NTNX

It has been about a month since the last earnings report for Nutanix (NTNX). Shares have lost about 3.8% 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 most recent earnings report in order to get a better handle on the important catalysts. Nutanix delivered third-quarter fiscal 2026 non-GAAP earnings of 47 cents per share, which topped the Zacks Consensus Estimate by 34.29% and improved 11.9% year over year.Revenues rose 10% year over year to $703.1 million, beating the consensus mark by 2.53%.The average contract duration increased to 3.4 years from 3.1 years in the year-ago quarter. Longer contract duration can help improve revenue visibility for a subscription-heavy model while reflecting customers’ willingness to commit to longer-term platform deployments. Product revenues (51.9% of total revenues) increased 5.6% year over year to $364.9 million. Support, maintenance & other services revenues (48.1% of total revenues) rose 15.2% to $338.1 million.Subscription revenues (94.6% of total revenues) climbed 9% to $664.8 million from the year-ago quarter’s figure. Professional services and other revenues (5.4% of total revenues) improved 30.5% to $38.3 million.Annual recurring revenues (ARR) grew 15% year over year to $2.43 billion, reflecting continued momentum in the company’s subscription model. Nutanix added 730 new logos, up 18% year over year, signaling continued customer acquisition despite what management described as a dynamic environment. The company’s cumulative customer count rose to 31,710 by the end of the quarter, reflecting the steady expansion of its installed base In the fiscal third quarter, Nutanix’s non-GAAP gross margin contracted 40 basis points year over year to 87.8%.Non-GAAP operating expenses increased 8% year over year to $460.5 million.Non-GAAP operating income totaled $156.5 million, up 14.2% from the year-ago quarter.Non-GAAP operating margin was 22.3%, up 80 bps from the year-ago quarter. The company highlighted that operating income expanded from the prior-year period, driven by improved operating leverage alongside revenue growth. As of April 30, 2026, cash and cash equivalents plus short-term investments totale...

Nutanix has been treading water for the past six months, recording a small loss of 3.4% while holding steady at $48.52. The stock also fell short of the S&P 500’s 12.4% gain during that period. Is now the time to buy Nutanix, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free. We don’t have much confidence in Nutanix. Here are three reasons why NTNX doesn’t excite us, plus one stock we’d rather own. Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Nutanix’s billings came in at $812.9 million in Q1, and over the last four quarters, its year-on-year growth averaged 13.5%. This performance slightly lagged the sector and suggests that increasing competition is causing challenges in acquiring/retaining customers. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Nutanix’s revenue to rise by 12.9%, a slight deceleration versus its 15.6% annualized growth for the past five years. This projection doesn’t excite us and suggests its products and services will see some demand headwinds. Many software businesses adjust their profits for stock-based compensation (SBC), but we prioritize GAAP operating margin because SBC is a real expense used to attract and retain engineering and sales talent. This is one of the best measures of profitability because it shows how much money a company takes home after developing, marketing, and selling its products. Looking at the trend in its profitability, Nutanix’s operating margin rose by 3.2 percentage points over the last two years, as its sales growth gave it operating leverage. Its operating margin for the trailing 12 months was 8.6%. Nutanix isn’t a terrible business, but it doesn’t pass our bar. With its shares trailing the market in recent months, the stock trades at 4.6× forward price-to-sales (or $48.52 per share). This valuation multiple is fair, but we don’t have much faith in the company. We’re fairly confide...

Nutanix Inc. (NASDAQ:NTNX) is one of the 7 Worst Cloud Stocks To Buy According to Short Sellers. On May 28, Piper Sandler lowered its price target on Nutanix Inc. (NASDAQ:NTNX) to $60 from $63 and kept an Overweight rating on the stock. The downward price target revision still reflects 28% upside from current levels. The price target revision came after the company announced its Q3 2026 earnings report. On May 28, Nutanix Inc. (NASDAQ:NTNX) posted its Q3 2026 earnings. The firm reported revenue of $703 million, which comfortably beat the Wall Street consensus of $690 million. The earnings per share came in at $0.47, which exceeded the analysts’ estimates of $0.36. The company’s free cash flow stood at $197 million, which represented a 28% margin. The company remains cautious on Q4 guidance due to the Middle East conflict, as the situation remains uncertain in the region, affecting the company’s business. For Q4 2026, the company has raised its revenue guidance to between $725 million and $745 million. Free cash flow is expected to reach $760 to $780 million. Nutanix Inc. (NASDAQ:NTNX) operates an enterprise cloud platform across the Middle East, Europe, Africa, North America, Latin America, and the Asia Pacific. The company delivers hyperconverged infrastructure software, Nutanix Cloud Infrastructure, Nutanix AHV, Nutanix Cloud Platform, and others. While we acknowledge the potential of NTNX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds and 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds. Disclosure: None. Follow Insider Monkey on Google News.

