KeyBanc has begun coverage of Nutanix (NTNX, Financial) with an Overweight rating and set a price target of $95. The firm highlights several catalysts that position Nutanix favorably compared to its peers, particularly as a key player in future enterprise cloud migrations. According to analysts, competitive conditions are expected to enhance Nutanix's market position over the next two to three years. Additionally, KeyBanc notes the company’s strong execution by management and an improving margin profile as factors contributing to its positive outlook and premium stock valuation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Nutanix Inc (NTNX, Financial) is $91.55 with a high estimate of $100.00 and a low estimate of $78.54. The average target implies an upside of 24.69% from the current price of $73.42. More detailed estimate data can be found on the Nutanix Inc (NTNX) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Nutanix Inc's (NTNX, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Nutanix Inc (NTNX, Financial) in one year is $54.89, suggesting a downside of 25.24% from the current price of $73.42. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Nutanix Inc (NTNX) Summary page.
NTNX Key Business Developments
Release Date: May 28, 2025
- Revenue: $639 million, 22% year-over-year growth.
- Annual Recurring Revenue (ARR): $2.14 billion, 18% year-over-year growth.
- Net Dollar-Based Retention Rate (NRR): 110%, flat quarter-over-quarter.
- Average Contract Duration: 3.1 years, slightly higher than expectations.
- Non-GAAP Gross Margin: 88.2%.
- Non-GAAP Operating Margin: 21.5%, higher than guided range of 17% to 18%.
- Non-GAAP Net Income: $125 million, EPS of $0.42 per share.
- GAAP Net Income: $63 million, EPS of $0.22 per share.
- Free Cash Flow: $203 million, 32% free cash flow margin.
- Cash, Cash Equivalents, and Short-term Investments: $1.882 billion.
- Share Repurchase: $38 million worth of common stock repurchased.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nutanix Inc (NTNX, Financial) reported third-quarter results that exceeded their guidance, with revenue reaching $639 million, representing a 22% year-over-year growth.
- The company achieved an 18% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.14 billion.
- Nutanix Inc (NTNX) saw strong new logo growth across all customer segments, including significant wins with large organizations.
- The company announced several strategic partnerships and product enhancements, including a new partnership with Pure Storage and expanded support for Google Cloud.
- Nutanix Inc (NTNX) reported a strong free cash flow of $203 million, representing a free cash flow margin of 32%.
Negative Points
- The macroeconomic environment remains dynamic, with some variability in the U.S. federal business due to longer deal cycles.
- The company noted that the competitive landscape, particularly with VMware, remains challenging, with some customers hesitant to switch.
- Nutanix Inc (NTNX) acknowledged that their Kubernetes platform is still in early stages, with contributions to revenue expected to grow over time.
- The company anticipates increased investments in sales, marketing, and R&D, which may impact operating margins in the short term.
- There is a potential risk of variability in large deal closures, which could affect quarterly revenue recognition.
