JPMorgan Lowers Nutanix Price Target, Highlights Long-Term Growth Prospects

JPMorgan has adjusted its price target for Nutanix from $90 to $81 while maintaining an Overweight rating. The firm emphasizes concerns about Nutanix's growth beyond initial benefits from VMware opportunities. Nutanix specializes in cloud software solutions, offering a unified platform for application management and data handling across diverse environments. The company reported a trailing twelve-month revenue of $2.43 billion, with a one-year growth rate of 3.4%. Its gross margin is 86.36%, while the net margin is 0.97%. Nutanix's Altman Z-Score of 2.16 suggests some financial stress, and insider activity reveals five insider selling transactions in the past three months with no insider buying.

Nutanix, Inc. (NTNX) reported its fourth-quarter (Q4) and fiscal year 2025 (FY25) financial results, showcasing robust revenue growth and strong financial performance. The company reported a 19% year-over-year (YoY) increase in Q4 revenue to $653 million, surpassing Wall Street expectations [1]. For FY25, the company's total revenue reached $2.54 billion, marking an 18% increase from the previous year [1].

Nutanix's strong performance was driven by its strategic partnerships and product innovations. The company's partnerships with Dell PowerFlex and Pure Storage are advancing, with the latter's flash array support entering early access [1]. Additionally, Nutanix introduced key products such as Nutanix Cloud Infrastructure (NCI) and Cloud Native AOS, which extend its enterprise storage and data services to hyperscaler Kubernetes environments [2].

The company's financial resilience is evident in its free cash flow generation of $750.2 million in FY25, combined with a Rule of 40 score of 48%, indicating a balanced approach to growth and profitability [2]. Nutanix's gross margin reached 88.3% in Q4 FY25, up from 86.9% in the same period last year [1].

Despite the positive results, JPMorgan has adjusted its price target for Nutanix from $90 to $81 while maintaining an Overweight rating. The firm emphasized concerns about Nutanix's growth beyond initial benefits from VMware opportunities [3]. Nutanix's trailing twelve-month (TTM) revenue stood at $2.43 billion, with a one-year growth rate of 3.4% [3]. The company's gross margin is 86.36%, while the net margin is 0.97% [3].

Nutanix's Altman Z-Score of 2.16 suggests some financial stress, and insider activity reveals five insider selling transactions in the past three months with no insider buying [3]. However, the company's strategic position in the hybrid cloud market and its ability to deliver scalable, secure solutions position it as a compelling long-term investment.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-nutanix-surpasses-q4-2025-earnings-expectations-93CH-4213596
[2] https://www.ainvest.com/news/nutanix-strategic-position-hybrid-cloud-market-catalysts-institutional-rating-2508/
[3] https://ir.nutanix.com/news-releases/news-release-details/nutanix-reports-fourth-quarter-and-fiscal-2025-financial-results