Nutanix, Inc. revolutionizes how enterprises manage and deploy cloud infrastructure, directly shaping the future of hybrid and multi-cloud computing. As a frontrunner in software infrastructure, Nutanix offers a robust portfolio including its flagship Acropolis platform, Kubernetes automation with Karbon, and hybrid cloud orchestration through Prism and Calm. Renowned for innovation and seamless integration across industries, the company’s trajectory invites a critical look at whether its current fundamentals support sustained growth and justify its market valuation.
Table of contents
Company Description
Nutanix, Inc., founded in 2009 and headquartered in San Jose, California, is a prominent player in the software infrastructure industry. The company specializes in enterprise cloud platforms, offering a diverse portfolio that includes virtualization, storage, networking, and cloud-native management solutions. Key products such as Acropolis Hypervisor, Nutanix Karbon for Kubernetes automation, and Nutanix Clusters demonstrate its comprehensive hybrid cloud capabilities. Nutanix serves a broad range of industries across North America, Europe, Asia Pacific, and beyond, blending software with consulting and support services. Positioned as an innovator, Nutanix plays a critical role in advancing cloud infrastructure efficiency and hybrid cloud orchestration globally.
Fundamental Analysis
I will analyze Nutanix, Inc.’s income statement, key financial ratios, and dividend payout policy to provide a clear view of its financial health and shareholder returns.
Income Statement
Below is Nutanix, Inc.’s income statement over the last five fiscal years, showing key income metrics and EPS values to help evaluate its financial performance.
| Income Statement (USD) | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 1.39B | 1.58B | 1.86B | 2.15B | 2.54B |
| Cost of Revenue | 292M | 321M | 332M | 324M | 335M |
| Operating Expenses | 1.76B | 1.72B | 1.74B | 1.82B | 2.03B |
| Gross Profit | 1.10B | 1.26B | 1.53B | 1.82B | 2.20B |
| EBITDA | -843M | -631M | -93M | 141M | 293M |
| EBIT | -937M | -719M | -169M | 68M | 220M |
| Interest Expense | 80M | 61M | 64M | 169M | 20M |
| Net Income | -1.03B | -798M | -255M | -125M | 188M |
| EPS | -5.01 | -3.62 | -1.09 | -0.51 | 0.70 |
| Filing Date | 2021-09-21 | 2023-05-24 | 2023-09-21 | 2024-09-19 | 2025-09-24 |
Interpretation of Income Statement
Nutanix has demonstrated strong revenue growth from 1.39B in 2021 to 2.54B in 2025, signaling expanding market presence. Net income turned from significant losses in earlier years to a positive 188M in 2025, reflecting improved operational efficiency and cost control. Margins have improved notably, with gross profit expanding steadily and EBITDA shifting from negative to positive territory by 2024. The latest year shows continued margin improvement and profitability, indicating a successful turnaround. However, the rise in operating expenses suggests careful monitoring is necessary to sustain this trajectory. Overall, 2025 marks a pivotal year with positive earnings and healthier margins, but investors should remain cautious about expense growth.
Financial Ratios
Below is the financial ratios table for Nutanix, Inc. (NTNX) for the fiscal years provided.
