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

Nutanix (NASDAQ:NTNX) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. 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 changing hands.

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

Key Headlines Impacting 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.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Wells Fargo & Company boosted their price target on Nutanix from $55.00 to $65.00 and gave the stock an “equal weight” rating in a research note on Thursday. KeyCorp lifted their price objective on Nutanix from $65.00 to $75.00 and gave the stock an “overweight” rating in a report on Monday. Bank of America reaffirmed a “buy” rating on shares of Nutanix in a research report on Thursday. Northland Securities set a $47.00 target price on Nutanix in a research note on Thursday, May 28th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Nutanix in a report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, Nutanix currently has an average rating of “Moderate Buy” and a consensus target price of $68.36.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. CX Institutional grew its position in shares of Nutanix by 134.6% during the second quarter. CX Institutional now owns 488 shares of the technology company’s stock worth $25,000 after acquiring an additional 280 shares during the last quarter. New Millennium Group LLC bought a new position in Nutanix in the 4th quarter worth about $28,000. Western Wealth Management LLC bought a new position in Nutanix in the 1st quarter worth about $27,000. Covestor Ltd raised its holdings in shares of Nutanix by 73.1% during the fourth quarter. Covestor Ltd now owns 767 shares of the technology company’s stock valued at $40,000 after buying an additional 324 shares during the last quarter. Finally, Harbour Investments Inc. raised its holdings in shares of Nutanix by 159.4% during the fourth quarter. Harbour Investments Inc. now owns 817 shares of the technology company’s stock valued at $42,000 after buying an additional 502 shares during the last quarter. 85.25% of the stock is currently owned by institutional investors.

Nutanix Stock Up 7.4%

The company has a 50-day moving average price of $57.25 and a 200-day moving average price of $47.86. The firm has a market capitalization 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.