Nutanix’s first quarter results were well received by the market, with management pointing to robust customer demand for its hybrid multicloud solutions and a healthy increase in billings. CEO Rajiv Ramaswami credited expanded support for external storage platforms and continued momentum in AI and cloud-native workloads as core drivers of performance. Notably, the company saw increased adoption among new customers, particularly those seeking flexibility in hardware choices amid ongoing supply chain constraints. Ramaswami stated, “Our support of external storage platforms is simplifying migrations to Nutanix...without requiring significant hardware changes.” Is now the time to buy NTNX? Find out in our full research report (it’s free). Revenue: $703.1 million vs analyst estimates of $686.3 million (10% year-on-year growth, 2.4% beat) Adjusted EPS: $0.47 vs analyst estimates of $0.35 (34.1% beat) Adjusted Operating Income: $156.5 million vs analyst estimates of $115.7 million (22.3% margin, 35.2% beat) Revenue Guidance for Q2 CY2026 is $735 million at the midpoint, below analyst estimates of $743.5 million Operating Margin: 10%, up from 7.6% in the same quarter last year Annual Recurring Revenue: $2.43 billion (14.9% year-on-year growth, beat) Billings: $812.9 million at quarter end, up 25.3% year on year Market Capitalization: $15 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Matt Martino (Goldman Sachs): Pressed on whether customers are better equipped to navigate supply chain issues and if software-hardware decoupling smooths deal conversion. CEO Rajiv Ramaswami explained customers are adapting by seeking flexible licensing and alternative deployment options, with Nutanix supporting migrations through external storage and public cloud. Param Singh (Oppenheimer & Co.): Asked about incremental recurring revenue from external storage deals and competitive pricing against VMware. Ramaswami stated the offering is priced to capture full-stack value and is growing rapidly, though currently a smaller revenue contributor. James Fish (Piper Sandler): Inquired about the impact of higher server costs on the uptake of...

Nutanix, Inc.NTNX delivered third-quarter fiscal 2026 non-GAAP earnings of 47 cents per share, which topped the Zacks Consensus Estimate by 34.29% and improved 11.9% year over year.Revenues rose 10% year over year to $703.1 million, beating the consensus mark by 2.53%. The average contract duration increased to 3.4 years from 3.1 years in the year-ago quarter. Longer contract duration can help improve revenue visibility for a subscription-heavy model while reflecting customers’ willingness to commit to longer-term platform deployments. Product revenues (51.9% of total revenues) increased 5.6% year over year to $364.9 million. Support, maintenance & other services revenues (48.1% of total revenues) rose 15.2% to $338.1 million. Nutanix price-consensus-eps-surprise-chart | Nutanix Quote Subscription revenues (94.6% of total revenues) climbed 9% to $664.8 million from the year-ago quarter’s figure. Professional services and other revenues (5.4% of total revenues) improved 30.5% to $38.3 million. Annual recurring revenues (ARR) grew 15% year over year to $2.43 billion, reflecting continued momentum in the company’s subscription model. Nutanix added 730 new logos, up 18% year over year, signaling continued customer acquisition despite what management described as a dynamic environment. The company’s cumulative customer count rose to 31,710 by the end of the quarter, reflecting the steady expansion of its installed base. In the fiscal third quarter, Nutanix’s non-GAAP gross margin contracted 40 basis points year over year to 87.8%.Non-GAAP operating expenses increased 8% year over year to $460.5 million.Non-GAAP operating income totaled $156.5 million, up 14.2% from the year-ago quarter.Non-GAAP operating margin was 22.3%, up 80 bps from the year-ago quarter. The company highlighted that operating income expanded from the prior-year period, driven by improved operating leverage alongside revenue growth. As of April 30, 2026, cash and cash equivalents plus short-term investments totaled $2.01 billion, up from $1.87 billion as of Jan. 31, 2026.During the third quarter of fiscal 2026, cash generated from operating activities was $207.5 million and free cash flow was $197.2 million, underscoring the company’s ability to translate operating execution into cash even as it continues investing in growth initiatives.Shareholder returns also received an incremental lift. Nu...

Nutanix (NTNX) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +35.10%. A quarter ago, it was expected that this enterprise cloud platform services provider would post earnings of $0.44 per share when it actually produced earnings of $0.56, delivering a surprise of +27.27%. 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 $703.07 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 2.53%. This compares to year-ago revenues of $638.98 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 lost about 9.9% since the beginning of the year versus the S&P 500's gain of 9.8%. While Nutanix has underperformed 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks...

