Company Performance - Nutanix (NTNX) closed at $75.53, reflecting a +1.53% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.34% [1] - Over the past month, Nutanix shares have appreciated by 10.83%, surpassing the Computer and Technology sector's gain of 8.07% and the S&P 500's gain of 3.54% [1] Upcoming Earnings - Analysts expect Nutanix to report earnings of $0.41 per share, indicating a year-over-year decline of 2.38% [2] - Revenue is forecasted to be $676.53 million, representing a 14.48% growth compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $1.89 per share and revenue at $2.92 billion, reflecting changes of +16.67% and +15.11% respectively from the prior year [3] Analyst Estimates - Recent modifications to analyst estimates for Nutanix indicate short-term business trends, with positive revisions suggesting analyst optimism regarding the company's profitability [4] - The Zacks Consensus EPS estimate has shifted 1.42% downward over the past month, and Nutanix currently holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - Nutanix is trading at a Forward P/E ratio of 39.46, which is a premium compared to the industry average Forward P/E of 16.84 [7] - The company has a PEG ratio of 2.82, while the Computers - IT Services industry has an average PEG ratio of 1.98 [8] Industry Context - The Computers - IT Services industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [9]

Core Viewpoint - Nutanix, Inc. (NASDAQ: NTNX) is positioned for robust growth and is gaining market share from VMware, indicating a positive outlook for the company [1] Company Analysis - The investment strategy focuses on long-term growth while also considering short-term opportunities to enhance returns [1] - The analysis emphasizes a bottom-up approach, assessing the fundamental strengths and weaknesses of Nutanix [1] - The company is identified as having solid fundamentals, sustainable competitive advantages, and significant growth potential [1]

Core Insights - Nutanix reported strong Q4 fiscal 2025 results, with non-GAAP earnings of 37 cents per share, exceeding estimates by 15.63% and showing a year-over-year increase of 60.8% [2] - Revenues for the quarter rose 19% year-over-year to $653.3 million, surpassing the Zacks Consensus Estimate by 1.63% [2] Financial Performance - Product revenues, accounting for 52% of total revenues, increased by 28% year-over-year to $339.8 million [4] - Support, entitlements, and other services revenues rose 11% to $313.5 million, while subscription revenues climbed 19% to $616 million, representing 94.3% of total revenues [5] - Professional services revenues improved by 8% to $28.9 million, and other non-subscription product revenues surged 238% to $8.4 million [5] - Billings increased by 8% year-over-year to $726.9 million, and annual recurring revenues grew by 17% to $2.22 billion [5] Customer Growth - During the fiscal fourth quarter, Nutanix added 800 new customers, bringing the total client count to 29,290 [6] Operating Metrics - Non-GAAP gross margin expanded by 140 basis points year-over-year to 88.3% [7] - Non-GAAP operating expenses rose by 13% year-over-year to $457.2 million, with non-GAAP operating income increasing by $49.0 million to $119.5 million [8] - Non-GAAP operating margin was reported at 18.3%, exceeding the guided range of 15.5-16.5% and up by 540 basis points compared to the previous year [8] Balance Sheet and Cash Flow - As of July 31, 2025, cash and cash equivalents plus short-term investments totaled $1.99 billion, an increase from $1.88 billion at the end of the previous quarter [9] - Cash generated from operating activities during the fourth quarter was $219.5 million, with free cash flow amounting to $207.8 million [9] Future Outlook - For Q1 fiscal 2026, Nutanix estimates revenues between $670 million and $680 million, with a non-GAAP operating margin expected in the range of 19.5-20.5% [10] - For fiscal 2026, revenues are projected to be between $2.90 billion and $2.94 billion, with free cash flow anticipated in the range of $790 million to $830 million [11] Market Sentiment - Recent estimates for Nutanix have shown a downward trend, indicating a shift in market expectations [12][14] - The company currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [14]

