Stock Analysis

Nutanix, Inc. (NASDAQ:NTNX) On The Verge Of Breaking Even

NasdaqGS:NTNX
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With the business potentially at an important milestone, we thought we'd take a closer look at Nutanix, Inc.'s (NASDAQ:NTNX) future prospects. Nutanix, Inc. provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa. With the latest financial year loss of US$125m and a trailing-twelve-month loss of US$55m, the US$19b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Nutanix will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Consensus from 16 of the American Software analysts is that Nutanix is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$77m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 92% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
NasdaqGS:NTNX Earnings Per Share Growth May 4th 2025

Given this is a high-level overview, we won’t go into details of Nutanix's upcoming projects, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Nutanix

Before we wrap up, there’s one issue worth mentioning. Nutanix currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Nutanix to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nutanix's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

  1. Valuation: What is Nutanix worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Nutanix is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nutanix’s board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.