Interested in Nutanix? Here are five stocks we like better. Q3 results beat guidance across key metrics, with revenue of $703 million and ARR up 15% year over year to $2.43 billion. Nutanix also added more than 700 new customers and posted strong margins and free cash flow. Supply chain and server hardware constraints remain a major headwind, driving higher prices and longer lead times that are slowing conversions from bookings to revenue. Management expects these pressures to continue into fiscal 2027. Nutanix raised its full-year outlook for fiscal 2026, citing stronger bookings and demand from VMware migration, hybrid cloud, AI, and external storage use cases. The company also boosted its share repurchase authorization by $750 million. From CrowdStrike to Chewy, These Tanking Stocks Are Announcing Buybacks Nutanix (NASDAQ:NTNX) reported fiscal third-quarter results above its guidance ranges, with management pointing to healthy demand for hybrid cloud, application modernization and AI-related offerings, while also warning that server hardware supply constraints and higher prices continue to affect customer timelines. President and CEO Rajiv Ramaswami said the company delivered quarterly revenue of $703 million, above its guidance range, and annual recurring revenue, or ARR, grew 15% year over year to $2.43 billion. The company also added more than 700 new customers during the quarter. → Voya Financial Grows Earnings Across All 3 Business Segments MarketBeat Week in Review – 12/15 - 12/19 “In our third quarter, we continued to see healthy demand for our solutions, as reflected in our strong bookings and outperformance versus our guided metrics,” Ramaswami said. He attributed demand to businesses seeking to modernize IT footprints, adopt hybrid cloud operating models and deploy cloud-native applications, including AI. CFO Rukmini Sivaraman said Nutanix reported results “above the high end of the range for all guided metrics.” Revenue of $703 million exceeded the company’s prior guidance of $680 million to $690 million. → SpaceX Gets the Attention, But These 4 Stocks Could Get the Returns Is Nutanix the Best Comeback Trade Left in 2025? The Setup Says Yes ARR ended the quarter at $2.435 billion, up 15% from a year earlier, while net dollar-based retention rate was 106%. Average contract duration was 3.4 years, slightly higher than the company expected. Sivara...

Image source: The Motley Fool. Wednesday, May 27, 2026 at 4:30 p.m. ET Chief Executive Officer — Rajiv Ramaswami Chief Financial Officer — Rukmini Sivaraman Vice President, Investor Relations — Richard Valera Richard Valera: Good afternoon. And welcome to today's conference call to discuss third quarter fiscal year 26 financial results. Joining me today are Rajiv Ramaswami, Nutanix's CEO and Rukmini Sivaraman, Nutanix's CFO. After the market closed today, Nutanix issued a press release announcing third quarter fiscal year 26 financial results. If you would like to read the release, please visit the Press Releases section of our IR website During today's call, management will make forward looking statements including financial guidance. These forward looking statements involve risks and uncertainties, some of which are beyond our control. Which could cause actual results to differ materially and adversely from those anticipated by these statements. For a more detailed description of these and other risks and uncertainties, please refer to our SEC filings, including our most recent annual report on Form 10-K and our subsequent quarterly reports on Form 10 Q, as well as our earnings press release issued today. These forward looking statements apply as of today, and we undertake no obligation to revise these statements after this call As a result, you should not rely on them as predictions of future events. Please note unless otherwise specifically referenced, all financial measures we use on today's call except for revenue are expressed on a non GAAP basis and have been adjusted to exclude certain charges. We have provided, to the extent available, reconciliations of these non GAAP financial measures to GAAP financial measures on our IR website and in our earnings press release. Nutanix will be participating in the Bank of America Global Technology Conference on Tuesday, June 2, in San Francisco. We hope to see you there. Finally, our Q4 fiscal 26 quiet period will begin on Saturday, July 18. And with that, I will turn the call over to Rajiv. Rajiv? Rajiv Ramaswami: Thank you, Richard and good afternoon, everyone. In our Q3, we continue to see healthy demand for our solutions. As reflected in our strong bookings, and outperformance versus our guided metrics. We see this demand driven by businesses looking to modernize their IT footprints, adopt hybrid cloud ope...

