| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 31 | 14.1x | 17.3x | Bottom tier | |
Growth | 91 | 16.1% | 7.1% | Top tier | |
Quality | 86 | 95.5% | 4.5% | Top tier | |
Safety | 68 | — | 2.6x | Top tier | |
Capital Return | 45 | 0.00% | 0.06% | Around median | |
Momentum | 87 | -0.3% | -1.6% | Top tier | |
Sentiment | 45 | 15 | 3 | Around median |
The floor: what the company is worth if growth stopped today
89% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Nutanix provides a software platform for hybrid and multicloud infrastructure, enabling customers to run applications, virtual machines, containers, databases, and AI workloads in data centers, public clouds, or at service providers. Revenue is generated from software licenses, multiyear contracts, renewals, and expansion among existing customers, as well as products such as Nutanix Kubernetes Platform, Nutanix Database Service, NC2, and Nutanix Agentic AI. Hyperconverged infrastructure, or HCI, remains the largest component of new business, while external storage, NC2, cloud-native products, and AI represent smaller but faster-growing parts of the business.
In Q4 of fiscal 2026, Nutanix reported record revenue of $757.1 million and gross profit of $651.4 million, equivalent to a GAAP gross margin of approximately 86.0%, while non-GAAP gross margin was 87.7%. GAAP net income was $1.27 billion, but it benefited from a nonrecurring $1.2 billion tax valuation allowance release; excluding this effect, net income was $61 million and diluted earnings per share were $0.21. Non-GAAP net income was $175 million, and non-GAAP operating margin reached 26.2%, compared with prior guidance of between 21% and 23%.
For fiscal 2026, revenue reached $2.854 billion, up 12%, year-end ARR reached $2.549 billion, up 16%, and free cash flow reached $841 million at a 29% margin. The company added more than 3,000 new customers across customer segments, including the Global 2000, and recorded a non-GAAP operating margin of 23.7%. The growth mix reflects the strength of the core platform, with accelerating external storage and NC2 and notable strength in Kubernetes and database management, but management emphasized that these faster-growing products remain smaller than the core HCI business.
The analyst consensus rating for NTNX is Buy, with an average price target of $75.56 and a wide range from $55 to $90. The average target is approximately 3.7% below the 52-week high of $78.45, while the highest target exceeds that high by approximately 14.7%, but the wide target range reflects meaningful disagreement about the impact of server constraints and the growth rate of new products. The stated price-to-earnings ratio does not provide a usable anchor, and fiscal 2026 earnings should be analyzed after excluding the nonrecurring $1.2 billion tax benefit.
Figures in the text are as of 2026-09-19; the live price is shown at the top of the page.
Management expects external storage support to be the largest contributor to growth during fiscal 2027, although HCI remains the largest component of new business. Q4 fiscal 2026 saw a sharp increase in external storage bookings and the signing of several seven-figure ACV deals. Supported platforms include Dell PowerFlex, Dell PowerStore, and EverPure, while limited-availability support for NetApp was a factor in closing large deals.
Revenue reached $757 million, exceeding the upper end of prior guidance of $745 million. Non-GAAP operating margin reached 26.2%, compared with a guidance range of between 21% and 23%, and non-GAAP net income was $175 million. The company also generated $278 million in free cash flow, equivalent to a 37% margin.
GAAP net income was $1.27 billion and diluted earnings per share were $4.34 in Q4 fiscal 2026. The result benefited from a nonrecurring $1.2 billion tax valuation allowance release related to deferred tax assets in the United States. Excluding this benefit, net income was $61 million and diluted earnings per share were $0.21, so the reported figure does not fully represent recurring operating profit.
Automated analysis for informational purposes only — not investment advice.
Nutanix software runs on servers purchased by customers, so higher hardware prices and longer delivery lead times affect project size and timing. Management expects elevated prices and extended delivery lead times to continue throughout fiscal 2027, and the guidance assumes a moderately higher proportion of orders with future start dates. The company is trying to mitigate the impact through NC2 and external storage support because they allow customers to use the public cloud or retain their existing hardware.
The company launched Nutanix Agentic AI and added Nutanix Agent Gateway and a Model Context Protocol server, while also signing a strategic agreement with AMD that complements its integration with NVIDIA. The ChronoScale partnership includes the cloud platform, NKP, and the agentic AI solution, with Nutanix generating revenue as the provider acquires customers. However, management explained on the August 26, 2026 call that enterprise adoption remains at a very early stage and that the activity is growing rapidly from a small base.
The company expects revenue of between $3.18 billion and $3.23 billion, equivalent to growth of approximately 12% at the midpoint. The guidance targets a non-GAAP operating margin of between 24% and 25% and free cash flow of between $850 million and $950 million, with a 28% margin at the midpoint. The free cash flow estimate includes nonrecurring restructuring costs of between $33 million and $43 million, of which $30 million to $35 million is expected to be paid in Q1 fiscal 2027.