Recent News
On December 17, 2025 Nutanix announced a $300 million accelerated share repurchase funded from cash on hand, with initial delivery of roughly 4.97 million shares and final settlement expected before the end of January 2026. The company presented at Barclays’ technology conference on December 11, 2025, updating investors on strategy and partner expansions. Recent product and platform updates emphasize expanded sovereign-cloud controls, on‑premises lifecycle management, and enhanced data-governance features for hybrid cloud deployments.
Technical Analysis
ADX at 42.66 indicates very strong trend strength; that magnitude raises the probability that the current directional move will persist into the near term and therefore amplifies any momentum-driven price moves tied to the company’s buyback activity and cash-flow signals.
Directional indicators show a bullish reversal: DI+ registered a dip-and-reversal while DI- posted a peak-and-reversal, which together imply directional momentum has shifted toward buyers despite DI- still sitting above DI+ in absolute value; the ADX reading increases confidence in the persistence of the new directional bias.
MACD sits negative at -2.96 with a dip-and-reversal trend, indicating momentum has begun to recover from a trough; MACD remains marginally below the signal line (MACD signal -2.95), so momentum appears to be improving but has not yet produced a confirmed crossover.
MRO at -30.33 indicates price below model target and therefore room exists for mean reversion; the MRO’s recent peak-and-reversal movement toward deeper negative values suggests an increasing magnitude of that gap and a heightened potential for upward price reversion to the target level.
RSI at 36.44 with a dip-and-reversal shows the stock sits below neutral momentum and has started to regain buying pressure; the combination of a low RSI and improving MACD supports a near-term recovery bias, particularly if volume confirms moves above the 20‑day and 50‑day averages.
Price sits near the 20‑day average ($40.63) and above the 12‑day EMA ($41.01) on a dip-and-reversal pattern, while the 50‑day ($47.23) and 200‑day ($66.25) averages remain overhead. Bollinger upper/lower bands (1x: $42.75/$38.52) show constrained recent volatility; a breakout above the 1x upper band alongside expanding volume would strengthen the bullish technical case.
Fundamental Analysis
WMDST values the stock as under-valued. Operational profitability shows improvement: EBIT equals $68,567,000 and EBIT margin stands at 10.23%, up 38.72% quarter-over-quarter and up 60.85% year-over-year. Compared with the industry peer range, EBIT margin sits above the industry peer low of -23.57% but below the industry peer mean of 48.72% and median of 60.27%.
Revenue totaled $670,576,000 with revenue growth of 2.65% QoQ but a year-over-year decline of 66.23%; sequential strength contrasts with the steep annual comparison and suggests near-term revenue stabilization rather than outright expansion. QoQ revenue growth of 18.57% (provided) supports the view of sequential recovery in demand.
Profitability and cash flow metrics align: net income equals $62,096,000, operating cash flow equals $196,825,000, and free cash flow equals $174,506,000, producing a free cash flow yield of 0.93% and a cash flow to earnings ratio of 281.03% (free cash to net income 2.81x), indicating robust cash conversion from reported earnings.
Balance-sheet metrics show $2,062,196,000 in cash and short‑term investments against net debt of $564,617,000 and a current ratio of 1.89 (up 51.04% YoY). Debt-to-assets equals 44.54% and debt-to-EBITDA sits near 17.03x, reflecting leverage that merits monitoring even as interest coverage remains healthy at 22.91x.
Valuation multiples skew elevated on earnings: trailing PE at 168.61 and forward PE near 152.63 reflect low near‑term earnings per share relative to price, while price-to-sales at 27.91 and enterprise multiple at 208.58 point to rich revenue-based valuation versus absolute cash generation. WMDST’s under-valued assessment relies primarily on cash-generation improvements, the company’s $300M repurchase program, and operational margin expansion rather than on low headline multiples alone.