Part I [Business Overview](index=6&type=section&id=Item%201.%20Business) Nutanix is a hybrid multicloud computing leader, providing a unified software platform for applications and AI, simplifying distributed app and data management. - Nutanix is a hybrid multicloud computing leader, offering a unified software platform for running applications and AI and managing data anywhere, with a vision to simplify distributed app and data operations[19](index=19&type=chunk) - The Nutanix Cloud Platform supports diverse workloads including business-critical applications, data platforms, enterprise AI (machine learning, generative AI, agentic AI), general-purpose, end-user computing, and cloud-native applications[20](index=20&type=chunk) - Nutanix has transitioned to a subscription-based business model, offering term-based licenses and SaaS subscriptions typically ranging from one to five years, with support and entitlements included[21](index=21&type=chunk)[22](index=22&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Key growth strategies include landing new end customers through targeted sales and marketing, expanding sales to existing customers by targeting new workloads and upselling, and driving renewals and retention for profitable growth[40](index=40&type=chunk)[44](index=44&type=chunk) - The company had over **29,000 end customers** as of July 31, 2025, across diverse industries, with approximately **77% of customers** with Nutanix for 18+ months making repeat purchases[39](index=39&type=chunk)[329](index=329&type=chunk) [Overview](index=6&type=section&id=Overview) Nutanix is a hybrid multicloud computing leader focused on simplifying distributed application and data management through its unified software platform. - Nutanix is a hybrid multicloud computing leader, offering a unified software platform for running applications and AI and managing data anywhere[19](index=19&type=chunk) - The company's mission is to delight customers with an open, secure platform with rich data services that increases their ability to take advantage of new technologies such as cloud native and AI, optimizes how they run their organizations today, and accelerates innovation, efficiency, and growth[19](index=19&type=chunk) - Nutanix pioneered hyperconverged infrastructure (HCI) and developed its native hypervisor, Nutanix AHV, transitioning to a subscription-based business model[21](index=21&type=chunk) [The Nutanix Cloud Platform](index=6&type=section&id=The%20Nutanix%20Cloud%20Platform) The Nutanix Cloud Platform provides a consistent operating model for applications and data across core data centers, edge, and public clouds. - The Nutanix Cloud Platform provides a consistent cloud operating model for running applications and managing data in core data centers, at the edge, and in public clouds[20](index=20&type=chunk) - It supports diverse workloads including business-critical applications, data platforms, enterprise AI (machine learning, generative AI, agentic AI), general-purpose workloads, end-user computing, and cloud-native applications[20](index=20&type=chunk) - Key components include Nutanix Cloud Infrastructure (NCI) for distributed HCI, Nutanix Cloud Manager (NCM) for unified management, Nutanix Kubernetes Platform (NKP) for enterprise-grade Kubernetes, Nutanix Unified Storage (NUS) for consolidated data services, Nutanix Database Service (NDB) for automated database management, and Nutanix Enterprise AI (NAI) for centralized inferencing[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Delivery of Our Solutions](index=9&type=section&id=Delivery%20of%20Our%20Solutions) Nutanix solutions are deployed across various environments, offered via subscription licenses, with hardware typically purchased from partners. - The Nutanix Cloud Platform can be deployed in core data centers, at the edge, or in public/managed clouds (AWS, Microsoft Azure, Google Cloud via NC2), running on various qualified hardware platforms[31](index=31&type=chunk) - Subscription term-based licenses typically range from one to five years, with cloud-based SaaS subscriptions extending up to five years[31](index=31&type=chunk) - Customers generally purchase qualified hardware platforms from channel partners or OEMs, and support and entitlements are included within subscription fees[31](index=31&type=chunk)[32](index=32&type=chunk) [Our Partners](index=9&type=section&id=Our%20Partners) Nutanix leverages a diverse partner ecosystem, including channel, OEM, and cloud partners, to drive sales and solution adoption. - Nutanix leverages channel, OEM, ecosystem, and cloud partners to drive sales and adoption of its solutions[33](index=33&type=chunk) - Channel partners (distributors, resellers, MSPs, telcos, GSIs) represented **41% of total revenue** for fiscal 2025 from the top two distributors[34](index=34&type=chunk) - OEM partners (Cisco, Dell, Fujitsu, HPE, Lenovo) sell Nutanix software bundled with their hardware, including new solutions integrating with Dell PowerFlex and certifying Cisco UCS blade servers[35](index=35&type=chunk) - Ecosystem partners (e.g., AMD, Intel, Nvidia) integrate their products with Nutanix solutions, while cloud partners (AWS, Microsoft Azure, Google Cloud) extend the platform's reach[36](index=36&type=chunk)[37](index=37&type=chunk) [Our Support Programs](index=10&type=section&id=Our%20Support%20Programs) Nutanix provides various levels of software and hardware support, alongside professional services for optimal environment management. - Nutanix offers varying levels of software support and hardware support for Nutanix-branded NX platforms[38](index=38&type=chunk) - Professional services are provided for