Nutanix, Inc. (NTNX)
Fair ValueFundamental
67
Price
$70.58
Market Cap
$18.11B
Part 1 · What the company is worth
Overview
Nutanix sells software that lets a company run its own private cloud on standard servers instead of renting capacity from Amazon, Microsoft or Google, or instead of buying expensive specialized storage hardware. The software pools compute, storage and virtualization into a single system that IT staff can manage from one console. It does not make the servers itself: customers buy the hardware from partners like Dell, Lenovo or HPE and install Nutanix's software on top of it.
How it makes money
Nutanix sells software licenses and support as term subscriptions rather than one-time purchases, typically for three or five years, most of it recognized upfront when the contract starts with the remainder recognized ratably as support and services are delivered over the term. Most sales go through the same server makers and distributors whose hardware runs Nutanix's software, and through IT resellers, rather than direct to end customers, so its growth depends heavily on how well those partners choose to sell it.
Revenue by segment
Technical support, software updates and other services revenue, recognized gradually over the life of the subscription rather than upfront.
Upfront software license fees recognized when a multi-year subscription contract begins, covering the core Nutanix Cloud Platform software.
Competitive moat
Switching costs · NarrowOnce a company's virtual machines, storage and data run on Nutanix's platform, migrating away means re-architecting how servers are provisioned and risking downtime — the same friction that has driven customers away from VMware since Broadcom raised its prices. That friction protects Nutanix's installed base, but it is not unique: Nutanix itself is winning share by exploiting exactly this dynamic against a larger incumbent.
What drives demand
Moderately cyclicalDemand depends on corporate IT budgets for data-center and private-cloud infrastructure, which slow when companies cut capital spending, but a large share of revenue comes from renewing multi-year subscriptions already in place rather than winning entirely new business each quarter. The bigger swing factor recently has been customers leaving VMware after Broadcom's price increases, a one-time tailwind rather than a recurring driver.
Key risks
- Reliance on channel distributors and OEM hardware partners — Most sales go through distributors and hardware partners like Dell and Lenovo rather than direct to customers, and Nutanix's software depends on those partners' hardware being available and willing to bundle it.
- A one-time competitive tailwind may fade — Recent growth has been boosted by customers leaving VMware over Broadcom's pricing changes; once that migration wave runs its course, Nutanix must generate growth from new demand rather than a rival's mistake.
- Corporate IT spending cycles — New infrastructure purchases slow when companies cut capital budgets, and a large upfront-license component of revenue makes results more sensitive to the timing of big deals than a purely ratable subscription model would be.
- Competition from public cloud and hyperconverged rivals — Customers can choose to move workloads to a public cloud provider instead of running private infrastructure at all, and rivals including VMware, Microsoft and smaller hyperconverged vendors compete for the same budgets.
Customer concentration
Nutanix sells mostly through a small number of large distributors rather than directly; in prior fiscal years its two largest distributors together represented close to half of revenue, though the company has not disclosed an updated figure for fiscal 2025.
The case for
Buyers argue that the exodus from VMware after Broadcom's price increases gives Nutanix years of migration business still to capture, that its subscription model builds a growing base of recurring renewal revenue, and that private and hybrid cloud remain a durable alternative to renting everything from a public cloud provider.
The case against
Sellers fear that the VMware migration tailwind is temporary and growth slows once it fades, that heavy reliance on distributors and hardware partners limits Nutanix's control over its own sales motion, and that public cloud providers keep pulling workloads away from private infrastructure altogether.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 19, 2026, shared with all users
Broadcom's VMware Cloud Foundation is the incumbent virtualization and private-cloud stack that Nutanix Cloud Infrastructure is sold to replace in the same enterprise data centers.
Dell sells the VxRail and PowerFlex hyperconverged systems to the same enterprise IT buyers, competing appliance-against-appliance even while it also ships servers certified for Nutanix software.
Microsoft competes both on-premises with Hyper-V and Azure Local and in the public cloud with Azure, for the workloads Nutanix wants to host on its hybrid platform.
HPE offers its own virtualization and hyperconverged portfolio, including SimpliVity and the GreenLake private-cloud subscriptions, to the same mid-market and enterprise accounts.
Red Hat, an IBM subsidiary, competes with OpenShift Virtualization and OpenStack as the open-source alternative for running virtual machines and containers on the customer's own hardware.