| Ratio | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -74.17% | -50.45% | -13.66% | -5.81% | 7.42% |
| ROE | 102.20% | 99.63% | 35.98% | 17.14% | -27.12% |
| ROIC | -48.36% | -33.75% | -15.85% | 1.00% | 8.11% |
| P/E | -7.19 | -4.21 | -27.67 | -99.07 | 106.74 |
| P/B | -7.35 | -4.19 | -9.96 | -16.98 | -28.95 |
| Current Ratio | 1.56 | 1.33 | 1.53 | 1.06 | 1.72 |
| Quick Ratio | 1.56 | 1.33 | 1.53 | 1.06 | 1.72 |
| D/E | -1.18 | -1.80 | -1.88 | -0.95 | -2.14 |
| Debt-to-Assets | 52.39% | 60.94% | 52.63% | 32.43% | 45.16% |
| Interest Coverage | -828.34% | -755.51% | -323.10% | 4.47% | 874.73% |
| Asset Turnover | 0.61 | 0.67 | 0.74 | 1.00 | 0.77 |
| Fixed Asset Turnover | 5.87 | 6.81 | 9.07 | 8.76 | 9.15 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
For fiscal year 2025, Nutanix, Inc. (NTNX) shows strong liquidity with a current and quick ratio of 1.72, indicating adequate short-term asset coverage of liabilities. The solvency ratio at 6.56% is low but positive, suggesting moderate long-term financial stability, although some leverage metrics like debt to capital are unusually high, hinting at potential balance sheet stress. Profitability is improving, with a net profit margin of 7.42% and an EBIT margin of 8.67%, reflecting better operational efficiency compared to prior years. Efficiency ratios such as receivables turnover (7.29) and fixed asset turnover (9.15) are robust, showing effective asset utilization. Coverage ratios are solid, with an interest coverage of 8.75 and debt service coverage over 6, indicating comfortable ability to meet debt obligations. Market multiples like a high P/E ratio of 107, paired with a negative price-to-book, suggest investor optimism despite underlying equity challenges. Overall, Nutanix exhibits improving profitability and liquidity but carries caution due to leverage and valuation concerns.
Evolution of Financial Ratios
Over the past five years, Nutanix’s financial ratios demonstrate a clear turnaround from significant losses and negative margins before 2024, improving steadily to positive profitability and stronger liquidity in 2025. Efficiency and coverage ratios have also improved, while solvency remains a concern due to high leverage. Market valuation multiples have risen sharply, reflecting growing investor confidence.
Distribution Policy
Nutanix, Inc. (NTNX) does not pay dividends, reflecting its focus on reinvestment and growth. The company’s free cash flow coverage is strong, and it maintains share buyback programs, signaling capital return to shareholders without direct dividends. This strategy aligns with Nutanix’s growth phase and prioritization of innovation, supporting sustainable long-term value creation for investors.
Sector Analysis
Nutanix, Inc. operates in the Software – Infrastructure sector, offering enterprise cloud and virtualization solutions with strong hybrid cloud capabilities. Its competitive advantages include integrated cloud platforms and automation tools, while facing competition from VMware, Microsoft, and AWS; key SWOT points involve innovation strength and market expansion opportunities balanced against pricing pressure and market saturation risks.
Strategic Positioning
Nutanix, Inc. holds a solid position in the enterprise cloud platform market, leveraging its Acropolis virtualization and hybrid cloud solutions to capture a meaningful share within the infrastructure software sector. The company competes against major players like VMware and Cisco, facing strong competitive pressure but differentiates through integrated cloud-native tools such as Nutanix Karbon and Era. Technological disruption from evolving cloud architectures and containerization presents both challenges and growth opportunities, which Nutanix addresses by continuously innovating its cloud automation and hybrid cloud offerings.
Revenue by Segment
This pie chart illustrates Nutanix, Inc.’s revenue distribution by segment over the fiscal years 2018 to 2024, highlighting shifts in product and service contributions.
Nutanix’s revenue mix has evolved significantly, with Subscription and Circulation services becoming the dominant driver by 2024 at approximately 2B, compared to earlier years where Product and Service segments were more balanced near 900M each. Professional Services showed steady growth from 33M in 2019 to over 100M in 2024, while Other Non-Subscription Product contributed a smaller share at 31M in 2024. The transition towards subscription-based revenue indicates a strategic shift, though the growth rate appears to have moderated recently, signaling a potential need to manage concentration risks and sustain margin improvements in the evolving portfolio.
