Core Insights - Nutanix has appointed Greg Lavender to its board of directors, effective September 17, 2025, bringing extensive technology experience to the company [1][3] - Lavender has over 40 years of experience in software, cloud, artificial intelligence, and enterprise infrastructure, previously serving as CTO at Intel and holding senior roles at VMware, Citigroup, Cisco Systems, and Sun Microsystems [3][4] - Lavender's expertise includes building open ecosystems, advancing confidential computing, and integrating hardware and software innovation for AI and cloud-native workloads [4] Company Overview - Nutanix is a leader in hybrid multicloud computing, providing a unified software platform for running applications and managing data across multiple clouds and locations [5][6] - The company serves over 29,000 customers globally, helping organizations simplify operations for both traditional and modern applications [6] - Nutanix aims to empower organizations in their digital transformation and to operate hybrid multicloud environments efficiently and cost-effectively [6]

Group 1: Company Buyback Announcements - Dropbox announced a $1.5 billion share buyback program, representing 18% of its market capitalization, and has reduced its outstanding share count by approximately 35% since April 2021 [4][2] - Nutanix increased its buyback authorization by $350 million, bringing its total buyback capacity to $461 million, which is 2.2% of its market capitalization [8][6] - Salesforce raised its buyback authorization by $20 billion, totaling $50 billion, with a current buyback capacity of approximately $25.7 billion, equating to 11.1% of its market capitalization [14][12] Group 2: Company Performance and Market Position - Dropbox's stock has increased by around 28% over the past 52 weeks, despite facing significant competition in the cloud storage market [3][2] - Nutanix's shares have gained over 31% in the past year, benefiting from competitive advantages against VMware [6][7] - Salesforce has added 6,000 paying customers to its AI offering, Agentforce, in just three quarters, highlighting its growth in the enterprise software sector [13][12] Group 3: Financial Metrics and Implications - The buyback programs of these companies are expected to positively impact key metrics like earnings per share (EPS), which often correlates with rising share prices [1] - Salesforce has reduced its outstanding share count by approximately 4.7% since November 2022, with an average quarterly buyback spending of around $2 billion [15][14] - Nutanix's share count has increased by less than 1% in 2025, indicating a slowdown in dilution, which may allow for future reductions in share count as free cash flow improves [9][8]

Core Insights - Nutanix has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure, marking its third appearance in this quadrant and its second time as a Leader [1][5] - The recognition reflects Nutanix's commitment to innovation and customer success, as stated by Lee Caswell, SVP of Product & Solutions Marketing [2] Company Overview - Nutanix is a leader in hybrid multicloud computing, providing a secure, unified platform for running applications and managing data across various environments [8] - The Nutanix Cloud Platform (NCP) supports a wide range of public cloud services, including AWS, Microsoft Azure, and Google Cloud, and facilitates the deployment of AI and Kubernetes [2] Customer Use Cases - Organizations in sectors such as financial services, healthcare, public, manufacturing, and retail are utilizing NCP [3] - First Foundation Bank, a California-based customer, leverages NCP for disaster recovery of its virtual desktop infrastructure, highlighting the platform's scalability and cost-effectiveness [3][4]

Core Insights - Nutanix aims to establish itself as a leading infrastructure platform over the next five years, building on its history as a pioneer in hyper-converged infrastructure (HCI) and competing effectively against major incumbents in the market [1][3]. Company Strategy - The company has developed a comprehensive infrastructure platform capable of supporting a wide range of applications, including legacy, modern, and future AI applications, which can be managed across various environments such as on-premises, edge, and public clouds [2]. Market Position - Nutanix has positioned itself as a challenger in the market, successfully competing against established players like legacy storage vendors and VMware, while also addressing the needs of public cloud users [1].