Balance Sheet & Liquidity
Revenue
$2.85B
Trailing 12 months (through 7/31/2026)
Net Income
$1.51B
Trailing 12 months (through 7/31/2026)
Free Cash Flow
$841M
Total Equity
$703M
Total Liabilities
$4.37B
Current Ratio
1.80
Interest Coverage
-
Debt/EBITDA
4.42
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$89.69
Current Price
$70.58
Margin of Safety
+21.3%
Fair Value Range
$58.30 - $121.09
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
13.65
ROE
214.5%
P/B Ratio
27.18
P/FCF
22.72
Gross Margin
86.8%
ROIC
6.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
6.4%
WACC
7.8%
ROIC − WACC
-1.4 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- Price CAGR 10.13%
- ROIC 6.4%
- Gross margin 86.8%
- P/FCF 22.72
- Operating margin 9.6%
- Positive free cash flow
- CapEx intensity
- Current ratio
- Debt/EBITDA
- Return on tangible assets
- Low reliance on intangibles
- ROE 180.7%
- Revenue growth 5Y 15.4%
- Earnings surprise, average 17.7%
- Share dilution 0.6%
- Net margin trend 52.8% vs 7.4%
- Piotroski F-Score 5/9
Failed (5)
- P/B ratio 27.18
- Debt/equity ratio
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings quality (operating cash flow / net income) 0.61
Unavailable (3)
- Dividend payout –
- Interest coverage
- PEG ratio (needs P/E > 0 and growth > 0)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Moderate: some gap between profits and cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Dr. Rajiv Ramaswami Ph.D. | CEO & Director | 59 |
| Ms. Rukmini Sivaraman | Principal Accounting Officer & CFO | 43 |
| Mr. Brian Michael Martin J.D. | Chief Legal Officer | 63 |
| Mr. Tarkan Maner | President & Chief Commercial Officer | 55 |
| Ms. Mandy Dhaliwal | Chief Marketing Officer | - |
| Ms. Jennifer Lepird | Chief People Officer | - |
| Mr. Dave Gwyn | Senior Vice President of Worldwide Channels & Customer Success | - |
| Mr. Inder Sidhu | Chief Customer Experience Officer | 65 |
| Mr. Sammy Zoghlami | Senior Vice President of Sales in EMEA | - |
| Mr. Andrew Brinded | Chief Revenue Officer | - |
Audit Risk
4
Board Risk
2
Compensation Risk
3
Shareholder Rights Risk
2
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-09-18
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-05-29
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-07
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much NTNX moves, measured on its daily prices.
More volatile than 40% of the tracked stocks (90-day volatility).
- Volatility 30d
- 27.2%
- Volatility 90d
- 32.3%
- Beta vs S&P 500 (1y)
- 0.73Correlation 0.20
- Max drawdown (12m)
- -52.5%
- ATR (14d, % of price)
- 3.20%
Earnings reactions
How NTNX moved around its past quarterly results.
Next earnings release
Nov 25, 2026 · In 32 days · Time not known
EPS estimate: 0.60Revenue estimate: $762M
What usually happens
- Over the last 12 releases the stock moved a median of 6.9% the next day, up or down.
- Next-day moves: up 7, down 5 (out of 12).
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 26, 2026 | After the close | 0.37 | 0.47 | +28.6% | +8.9% | +6.8% | +2.2% |
| May 27, 2026 | After the close | 0.46 | 0.56 | +22.5% | -1.2% | +4.8% | +13.9% |
| Feb 25, 2026 | After the close | 0.42 | 0.41 | -1.7% | +9.7% | +4.0% | +4.9% |
| Nov 25, 2025 | After the close | n/a | n/a | n/a | -12.7% | -17.7% | -19.3% |
| Aug 27, 2025 | After the close | n/a | n/a | n/a | -8.2% | -5.1% | -1.3% |
| May 28, 2025 | After the close | n/a | n/a | n/a | +1.7% | -3.8% | -2.2% |
| Feb 26, 2025 | After the close | n/a | n/a | n/a | +15.2% | +10.4% | +11.2% |
| Nov 26, 2024 | After the close | n/a | n/a | n/a | +2.2% | -7.8% | -5.4% |
| Aug 28, 2024 | After the close | n/a | n/a | n/a | +16.6% | +20.3% | +20.2% |
| May 29, 2024 | After the close | n/a | n/a | n/a | -14.7% | -23.1% | -27.2% |
| Feb 28, 2024 | After the close | n/a | n/a | n/a | +5.2% | +7.0% | +9.3% |
| Nov 29, 2023 | After the close | n/a | n/a | n/a | +7.1% | +3.7% | +7.7% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on NTNX and what the price did next.
- 2/26/2026NegativeThese Analysts Cut Their Forecasts On Nutanix After Q2 Results
- +1 day
- +4.5%
- +3 days
- +5.8%
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for NTNX.
- 5/27/2026NEUTRALNutanix Q3 2026 Earnings Call: Complete Transcript
Nutanix Inc. held its Q3 2026 earnings call on May 27, 2026. The transcript of this call is now available, providing detailed insights into the company's financial performance, strategic initiatives, and future outlook. Investors and analysts can review the discussion for a comprehensive understanding of Nutanix's operational status and market positioning. The availability of the full transcript allows for a deeper dive into management's commentary on revenue, profitability, and growth drivers.
- 2/26/2026NEGATIVEThese Analysts Cut Their Forecasts On Nutanix After Q2 Results
Analysts have reportedly lowered their forecasts for Nutanix Inc. (NTNX) following the company's second-quarter results. While some investment banks, including Wells Fargo, Needham, and Morgan Stanley, maintained their previous ratings, the overarching market sentiment, as indicated by the news title, points to a reduction in expectations. This development suggests potential downward pressure on the stock's future performance, as expert projections often influence investor confidence and purchasing decisions. Investors should closely monitor the company's upcoming actions and market reactions, as a downgrade in forecasts can precede periods of volatility or corrections.