Core Viewpoint - Nutanix is set to report its earnings on November 25, 2025, with expectations of a slight decline in earnings per share but an increase in revenue compared to the previous year [2][3]. Financial Performance - In the latest trading session, Nutanix closed at $67.71, reflecting a decrease of 1.23% from the previous day, underperforming the S&P 500's gain of 0.06% [1]. - Over the past month, Nutanix shares increased by 0.9%, lagging behind the Computer and Technology sector's growth of 6.16% and the S&P 500's increase of 4.57% [1]. - For the upcoming earnings report, analysts anticipate earnings of $0.41 per share, representing a year-over-year decline of 2.38%, while revenue is expected to reach $677.02 million, up 14.56% from the prior-year quarter [2]. - For the entire fiscal year, earnings are projected at $1.9 per share and revenue at $2.92 billion, indicating increases of 17.28% and 15.17% respectively from the previous year [3]. Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Nutanix indicate a positive outlook on the company's business operations and profit generation capabilities [4]. - The Zacks Rank system currently rates Nutanix as 2 (Buy), with a Forward P/E ratio of 36.14, which is a premium compared to the industry average of 17.3 [6]. - Nutanix has a PEG ratio of 2.59, higher than the Computers - IT Services industry's average PEG ratio of 1.92, suggesting a higher valuation relative to growth expectations [7]. Industry Context - The Computers - IT Services industry, which includes Nutanix, is ranked 61 in the Zacks Industry Rank, placing it in the top 25% of over 250 industries [7]. - Historical data shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a favorable environment for Nutanix within its industry [8].

Company Overview - Nutanix (NTNX) ended the recent trading session at $68.80, showing a -1.31% change from the previous day's closing price, underperforming the S&P 500 which lost 1.12% [1] - Over the past month, Nutanix shares have decreased by 2.02%, while the Computer and Technology sector gained 3.58% and the S&P 500 gained 1.26% [1] Financial Performance Forecast - Nutanix is expected to report an EPS of $0.41, reflecting a 2.38% decrease from the same quarter last year, with quarterly revenue forecasted at $677.02 million, up 14.56% year-over-year [2] - For the entire fiscal year, earnings are projected at $1.9 per share and revenue at $2.92 billion, indicating increases of +17.28% and +20.16% respectively from the previous year [3] Analyst Estimates and Valuation - Recent revisions to analyst forecasts for Nutanix are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] - Nutanix currently holds a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 36.75, which is a premium compared to the industry average Forward P/E of 16.9 [5] - The company has a PEG ratio of 2.63, compared to the industry average PEG ratio of 1.92, indicating a higher expected earnings growth rate relative to its price [6] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups by evaluating the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1 - Nutanix, Inc. will report its financial results for the first quarter of fiscal year 2026 on November 25, 2025, after U.S. markets close [1] - A conference call and earnings webcast will be held on the same day at 4:30 p.m. Eastern Time to discuss the financial results [2] - An archived replay of the webcast will be available shortly after the call on the Nutanix Investor Relations website [3] Group 2 - Nutanix is a leader in hybrid multicloud computing, providing a unified software platform for running applications and managing data [4] - The company serves over 29,000 customers globally, helping them to digitally transform and manage hybrid multicloud environments effectively [4]

Core Insights - Nutanix Inc. (NASDAQ:NTNX) share price is currently at $71.36, reflecting a 3.30% increase, but has decreased by 6.53% over the past month and increased by 13.97% over the past year [1] Group 1: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [5] - Nutanix Inc. has a P/E ratio of 106.28, which is lower than the software industry average P/E ratio of 119.19, suggesting potential undervaluation or weaker future performance expectations [6] - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability, necessitating a cautious approach in its interpretation [9]

Company Overview - Nutanix (NTNX) is a networking IT services company with a market cap of $18 billion [2] - GitLab (GTLB) is another tech name with a market cap of $8 billion [11] Financial Performance - Nutanix - Nutanix has a strong buy rating with growth divergence [1] - The company has beaten earnings estimates for the last four quarters, averaging 20% over the past year [4] - Topline growth is expected to be 15% this fiscal year and 14% next fiscal year, reaching $3 billion in sales [5][6] - Operating margins have increased from 4.4% to 6.4% to 8% over the last three quarters [7] Financial Performance - GitLab - GitLab also has a strong buy rating with growth divergence [11] - The company is beating earnings estimates handily, with some seasonality [12][13] - Revenue is expected to grow 23-24% next year, reaching $1.13 billion, with 20% topline growth [14] - Operating margins are moving from negative to positive [15] Valuation - Nutanix has a forward earnings multiple of 36 times [2][6] - GitLab has a high forward earnings multiple of 58 times, but is growing at about 30% [14][15] - GitLab's price to sales is 930% [15] Market Dynamics and Strategy - There is speculative M&A interest around Nutanix [3][11] - GitLab's earnings estimates are moving higher, indicating good margin expansion [18]