Nutanix 2025 Conference Summary Company Overview - **Company**: Nutanix (NasdaqGS: NTNX) - **Industry**: Hybrid Cloud Infrastructure Key Points and Arguments Vision and Market Position - Nutanix aims to become a de facto platform for applications and data management across various environments, including on-premises, edge, and public clouds, over the next five years [5][4] - The company has been recognized as a leader in Gartner's distributed hybrid infrastructure Magic Quadrant, competing against larger firms like AWS and Microsoft [5] Private vs. Public Cloud - The debate between private and public cloud continues, with private cloud being more cost-effective when properly engineered [9] - Data sovereignty, privacy, and security concerns are driving the need for hybrid cloud solutions, where applications and data can be managed flexibly [10] AI Workloads - Currently, most AI workloads are in public cloud environments for training purposes, but as enterprises adopt AI for daily needs, workloads will likely become more distributed [11][12] Financial Metrics and Methodology Changes - Nutanix has aligned its Annual Recurring Revenue (ARR) recognition with the provision of licenses to customers, reflecting industry practices [14][15] - Fiscal year 2026 guidance anticipates a midpoint growth of approximately 15%, driven by the deployment of HCI architecture and partnerships [19][16] Growth Drivers - Key growth drivers include: - Continued deployment of HCI architecture in legacy environments [16] - The hybrid cloud trend, which is still in early stages [17] - Growth in cloud-native applications through the Nutanix Kubernetes Platform (NKP) [17] - New partnerships that will drive incremental revenue [18] Partnerships and Market Strategy - Nutanix is now supporting external storage, allowing easier integration into existing environments without requiring customers to switch to HCI immediately [20][21] - The company aims to penetrate the remaining 75% of the traditional storage market while maintaining its core HCI offerings [21][24] Customer Momentum - Nutanix has added approximately 2,700 new customers over the past year, with a focus on migrating customers from VMware [52][36] - The company expects to sustain mid to high three-digit new logo additions quarterly [39] Product Portfolio Expansion - The number of use cases within customer environments has increased, with Nutanix now offering solutions that integrate external storage and modern applications [41] - The company is seeing initial success in public cloud migrations, particularly from VMware customers [42] Pricing Strategy - Nutanix aims to maintain competitive pricing while emphasizing the value it provides, rather than competing solely on price [60][59] Margin and Operational Efficiency - Nutanix is focused on driving growth while improving operating margins, with investments in sales, marketing, and R&D [62][63] - The company is not yet at its long-term operating margin goals but is working towards improving sales rep productivity and renewal efficiencies [66] AI and Future Opportunities - Nutanix's AI initiatives, such as GPT-in-a-Box, are still in early stages, with customers exploring use cases like document summarization and fraud detection [67][68] - The company anticipates a rise in inference applications as enterprises optimize workflows and tasks [69] Additional Important Insights - The transition to supporting external storage is seen as a strategic move to capture a larger market share without forcing customers to make significant architectural changes [24][20] - The gradual migration of VMware customers is characterized as a multi-year opportunity, with infrastructure being sticky and requiring careful planning for transitions [52][56]

Group 1 - Nutanix Inc (NTNX) shares are trading higher following the announcement that it will be added to the S&P MidCap 400 index, effective prior to the market opening on September 22 [1][2] - The inclusion in the S&P MidCap 400 is a significant milestone for Nutanix, as it typically leads to increased demand from index funds and institutional investors [2] - Nutanix will replace Acadia Healthcare Company Inc (ACHC) in the index [2] Group 2 - Nutanix shares have increased by 7.24% to $74.98, with a 52-week high of $83.36 and a low of $54.66 [4] - According to Benzinga Edge rankings, Nutanix has a Growth score of 57.77 but a low Value score of 8.29 [3]

