B of A Securities Maintains Buy Rating for Nutanix, PT Down to $93.

B of A Securities Maintains Buy Rating for Nutanix, PT Down to $93.

Title: B of A Securities Maintains Buy Rating for Nutanix, PT Down to $93

B of A Securities has maintained its buy rating for Nutanix (NASDAQ: NTNX) despite a recent downward adjustment in the price target to $93. The move reflects the investment bank's cautious stance on the company's earnings outlook for the first quarter of fiscal 2026. B of A Securities expects Nutanix to report revenue of approximately $675 million, slightly below market expectations, which contributed to the stock's after-hours decline of more than 4%.

Nutanix's fourth-quarter (Q4) 2025 earnings report, released on August 27, 2025, highlighted strong performance with revenue growth of 19% to $653.3 million, driven by a 17% increase in annual recurring revenue (ARR) and a 108% net retention rate. The company's gross margin expanded to 87.2%, reflecting disciplined cost management and the scalability of its software-centric model. Additionally, Nutanix's free cash flow of $207.8 million and full-year free cash flow of $750.2 million underscored its ability to generate liquidity.

B of A Securities' decision to maintain a buy rating is supported by Nutanix's strategic innovations, including its recognition as a Leader in the Forrester Wave™: Multicloud Container Platforms and a Challenger in the Gartner Magic Quadrant for Container Management. The company's partnerships with AWS, Pure Storage, NVIDIA, and Google have further strengthened its hybrid cloud ecosystem, positioning it for growth in the ongoing hybrid cloud transition.

Nutanix's Q4 2025 results also demonstrated its ability to attract and retain customers. The company added over 2,700 new customers in fiscal 2025, including 50 Global 2,000 accounts, the highest annual growth in four years. The migration of VMware customers is seen as a key growth factor by analysts.

Despite the downward adjustment in the price target, B of A Securities remains optimistic about Nutanix's long-term prospects. The investment bank expects the company to continue delivering strong financial returns and remains confident in its strategic vision. Nutanix's financial discipline and strategic agility make it a standout play in the cloud computing sector.

References:
1. [Investing.com - Nutanix Earnings Beat by 0.04, Revenue Topped Estimates](https://www.investing.com/news/earnings/nutanix-earnings-beat-by-004-revenue-topped-estimates-4213444)
2. [AInvest - Nutanix Q4 Earnings: Blueprint for Hybrid Cloud Dominance](https://www.ainvest.com/news/nutanix-q4-earnings-blueprint-hybrid-cloud-dominance-2508/)
3. [Techzine.eu - Financial Results: Pure Storage Impresses, Nutanix and NetApp Disappoint](https://www.techzine.eu/news/data-management/134169/financial-results-pure-storage-impresses-nutanix-and-netapp-disappoint/)