Nutanix (NASDAQ:NTNX) Issues Quarterly Earnings Results

Key Points

• Nutanix beat fiscal Q3 expectations, reporting EPS of $0.47 versus $0.35 expected and revenue of $703.1 million versus $686.3 million expected, with revenue up 10% year over year.
• Underlying growth remained strong, as annual recurring revenue rose 15% to $2.43 billion and free cash flow came in at $197 million, while bookings growth was cited at over 20%.
• Management raised full-year guidance for fiscal 2026 to $2.82 billion-$2.84 billion in revenue and $760 million-$780 million in free cash flow, though it warned that supply chain constraints and higher server prices could keep pressuring conversion and budgets.

Nutanix (NASDAQ:NTNX - Get Free Report) announced its quarterly earnings results on Wednesday. The technology company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.12, FiscalAI reports. Nutanix had a negative return on equity of 37.41% and a net margin of 9.95%.The business had revenue of $703.07 million during the quarter, compared to the consensus estimate of $686.34 million. During the same quarter last year, the firm posted $0.22 EPS. The company's quarterly revenue was up 10.0% on a year-over-year basis.

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

• Nutanix reported a strong Q3 with revenue of $703 million, ARR up 15% year over year to $2.43 billion, and free cash flow of $197 million, all above guidance.
• Management said bookings were strong, with Q3 TCV bookings growth cited as over 20%, and raised full-year bookings expectations versus last quarter.
• The company highlighted continued traction in external storage, public cloud (NC2), and AI/Kubernetes offerings, including notable wins with Pure Storage, Dell PowerFlex, and cloud deployments on AWS and OVHcloud.
• Nutanix raised full-year fiscal 2026 guidance to $2.82 billion-$2.84 billion of revenue, about 22.5% non-GAAP operating margin, and $760 million-$780 million of free cash flow, while Q4 guidance implies revenue of $725 million-$745 million.
• Executives said supply chain constraints and higher server prices are still delaying revenue conversion and may continue into fiscal 2027, creating pressure on customer budgets and timelines.

Nutanix Trading Up 0.0%

Shares of NTNX opened at $46.57 on Thursday. Nutanix has a 12 month low of $34.01 and a 12 month high of $82.42. The stock has a market capitalization of $12.35 billion, a PE ratio of 50.62, a P/E/G ratio of 5.20 and a beta of 0.54. The firm's 50 day moving average is $41.65 and its 200-day moving average is $45.59.

Trending Headlines about Nutanix

Here are the key news stories impacting Nutanix this week:

• Positive Sentiment: Nutanix topped fiscal Q3 expectations with EPS of $0.47 versus $0.35 expected and revenue of $703.1 million versus $686.3 million expected, reinforcing investor confidence in execution. Nutanix Reports Third Quarter Fiscal 2026 Financial Results
• Positive Sentiment: The company said annual recurring revenue grew 15% year over year and free cash flow remained strong, suggesting the business is continuing to scale profitably. Nutanix Reports Third Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: Despite the strong quarter, Wall Street analysts remain cautious overall, with William Blair and Morgan Stanley both keeping Nutanix at Hold, reflecting balanced risk-reward and ongoing visibility concerns. Balanced Risk-Reward Keeps Nutanix at Hold Despite Strong Q3 Execution and Growth
• Neutral Sentiment: Management’s Q4 revenue guidance of $725 million to $745 million was broadly in line with expectations, which supports the current move but does not point to a major upside surprise from guidance alone.

Analysts Set New Price Targets

NTNX has been the subject of several research reports. Rosenblatt Securities reaffirmed a "buy" rating and set a $60.00 price target on shares of Nutanix in a report on Friday, May 22nd. Bank of America reaffirmed a "buy" rating on shares of Nutanix in a report on Thursday. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $44.00 price target on shares of Nutanix in a report on Friday, April 10th. Piper Sandler cut their price target on Nutanix from $72.00 to $63.00 and set an "overweight" rating for the company in a report on Thursday, February 26th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating on shares of Nutanix in a report on Thursday. Eleven investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, Nutanix currently has an average rating of "Moderate Buy" and an average target price of $60.80.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Brooklyn Investment Group acquired a new position in shares of Nutanix in the fourth quarter valued at approximately $204,000. Lido Advisors LLC bought a new stake in Nutanix in the fourth quarter valued at approximately $151,000. HighTower Advisors LLC boosted its holdings in Nutanix by 17.8% in the fourth quarter. HighTower Advisors LLC now owns 4,162 shares of the technology company's stock valued at $215,000 after acquiring an additional 628 shares during the last quarter. F m Investments LLC bought a new stake in Nutanix in the third quarter valued at approximately $219,000. Finally, Quantitative Investment Management LLC bought a new stake in Nutanix in the third quarter valued at approximately $239,000. 85.25% of the stock is currently owned by institutional investors and hedge funds.

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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