Recent News
May 27, 2026: Q3 fiscal results published showing ARR growth and a $750 million increase to the share-repurchase authorization; June 1–30, 2026: product and ecosystem items including NVIDIA validation, community and education grants; July 15, 2026: new regulated-industry data on Shadow AI and data sovereignty; August 4, 2026: company announced a plan to reduce global headcount by ~5% with estimated pre-tax charges of $33–$43 million; August 6–10, 2026: company scheduled Q4 results and announced Model Context MCP server for agentic AI; August 18, 2026: new ChronoScale partnership to accelerate enterprise AI workflows.
Technical Analysis
ADX at 42.95 signals a very-strong trend, indicating directional momentum carries weight for near-term price action and validates continuation scenarios implied by valuation upside.
DI+ sits at 40.34 and is increasing, which presents a bullish directional bias and supports the view that upside continuation remains more likely than a decisive trend reversal.
DI‑ registered a dip & reversal at 12.89, a bearish sign that reflects renewed selling pressure episodes; the coexistence of DI+ increasing and DI‑ dipping suggests trend-force dominance but intermittent downside risk.
MACD at 3.28 is increasing and currently above its signal line at 2.94, which constitutes a bullish momentum confirmation that reinforces near-term upside potential.
MRO reads 8.28 and is increasing; because MRO is positive, price sits above the model target and the indicator flags mean-reversion risk into the short term despite growing momentum.
RSI at 67.29 has formed a peak & reversal, a bearish short-term sign that raises the probability of a corrective pullback or consolidation before any further leg higher.
Price trades above the 12-day, 26-day EMAs and above the 20-, 50- and 200-day averages (price close $65.83 vs. 200-day $49.15), reinforcing trend alignment with medium-term valuation improvement; the Ichimoku Tenkan (63.45) and Kijun (60.55) sit below price, supporting the same bias.
Bollinger context shows price near the upper 1σ band (upper 1σ $66.34), implying compressed upside room before volatility-driven reversion; the super-trend lower at $62.29 provides a nearby technical support reference.
Fundamental Analysis
Revenue totaled $703.1 million with YoY revenue growth of 13.73% and a QoQ revenue change of -135.09% (reported QoQ figure). ARR expanded and free cash flow remained positive at $197.2 million; free cash flow yield measures 1.72%, a material improvement versus the industry peer mean free cash flow yield of 0.75%.
Operating performance shows GAAP operating margin of 10.03% and EBIT margin of 11.99%; EBIT margin improved YoY by 13.44% but declined QoQ by 13.75%. The EBIT margin sits below the industry peer mean of 39.80% and below the industry peer median of 49.87%, indicating material operating leverage opportunity relative to peers.
Profitability mixed: return on invested capital at 12.02% exceeds the industry peer mean of 6.12%, while return on equity registers -9.94%, below the industry peer mean of 6.88%, reflecting a negative equity base and capital-structure effects on ROE.
Leverage and liquidity: total debt $1.529 billion with net debt $628.7 million; debt-to-EBITDA reads 15.07x while interest coverage equals 28.14x. Current ratio equals 1.78 and cash plus short-term investments total $2.018 billion, providing liquidity to fund restructuring charges and strategic investments cited in recent releases.
Valuation multiples show PE ~91.79 and forward PE ~75.82; price-to-book registers negative at -15.85, which falls below the industry peer range low of -10.15. EPS beat consensus by $0.12 on the most recent release, a 34.3% surprise versus estimates (EPS actual $0.47 vs. estimate $0.35).
