One-glance verdict
Undervalued
$157.64 our estimate vs market $66.94
Wall Street consensus: $77.79 (-50.7% lower than our fair-value estimate)
58% below our estimate, below the bear case
Fundamentals snapshot
Nutanix, Inc.
NTNX · NMS · Technology · Software - Infrastructure
Current price
$66.94
52-week range
$34.01 - $75.98
Market cap
$18.11B
Balance sheet
Healthy
22.86x Strong cushion
Net cash $840.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 12.4% last year.
- Reward Returns 37460.2% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 6/10 years.
- Risk Forward P/E (25.1x) is higher than trailing (12.9x) - earnings are expected to drop.
What this company does
Nutanix, Inc.
Nutanix sells software that helps businesses manage all their computer data and applications in one place, whether they are stored on the company's own equipment or in the public cloud. The company makes its money from selling subscriptions to this software, which creates predictable recurring revenue (money that comes in consistently from ongoing contracts). This is important because many companies are trying to blend their private computer systems with cloud services, and Nutanix offers a simpler way to manage that complexity.
How the company got here
Founded in 2009, Nutanix pioneered a new approach called hyperconverged infrastructure (HCI), which simplified data centers by combining computing, storage, and networking into a single software-driven system. This innovation helped it grow rapidly, reaching a valuation of over $1 billion by 2013 and going public in 2016. A major turning point was its shift from selling hardware to a subscription-based software model, a transition that initially created challenges but ultimately led to more predictable, recurring revenue (a steady stream of income from customers paying on a regular basis). This strategic change positioned Nutanix as a key player in the growing market for hybrid cloud environments, where businesses use a mix of their own private data centers and public cloud services.
What it actually does
Imagine a company's IT department has separate, complex systems for running applications, storing data, and managing its network. Nutanix provides a software platform that brings all of these functions together into one unified system that is easier to manage. This allows businesses to run their applications and manage their data anywhere—in their own data centers, in the public cloud (like Amazon Web Services or Google Cloud), or a combination of both. Think of it as a universal operating system for a company's entire IT infrastructure, making it simpler, more flexible, and more cost-effective. Nutanix serves a wide range of industries, including financial services, healthcare, and retail.
Nutanix Cloud Platform (NCP)
This is the core of Nutanix's business and represents the vast majority of its revenue. Companies pay subscription fees to use this software platform, which allows them to manage their applications and data across different environments. The platform includes everything from the underlying infrastructure software to tools for managing virtual machines, containers (a way to package software with everything it needs to run), and data storage. Customers, ranging from large enterprises to government agencies, pay for the flexibility to run their IT operations in their own private data centers, in the public cloud, or a mix of both, all managed through a single interface.
Professional Services
While much smaller than its software subscription business, Nutanix also generates revenue from helping its customers implement and optimize its platform. This can include consulting services to help a company plan its move to a hybrid cloud environment, technical assistance with deploying Nutanix software, and training for the customer's IT staff. These services are typically project-based and provide an additional stream of income. This part of the business helps ensure customers are successful in using the main software platform, which can lead to them renewing and expanding their subscriptions over time.
What management is betting on now
Nutanix is focused on becoming the go-to platform for companies navigating the complexities of a hybrid multicloud world. A major priority is capitalizing on market disruptions, particularly by attracting customers from competitors like VMware. They are also heavily investing in artificial intelligence (AI), offering solutions that help businesses run AI applications in their own secure environments. Another key strategy is to encourage existing customers to adopt more of the platform's features, such as database management and cloud cost governance (tools to control spending on cloud services), to increase their spending with Nutanix. Finally, the company is emphasizing partnerships with major cloud providers and hardware vendors to expand its reach and make its platform accessible to more customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$151.92M
FY2025 Q2
$187.06M
FY2025 Q3
$203.41M
FY2025 Q4
$207.78M
FY2026 Q1
$174.51M
FY2026 Q2
$191.42M
FY2026 Q3
$197.18M
FY2026 Q4
$277.57M
Revenue
$757.08M
Net income
$1.27B
Diluted EPS
4.35
Operating cash flow
$315.01M
Free cash flow
$277.57M
Fetching…
Sources
Revenue
$703.07M
Net income
$72.09M
Diluted EPS
0.25
Operating cash flow
$207.50M
Free cash flow
$197.18M
Fetching…
Sources
Revenue
$722.83M
Net income
$103.02M
Diluted EPS
0.36
Operating cash flow
$197.35M
Free cash flow
$191.42M
Fetching…
Sources
Revenue
$670.58M
Net income
$62.10M
Diluted EPS
0.21
Operating cash flow
$196.82M
Free cash flow
$174.51M
Fetching…
Sources
Revenue
$653.27M
Net income
$38.65M
Diluted EPS
0.14
Operating cash flow
$219.53M
Free cash flow
$207.78M
Fetching…
Sources
Revenue
$638.98M
Net income
$63.36M
Diluted EPS
0.22
Operating cash flow
$218.51M
Free cash flow
$203.41M
Fetching…
Sources
Revenue
$654.72M
Net income
$56.43M
Diluted EPS
0.19
Operating cash flow
$221.67M
Free cash flow
$187.06M
Fetching…
Sources
Revenue
$590.96M
Net income
$29.93M
Diluted EPS
0.10
Operating cash flow
$161.75M
Free cash flow
$151.92M
Fetching…
Sources
Is it cheap or expensive?
Fair value $157.64 vs current price $66.94
Wall Street consensus is the average analyst price target: $77.79 (-50.7% lower than our fair-value estimate).
Our most-likely fair value is $157.64 a share — about 135.5% above today's price of $66.94, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $840.0M - more cash than debt. Interest coverage 22.9x.
Net debt
$-840.00M
Interest coverage
22.86x
Nutanix, Inc.'s profit covers its interest bill about 22.9 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NTNX
BASELINE
Nutanix, Inc.
Total debt $1.52B Interest coverage 22.86x This is the baseline the peer rows are being compared against.
Total debt $1.15B Interest coverage -20.05x -100% vs NTNX This peer has almost no interest-payment cushion compared with NTNX.
Total debt $2.53B Interest coverage 15.55x -32% vs NTNX Carries about 1.5x less debt cushion than NTNX.
Total debt $20.32B Interest coverage 14.05x -39% vs NTNX Carries about 1.6x less debt cushion than NTNX.
Total debt $35.28B Interest coverage 5.41x -76% vs NTNX Carries about 4.2x less debt cushion than NTNX.
What you should know
The case for and against NTNX
3 Rewards
1 Risk
Rewards
-
Revenue grew 12.4% last year.
-
Returns 37460.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Forward P/E (25.1x) is higher than trailing (12.9x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
12.95x
Forward P/E
25.05x
P/B
25.81x
P/S
6.35x
EV/EBITDA
46.46x
PEG ratio
1.37x
Profitability
How much profit each dollar creates
Gross margin
86.9%
Operating margin
12.9%
Net margin
52.8%
ROE
37,460.2%
ROA
4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
2.17x
Current ratio
1.80x
Quick ratio
1.58x
Total debt
$1.52B
Total cash
$2.36B
Growth
How the business has been compounding
Revenue TTM
$2.85B
Revenue 5Y CAGR
15.9%
EPS TTM
5.17
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$916.69M
Free CF TTM
$840.67M
FCF margin
29.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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