Nutanix (NASDAQ:NTNX) Shares Gap Up on Earnings Beat

Key Points

• Nutanix shares jumped 7.4%, opening at $71.24 after the company reported adjusted EPS of $0.60 versus the $0.49 consensus and revenue of $757.1 million versus expectations of $738.3 million. Revenue rose 15.9% year over year.
• Analysts responded positively, with Needham raising its price target to $85 and Rosenblatt increasing its target to $75; the stock carries a consensus “Moderate Buy” rating.
• Despite strong results and AI-related product and partnership momentum, fiscal 2027 guidance was broadly in line with estimates, while Nutanix’s elevated valuation and negative return on equity may limit further upside.

Nutanix (NASDAQ:NTNX - Get Free Report)'s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $65.39, but opened at $71.24. Nutanix shares last traded at $70.5670, with a volume of 1,159,857 shares traded.

The technology company reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.49 by $0.11. The company had revenue of $757.08 million during the quarter, compared to the consensus estimate of $738.27 million. Nutanix had a negative return on equity of 38.96% and a net margin of 10.03%.Nutanix's quarterly revenue was up 15.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.37 earnings per share.

Trending Headlines about Nutanix

Here are the key news stories impacting Nutanix this week:

• Positive Sentiment: Nutanix reported fourth-quarter adjusted EPS of $0.60, above the $0.49 consensus estimate, while revenue increased 15.9% year over year to $757.1 million, exceeding expectations of $738.3 million. The company also cited 16% annual recurring revenue growth and strong free cash flow. Nutanix Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Partnerships and product expansion involving AMD, Nvidia and AI are strengthening Nutanix’s hybrid-cloud narrative. New controls for deploying agentic AI across hybrid environments could create additional demand and support future bookings growth. Nutanix expands cloud platform with controls for agentic AI
• Positive Sentiment: Needham raised its price target to $85 from $60 and reaffirmed a Buy rating, citing strong execution, growth prospects and partnership upside. Rosenblatt also increased its target to $75. Needham raises Nutanix price target
• Neutral Sentiment: Fiscal 2027 first-quarter revenue guidance of $755 million to $765 million and full-year revenue guidance of approximately $3.2 billion were broadly consistent with analyst estimates. The lack of a major guidance upgrade may be limiting further upside.
• Negative Sentiment: After the earnings-driven advance, investors may be locking in gains, particularly because Nutanix trades at a relatively elevated valuation. The company’s negative return on equity and modest forward outlook provide additional reasons for caution.

Analyst Upgrades and Downgrades

NTNX has been the topic of several recent analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Nutanix in a research report on Wednesday, June 24th. Rosenblatt Securities upped their price target on Nutanix from $60.00 to $75.00 and gave the stock a "buy" rating in a report on Tuesday. JPMorgan Chase & Co. lifted their price objective on Nutanix from $44.00 to $50.00 and gave the stock a "neutral" rating in a report on Thursday, May 28th. Northland Securities set a $47.00 target price on Nutanix in a report on Thursday, May 28th. Finally, Keefe, Bruyette & Woods restated a "market perform" rating on shares of Nutanix in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $68.36.

Institutional Investors Weigh In On Nutanix

A number of institutional investors and hedge funds have recently bought and sold shares of NTNX. California State Teachers Retirement System increased its stake in Nutanix by 4,834.4% during the second quarter. California State Teachers Retirement System now owns 14,870,638 shares of the technology company's stock worth $757,808,000 after acquiring an additional 14,569,274 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Nutanix by 72.8% in the 4th quarter. AQR Capital Management LLC now owns 11,452,714 shares of the technology company's stock valued at $591,991,000 after purchasing an additional 4,826,443 shares in the last quarter. Norges Bank purchased a new stake in shares of Nutanix during the 4th quarter worth about $187,169,000. Assenagon Asset Management S.A. grew its holdings in shares of Nutanix by 1,535.2% during the 2nd quarter. Assenagon Asset Management S.A. now owns 3,262,231 shares of the technology company's stock worth $166,243,000 after purchasing an additional 3,062,730 shares during the period. Finally, FIL Ltd increased its position in Nutanix by 180.1% during the 4th quarter. FIL Ltd now owns 4,333,937 shares of the technology company's stock worth $224,021,000 after purchasing an additional 2,786,929 shares in the last quarter. Hedge funds and other institutional investors own 85.25% of the company's stock.

Nutanix Trading Up 7.4%

The stock's 50-day moving average is $57.25 and its 200-day moving average is $47.86. The stock has a market cap of $18.98 billion, a price-to-earnings ratio of 74.18, a P/E/G ratio of 4.25 and a beta of 0.60.

Nutanix Company Profile

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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