core revenue stream is software subscription revenue, typically sold on a term basis and priced by factors such as the n...
Nutanix Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q4-2026 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
84
Very Positive
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.85B | 2.54B | 2.15B | 1.86B | 1.58B |
| Gross Profit | 2.48B | 2.20B | 1.82B | 1.53B | 1.26B |
| EBITDA | 400.56M | 292.73M | 141.26M | -93.08M | -631.00M |
| Net Income | 1.51B | 188.37M | -124.78M | -254.56M | -797.54M |
Balance Sheet | |||||
| Total Assets | 5.07B | 3.28B | 2.14B | 2.53B | 2.37B |
| Cash, Cash Equivalents and Short-Term Investments | 2.36B | 1.99B | 994.34M | 1.44B | 1.32B |
| Total Debt | 1.52B | 1.48B | 695.22M | 1.33B | 1.44B |
| Total Liabilities | 4.37B | 3.98B | 2.87B | 3.23B | 3.17B |
| Stockholders Equity | 702.57M | -694.52M | -728.15M | -707.42M | -800.50M |
Cash Flow | |||||
| Free Cash Flow | 840.67M | 750.17M | 597.68M | 207.00M | 18.48M |
| Operating Cash Flow | 916.69M | 821.46M | 672.93M | 272.40M | 67.54M |
| Investing Cash Flow | -435.85M | -951.69M | 529.59M | -49.78M | -54.19M |
| Financing Cash Flow | -473.03M | 244.09M | -1.06B | -112.71M | 103.64M |
Nutanix Technical Analysis
Positive
66.44
Price Trends
57.62
Positive
51.30
Positive
48.83
Positive
Market Momentum
2.87
Positive
71.32
Negative
37.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTNX, the sentiment is Positive. The current price of 66.44 is above the 20-day moving average (MA) of 64.63, above the 50-day MA of 57.62, and above the 200-day MA of 48.83, indicating a bullish trend. The MACD of 2.87 indicates Positive momentum. The RSI at 71.32 is Negative, neither overbought nor oversold. The STOCH value of 37.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTNX.
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 0 New Risks
Nutanix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $23.36B | 102.31 | 3.59% | ― | 11.22% | 74.46% | |
77 Outperform | $17.68B | 12.54 | -37.79% | ― | 12.44% | 692.05% | |
77 Outperform | $12.10B | 14.26 | 660.95% | ― | 7.50% | 18.20% | |
73 Outperform | $32.66B | -1,225.54 | -0.99% | ― | 23.64% | 68.36% | |
71 Outperform | $27.54B | -390.21 | -3.71% | ― | 24.61% | -91.58% | |
66 Neutral | $19.79B | -84.27 | 55.24% | ― | 45.73% | 48.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Nutanix Corporate Events
Business Operations and Strategy
Nutanix Announces Workforce Reduction to Streamline Operations
Negative
Aug 4, 2026
On August 4, 2026, Nutanix, Inc. said it plans to cut about 5% of its global workforce after reviewing its business structure. The company aims to streamline and realign its organization, boost operational efficiency and agility, and shift resourc...
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.