assessment, design, deployment, and optimization of Nutanix environments[38](index=38&type=chunk) [Our End Customers](index=10&type=section&id=Our%20End%20Customers) Nutanix serves a broad base of over **29,000 end customers** across diverse industries and also supports service providers. - Nutanix serves a broad and diverse base of over **29,000 end customers** as of July 31, 2025, across industries like financial services, retail, manufacturing, public sector, and technology[39](index=39&type=chunk) - The company also sells to service providers who use the Nutanix Cloud Platform to offer cloud-based services to their own customers[39](index=39&type=chunk) [Growth Strategy](index=10&type=section&id=Growth%20Strategy) Nutanix's growth strategy focuses on customer acquisition, expansion, and retention, while driving profitable growth and deepening partner engagement. - Key growth elements include landing new end customers through sales and marketing investments and partner networks, expanding sales to existing customers via a 'land-and-expand' strategy, and driving renewals and retention[40](index=40&type=chunk) - The company aims to build on its hybrid multicloud vision, deepen engagement with all partner types, and drive profitable growth by balancing investments with operational efficiencies[44](index=44&type=chunk) [Sales and Marketing](index=11&type=section&id=Sales%20and%20Marketing) Sales efforts involve a global force supporting partners, while marketing focuses on educating customers and promoting cloud platform capabilities. - Sales primarily involve a global sales force interacting directly with IT decision-makers and supporting channel partners and OEMs[42](index=42&type=chunk) - Marketing focuses on educating customers about the benefits of the cloud software platform, driving market awareness of virtualization, cloud-native, and enterprise AI-ready capabilities, and leveraging co-marketing with partners[43](index=43&type=chunk) [Research and Development](index=12&type=section&id=Research%20and%20Development) R&D efforts are dedicated to enhancing existing technologies, developing new solutions, and supporting current customer deployments. - R&D efforts focus on enhancing existing technologies, developing new ones in current and adjacent markets, and supporting existing customer deployments[45](index=45&type=chunk) - Significant resources are dedicated to global R&D teams to support solution enhancements, improve ecosystem partner integration, and expand platform technologies and features[45](index=45&type=chunk) [Manufacturing](index=12&type=section&id=Manufacturing) Nutanix does not manufacture hardware; its NX series platforms are manufactured by Super Micro Computer, Inc. - Nutanix does not manufacture hardware; its NX series hardware platforms are manufactured by Super Micro Computer, Inc. (Supermicro)[46](index=46&type=chunk) - Supermicro designs, assembles, and tests the Nutanix-branded hardware, procuring components from third-party suppliers[46](index=46&type=chunk) [Competition](index=12&type=section&id=Competition) Nutanix operates in intensely competitive cloud infrastructure and platform services markets, facing diverse competitors and evolving competitive factors. - Nutanix operates in intensely competitive cloud infrastructure and platform services markets, facing competition from software providers (VMware, Microsoft, Red Hat), public cloud providers (AWS, Google Cloud, Azure), and traditional IT systems vendors (Dell, HPE, NetApp)[47](index=47&type=chunk)[49](index=49&type=chunk) - Competitive factors include platform features, scalability, performance, ecosystem, management, total cost of ownership, customer choice, application mobility, and customer experience[50](index=50&type=chunk)[54](index=54&type=chunk) - The company has expanded into adjacent markets like Kubernetes management, data/platform services, AI platform services, and cloud management, facing new and established competitors[50](index=50&type=chunk) [Intellectual Property](index=13&type=section&id=Intellectual%20Property) Nutanix protects its intellectual property through patents, trademarks, copyrights, trade secrets, and confidentiality agreements. - Nutanix relies on patents, trademarks, copyrights, trade secret laws, confidentiality procedures, and employee agreements to protect its intellectual property[52](index=52&type=chunk) - As of July 31, 2025, the company had **578 issued U.S. patents** (expiring between 2033 and 2045) and **159 non-provisional patent applications** pending[52](index=52&type=chunk) [Facilities](index=13&type=section&id=Facilities) Nutanix's corporate

Group 1 - Nutanix Inc. stock price is currently at $74.43, reflecting a 3.45% decrease in the current market session, but has increased by 9.30% over the past month and 22.74% over the past year [1] - The P/E ratio of Nutanix is 118.6, which is higher than the aggregate P/E ratio of the Software industry at 116.15, suggesting that Nutanix may perform better than its industry peers, although it may also indicate that the stock is overvalued [6] - The P/E ratio is a useful metric for evaluating a company's market performance, but it should be used cautiously as it can indicate both undervaluation and weak growth prospects [8] Group 2 - A higher P/E ratio typically indicates that investors expect better future performance from the company, which may lead to optimism about rising dividends [5] - Investors should consider the P/E ratio alongside other financial ratios, industry trends, and qualitative factors for a comprehensive analysis of a company's financial health [8]

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]