Reports 15% YoY ARR Growth and Solid Free Cash Flow Performance Delivers Outperformance Across All Guided Metrics SAN JOSE, Calif., May 27, 2026 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its third quarter ended April 30, 2026. “We saw solid demand in the third quarter, including strong bookings, healthy new logo additions, and good free cash flow performance,” said Rajiv Ramaswami, CEO of Nutanix. “We also announced significant new innovations and partnerships in the areas of AI, modern applications and support for external storage, which will help us pursue the substantial market opportunity in front of us.” “Our business performed well in our third quarter, as reflected in results that exceeded the high end of the range for all of our guided metrics,” said Rukmini Sivaraman, CFO of Nutanix. “We are pleased to raise our full year guidance and remain focused on driving sustainable growth and improving profitability.” Third Quarter Fiscal 2026 Financial Summary 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 Unveils Nutanix Agentic AI, Full Stack Software Solution to Unlock the Potential of Enterprise AI Factories: At NVIDIA GTC 2026, Nutanix announced the Nutanix Agentic AI solution, a full software stack purpose built to help customers accelerate adoption of Agentic AI for business transformation. Nutanix held its annual .NEXT conference in Chicago, IL on April 7 - 9, 2026, and made the following announcements at the event: Nutanix also held its Investor Day 2026 on April 7, 2026 in conjunction with its annual .NEXT conference, and made the following announcement at the event: Fourth Quarter Fiscal 2026 Outlook Fiscal 2026 Outlook Supplementary materials to this press release, including our third quarter 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 third quarter 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 uni...

(Bloomberg) -- While software stocks rebound from the artificial intelligence-driven wipeout earlier this year, Salesforce Inc. hasn’t really benefited. But its earnings after the close Wednesday could pull the company’s shares out of their malaise. Most Read from Bloomberg Singapore Hands Byju's Founder His First Ever Jail Term Iran’s Khamenei Says No Going Back for Middle East Rocked by War Ex-President Biden Sues to Stop DOJ Sharing Interview Tapes Two More Oil Supertankers Exit Hormuz to Help Push Up Flows ‘KPop Demon Hunters’ Studio Draws Tencent Music Investment Salesforce is up 8% since hitting a three-year low on April 10, but the stock still has lost 32% this year. It’s badly underperforming the iShares Expanded Tech-Software Sector exchange-traded fund, which has jumped 25% since hitting its own recent low on April 10 and is down 12% this year. And both are being trounced by the technology-heavy Nasdaq 100 Index’s 19% rise in 2026, largely powered by high-flying chipmakers. Salesforce shares dipped 0.1% on Wednesday afternoon. “It has gone through a very painful period, but there’s a stickiness and staple-like nature to the business that people have underestimated, even though revenue is still growing at a decent pace,” said Brian Kersmanc, portfolio manager at GQG Partners, which owns Salesforce shares. “Now that we’ve had this big washout, I think we’re going to start seeing the merits shine through.” Software stocks are getting some life as encouraging corporate earnings reports indicate that AI may not end up devastating growth like investors had assumed, and in some cases it could be a potential tailwind. That, coupled with valuations that fell to rock-bottom levels, has Wall Street thinking that the industrywide weakness from earlier this year may have gone too far. Salesforce, however, has missed much of the bounce back as it continues to face questions about its prospects. Wall Street’s primary concern is competition from Anthropic and OpenAI weakening demand and pricing power for its customer relationship management software, which for years drove robust growth at high margins. For example, Bank of America last week reinstated coverage of the company with an underperform rating due to “structurally lower growth” and greater competitive risks from AI. “Salesforce remains a deeply entrenched platform, yet we expect a structural reset driven...

For the quarter ended April 2026, Nutanix (NTNX) reported revenue of $703.07 million, up 10% over the same period last year. EPS came in at $0.47, compared to $0.42 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $685.75 million, representing a surprise of +2.53%. The company delivered an EPS surprise of +35.1%, with the consensus EPS estimate being $0.35. 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): $2.43 billion compared to the $2.42 billion average estimate based on nine analysts. Remaining Performance Obligations- Total: $3077.79 billion versus $2932.23 billion estimated by two analysts on average. Revenue- Support, maintenance and other services: $338.13 million versus $328.96 million estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +15.2% change. Revenue- Product: $364.94 million versus the 11-analyst average estimate of $357.28 million. The reported number represents a year-over-year change of +5.6%. Disaggregation of Revenue- Professional services revenue: $38.27 million versus the seven-analyst average estimate of $29.99 million. The reported number represents a year-over-year change of +36.7%. Disaggregation of Revenue- Subscription revenue: $664.79 million compared to the $654.5 million average estimate based on seven analysts. The reported number represents a change of +9% year over year. View all Key Company Metrics for Nutanix here>>> Shares of Nutanix have returned +12.7% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks fo...

Nutanix (NTNX) reported fiscal Q3 adjusted earnings late Wednesday of $0.47 per diluted share, up fr