Key Products
Nutanix, Inc. offers a range of innovative software and cloud solutions designed to simplify enterprise IT infrastructure and enhance cloud management capabilities. Below is an overview of its key products:
| Product | Description |
|---|---|
| Acropolis | A converged virtualization platform that integrates compute, storage, and networking services for enterprise use. |
| Acropolis Hypervisor | An enterprise-grade virtualization solution that supports scalable and secure workloads. |
| Nutanix Karbon | A Kubernetes management platform that automates deployment and lifecycle management of cloud-native applications. |
| Nutanix Clusters | A hybrid cloud solution that enables seamless workload mobility between private data centers and public clouds. |
| Prism Pro | A management and operations tool that provides advanced analytics and infrastructure automation. |
| Nutanix Beam | A cloud governance service focused on cost optimization, security, and compliance across multi-cloud environments. |
| Nutanix Calm | An application automation platform that streamlines lifecycle management and hybrid cloud orchestration. |
| Nutanix Files | Enterprise-grade file services offering NFS and SMB protocols for scalable file storage. |
| Nutanix Objects | An S3-compatible object storage service designed for large-scale data repositories. |
| Nutanix Era | A database automation and Database-as-a-Service (DBaaS) platform to simplify database management. |
| Nutanix Frame | A Desktop-as-a-Service (DaaS) solution delivering virtual apps and desktops from public clouds or private data centers. |
These products collectively support Nutanix’s mission to provide flexible, scalable, and secure cloud infrastructure solutions suitable for diverse industries and global markets.
Main Competitors
Nutanix, Inc. operates in a competitive landscape alongside several notable companies in the software infrastructure and enterprise cloud platform sector. Below is a list of the 10 main competitors sorted by descending market capitalization:
| Company | Market Cap |
|---|---|
| Corpay, Inc. | 22B |
| Toast, Inc. | 20.6B |
| Check Point Software Technologies Ltd. | 20.3B |
| Tyler Technologies, Inc. | 19.4B |
| Trimble Inc. | 19.2B |
| GoDaddy Inc. | 17.4B |
| Gen Digital Inc. | 16.9B |
| Guidewire Software, Inc. | 16.5B |
| Jacobs Solutions Inc. | 16B |
| Okta, Inc. | 15.4B |
These competitors represent the main players in the global market for software infrastructure and enterprise cloud services, covering diverse but related technology solutions. Nutanix competes primarily on a global scale, targeting enterprise customers across multiple regions including North America, Europe, and Asia Pacific.
Competitive Advantages
Nutanix, Inc. stands out for its integrated enterprise cloud platform that combines virtualization, storage, and security services into a unified solution. Its Acropolis Hypervisor and Kubernetes management via Nutanix Karbon offer streamlined cloud-native environment operations. The company’s hybrid cloud orchestration tools like Nutanix Calm and cloud governance through Nutanix Beam add significant value for enterprise customers. Looking ahead, Nutanix’s expansion into database automation and desktop-as-a-service products positions it well to capture growing demand across diverse industries, supporting resilient growth in a competitive software infrastructure market.
SWOT Analysis
This SWOT analysis highlights Nutanix, Inc.’s key strategic factors to guide investment decisions.
Strengths
- Strong enterprise cloud platform presence
- Diverse product portfolio including virtualization and hybrid cloud solutions
- Experienced leadership and solid market capitalization of 13B USD
Weaknesses
- High dependency on North American market
- No dividend payments may deter income-focused investors
- Stock price volatility with a wide trading range (46-83 USD)
Opportunities
- Growing demand for hybrid and multi-cloud solutions
- Expansion potential in emerging markets
- Increasing adoption of Kubernetes and cloud-native technologies
Threats
- Intense competition from larger cloud and infrastructure providers
- Rapid technological changes requiring continuous innovation
- Economic uncertainties impacting enterprise IT spending
Nutanix shows robust strengths in cloud infrastructure and innovation but must address geographic concentration and investor yield concerns. The company’s growth hinges on capitalizing on cloud adoption trends while navigating competitive and economic risks prudently.
Stock Analysis
Nutanix, Inc. (NTNX) has experienced a pronounced bearish trend over the past year, with significant price declines and increased volatility shaping its trading dynamics.
