Core Viewpoint - Nutanix, Inc. (NASDAQ:NTNX) is viewed positively by Wall Street ahead of its fiscal Q1 2026 results, with analysts maintaining Buy ratings and setting a price target of $90 [1][2][3] Group 1: Analyst Ratings - Jason Ader from William Blair reiterated a Buy rating on Nutanix without disclosing price targets [1] - Param Singh from Oppenheimer also maintained a Buy rating with a price target of $90 [1] Group 2: Market Position - Nutanix is positioned to attract dissatisfied VMware customers due to pricing changes and unfavorable licensing, presenting itself as a viable alternative [2] Group 3: Financial Expectations - For fiscal Q1 2026, Nutanix anticipates revenue between $670 million and $690 million, with a non-GAAP operating margin projected between 19.5% and 20.5% [3] Group 4: Product Development - The company announced an expansion of Microsoft's Azure virtual desktop flexibility across its hybrid clouds, allowing Azure Virtual Desktop to run on Nutanix AHV hypervisor [3]

Core Insights - The article discusses the potential of AI and the cloud computing sector, highlighting the transformative nature of AI while cautioning about the possibility of an AI bubble, drawing parallels to the dotcom era [2][3] - A list of the 13 best cloud stocks to buy is provided, based on a methodology that includes analysis of hedge fund sentiment and market capitalization [5][7] AI Market Insights - Kim Posnett from Goldman Sachs emphasizes that it is too early to determine if there is an AI bubble, noting that 75% of major technology innovations over the last 175 years led to equity price bubbles [2] - Despite similarities to previous bubbles, current research indicates that there is not yet an AI bubble [2] Cloud Stocks Methodology - The list of cloud stocks was curated from the top holdings of three ETFs, sorted by market capitalization, and focused on pureplay cloud computing stocks with positive analyst upside potential [5] - Hedge fund sentiment was also considered, as research shows that imitating top hedge fund stock picks can lead to market outperformance [7] Akamai Technologies, Inc. (NASDAQ:AKAM) - Akamai has a market capitalization of $12.57 billion and an analyst upside potential of 3.00% with 42 hedge fund holders [8][9] - The company reported Q3 2025 earnings with a revenue increase of 4.97% year-over-year to $1.05 billion, exceeding estimates by $10.74 million [10] - Cloud Infrastructure revenue grew 39% year-over-year to $81 million, and management anticipates Q4 2025 revenue between $1.065 billion and $1.085 billion [10][11] Nutanix, Inc. (NASDAQ:NTNX) - Nutanix has a market capitalization of $15.87 billion and an analyst upside potential of 51.90% with 58 hedge fund holders [12] - The company is positioned to attract dissatisfied VMware customers and has received bullish ratings from analysts ahead of its fiscal Q1 2026 results [12][13] - Management expects revenue for Q1 2026 to be in the range of $670 million to $690 million, with a non-GAAP operating margin of 19.5% to 20.5% [14][15]

