Nutanix Shares Drop 5.09% on Revised Price Target Despite $710M Trading Volume Surge (114th Highest of Day)

On August 28, 2025, Nutanix (NTNX) closed with a 5.09% decline to $65.49, despite a 42.44% surge in trading volume to $710 million—the 114th highest of the day. The drop followed mixed investor sentiment after the company reported strong fourth-quarter revenue growth of 19% year-over-year but faced near-term headwinds from deferred contract timelines and a revised price target by Needham analyst Mike Cikos. Cikos maintained a Buy rating but reduced his target to $80, citing short-term valuation pressures despite confidence in long-term growth drivers like strategic partnerships and cloud infrastructure expansion.

Nutanix’s Q4 results highlighted $653.3 million in revenue, exceeding expectations, driven by new customer acquisitions and enterprise adoption. However, annual recurring revenue (ARR) and net revenue retention (NRR) faced temporary setbacks due to delayed contract starts. Analysts emphasized the company’s expanding ecosystem partnerships, including collaborations with Cisco, Dell, and Pure Storage, as key catalysts. The launch of the Nutanix Cloud Infrastructure (NCI) Compute platform, with early integration by Dell and expected Pure Storage support by year-end, was cited as a potential long-term growth driver, particularly in hybrid cloud and AI-driven markets.

Post-Broadcom’s VMware acquisition, Nutanix is positioned to capture market share as enterprises seek alternatives to VMware’s offerings. Management projected $2.90–2.94 billion in fiscal 2026 revenue, with free cash flow expected to reach $790–830 million, reflecting confidence in margin expansion and operational scalability. Despite the 5.09% drop, the stock’s three-year total return of 264% underscores its resilience amid sector volatility.

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