R&D and operating investment remain sizable (R&D $196.1 million; total operating expenses $632.6 million), which aligns with high gross margin (86.88%) but compresses operating margin versus software peers. The current valuation as determined by WMDST remains under-valued based on present free cash flow yield, cash balances, and improvement in ARR metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-04-30 |
| REPORT DATE: | 2026-05-27 |
| NEXT REPORT DATE: | 2026-08-26 |
| CASH FLOW | Begin Period Cash Flow | $ 603.4 M |
| Operating Cash Flow | $ 207.5 M | |
| Capital Expenditures | $ -10.32 M | |
| Change In Working Capital | $ 26.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 115.4 M | |
| End Period Cash Flow | $ 718.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 703.1 M | |
| Forward Revenue | $ 356.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 92.3 M | |
| Depreciation | $ 17.1 M | |
| Depreciation and Amortization | $ 17.2 M | |
| Research and Development | $ 196.1 M | |
| Total Operating Expenses | $ 632.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 610.8 M | |
| EBITDA | $ 101.5 M | |
| EBIT | $ 84.3 M | |
| Operating Income | $ 70.5 M | |
| Interest Income | $ 17.5 M | |
| Interest Expense | $ 3.0 M | |
| Net Interest Income | $ 14.5 M | |
| Income Before Tax | $ 81.3 M | |
| Tax Provision | $ 9.2 M | |
| Tax Rate | 11.347 % | |
| Net Income | $ 72.1 M | |
| Net Income From Continuing Operations | $ 72.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.35 | |
| EPS Actual | $ 0.47 | |
| EPS Difference | $ 0.12 | |
| EPS Surprise | 34.286 % | |
| Forward EPS | $ 0.55 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.4 B | |
| Intangible Assets | $ 187.3 M | |
| Net Tangible Assets | $ -912.88 M | |
| Total Current Assets | $ 2.6 B | |
| Cash and Short-Term Investments | $ 2.0 B | |
| Cash | $ 718.8 M | |
| Net Receivables | $ 251.6 M | |
| Inventory | — | |
| Long-Term Investments | $ 126.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 84.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.5 B | |
| Net Debt | $ 628.7 M | |
| Total Debt | $ 1.5 B | |
| Total Liabilities | $ 4.1 B | |
| EQUITY | ||
| Total Equity | $ -725.61 M | |
| Retained Earnings | $ -4.94 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -2.72 | |
| Shares Outstanding | 266.525 M | |
| Revenue Per-Share | $ 2.64 | |
| VALUATION | Market Capitalization | $ 11.5 B |
| Enterprise Value | $ 11.0 B | |
| Enterprise Multiple | 108.504 | |
| Enterprise Multiple QoQ | 4.193 % | |
| Enterprise Multiple YoY | -50.744 % | |
| Enterprise Multiple IPRWA | high: 477.541 NTNX: 108.504 mean: 78.359 median: 52.352 low: -246.135 |
|
| EV/R | 15.66 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -4.711 | |
| Asset To Liability | 0.825 | |
| Debt To Capital | 1.903 | |
| Debt To Assets | 0.447 | |
| Debt To Assets QoQ | -5.021 % | |
| Debt To Assets YoY | -6.924 % | |
| Debt To Assets IPRWA | high: 1.037 NTNX: 0.447 mean: 0.162 median: 0.075 low: 0.005 |
|
| Debt To Equity | -2.107 | |
| Debt To Equity QoQ | 13.517 % | |
| Debt To Equity YoY | 0.747 % | |
| Debt To Equity IPRWA | high: 3.078 mean: 0.252 median: 0.128 low: -1.908 NTNX: -2.107 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -15.847 | |
| Price To Book QoQ | 3.921 % | |
| Price To Book YoY | -41.419 % | |
| Price To Book IPRWA | high: 19.185 mean: 7.616 median: 6.661 low: -10.151 NTNX: -15.847 |
|
| Price To Earnings (P/E) | 91.794 | |
| Price To Earnings QoQ | 7.716 % | |
| Price To Earnings YoY | -46.255 % | |
| Price To Earnings IPRWA | high: 359.099 mean: 107.321 NTNX: 91.794 median: 81.648 low: -196.279 |
|
| PE/G Ratio | -5.712 | |
| Price To Sales (P/S) | 16.355 | |
| Price To Sales QoQ | -6.74 % | |
| Price To Sales YoY | -45.697 % | |
