Core Viewpoint - Google Cloud has made Nutanix's Cloud Clusters platform generally available, enhancing hybrid-cloud options for enterprises looking to modernize applications without the need to rebuild existing workloads [1][2]. Group 1: Product Launch and Features - Nutanix Cloud Clusters (NC2) allows businesses to migrate regulated and mission-critical applications to Google Cloud while ensuring consistent performance [2][5]. - The platform supports seamless mobility between on-premises Nutanix environments and Google Cloud, enabling organizations to modernize at their own pace [2][3]. - NC2 helps teams avoid the lengthy process of re-architecting applications, thus streamlining the transition to cloud services [2][5]. Group 2: Integration with AI and Data Services - Google Cloud's data services and AI models can be directly integrated with applications running on NC2, facilitating the use of tools like BigQuery, Gemini Enterprise, and Vertex AI for enhanced analytics and machine-learning development [4][5]. Group 3: Operational Advantages - Key benefits of the expanded offering include seamless disaster recovery, consistent operations across environments, and scalable cloud capacity during peak demand [6]. - License portability provides enterprises with greater control over long-term cloud investments [6]. Group 4: Management and Accessibility - Both on-premises systems and Google Cloud deployments are managed through Nutanix Prism Central, offering a unified operational interface that reduces training needs and simplifies hybrid-cloud workflows [7]. - NC2 licensing will soon be available through Google Cloud Marketplace, allowing customers to apply existing spending commitments toward Nutanix software and consolidate billing [7]. Group 5: Market Reaction - Alphabet shares experienced a 0.48% increase, reaching $315.23, approaching its 52-week high of $328.83 [8].

My previous investment thought on Nutanix, Inc. ( NTNX ) was a buy rating because it continues to win new customers at a solid momentum, partnerships are also scaling well, and there is a multi-yearI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to i ...

My previous investment thought on Nutanix, Inc. ( NTNX ) was a buy rating because it continues to win new customers at a solid momentum, partnerships are also scaling well, and there is a multi-yearI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to i ...

Core Insights - The Hyper Converged Infrastructure (HCI) market is projected to grow from USD 16.16 billion in 2025 to USD 84.72 billion by 2033, with a CAGR of 23.01% from 2026 to 2033 [1][2]. Market Dynamics - The demand for efficient data management systems that integrate previously siloed resources is driving the growth of the HCI market, which is becoming a transformative area in IT due to the increasing need for virtualized environments and cloud-based applications [2][4]. - Traditional IT infrastructure often leads to operational inefficiencies and increased management burdens, while HCI simplifies IT management by combining networking, storage, and computing into a single system [4]. Segmentation Analysis - By Component: The hardware segment held a 65% market share in 2025, driven by the need for high-performance servers and storage devices. The software segment is expected to grow at the fastest CAGR from 2026 to 2033, enhancing infrastructure adaptability [5]. - By Enterprise Size: Large enterprises dominated the market with a 59% share in 2025, utilizing HCI solutions for managing extensive data and complex IT operations. Small and Medium-Sized Enterprises (SMEs) are anticipated to be the fastest-growing segment from 2026 to 2033, adopting HCI to consolidate resources and simplify IT management [6][7]. Regional Insights - North America led the HCI market in 2025 with a 40% share, supported by advanced technological infrastructure and significant adoption in industries such as IT, healthcare, and financial services [8]. - The APAC region is expected to be the fastest-growing market from 2026 to 2033, driven by rapid digitization in countries like China and India, along with increased investments in data centers [9]. Key Players - Major companies in the HCI market include Nutanix, VMware, Dell EMC, Cisco, Hewlett Packard Enterprise, Lenovo, Microsoft, NetApp, Huawei, and others [10][13]. Recent Developments - Dell Technologies and Nutanix are enhancing their partnership with a new HCI appliance and integration of Dell's software-defined storage into Nutanix's HCI [13]. - Lenovo has introduced new ThinkAgile hyperconverged solutions to enhance its hybrid cloud platform for AI, improving cloud deployment and connectivity [13].

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, typically below 30 [1] Company Summaries - **Motorola Solutions Inc (NYSE:MSI)**: - Recently acquired Blue Eye to enhance threat detection and response capabilities [5] - Stock fell approximately 6% over the past month, with a 52-week low of $365.40 [5] - Current RSI value is 27.3, indicating oversold conditions [5] - Recent stock price closed at $371.49, down 1.1% [5] - **Zscaler Inc (NASDAQ:ZS)**: - Reported quarterly earnings of 96 cents per share, exceeding estimates of 86 cents, with revenue of $788.1 million, surpassing the $773.75 million estimate [5] - Stock declined around 25% in the last month, reaching a 52-week low of $164.78 [5] - RSI value stands at 25.9, indicating it is also oversold [5] - Shares closed at $241.85, down 0.7% [5] - **Nutanix Inc (NASDAQ:NTNX)**: - Reported disappointing first-quarter sales and provided lower-than-expected guidance for the second quarter [8] - Stock fell about 32% over the past month, with a 52-week low of $46.13 [8] - RSI value is at 20, indicating significant oversold conditions [8] - Shares closed at $47.11, down 0.7% [8]

