Results: Nutanix, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Nutanix, Inc. (NASDAQ:NTNX) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to US$75.85 in the week after its latest third-quarter results. It looks like a credible result overall - although revenues of US$639m were what the analysts expected, Nutanix surprised by delivering a (statutory) profit of US$0.22 per share, an impressive 282% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Nutanix from 16 analysts is for revenues of US$2.91b in 2026. If met, it would imply a notable 20% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 736% to US$0.74. In the lead-up to this report, the analysts had been modelling revenues of US$2.90b and earnings per share (EPS) of US$0.58 in 2026. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

Check out our latest analysis for Nutanix

The consensus price target was unchanged at US$90.26, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Nutanix analyst has a price target of US$100.00 per share, while the most pessimistic values it at US$73.11. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. So although Nutanix is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nutanix following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$90.26, with the latest estimates not enough to have an impact on their price targets.

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..

And what about risks? Every company has them, and we've spotted 3 warning signs for Nutanix (of which 2 don't sit too well with us!) you should know about.

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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.