Nutanix (NASDAQ:NTNX) Announces Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Nutanix (NASDAQ:NTNX) released its quarterly earnings data on Wednesday. The technology company reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.49 by $0.11, FiscalAI reports. Nutanix had a net margin of 52.81% and a negative return on equity of 46.26%. The firm had revenue of $757.08 million for the quarter, compared to analyst estimates of $738.27 million. During the same quarter in the prior year, the business earned $0.37 earnings per share. Nutanix’s quarterly revenue was up 15.9% on a year-over-year basis.

Here are the key takeaways from Nutanix’s conference call:

• Strong FY2026 finish: Q4 revenue reached a record $757 million, while full-year revenue rose 12% to $2.85 billion and ARR grew 16% to $2.55 billion. Full-year free cash flow was $841 million, representing a 29% margin.
• External storage and NC2 gained momentum: Nutanix reported sharp quarter-over-quarter increases in bookings for external storage and its NC2 public-cloud offering, including several seven-figure deals. Management expects these offerings to be significant growth contributors in FY2027 by allowing customers to retain existing hardware or shift workloads to public clouds.
• Broadening product opportunity: The company cited strength in Kubernetes, database management, AI offerings, and partnerships with AMD, NVIDIA, major hyperscalers, storage vendors, and NeoCloud providers. Management expects cloud-native, AI, external-storage, and portfolio products to grow faster than the overall business, albeit from smaller bases.
• FY2027 outlook calls for continued growth: Nutanix guided to revenue of $3.18 billion-$3.23 billion, or 12% growth at the midpoint, with a 24%-25% non-GAAP operating margin and $850 million-$950 million of free cash flow. The forecast assumes elevated server lead times and prices throughout the year, along with a moderately higher mix of future-start-date orders and phased migrations.
• Supply constraints and restructuring remain headwinds: Management expects server prices to rise modestly and lead times to remain elevated in FY2027, potentially delaying customer projects. A restructuring affecting approximately 5% of the workforce will incur $33 million-$43 million in charges, while increased payment-plan flexibility may reduce the amount of cash collected upfront.

Nutanix Stock Up 6.8%

Nutanix stock opened at $69.84 on Friday. The business has a 50 day moving average price of $57.71 and a two-hundred day moving average price of $48.07. Nutanix has a 12 month low of $34.01 and a 12 month high of $82.42. The stock has a market cap of $18.88 billion, a price-to-earnings ratio of 13.53, a price-to-earnings-growth ratio of 4.18 and a beta of 0.60.

Hedge Funds Weigh In On Nutanix

Hedge funds have recently modified their holdings of the stock. GW&K Investment Management LLC lifted its holdings in Nutanix by 78.7% during the 4th quarter. GW&K Investment Management LLC now owns 981 shares of the technology company’s stock valued at $51,000 after purchasing an additional 432 shares during the last quarter. Wilmington Savings Fund Society FSB increased its stake in shares of Nutanix by 135.3% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 1,059 shares of the technology company’s stock valued at $79,000 after acquiring an additional 609 shares during the last quarter. Itau Unibanco Holding S.A. increased its stake in shares of Nutanix by 52.5% in the 4th quarter. Itau Unibanco Holding S.A. now owns 1,142 shares of the technology company’s stock valued at $59,000 after acquiring an additional 393 shares during the last quarter. Summit Securities Group LLC raised its stake in Nutanix by 26.4% during the 4th quarter. Summit Securities Group LLC now owns 1,356 shares of the technology company’s stock worth $70,000 after buying an additional 283 shares during the period. Finally, CIBC Private Wealth Group LLC raised its holdings in Nutanix by 26.9% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,556 shares of the technology company’s stock worth $80,000 after buying an additional 330 shares during the period. 85.25% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Wells Fargo & Company upped their target price on shares of Nutanix from $55.00 to $65.00 and gave the stock an “equal weight” rating in a research report on Thursday. Morgan Stanley increased their price target on Nutanix from $55.00 to $63.00 and gave the company an “equal weight” rating in a research report on Thursday. Wall Street Zen upgraded shares of Nutanix from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Bank of America reaffirmed a “buy” rating on shares of Nutanix in a research note on Thursday. Finally, Needham & Company LLC upped their price target on shares of Nutanix from $60.00 to $85.00 and gave the stock a “buy” rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $71.14.

More Nutanix News

Here are the key news stories impacting Nutanix this week:

• Positive Sentiment: Better-than-expected results: Nutanix reported fiscal Q4 revenue of approximately $757.1 million, up 15.9% year over year, and adjusted earnings of $0.60 per share versus the $0.49 consensus estimate. The company also highlighted 16% annual recurring revenue growth and strong free cash flow. Nutanix Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Constructive fiscal 2027 outlook: Management projected approximately $3.18 billion to $3.23 billion in fiscal 2027 revenue, with first-quarter revenue guidance of $755 million to $765 million. The outlook was viewed as healthy and broadly in line with expectations. Nutanix outlines FY 2027 revenue guidance
• Positive Sentiment: AMD partnership strengthens the AI narrative: AMD’s equity investment and joint development and go-to-market agreement position Nutanix as the software and management layer for AMD-powered AI and inference systems. The relationship could expand Nutanix’s addressable market and benefit from growing enterprise AI deployment. Nutanix is also a partner to Nvidia, giving it exposure to multiple AI hardware ecosystems. Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes Shape
• Positive Sentiment: Analyst optimism intensified: Needham raised its target to $85 and maintained a Buy rating, while Oppenheimer lifted its target to $85 and RBC increased its target to $90, both with Outperform ratings. These revisions suggest analysts see additional upside after the earnings beat.
• Positive Sentiment: Product expansion: External-storage capabilities, NC2 cloud partnerships and new controls for agentic AI could support customer adoption and reinforce Nutanix’s hybrid-cloud positioning. Nutanix expands cloud platform with controls for agentic AI
• Neutral Sentiment: Nutanix announced that management will present at the Goldman Sachs Communacopia + Technology Conference on September 8, potentially providing additional details on demand, AI partnerships and fiscal 2027 execution. Nutanix to Present at Upcoming Investor Conference
• Negative Sentiment: Supply constraints and execution risk remain concerns, while the stock’s sharp rally and elevated valuation increase the potential for profit-taking if growth or guidance disappoints.

About Nutanix

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.