Nutanix (NTNX) Stock Drops Despite Market Gains: Important Facts to Note

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].