Earnings Beat: Nutanix, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Shareholders of Nutanix, Inc. (NASDAQ:NTNX) will be pleased this week, given that the stock price is up 10% to US$76.89 following its latest quarterly results. Revenues were US$655m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.19, an impressive 34% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Nutanix

Taking into account the latest results, the most recent consensus for Nutanix from 16 analysts is for revenues of US$2.51b in 2025. If met, it would imply a solid 8.3% increase on its revenue over the past 12 months. Earnings are expected to improve, with Nutanix forecast to report a statutory profit of US$0.22 per share. In the lead-up to this report, the analysts had been modelling revenues of US$2.46b and earnings per share (EPS) of US$0.20 in 2025. So the consensus seems to have become somewhat more optimistic on Nutanix's earnings potential following these results.

The consensus price target rose 8.1% to US$88.57, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Nutanix at US$100.00 per share, while the most bearish prices it at US$73.11. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nutanix's past performance and to peers in the same industry. It's clear from the latest estimates that Nutanix's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nutanix to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nutanix's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Nutanix. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Nutanix going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Nutanix that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.