Core Insights - Shopify reported quarterly earnings of $0.34 per share, matching the Zacks Consensus Estimate, but down from $0.36 per share a year ago [1] - The company achieved revenues of $2.84 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 3.34% and up from $2.16 billion year-over-year [2] - Shopify shares have increased approximately 62.7% year-to-date, significantly outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $3.46 billion, and for the current fiscal year, it is $1.45 on revenues of $11.25 billion [7] - The estimate revisions trend for Shopify was favorable prior to the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Services industry, to which Shopify belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Gross profit increased 2.4% year over year to $138.6 million, the highest in the company's history, with gross margin expanding 90 basis points to 19.6% [4][5] - Total net sales were $709.1 million, down 2.2% from last year, primarily due to a decrease in net sales in the public sector solutions segment [5][6] - Net income for the third quarter was $24.7 million compared to $27.1 million last year, a decrease of 8.6%, with diluted earnings per share at $0.97, down $0.05 year over year [10][11] Business Line Data and Key Metrics Changes - In business solutions, net sales grew 1.7% to $256.8 million, while gross profit increased 7.8% to $68 million, with gross margin reaching a record 26.5% [6] - Public sector solutions saw net sales decline 24.3% to $132.5 million, but gross margin increased 230 basis points to a record 17.2% [6] - Enterprise solutions net sales grew 7.7% to $319.8 million, with gross profit up 3.4% to $47.8 million [6] Market Data and Key Metrics Changes - Retail segment net sales grew 25%, and gross profit was up 42% year over year, indicating strong demand for tailored vertical market solutions [14] - Financial services net sales increased 23%, with gross profit rising 19% year over year, driven by infrastructure modernization [14] - Manufacturing segment grew 8% in net sales and 28% in gross profit year over year, despite macro challenges [15] Company Strategy and Development Direction - The company is focused on expanding its solutions-led business, deepening customer relationships, and driving profitable growth in cloud, cybersecurity, AI, and services [8][16] - The strategy aligns with customer evolution in technology deployment and management, emphasizing expertise as a differentiator [17] Management's Comments on Operating Environment and Future Outlook - Management noted that while funding cycles and project timing can affect quarterly results, long-term trends are positive, with confidence in record gross profit and expanding margins [8][16] - The public sector business is seen as a wildcard, with expectations of recovery but uncertainty regarding timing [19][31] Other Important Information - Operating cash flow for the first nine months of 2025 was $38 million, with a strong liquidity position of $399.2 million in cash and equivalents [12] - The company returned capital to shareholders through dividends and share repurchases, with $44.3 million remaining under the share repurchase authorization [11] Q&A Session Summary Question: Thoughts on year-end and Q4 growth potential - Management indicated that there is momentum in the enterprise segment and business solutions group, with potential for growth in Q4, but the public sector remains uncertain [18][19] Question: Backlog explanation and shipping delays - Management clarified that the backlog is customer-driven, with delays primarily on the customer side rather than supply chain issues [20][21] Question: Impact of federal government shutdown on public sector - The federal government shutdown is affecting the public sector business, with orders unable to be shipped due to lack of personnel to receive them [31] Question: Future profitability and gross margins outlook - Management expects gross margins to be flat year-over-year, with potential increases in spending depending on revenue growth [32][33] Question: Potential for acquisitions - The company is actively looking at tuck-in acquisitions to enhance solutions capability but has no specific updates at this time [34]

Core Insights - Salesforce launched its artificial intelligence platform, "Agentforce 360", to enhance automation of routine tasks for clients and to attract more customers [1] Company Summary - The introduction of "Agentforce 360" is part of Salesforce's strategy to integrate AI across its suite of tools [1] - The platform aims to improve operational efficiency for clients by automating repetitive tasks [1] Industry Summary - The move reflects a broader trend in the cloud software industry towards incorporating AI solutions to enhance customer engagement and operational productivity [1]

Core Viewpoint - Sprout Social reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing an increase from $0.09 per share a year ago, indicating a positive earnings surprise of +20.00% [1][2] Financial Performance - The company achieved revenues of $111.78 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.68% and up from $99.4 million year-over-year [2] - Over the last four quarters, Sprout Social has consistently exceeded consensus EPS estimates [2] Stock Performance - Sprout Social shares have declined approximately 47.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for Sprout Social is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $113.95 million, and for the current fiscal year, it is $0.73 on revenues of $451.89 million [7] - The trend of earnings estimate revisions prior to the earnings release was mixed, which may influence future stock performance [6] Industry Context - The Internet - Services industry, to which Sprout Social belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Core Viewpoint - Sprout Social (SPT) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][2]. Earnings Estimates - Analysts are increasingly optimistic about Sprout Social's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2]. - The current quarter's earnings estimate is projected at $0.15 per share, reflecting a year-over-year increase of +66.67%, with a 6.67% rise in consensus estimates over the last 30 days [5]. - For the full year, the earnings estimate stands at $0.72 per share, representing a year-over-year change of +44%, with a 10.54% increase in consensus estimates over the past month [6][7]. Zacks Rank - Sprout Social currently holds a Zacks Rank 2 (Buy), supported by favorable estimate revisions, which historically correlate with strong stock performance [8]. - The Zacks Rank system has demonstrated a strong track record, with Zacks 1 (Strong Buy) stocks averaging an annual return of +25% since 2008 [3]. Stock Performance - The stock has appreciated by 21.7% over the past four weeks, driven by strong estimate revisions, suggesting further upside potential [9].

Core Insights - Sprout Social (SPT) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing an increase from $0.10 per share a year ago, resulting in an earnings surprise of 46.67% [1] - The company achieved revenues of $109.29 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.59% and up from $96.78 million year-over-year [2] - Sprout Social has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Sprout Social's stock price movement will largely depend on management's commentary during the earnings call [3] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $110.73 million, and for the current fiscal year, it is $0.68 on revenues of $448.47 million [7] Industry Context - The Internet - Services industry, to which Sprout Social belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the company's earnings outlook is crucial for investors [5][6]