Core Viewpoint - S&P Dow Jones Indices will implement changes to the S&P 100, S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective September 22, 2025, to enhance market capitalization representation [1][2]. Changes Summary - **S&P 100 Changes**: - Addition of Uber Technologies (Ticker: UBER) in the Industrials sector - Deletion of Charter Communications (Ticker: CHTR) from the index [2][3]. - **S&P 500 Changes**: - Additions: - AppLovin (Ticker: APP) in the Information Technology sector - Robinhood Markets (Ticker: HOOD) in the Financials sector - Emcor Group (Ticker: EME) in the Industrials sector - Deletions: - MarketAxess Holdings (Ticker: MKTX) in the Financials sector - Caesars Entertainment (Ticker: CZR) in the Consumer Discretionary sector - Enphase Energy (Ticker: ENPH) in the Information Technology sector [2][3]. - **S&P MidCap 400 Changes**: - Additions: - Nutanix (Ticker: NTNX) in the Information Technology sector - TransUnion (Ticker: TRU) in the Industrials sector - MP Materials (Ticker: MP) in the Materials sector - Kratos Defense & Security Solutions (Ticker: KTOS) in the Industrials sector - Deletions: - Emcor Group (Ticker: EME) in the Industrials sector - The Wendy's Company (Ticker: WEN) in the Consumer Discretionary sector - Acadia Healthcare Company (Ticker: ACHC) in the Health Care sector - ManpowerGroup (Ticker: MAN) in the Industrials sector [3][4]. - **S&P SmallCap 600 Changes**: - Additions: - MarketAxess Holdings (Ticker: MKTX) in the Financials sector - Caesars Entertainment (Ticker: CZR) in the Consumer Discretionary sector - Enphase Energy (Ticker: ENPH) in the Information Technology sector - The Wendy's Company (Ticker: WEN) in the Consumer Discretionary sector - Acadia Healthcare Company (Ticker: ACHC) in the Health Care sector - Noble Corporation (Ticker: NE) in the Energy sector - Q2 Holdings (Ticker: QTWO) in the Information Technology sector - Waystar Holding (Ticker: WAY) in the Health Care sector - Hecla Mining (Ticker: HL) in the Materials sector - Deletions: - MP Materials (Ticker: MP) in the Materials sector - Kratos Defense & Security Solutions (Ticker: KTOS) in the Industrials sector - ProPetro Holding (Ticker: PUMP) in the Energy sector - Xerox Holdings (Ticker: XRX) in the Information Technology sector - TechTarget (Ticker: TTGT) in the Communication Services sector - Mesa Laboratories (Ticker: MLAB) in the Health Care sector - Owens & Minor (Ticker: OMI) in the Health Care sector - B&G Foods (Ticker: BGS) in the Consumer Staples sector - Jack in the Box (Ticker: JACK) in the Consumer Discretionary sector - Simulations Plus (Ticker: SLP) in the Health Care sector [3][4].

Core Viewpoint - Nutanix is experiencing significant growth, adding 2,700 new customers in the past year, driven by channel partners and a shift from VMware to hyper-converged infrastructure [2][3][4]. Customer Growth - The total customer count for Nutanix has reached 29,000, including over 50 Global 2000 companies, following the addition of 2,700 new customers [3][4]. - Nutanix expects to maintain a mid-to-high single-digit growth rate in new customer acquisition for the upcoming fiscal year [3]. Market Opportunity - Nutanix is in a "second inning" of capturing market share from VMware, with a market opportunity expected to last 5 to 10 years [3][4]. - Despite the growth, VMware still has 200,000 customers, indicating substantial market space for Nutanix to explore [4]. Financial Performance - For the fiscal year ending July 31, Nutanix reported revenues of $2.54 billion, an 18% increase year-over-year, and a net profit of $39 million, recovering from a net loss of $108 million the previous year [6]. - In the fourth quarter, Nutanix's revenue grew by 19% to $653.2 million, with a net profit of $13.9 million [7]. Strategic Partnerships - Nutanix has formed a partnership with Dell Technologies to support PowerFlex storage arrays, successfully migrating two Global 2000 companies to its platform [5][6]. - The collaboration with Pure Storage is in beta testing, aiming to integrate Pure's flash arrays with Nutanix's hyper-converged infrastructure [6].

