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1. Company Snapshot

1.a. Company Description

Nutanix, Inc.provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa.The company offers Acropolis converges virtualization, enterprise storage services, and networking visualization and security services; Acropolis Hypervisor, an enterprise-grade virtualization solution; Nutanix Karbon for automated deployment and management of Kubernetes clusters to simplify the provisioning, operations, and lifecycle management of cloud-native environments; and Nutanix Clusters solution.


It also offers Prism Pro; Nutanix Beam, a cloud governance; and Nutanix Calm, an application marketplace, which provides automation services that streamline application lifecycle management and deliver powerful hybrid cloud orchestration.In addition, the company provides Nutanix Files, an enterprise-grade NFS and SMB files services; Nutanix Objects, a S3-compatible object services; Nutanix Era, a database automation and database-as-a-service solution; and Nutanix Frame, a desktop-as-a-service product to deliver virtual apps or desktops to users from multiple public cloud environments and/or an enterprises private cloud datacenter.Further, it offers products support, and consulting and implementation services.


It serves customers in a range of industries, including automotive, consumer goods, education, energy, financial services, healthcare, manufacturing, media, public sector, retail, technology, and telecommunications, as well as service providers.The company was incorporated in 2009 and is headquartered in San Jose, California.

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1.b. Last Insights on NTNX

Nutanix's recent performance was negatively impacted by its Q1 earnings release, which showed a weak forward outlook and worse-than-expected financial results. Analysts subsequently cut their forecasts, and the company lowered its FY26 sales guidance. Additionally, a significant shareholder, Alberta Investment Management Corp, decreased its holdings by 99.6%. Despite this, some analysts view the decline as an opportunity, citing strong bookings and increased free cash flow expectations, which could indicate resilient demand. (Source: Bloomberg)

1.c. Company Highlights

2. Nutanix's Q1 2026 Earnings: A Closer Look at the Numbers

Nutanix reported revenue of $671 million for Q1 2026, within the guided range, and an Annual Recurring Revenue (ARR) growth of 18% year-over-year to $2.28 billion. Non-GAAP gross margin stood at 88%, while non-GAAP operating margin was 19.7%. The company's EPS came in at $0.41, in line with estimates. Free cash flow was $175 million. The guidance for Q2 2026 is revenue of $705-715 million and non-GAAP operating margin of 20.5-21.5%. Full-year guidance is revenue of $2.82-2.86 billion, representing 12% growth, and free cash flow of $800-840 million.

Publication Date: Nov -26

📋 Highlights

Revenue Mix and Growth Drivers

The company's revenue mix for the full year is similar to last year's, with a slight weighting towards the second half. The updated guidance for fiscal year 2026 is slightly more weighted towards the second half, with a midpoint of Q2 and full year guidance. Nutanix saw success in the marketplace with its cloud platform, highlighting notable wins, including a North American-based provider of agricultural products and services, a European government agency, and a 7-figure global new logo with an EMEA-based provider of energy products and services.

Valuation and Growth Expectations

With a P/S Ratio of 6.01 and an EV/EBITDA of 60.32, the market seems to be pricing in a certain level of growth for Nutanix. Analysts estimate next year's revenue growth at 15.7%, which is higher than the current year's growth rate. The company's ability to capitalize on the VMware migration trend and its focus on cloud-native and AI opportunities will be crucial in achieving this growth.

Migration Trend and Competitive Landscape

Nutanix is seeing an increase in bookings due to the migration trend from VMware, but revenue recognition may be pushed out over time due to phased licensing. The company's remaining performance obligations (RPO) grew significantly year-over-year, driven by a non-cancelable backlog. Nutanix believes it is winning a significant portion of migrations, particularly compared to Red Hat, and is strategically focused on taking share from VMware.

Operational Efficiency and Cash Flow

The company's free cash flow yield is 4.92%, indicating a decent cash generation capability. Nutanix is balancing investments in current and future opportunities, including Kubernetes, cloud-native, and AI, while maintaining a focus on margins. The company's ability to manage its supply chain and mitigate potential shortages will be important in maintaining its operational efficiency.

3. NewsRoom

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Nutanix Listed in AWS “ICMP” for the US Federal Government

Dec -03

Source: globenewswire.com

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Fisher Asset Management LLC Has $45.08 Million Stock Position in Nutanix $NTNX

Dec -03

Source: defenseworld.net

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Burlington Stores, Oracle, Nutanix Are Among Top 10 Large Cap Losers Last Week (Nov. 24-Nov. 28): Are the Others in Your Portfolio?