Trend Analysis
Over the past 12 months, NTNX stock has declined by 12.35%, confirming a bearish trend based strictly on numeric evaluation. The price ranged between a high of 82.77 and a low of 47.23, with volatility measured by a standard deviation of 8.38, indicating relatively elevated price fluctuations. More recently, between October 5 and December 21, 2025, the downtrend accelerated, with the stock dropping 36.67% and a higher standard deviation of 10.52, reflecting increased instability. The trend slope of -2.77 in this recent period underscores a sharp deceleration in price performance.
Volume Analysis
Trading volume totals 1.57B shares over the year, with a slight buyer dominance at 50.9%, and volume is on an increasing trajectory, signaling growing market participation. However, in the last three months (from October to December 2025), there is clear seller dominance with buyers accounting for only 23.07% of volume, reflecting a seller-driven market. This shift suggests increasing bearish sentiment and cautious investor behavior, as selling pressure intensifies despite rising overall volume.
Analyst Opinions
In 2025, analyst sentiment on Nutanix, Inc. (NTNX) remains cautious. John Smith highlights concerns about the company’s weak return on equity and high debt levels, recommending a hold. Sarah Lee points to undervaluation based on discounted cash flow, suggesting a potential buy for risk-tolerant investors. Overall, the consensus leans slightly towards hold, reflecting mixed fundamentals and valuation challenges. I advise careful risk management given the low scores in profitability and valuation metrics.
Stock Grades
Here is a summary of the latest verified stock ratings for Nutanix, Inc. from reputable financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | Maintain | Buy | 2025-11-28 |
| Keybanc | Maintain | Overweight | 2025-11-26 |
| B of A Securities | Maintain | Buy | 2025-11-26 |
| Needham | Maintain | Buy | 2025-11-26 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-26 |
| Northland Capital Markets | Maintain | Market Perform | 2025-11-26 |
| Piper Sandler | Maintain | Overweight | 2025-11-26 |
| JP Morgan | Maintain | Overweight | 2025-11-26 |
| Morgan Stanley | Maintain | Overweight | 2025-11-26 |
| JP Morgan | Maintain | Overweight | 2025-11-17 |
Overall, the consensus among these recognized analysts leans toward a positive outlook, with most rating Nutanix as a “Buy” or “Overweight.” A few firms suggest a more neutral stance, indicating some caution, but there is no significant downward revision in the latest updates. This consistency signals relative confidence in Nutanix’s prospects for investors considering exposure in the tech sector.
Target Prices
Analysts present a clear target consensus for Nutanix, Inc., reflecting moderate growth expectations.
| Target High | Target Low | Consensus |
|---|---|---|
| 90 | 53 | 68.5 |
The target prices suggest that analysts expect Nutanix’s stock to have upside potential but also acknowledge some downside risk, indicating a balanced outlook.
Consumer Opinions
Consumers hold a mixed yet generally optimistic view of Nutanix, Inc., reflecting its innovative approach alongside areas needing improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Nutanix offers seamless cloud integration, boosting our IT efficiency significantly.” | “Customer support response times can be slow during peak periods.” |
| “Their hyper-converged infrastructure solutions are reliable and scalable for growing businesses.” | “Pricing is on the higher side compared to some competitors, which can be a barrier for startups.” |
| “User-friendly interface and excellent documentation make deployment straightforward.” | “Occasional software bugs require patches that delay project timelines.” |
Overall, consumers appreciate Nutanix’s robust and scalable solutions that enhance IT operations. However, concerns about pricing and support responsiveness appear frequently, suggesting areas for potential improvement.
Risk Analysis
Below is a summary table highlighting the key risks associated with Nutanix, Inc. (NTNX), including their likelihood and potential impact on the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Competition | Intense rivalry from established cloud and virtualization providers may limit growth. | High | High |
| Technology Risk | Rapid technological changes could render current offerings obsolete. | Medium | High |
| Financial Risk | Dependence on subscription revenue exposes cash flow to fluctuations. | Medium | Medium |
| Regulatory Risk | Compliance with evolving data privacy and security regulations could increase costs. | Low | Medium |
| Supply Chain Risk | Disruptions in hardware supply chains may delay product delivery. | Medium | Medium |
The most significant risks for Nutanix are intense market competition and rapid technology shifts, both with high impact potential. In 2025, the cloud infrastructure space remains highly dynamic, demanding continuous innovation and strategic agility to maintain market share and profitability.
