Update shared on28 Aug 2025
Fair value Decreased 5.51%Nutanix’s modest price target reduction reflects cautious long-term guidance amid macroeconomic uncertainty and softer renewal expectations, though analysts remain constructive due to strong enterprise modernization trends, consistent execution, and opportunities from competitive displacement, resulting in a new consensus fair value of $90.64.
Analyst Commentary
- Fiscal Q4 showed solid new logo performance, but forward guidance for 2026 was cautious due to macroeconomic uncertainty and expectations for softer contract renewal growth.
- Bullish analysts continue to highlight Nutanix's strong long-term positioning with potential upside from VMware displacements and partnerships, despite near-term conservative guidance.
- Nutanix is viewed as a critical modernization play for enterprises transitioning from legacy infrastructure, with its Hyperconverged Infrastructure offering enabling cloud-like operations in on-premise environments.
- Analysts see strong future catalysts relative to peers, particularly as enterprise cloud migrations accelerate and competitive dynamics turn more favorable over the next 2–3 years.
- Consistent management execution and an improving margin profile are cited in support of premium valuation and positive ratings from bullish analysts.
What's in the News
- Nutanix provided earnings guidance for Q1 2026 with expected revenue of $670 million to $680 million and full year revenue of $2.90 billion to $2.94 billion.
- The company increased its equity buyback authorization by $350 million, bringing the total to $700 million.
- Nutanix entered a long-term strategic collaboration with Finanz Informatik, which will migrate its Windows and Linux workloads to Nutanix over two years in a major German customer win.
- From May to July 2025, Nutanix repurchased 664,279 shares for $50.35 million, completing a total of 4,158,279 shares (1.65%) for $239 million under its ongoing buyback program.
- From February to April 2025, Nutanix repurchased 571,000 shares for $37.51 million, totaling 3,494,000 shares (1.4%) for $188.65 million under the same buyback program.
Valuation Changes
Summary of Valuation Changes for Nutanix
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $92.10 to $90.64.
- The Consensus Revenue Growth forecasts for Nutanix has significantly fallen from 19.4% per annum to 14.7% per annum.
- The Net Profit Margin for Nutanix has significantly risen from 16.36% to 18.47%.
Disclaimer
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