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Motorola Solutions Inc (NYSE:MSI) has an RSI of 27.3, with a stock price decline of approximately 6% over the past month, closing at $371.49 [5] - Zscaler Inc (NASDAQ:ZS) has an RSI of 25.9, with a stock price drop of around 25% over the past month, closing at $241.85 [5] - Nutanix Inc (NASDAQ:NTNX) has an RSI of 20, with a stock price decrease of about 32% over the past month, closing at $47.11 [8] Group 2: Company Performance - Motorola Solutions announced the acquisition of Blue Eye to enhance its threat detection and response capabilities [5] - Zscaler reported quarterly earnings of 96 cents per share, exceeding estimates, with quarterly revenue of $788.1 million, also surpassing analyst expectations [5] - Nutanix reported disappointing first-quarter sales and provided second-quarter guidance below estimates, indicating a potential revenue stagnation [8]

Financial Performance - Total revenue increased from $590,956,000 in Q4 2024 to $670,576,000 in Q4 2025, representing a growth of approximately 13.4%[19] - Net income rose significantly from $29,926,000 in Q4 2024 to $62,096,000 in Q4 2025, marking an increase of about 107.5%[19] - Gross profit improved from $508,286,000 in Q4 2024 to $583,106,000 in Q4 2025, reflecting a growth of approximately 14.7%[19] - Total revenue for the three months ended October 31, 2025, was $670.6 million, representing a 13.5% increase from $591.0 million in the same period of 2024[41] - Net income for the three months ended October 31, 2025, was $62.1 million, compared to $29.9 million for the same period in 2024, indicating a significant increase of 107.4%[118] - Annual recurring revenue (ARR) increased to $2,284,051,000 for the three months ended October 31, 2025, up from $1,942,946,000 in the prior year, reflecting strong subscription growth[134] - Gross profit for the three months ended October 31, 2025, was $583,106,000, with a gross margin of 87.0%, compared to $508,286,000 and 86.0% in the same period of 2024[134] - Operating income for the three months ended October 31, 2025, was $49,335,000, resulting in an operating margin of 7.4%, up from $27,250,000 and 4.6% in the prior year[134] - Free cash flow for the three months ended October 31, 2025, was $174,506,000, compared to $151,920,000 in the prior year[134] Revenue Breakdown - Subscription revenue increased from $560.7 million in Q4 2024 to $637.8 million in Q4 2025, reflecting a growth of approximately 13.8%[41] - Professional services revenue for the three months ended October 31, 2025, was approximately $28.9 million, compared to $27.3 million in the same period of 2024, marking a growth of about 5.9%[43] - Revenue from the United States for the three months ended October 31, 2025, was $386.0 million, up from $332.7 million in the same period of 2024, reflecting a growth of 15.9%[121] - Product revenue increased by approximately $47.1 million, or 16%, for the three months ended October 31, 2025, primarily due to increased software revenue driven by growth in software renewals and customer acquisition[188] - Support, maintenance, and other services revenue rose by approximately $32.5 million, or 11%, for the three months ended October 31, 2025, supported by a 10% growth in the end customer base[189] Expenses and Investments - Research and development expenses increased from $173,959,000 in Q4 2024 to $187,482,000 in Q4 2025, indicating a commitment to enhancing solutions and technology[19] - The company plans to continue investing in sales and marketing functions, focusing on major accounts and pipeline growth[11] - The company plans to continue investing in solution development and sales and marketing efforts to capitalize on market opportunities while improving operating cash flow[133] - Sales and marketing expenses increased by $31,832,000 (13%) for the three months ended October 31, 2025, compared to the prior year, primarily due to higher personnel-related costs from an 8% growth in headcount[197] - Research and development expenses rose by $13,523,000 (8%) for the three months ended October 31, 2025, driven by a 13% increase in R&D headcount and higher bonus and benefits costs[198] - General and administrative expenses increased by $7,380,000 (14%) for the three months ended October 31, 2025, mainly due to higher legal and outside services costs and a 9% growth in G&A headcount[199] Cash and Assets - Cash and cash equivalents rose from $769,502,000 as of July 31, 2025, to $780,421,000 as of October 31, 2025[17] - Total assets increased from $3,283,194,000 as of July 31, 2025, to $3,323,992,000 as of October 31, 2025[17] - Cash provided by operating activities increased from $161,751,000 in 2024 to $196,825,000 in 2025, reflecting a growth of 21.6%[25] - Cash, cash equivalents, and restricted cash at the end of the period increased from $716,994,000 in 2024 to $780,436,000 in 2025, marking a rise of 8.8%[25] - The company’s cash, cash equivalents, short-term investments, and available borrowing capacity will be sufficient to meet anticipated cash needs for at least the next 12 months[209] Shareholder Information - The weighted average shares used in computing net income per share attributable to Class A common stockholders, diluted, increased from 288,829 to 296,518[19] - The company repurchased approximately 0.7 million shares of Class A common stock for about $50.0 million at a weighted average price of $71.07 per share during the three months ended October 31, 2025[101] - As of October 31, 2025, approximately $411.5 million remained available for future share repurchases under the authorized program[101] - The company had 1.0 billion shares of Class A common stock authorized, with approximately 270.7 million shares issued and outstanding as of October 31, 2025[99] Debt and Financing - The company issued $862.5 million in aggregate principal amount of 0.50% convertible senior notes due 2029 in December 2024[68] - The company entered into a revolving credit agreement in February 2025 for a senior secured revolving credit facility of $500.0 million, maturing in February 2030[85] - As of October 31, 2025, the company had no borrowings under the Revolver and was in compliance with the financial covenant requiring a total leverage ratio of less than or equal to 3.75:1.00[89][88] Market and Economic Conditions - Macroeconomic conditions, including inflation and geopolitical issues, may impact customer buying patterns and sales cycles[166] - The company generates revenue primarily from the sale of the Nutanix Cloud Platform, with subscription term-based licenses typically ranging from one to five years[167] Compliance and Investigations - The company is cooperating with the DOJ regarding an investigation into historical conduct by a former employee, but does not expect this matter to materially affect its financial position[98]

