Nutanix (NASDAQ:NTNX) Lowered to "Hold" Rating by Zacks Research

Key Points

• Zacks Research downgraded Nutanix from “strong buy” to “hold,” though the broader analyst consensus remains “Moderate Buy,” with an average price target of $72.71.
• Nutanix reported quarterly EPS of $0.60, beating estimates of $0.49, while revenue rose 15.9% year over year to $757.08 million, above expectations.
• The company is expanding its hybrid multicloud platform for agentic AI workloads, but Broadcom’s push to enhance VMware’s AI capabilities could intensify competition in Nutanix’s core markets.

Nutanix (NASDAQ:NTNX - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday, Zacks reports.

A number of other equities analysts have also commented on NTNX. Wall Street Zen raised Nutanix from a "hold" rating to a "buy" rating in a research note on Saturday, July 4th. Keefe, Bruyette & Woods restated a "market perform" rating on shares of Nutanix in a report on Tuesday, August 25th. Bank of America restated a "buy" rating on shares of Nutanix in a research report on Thursday, August 27th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Nutanix in a research note on Wednesday, June 24th. Finally, Northland Securities set a $70.00 price objective on shares of Nutanix in a research report on Thursday, August 27th. Nine analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $72.71.

Nutanix Stock Down 2.7%

Shares of NASDAQ:NTNX opened at $66.69 on Monday. The firm has a market cap of $18.03 billion, a P/E ratio of 12.92, a P/E/G ratio of 3.90 and a beta of 0.62. The company has a quick ratio of 1.78, a current ratio of 1.80 and a debt-to-equity ratio of 1.92. Nutanix has a 12-month low of $34.01 and a 12-month high of $82.42. The business has a fifty day simple moving average of $58.97 and a 200 day simple moving average of $48.63.

Nutanix (NASDAQ:NTNX - Get Free Report) last announced its earnings results on Wednesday, August 26th. The technology company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.49 by $0.11. Nutanix had a negative return on equity of 90.13% and a net margin of 52.81%.The firm had revenue of $757.08 million for the quarter, compared to the consensus estimate of $738.27 million. During the same period in the previous year, the business earned $0.37 EPS. The business's quarterly revenue was up 15.9% compared to the same quarter last year. Analysts predict that Nutanix will post 1.02 earnings per share for the current year.

Hedge Funds Weigh In On Nutanix

Several institutional investors have recently added to or reduced their stakes in the business. CW Advisors LLC acquired a new position in Nutanix in the second quarter valued at approximately $273,000. Cerity Partners LLC raised its holdings in shares of Nutanix by 15.2% during the second quarter. Cerity Partners LLC now owns 83,073 shares of the technology company's stock valued at $6,350,000 after purchasing an additional 10,967 shares during the period. Bank of Nova Scotia boosted its position in shares of Nutanix by 296.5% during the 2nd quarter. Bank of Nova Scotia now owns 41,616 shares of the technology company's stock worth $3,181,000 after purchasing an additional 31,119 shares in the last quarter. Daiwa Securities Group Inc. boosted its position in shares of Nutanix by 94.7% during the 2nd quarter. Daiwa Securities Group Inc. now owns 48,263 shares of the technology company's stock worth $3,690,000 after purchasing an additional 23,479 shares in the last quarter. Finally, NewEdge Advisors LLC grew its stake in shares of Nutanix by 164.4% in the 2nd quarter. NewEdge Advisors LLC now owns 8,622 shares of the technology company's stock valued at $659,000 after buying an additional 5,361 shares during the period. 85.25% of the stock is owned by institutional investors and hedge funds.

Nutanix News Summary

Here are the key news stories impacting Nutanix this week:

• Positive Sentiment: Nutanix announced capabilities designed to help organizations run production “agentic AI” workloads with greater flexibility. The initiative reinforces the company’s strategy of positioning its hybrid multicloud platform as an AI infrastructure alternative. Nutanix Empowers Organizations to Run Production Agentic AI Their Way
• Positive Sentiment: Northland Securities raised its Q1 fiscal 2027 EPS forecast to $0.29 from $0.24 and projected fiscal 2028 EPS of $1.05. Its fiscal 2027 estimate of $1.01 also remains above the broader current-year consensus of $0.97, suggesting expectations for continued earnings growth over time. Equities Analysts Set Expectations for Nutanix Q1 Earnings
• Neutral Sentiment: Northland’s revisions were mixed: estimates increased for Q1 fiscal 2027 and fiscal 2028, but the firm lowered Q2 fiscal 2027 EPS to $0.32 from $0.35, Q3 to $0.18 from $0.22, and full-year fiscal 2027 to $1.01 from $1.03. The changes indicate near-term caution despite a constructive longer-term outlook.
• Negative Sentiment: Broadcom is expanding VMware’s AI capabilities to compete more directly with Nutanix and Microsoft. A stronger VMware offering could increase competitive pressure in virtualization, private cloud and AI infrastructure—key markets for Nutanix—and may be the clearest immediate headwind for the stock. Broadcom Boosts VMware AI Push to Challenge Nutanix and Microsoft

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.

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