Core Insights - Nutanix ended fiscal 2025 with a stronger-than-expected fourth quarter, achieving double-digit revenue growth and indicating progress from large strategic deals and industry partnerships [1][2] - Despite the positive performance, near-term contract timing issues affected investor sentiment, leading to a decline in share price [1][8] Financial Performance - The company reported fourth-quarter revenue of $653.3 million, a 19% increase from the previous year, surpassing guidance due to steady new customer additions and expanding enterprise adoption [2] - Annual recurring revenue (ARR) and net revenue retention (NRR) faced temporary challenges due to contracts with deferred start dates [2] Analyst Ratings and Forecasts - Needham analyst Mike Cikos maintained a Buy rating on Nutanix but reduced the price target from $92 to $80, citing near-term valuation pressures while remaining confident in the company's long-term prospects [3][8] - For fiscal 2026, management projected revenue between $2.90 billion and $2.94 billion, operating margins of 21%–22%, and free cash flow of $790–$830 million [6] Growth Catalysts - Key growth drivers include strong execution, expanding partnerships with Cisco, Dell, and Pure Storage, and early adoption of the Nutanix Cloud Infrastructure (NCI) Compute platform [4][6] - The NCI Compute platform has gained traction since its launch in April 2025, with Dell PowerFlex integration and expected support from Pure Storage by year-end [6] Future Expectations - In the first quarter of fiscal 2026, Nutanix anticipates revenue of $670–$680 million, operating margins of 19.5%–20.5%, and earnings per share of 37 cents [7] - The company expects to add several hundred new customers per quarter while continuing to grow renewal annual contract value (ACV) and partner-led revenue contributions [7]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported quarterly revenue of $653 million, representing a 19% year-over-year increase [7][14] - Full fiscal year 2025 revenue was $2.54 billion, up 18% year-over-year, with an annual recurring revenue (ARR) of $2.22 billion, increasing 17% year-over-year [8][17] - Free cash flow for Q4 was $208 million, yielding a free cash flow margin of 32%, while for the full year, free cash flow was $750 million, representing a 30% margin [16][19] - Non-GAAP net income for Q4 was $109 million, or $0.37 per share, while GAAP net income was $39 million, or $0.13 per share [15][16] Business Line Data and Key Metrics Changes - The company added over 2,700 new customers in fiscal year 2025, the highest in four years, including over 50 Global 2000 accounts [8][17] - The average contract duration increased to 3.2 years in Q4, slightly above expectations [15] - The net dollar retention rate (NRR) at the end of Q4 was 108% [15] Market Data and Key Metrics Changes - The company enhanced its platform with new capabilities, including support for Google Cloud and a partnership with Pure Storage [9][10] - The company was recognized as a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure and as a challenger in the 2025 Gartner Magic Quadrant for container management [10] Company Strategy and Development Direction - The company is focused on capitalizing on multi-year opportunities in the face of industry disruption, with a strategic decision to enable customers to utilize existing external storage hardware [9][13] - The company aims to continue landing new customers at a rate of mid to high three digits per quarter in fiscal year 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the business despite macroeconomic uncertainties, particularly in U.S. Federal government spending [21][44] - The company expects some decline in average contract duration due to larger contracts in fiscal year 2025 that may not recur [22][23] Other Important Information - The company announced a $350 million increase to its existing share repurchase authorization [25] - The first quarter fiscal 2026 guidance includes revenue of $670 million to $680 million and a non-GAAP operating margin of 19.5% to 20.5% [20] Q&A Session Summary Question: Can you talk about the FI win and the size of the deal? - Management noted that the FI win was significant, involving a long-term partnership, but did not quantify the deal size [30][31] Question: NRR was down a couple of points sequentially; can you explain? - Management explained that NRR can be affected by the net impact of ARR contributions from prior quarters and noted that larger initial deal sizes could lead to lower future expansion [34][35] Question: How should we think about Dell PowerFlex customers compared to traditional Nutanix customers? - Management indicated that Dell PowerFlex targets large customers, and initial wins were achieved quickly, with expectations for continued growth [40][41] Question: What is the outlook for the U.S. Federal business? - Management acknowledged longer deal cycles and variability in the U.S. Federal sector but remained optimistic about modernization opportunities [44][45] Question: Can you discuss the enterprise AI maturity and its impact on Nutanix? - Management stated that enterprise AI adoption is still in early stages but is expected to accelerate over the next few years [54][55] Question: What are the dynamics around average contract duration and its impact on revenue? - Management explained that average contract duration can vary based on business mix and noted that a slight decline is expected, impacting revenue [85][88]