Earnings detail: reported EPS matched consensus at $0.41 with an EPS surprise ratio about 0.21%, indicating results aligned with expectations for the quarter ended October 31, 2025. The company disclosed that results on November 25, 2025 covered the first quarter of fiscal 2026.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-10-31 |
| REPORT DATE: | 2025-11-25 |
| NEXT REPORT DATE: | 2026-02-24 |
| CASH FLOW | Begin Period Cash Flow | $ 769.5 M |
| Operating Cash Flow | $ 196.8 M | |
| Capital Expenditures | $ -22.32 M | |
| Change In Working Capital | $ 27.5 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 10.9 M | |
| End Period Cash Flow | $ 780.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 670.6 M | |
| Forward Revenue | $ 398.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 87.5 M | |
| Depreciation | — | |
| Depreciation and Amortization | $ 18.4 M | |
| Research and Development | $ 187.5 M | |
| Total Operating Expenses | $ 621.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 583.1 M | |
| EBITDA | $ 86.9 M | |
| EBIT | $ 68.6 M | |
| Operating Income | $ 49.3 M | |
| Interest Income | $ 19.8 M | |
| Interest Expense | $ 3.0 M | |
| Net Interest Income | $ 16.8 M | |
| Income Before Tax | $ 65.6 M | |
| Tax Provision | $ 3.5 M | |
| Tax Rate | 5.304 % | |
| Net Income | $ 62.1 M | |
| Net Income From Continuing Operations | $ 62.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.41 | |
| EPS Actual | $ 0.41 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 0.21 % | |
| Forward EPS | $ 0.55 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.3 B | |
| Intangible Assets | $ 187.7 M | |
| Net Tangible Assets | $ -856.28 M | |
| Total Current Assets | $ 2.6 B | |
| Cash and Short-Term Investments | $ 2.1 B | |
| Cash | $ 780.4 M | |
| Net Receivables | $ 335.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 43.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 88.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.4 B | |
| Net Debt | $ 564.6 M | |
| Total Debt | $ 1.5 B | |
| Total Liabilities | $ 4.0 B | |
| EQUITY | ||
| Total Equity | $ -668.63 M | |
| Retained Earnings | $ -4.87 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -2.47 | |
| Shares Outstanding | 270.729 M | |
| Revenue Per-Share | $ 2.48 | |
| VALUATION | Market Capitalization | $ 18.7 B |
| Enterprise Value | $ 18.1 B | |
| Enterprise Multiple | 208.576 | |
| Enterprise Multiple QoQ | -26.909 % | |
| Enterprise Multiple YoY | -27.627 % | |
| Enterprise Multiple IPRWA | high: 798.871 NTNX: 208.576 mean: 69.626 median: 61.115 low: -363.609 |
|
| EV/R | 27.042 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -4.971 | |
| Asset To Liability | 0.833 | |
| Debt To Capital | 1.824 | |
| Debt To Assets | 0.445 | |
| Debt To Assets QoQ | -1.379 % | |
| Debt To Assets YoY | 4012.742 % | |
| Debt To Assets IPRWA | high: 0.687 NTNX: 0.445 mean: 0.17 median: 0.087 low: 0.004 |
|
| Debt To Equity | -2.214 | |
| Debt To Equity QoQ | 3.714 % | |
| Debt To Equity YoY | 6323.876 % | |
| Debt To Equity IPRWA | high: 2.989 mean: 0.199 median: 0.147 low: -1.778 NTNX: -2.214 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -27.991 | |
| Price To Book QoQ | -0.093 % | |
| Price To Book YoY | 12.057 % | |
| Price To Book IPRWA | high: 39.175 mean: 11.959 median: 9.178 low: -21.803 NTNX: -27.991 |
|
| Price To Earnings (P/E) | 168.609 | |
| Price To Earnings QoQ | -13.742 % | |
| Price To Earnings YoY | 10.805 % | |
| Price To Earnings IPRWA | high: 697.934 NTNX: 168.609 mean: 137.149 median: 99.994 low: -94.028 |
|
| PE/G Ratio | 15.596 | |
| Price To Sales (P/S) | 27.91 | |
| Price To Sales QoQ | -6.301 % | |
| Price To Sales YoY | -3.65 % | |
| Price To Sales IPRWA | high: 101.971 median: 44.141 mean: 44.002 NTNX: 27.91 low: 4.135 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 152.628 | |
| Forward PE/G | 14.118 | |
| Forward P/S | 54.481 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 16.002 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.203 | |
| Asset Turnover Ratio QoQ | -0.884 % | |