Core Insights - Nutanix's Cloud Platform (NCP) has been listed in the AWS Marketplace for the U.S. Intelligence Community (ICMP), facilitating easier access for government customers to software solutions [1] - NCP integrates compute, storage, and networking into a unified platform, enhancing management efficiency and reducing operational complexity for IT infrastructure [2] - The availability of Nutanix on ICMP aims to support federal agencies in modernizing their IT environments, allowing them to focus on mission-critical outcomes rather than managing complexity [3] Company Overview - Nutanix is recognized as a leader in hybrid multicloud computing, providing a unified software platform for application management and data handling across various environments [3] - The company serves over 29,000 customers globally, assisting organizations in digital transformation and the effective management of hybrid multicloud environments [3]

Core Viewpoint - Nutanix (NTNX) is facing significant challenges despite the increasing demand for AI workload management, as evidenced by its recent financial performance and stock decline [1][4]. Financial Performance - In the fiscal first quarter, Nutanix reported adjusted earnings per share of 41 cents, meeting Wall Street expectations, but revenue was $670.6 million, falling short of the consensus target of $676.4 million [2]. - For Q2, management guided revenue expectations between $705 million and $740 million, which is below analysts' consensus estimate of $749.09 million. Additionally, Nutanix lowered its full-year revenue outlook [3]. Stock Performance - Following the mixed financial results and lowered guidance, NTNX stock experienced a significant decline, falling more than 18% in the last five sessions and nearly 34% over the past 30 days [4]. - The Technical Opinion indicator from Barchart rates NTNX as a 100% Strong Sell, indicating a negative sentiment among investors [4]. Market Sentiment - Despite the negative outlook, Barchart notes that the relative strength indicator (RSI) for NTNX is below 20%, suggesting an oversold condition that could lead to a potential reversal [5]. - Options flow indicates negative sentiment, particularly from institutional investors, during the recent trading sessions [5].

Core Insights - Nutanix is positioned as a leading cloud software company, offering a unified cloud platform that integrates compute, storage, virtualization, and networking, catering to various data management needs across on-premises, public clouds, and edge locations [2][4] - The global cloud infrastructure market was valued at over $262.7 billion last year, with projections indicating it could reach $837.97 billion by 2034, reflecting a compound annual growth rate (CAGR) above 12% [4] - Nutanix reported a revenue of $670.58 million in fiscal 1Q26, marking a 13.5% increase year-over-year, although it fell short of forecasts by $6 million [7] - The company has over 29,000 customers, including major corporations like Home Depot and Intel, highlighting its strong market presence [6] Company Overview - Nutanix's platform simplifies operations, enhances performance, and maintains control, which are essential for enterprises of all sizes [1] - The company leverages HyperConverged Infrastructure (HCI) technology, providing flexibility, scalability, and resilience, making it suitable for all applications [2] - The shift towards hybrid and multi-cloud architectures is driving demand for next-generation infrastructure providers, which Nutanix is well-positioned to meet [5] Financial Performance - Nutanix's non-GAAP EPS for the last reported quarter was $0.41, aligning with expectations [7] - Analyst Param Singh from Oppenheimer maintains a bullish outlook on Nutanix, citing its potential to benefit from the industry's shift towards HCI and the opportunity to displace VMware [8] - The current share price of Nutanix is $47.8, with an average target price of $71.17, indicating a potential one-year gain of 32% [8] Market Trends - Enterprises are undergoing significant infrastructure overhauls, rethinking data storage and management strategies, which is reshaping IT budgets [5] - The increasing importance of secure and flexible data storage solutions is driven by the rapid expansion of AI technologies [12] - The demand for unstructured data storage for AI applications is expected to grow, benefiting companies like Nutanix and Pure Storage [15]