One-glance verdict
Undervalued
$149.19 our estimate vs market $68.08
Wall Street consensus: $75.65 (-49.3% lower than our fair-value estimate)
54% below our estimate, below the bear case
Fundamentals snapshot
Nutanix, Inc.
NTNX · NMS · Technology · Software - Infrastructure
Current price
$68.08
52-week range
$34.01 - $82.42
Market cap
$18.40B
Balance sheet
Healthy
20.59x Strong cushion
Net cash $842.73M. 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 8.3% last year.
- Reward Returns 37460.2% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Risk Forward P/E (25.7x) is higher than trailing (13.2x) - earnings are expected to drop.
What this company does
Nutanix, Inc.
Nutanix sells software that helps large organizations manage all their computer systems from a single dashboard, whether the computers are in their own building or rented from a cloud service like Amazon or Microsoft. The company primarily makes money from software subscriptions, which generates recurring revenue (income that is expected to continue regularly, much like a streaming service fee). This matters because as companies increasingly mix their own data centers with public cloud services, Nutanix's platform helps them manage that complexity and operate more efficiently.
How the company got here
Nutanix was founded in 2009 to simplify how businesses manage their technology in their own data centers (the computer rooms that power a company's operations). They were a pioneer of what's called hyperconverged infrastructure (a way of combining a company's computing, storage, and networking into one simplified system). After going public in 2016, the company shifted its business model from selling hardware and one-time software licenses to a subscription-based model, where customers pay regularly for access to its software. This change allows for more predictable and recurring revenue (money that comes in consistently from ongoing payments).
What it actually does
Nutanix provides software that helps companies manage their applications and data across different computing environments. Think of it as a universal remote for a company's technology, allowing them to run their systems in their own private data centers, in the public cloud (like Amazon Web Services or Microsoft Azure), or a mix of both, which is called a hybrid cloud. The main goal is to make a company's complex technology infrastructure simpler and easier to manage from a single control panel. This helps businesses run more efficiently, reduce costs, and easily scale their operations up or down as needed.
Subscription
This is the primary way Nutanix makes money, generating the vast majority of its revenue. Instead of a one-time purchase, customers pay a recurring fee, similar to a Netflix or Spotify subscription, for the right to use Nutanix's software and receive ongoing support and updates. This business model provides Nutanix with a steady and predictable stream of income. Customers subscribe to the Nutanix Cloud Platform and related products to manage their IT infrastructure.
Professional Services
This is a smaller part of Nutanix's business that supports its main software offerings. It includes services like consulting, installation, and training to help customers get the most out of their Nutanix software. For example, a company might hire Nutanix's professional services team to help them plan and execute the move of their applications onto the Nutanix platform. While not the main source of income, these services help ensure customers are successful with the software, which can lead to them renewing or expanding their subscriptions.
What management is betting on now
Nutanix is heavily focused on becoming the go-to platform for what's called hybrid multicloud, where businesses use a combination of their own data centers and multiple public cloud services. They are also making a big push into the world of Artificial Intelligence (AI), offering tools to help companies manage their AI applications and data. A key part of their strategy is to capitalize on market disruption, particularly from customers looking for alternatives to their competitor, VMware, following its acquisition by Broadcom. Management is also emphasizing partnerships with major cloud providers like Amazon Web Services (AWS) and tech companies like NVIDIA to expand their ecosystem and make their platform more versatile.
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.
FY2024 Q4
$224.26M
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
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
Revenue
$547.95M
Net income
$-126.10M
Diluted EPS
-0.50
Operating cash flow
$244.70M
Free cash flow
$224.26M
Fetching…
Sources
Is it cheap or expensive?
Fair value $149.19 vs current price $68.08
Wall Street consensus is the average analyst price target: $75.65 (-49.3% lower than our fair-value estimate).
Our most-likely fair value is $149.19 a share — about 119.1% above today's price of $68.08, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $842.7M - more cash than debt. Interest coverage 20.6x.
Net debt
$-842.73M
Interest coverage
20.59x
Nutanix, Inc.'s profit covers its interest bill about 20.6 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 20.59x 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 $2.73B Interest coverage 15.55x -24% vs NTNX Carries about 1.3x less debt cushion than NTNX.
Total debt $21.30B Interest coverage 14.05x -32% vs NTNX Carries about 1.5x less debt cushion than NTNX.
Total debt $34.47B Interest coverage 5.41x -74% vs NTNX Carries about 3.8x less debt cushion than NTNX.
What you should know
The case for and against NTNX
3 Rewards
1 Risk
Rewards
-
Revenue grew 8.3% last year.
-
Returns 37460.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Forward P/E (25.7x) is higher than trailing (13.2x) - 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)
13.17x
Forward P/E
25.68x
P/B
26.21x
P/S
6.45x
EV/EBITDA
44.54x
PEG ratio
1.37x
Profitability
How much profit each dollar creates
Gross margin
86.9%
Operating margin
13.6%
Net margin
52.8%
ROE
37,460.2%
ROA
4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
2.16x
Current ratio
1.80x
Quick ratio
1.57x
Total debt
$1.52B
Total cash
$2.36B
Growth
How the business has been compounding
Revenue TTM
$2.75B
Revenue 5Y CAGR
16.2%
EPS TTM
5.17
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$821.20M
Free CF TTM
$750.17M
FCF margin
27.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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