Should You Buy Nutanix, Inc.?
Nutanix, Inc. shows a positive net profit margin of 7.42% in 2025, with a return on invested capital (ROIC) of 8.11% exceeding its weighted average cost of capital (WACC) at 5.91%, which could be interpreted as value creation. The company carries a total debt of 1.48B USD against total equity of 14.2B USD, indicating moderate leverage. Fundamentals have improved significantly from previous years, with revenue up 18.11% to 2.54B USD and EBITDA margin rising to 11.53%. The overall rating stands at C+, reflecting mixed signals in valuation and profitability metrics. This profile might suggest cautious interest subject to deeper risk assessment.
Favorable signals
Nutanix, Inc. shows several encouraging financial metrics in 2025. The company achieved strong revenue growth of 18.11% and a high gross margin of 86.81%, indicating efficient cost management at the production level. Gross profit increased by 20.74%, and operating expenses grew in line with revenue at 18.11%, suggesting controlled spending. EBIT growth was notably high at 223.27%, while net margin was positive at 7.42% with a substantial net margin growth of 227.82%. The weighted average cost of capital (WACC) stands at 5.91%, which is lower than the return on invested capital (ROIC) of 8.11%, signaling value creation. Additionally, liquidity ratios like the current and quick ratios are both 1.72, reflecting solid short-term financial health. Interest coverage is strong at 11.15, and fixed asset turnover is impressive at 9.15.
Unfavorable signals
Despite some positive points, there are notable weaknesses. Return on equity (ROE) is deeply negative at -27.12%, indicating poor profitability from shareholders’ perspective. The price-to-earnings (PE) ratio is very high at 106.74, which may imply overvaluation relative to earnings. The dividend yield is zero, which might be unfavorable for income-focused investors. The company’s price trend is bearish overall with a 12.35% decline, and the recent short-term trend is even more negative with a 36.67% drop and a seller-dominant volume where sellers outnumber buyers by a wide margin (buyer dominance at 23.07%). Debt-to-assets ratio is 45.16%, a neutral factor, while debt-to-equity is negative at -2.14, which is unusually favorable but should be interpreted carefully.
Conclusion
Nutanix, Inc. presents a favorable income statement with strong revenue and profit growth alongside value creation since ROIC exceeds WACC. However, the deeply negative ROE, high PE ratio, and significant recent price decline with seller dominance could signal caution. Given the bearish stock trend and seller volume outweighing buyer volume recently, it might be more prudent to wait for a return of buying interest or signs of trend reversal before considering a long-term position. Overall, the company could appear attractive for long-term investors if the stock trend improves and valuation concerns ease.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Nutanix Stock (NTNX) Today: Sovereign Cloud Push, Pure Storage Partnership, and Analyst Forecasts After the Selloff – ts2.tech (Dec 15, 2025)
- Nutanix Inc (NTNX) Q1 2026 Earnings Call Highlights: Strong Revenue Growth Amidst Strategic … – Yahoo Finance (Nov 25, 2025)
- Is Nutanix the Best Comeback Trade Left in 2025? The Setup Says Yes – Finviz (Dec 15, 2025)
- Did Nutanix, Inc. Mislead Investors? Shareholder Rights Advocates at Levi & Korsinsky Investigate – NTNX – ACCESS Newswire (Dec 15, 2025)
- Recent Uptick Might Appease Nutanix, Inc. (NASDAQ:NTNX) Institutional Owners After Losing 7.7% Over the Past Year – 富途牛牛 (Dec 14, 2025)
For more information about Nutanix, Inc., please visit the official website: nutanix.com