| Asset Turnover Ratio YoY | -25.719 % | |
| Asset Turnover Ratio IPRWA | high: 0.275 NTNX: 0.203 median: 0.125 mean: 0.123 low: 0.041 |
|
| Receivables Turnover | 1.99 | |
| Receivables Turnover Ratio QoQ | -7.36 % | |
| Receivables Turnover Ratio YoY | -27.87 % | |
| Receivables Turnover Ratio IPRWA | high: 2.828 NTNX: 1.99 mean: 1.581 median: 1.485 low: 0.601 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 45.852 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 62.904 NTNX: 0 mean: -69.41 low: -170.216 median: -170.216 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.541 | |
| CapEx To Revenue | -0.033 | |
| CapEx To Depreciation | 0.0 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 676.4 M | |
| Net Invested Capital | $ 676.4 M | |
| Invested Capital | $ 676.4 M | |
| Net Tangible Assets | $ -856.28 M | |
| Net Working Capital | $ 1.2 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.473 | |
| Current Ratio | 1.885 | |
| Current Ratio QoQ | 2.921 % | |
| Current Ratio YoY | 51.043 % | |
| Current Ratio IPRWA | high: 4.448 NTNX: 1.885 median: 1.386 mean: 1.314 low: 0.466 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.029 | |
| Cost Of Debt | 0.173 % | |
| Interest Coverage Ratio | 22.909 | |
| Interest Coverage Ratio QoQ | 43.114 % | |
| Interest Coverage Ratio YoY | -54.57 % | |
| Interest Coverage Ratio IPRWA | high: 147.069 median: 66.552 mean: 49.286 NTNX: 22.909 low: -61.95 |
|
| Operating Cash Flow Ratio | 0.063 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 92.295 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.243 % | |
| Revenue Growth | 2.65 % | |
| Revenue Growth QoQ | 18.568 % | |
| Revenue Growth YoY | -66.233 % | |
| Revenue Growth IPRWA | high: 14.586 % mean: 4.644 % median: 4.635 % NTNX: 2.65 % low: -6.711 % |
|
| Earnings Growth | 10.811 % | |
| Earnings Growth QoQ | -190.811 % | |
| Earnings Growth YoY | -80.54 % | |
| Earnings Growth IPRWA | high: 53.741 % mean: 14.547 % NTNX: 10.811 % median: 7.619 % low: -128.333 % |
|
| MARGINS | ||
| Gross Margin | 86.956 % | |
| Gross Margin QoQ | -0.242 % | |
| Gross Margin YoY | 1.099 % | |
| Gross Margin IPRWA | high: 91.096 % NTNX: 86.956 % mean: 70.032 % median: 68.036 % low: 49.385 % |
|
| EBIT Margin | 10.225 % | |
| EBIT Margin QoQ | 38.719 % | |
| EBIT Margin YoY | 60.846 % | |
| EBIT Margin IPRWA | high: 60.268 % median: 60.268 % mean: 48.723 % NTNX: 10.225 % low: -23.567 % |
|
| Return On Sales (ROS) | 7.357 % | |
| Return On Sales QoQ | 54.009 % | |
| Return On Sales YoY | 15.731 % | |
| Return On Sales IPRWA | high: 47.094 % median: 47.094 % mean: 37.593 % NTNX: 7.357 % low: -27.164 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 174.5 M | |
| Free Cash Flow Yield | 0.932 % | |
| Free Cash Flow Yield QoQ | -12.734 % | |
| Free Cash Flow Yield YoY | 5.073 % | |
| Free Cash Flow Yield IPRWA | high: 3.753 % NTNX: 0.932 % median: 0.164 % mean: 0.14 % low: -1.998 % |
|
| Free Cash Growth | -16.014 % | |
| Free Cash Growth QoQ | -845.878 % | |
| Free Cash Growth YoY | -50.355 % | |
| Free Cash Growth IPRWA | high: 403.227 % NTNX: -16.014 % mean: -35.228 % median: -77.08 % low: -362.462 % |
|
| Free Cash To Net Income | 2.81 | |
| Cash Flow Margin | 13.254 % | |
| Cash Flow To Earnings | 1.431 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.88 % | |
| Return On Assets QoQ | 55.116 % | |
| Return On Assets YoY | 35.838 % | |
| Return On Assets IPRWA | high: 8.509 % median: 5.909 % mean: 4.655 % NTNX: 1.88 % low: -5.229 % |
|
| Return On Capital Employed (ROCE) | 3.563 % | |
| Return On Equity (ROE) | -0.093 | |
| Return On Equity QoQ | 66.882 % | |
| Return On Equity YoY | 112.663 % | |
| Return On Equity IPRWA | high: 0.205 median: 0.098 mean: 0.096 NTNX: -0.093 low: -0.138 |
|
| DuPont ROE | -9.11 % | |
| Return On Invested Capital (ROIC) | 9.599 % | |
| Return On Invested Capital QoQ | 51.189 % | |
| Return On Invested Capital YoY | -430.658 % | |
| Return On Invested Capital IPRWA | high: 13.9 % NTNX: 9.599 % median: 9.056 % mean: 7.24 % low: -5.12 % |
|