Core Viewpoint - The performance of storage systems is crucial for enhancing overall training efficiency in AI, as insufficient storage performance can significantly limit GPU utilization [2] Summary by Sections MLPerf Storage v2.0 and Testing Loads - MLPerf Storage is a benchmark suite designed to replicate real AI training loads, assessing storage systems' performance in distributed training environments [3] - The latest version, v2.0, includes three types of training loads that represent the most common I/O patterns in deep learning [3] Specific Training Loads - The 3D U-Net medical segmentation load requires handling large 3D medical images, focusing on throughput performance during sequential reads [4] - The ResNet-50 image classification load emphasizes high-concurrency random reads, demanding high IOPS from storage systems [4] - The CosmoFlow cosmological prediction load tests small file concurrent access and bandwidth scalability, requiring stable metadata handling and low latency [4][5] Performance Comparison Standards - The testing involved various vendors with different storage types, making horizontal comparisons limited; the focus is on shared file systems for more relevant conclusions [6] - Shared file systems are categorized into Ethernet-based systems and InfiniBand (IB) network solutions, each with distinct performance characteristics [7] Test Results Interpretation - For the 3D U-Net load, Ethernet-based storage products like Oracle and JuiceFS excelled, with JuiceFS supporting the most H100 GPUs and achieving a bandwidth utilization of 86.6% [11] - IB network solutions provided high total bandwidth but often exhibited lower bandwidth utilization, typically below 50% [14] - The CosmoFlow load highlighted the challenges of reading numerous small files, with JuiceFS and Oracle leading in GPU support [16][18] - The ResNet-50 load required high IOPS, with JuiceFS supporting the most GPUs and achieving a bandwidth utilization of 72% among Ethernet solutions [21][24] Conclusion - Understanding the type of storage product, including architecture and hardware resources, is essential for evaluating GPU utilization [27] - Ethernet-based storage solutions offer flexibility and cost-effectiveness while providing excellent performance, making them a popular choice for large-scale AI training [27]

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, aiding investors in selecting stocks likely to outperform the market in the short term [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future outlook by examining projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, helping investors identify optimal buying opportunities [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.81%, significantly outperforming the S&P 500 [7] Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings outlooks [10] Company Spotlight: Nutanix Inc. - Nutanix Inc. specializes in enterprise cloud operating systems, offering integrated solutions for server, storage, virtualization, and networking [11] - Currently rated 3 (Hold) with a VGM Score of B, Nutanix is positioned as a potential growth investment [11] - The company forecasts a year-over-year earnings growth of 17.3% for the current fiscal year, with upward revisions in earnings estimates from analysts [12]

Upgrades - RBC Capital upgraded Sealed Air (SEE) to Outperform from Sector Perform with a price target of $48, up from $35, citing stabilization in Protective and continued strength in Food segments, along with over $100 million of cost reductions and G&A optimization [2] - Citi upgraded Tractor Supply (TSCO) to Buy from Neutral with a price target of $62, up from $60, noting same-store sales momentum and earnings growth heading into 2026 [2] - Piper Sandler upgraded PNC Financial (PNC) to Overweight from Neutral with a price target of $220, up from $211, expressing confidence in PNC's near-term prospects due to its conservative guidance and attractive valuation [3] - HSBC upgraded Iqvia (IQV) to Buy from Hold with a price target of $235, up from $195, expecting easing regulatory clouds in pharma to support a re-rating of the shares [3] - MoffettNathanson upgraded Roblox (RBLX) to Neutral from Sell, acknowledging that user metrics have significantly improved driven by new viral experiences [4] Downgrades - Jefferies downgraded Freshpet (FRPT) to Hold from Buy with a price target of $53, down from $97, citing an abrupt and persistent growth slowdown and lack of near-term catalysts [5] - HSBC downgraded Bloom Energy (BE) to Hold from Buy with a price target of $100, up from $44, while expecting consensus estimates to revise higher but awaiting a better entry point [5] - RBC Capital downgraded Graphic Packaging (GPK) to Sector Perform from Outperform with a price target of $21, down from $25, due to oversupply in bleached paperboard limiting price increases [5] - JPMorgan downgraded RenaissanceRe (RNR) to Neutral from Overweight with an unchanged price target of $303, adopting an incrementally cautious view on reinsurance pricing [5] - Northland downgraded Nutanix (NTNX) to Market Perform from Outperform with a price target of $76, highlighting risks related to VMware customer migrations and competition from Red Hat [5]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Evaluates a company's financial health and future growth potential through earnings, sales, and cash flow analysis [4] Momentum Score - Targets stocks experiencing upward or downward price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - Combines all three Style Scores to identify stocks with the best value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Stock Example: Nutanix (NTNX) - Nutanix Inc. provides an integrated enterprise cloud operating system and is currently rated 3 (Hold) with a VGM Score of B [11] - The company is positioned well for growth, with a Growth Style Score of A and a projected year-over-year earnings growth of 17.3% for the current fiscal year [12] - Recent upward revisions in earnings estimates and a strong earnings surprise average of +20.2% further enhance Nutanix's attractiveness to investors [12]

Core Insights - Aligned Data Centers successfully raised $12 billion at the beginning of the year to expand its infrastructure in response to the growing demand for AI facilities [1][6] - The company is currently in advanced discussions for a potential $40 billion acquisition by BlackRock's Global Infrastructure Partners, which could be one of the largest transactions in the data center sector [2][3] - AI-related companies have seen significant investment, with $141 billion in corporate credit issuance this year, surpassing last year's total of $127 billion [3] Company Overview - Founded in 2013, Aligned focuses on providing custom data centers with an emphasis on efficiency and sustainability, currently managing or developing 78 data centers across the Americas [5] - Aligned has raised funds to build out 5 gigawatts of data center capacity, enough to power half of New York City on a hot day, although much of this capacity is still in the planning stages [6][7] - The company currently has over 600 megawatts of operational capacity and an additional 700 megawatts under construction, positioning it as a significant player in the market [7] Market Context - The demand for AI infrastructure is driving companies like Aligned to expand rapidly, with tech firms prepared to invest hundreds of billions in physical infrastructure [4] - Aligned's potential revenue, based on industry-standard pricing, could reach nearly $1.6 billion annually, increasing to $3.4 billion when including capacity under construction [9] - Comparatively, Coreweave Inc., another cloud provider, has a market value exceeding $65 billion, highlighting the high valuations in the AI infrastructure market [8][10]