Nov -30

Source: feeds.benzinga.com

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Why Nutanix's 18% Decline Shouldn't Surprise Investors

Nov -28

Source: benzinga.com

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Here Are Friday’s Top Wall Street Analyst Research Calls: Brown-Forman, Deere, Five Below, Netflix, Nutanix and More

Nov -28

Source: 247wallst.com

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Charles Schwab Investment Management Inc. Boosts Holdings in Nutanix $NTNX

Nov -28

Source: defenseworld.net

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Why Nutanix Stock Dived by Nearly 18% Today

Nov -26

Source: fool.com

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Nutanix to Present at Upcoming Investor Conference

Nov -26

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.86%)

6. Segments

Subscription

Expected Growth: 15%

Nutanix's subscription growth is driven by increasing adoption of hybrid and multi-cloud strategies, rising demand for hyperconverged infrastructure, and growing need for cloud-like agility and simplicity in on-premises environments. Additionally, the company's expanding product portfolio, strategic partnerships, and strong sales execution are contributing to its rapid growth.

Professional Services

Expected Growth: 12%

Nutanix's Professional Services segment growth is driven by increasing adoption of hybrid and multi-cloud strategies, rising demand for digital transformation, and growing need for IT infrastructure optimization. Additionally, the company's expanding partner ecosystem, strategic acquisitions, and investments in emerging technologies such as AI and IoT are contributing to the 12% growth.

Non-portable Software

Expected Growth: 16%

Nutanix's non-portable software growth is driven by increasing adoption of hybrid and multi-cloud strategies, rising demand for hyperconverged infrastructure, and growing need for simplified IT management. Additionally, the company's strong partnerships with leading cloud providers and its expanding product portfolio are contributing to its growth.

Hardware

Expected Growth: 10%

Nutanix's hardware growth is driven by increasing adoption of hybrid cloud infrastructure, rising demand for hyperconverged infrastructure, and growing need for data center modernization. Additionally, the company's strong partnerships with leading server manufacturers and its ability to provide a seamless customer experience are contributing to its growth.

7. Detailed Products

Nutanix Acropolis

A hyperconverged infrastructure (HCI) solution that integrates compute, storage, and virtualization resources into a single platform.

Nutanix Prism

A management and orchestration platform that provides a single pane of glass for managing and monitoring Nutanix environments.

Nutanix Files

A software-defined file storage solution that provides a scalable and resilient platform for file-based workloads.

Nutanix Objects

A software-defined object storage solution that provides a scalable and durable platform for storing and managing large amounts of unstructured data.

Nutanix Calm

A cloud-agnostic application automation and orchestration platform that enables automated application deployment and management.

Nutanix Xi Frame

A cloud-based desktop-as-a-service (DaaS) solution that provides a secure and scalable platform for delivering virtual desktops and applications.

Nutanix Xi Leap

A cloud-based disaster recovery-as-a-service (DRaaS) solution that provides automated disaster recovery and business continuity capabilities.

8. Nutanix, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Nutanix's products are highly specialized and customized, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the presence of competitors, Nutanix's strong brand and high-quality products limit their negotiating power.

Bargaining Power Of Suppliers

Nutanix has a diverse supplier base, and its strong financial position gives it bargaining power over its suppliers.

Threat Of New Entrants

While there are barriers to entry in the hyperconverged infrastructure market, new entrants can still emerge, especially from established companies in adjacent markets.

Intensity Of Rivalry

The hyperconverged infrastructure market is highly competitive, with several established players competing fiercely for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 216.11%
Debt Cost 4.47%
Equity Weight -116.11%
Equity Cost 10.26%
WACC -2.26%
Leverage -186.12%

11. Quality Control: Nutanix, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Dropbox

A-Score: 6.1/10

Value: 5.9

Growth: 7.9

Quality: 7.4

Yield: 0.0

Momentum: 7.5

Volatility: 7.7

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Euronet Worldwide

A-Score: 5.1/10

Value: 7.1

Growth: 7.4

Quality: 5.6

Yield: 0.0

Momentum: 3.5

Volatility: 7.0

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Nutanix

A-Score: 5.0/10

Value: 2.8

Growth: 8.3

Quality: 6.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

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Okta

A-Score: 5.0/10

Value: 2.1

Growth: 9.1

Quality: 6.7

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

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Squarespace

A-Score: 3.9/10

Value: 4.5

Growth: 5.3

Quality: 5.6

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

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Akamai

A-Score: 3.8/10

Value: 4.0

Growth: 5.6

Quality: 5.0

Yield: 0.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

47.61$

Current Price

47.61$

Potential

0.00%

Expected Cash-Flows