| Price To Sales IPRWA | high: 81.172 mean: 34.063 median: 32.739 NTNX: 16.355 low: 0.213 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 75.817 | |
| Forward PE/G | -4.718 | |
| Forward P/S | 32.318 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.893 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.21 | |
| Asset Turnover Ratio QoQ | -4.109 % | |
| Asset Turnover Ratio YoY | 0.0 % | |
| Asset Turnover Ratio IPRWA | high: 0.368 NTNX: 0.21 mean: 0.128 median: 0.124 low: 0.002 |
|
| Receivables Turnover | 2.745 | |
| Receivables Turnover Ratio QoQ | 13.286 % | |
| Receivables Turnover Ratio YoY | 28.362 % | |
| Receivables Turnover Ratio IPRWA | high: 5.131 NTNX: 2.745 mean: 1.416 median: 1.277 low: 0.46 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 33.238 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -56.99 | |
| Cash Conversion Cycle Days QoQ | -2.376 % | |
| Cash Conversion Cycle Days YoY | 576.642 % | |
| Cash Conversion Cycle Days IPRWA | high: 180.031 mean: -22.918 NTNX: -56.99 median: -60.051 low: -179.144 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.616 | |
| CapEx To Revenue | -0.015 | |
| CapEx To Depreciation | -0.605 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 621.9 M | |
| Net Invested Capital | $ 621.9 M | |
| Invested Capital | $ 621.9 M | |
| Net Tangible Assets | $ -912.88 M | |
| Net Working Capital | $ 1.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.373 | |
| Current Ratio | 1.777 | |
| Current Ratio QoQ | 7.374 % | |
| Current Ratio YoY | -5.572 % | |
| Current Ratio IPRWA | high: 7.228 NTNX: 1.777 mean: 1.733 median: 1.23 low: 0.314 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 15.068 | |
| Cost Of Debt | 0.173 % | |
| Interest Coverage Ratio | 28.141 | |
| Interest Coverage Ratio QoQ | -16.137 % | |
| Interest Coverage Ratio YoY | 22.897 % | |
| Interest Coverage Ratio IPRWA | high: 86.943 median: 53.499 mean: 37.42 NTNX: 28.141 low: -64.202 |
|
| Operating Cash Flow Ratio | 0.059 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 90.228 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.324 % | |
| Revenue Growth | -2.734 % | |
| Revenue Growth QoQ | -135.087 % | |
| Revenue Growth YoY | 13.727 % | |
| Revenue Growth IPRWA | high: 18.552 % median: 8.591 % mean: 8.164 % NTNX: -2.734 % low: -13.038 % |
|
| Earnings Growth | -16.071 % | |
| Earnings Growth QoQ | -143.928 % | |
| Earnings Growth YoY | -35.716 % | |
| Earnings Growth IPRWA | high: 66.142 % mean: 11.683 % median: 10.345 % NTNX: -16.071 % low: -73.529 % |
|
| MARGINS | ||
| Gross Margin | 86.875 % | |
| Gross Margin QoQ | -0.57 % | |
| Gross Margin YoY | -0.157 % | |
| Gross Margin IPRWA | high: 90.951 % NTNX: 86.875 % mean: 71.187 % median: 67.197 % low: 35.718 % |
|
| EBIT Margin | 11.992 % | |
| EBIT Margin QoQ | -13.751 % | |
| EBIT Margin YoY | 13.442 % | |
| EBIT Margin IPRWA | high: 80.922 % median: 49.869 % mean: 39.799 % NTNX: 11.992 % low: -32.768 % |
|
| Return On Sales (ROS) | 10.029 % | |
| Return On Sales QoQ | -13.84 % | |
| Return On Sales YoY | -5.127 % | |
| Return On Sales IPRWA | high: 77.678 % median: 45.111 % mean: 36.08 % NTNX: 10.029 % low: -32.768 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 197.2 M | |
| Free Cash Flow Yield | 1.715 % | |
| Free Cash Flow Yield QoQ | 13.576 % | |
| Free Cash Flow Yield YoY | 62.252 % | |
| Free Cash Flow Yield IPRWA | high: 5.981 % NTNX: 1.715 % mean: 0.747 % median: 0.666 % low: -3.884 % |
|
| Free Cash Growth | 3.011 % | |
| Free Cash Growth QoQ | -68.93 % | |
| Free Cash Growth YoY | -65.545 % | |
| Free Cash Growth IPRWA | high: 215.912 % median: 24.274 % mean: 9.804 % NTNX: 3.011 % low: -222.15 % |
|
| Free Cash To Net Income | 2.735 | |
| Cash Flow Margin | 12.306 % | |
| Cash Flow To Earnings | 1.2 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.153 % | |
| Return On Assets QoQ | -31.016 % | |
| Return On Assets YoY | 3.41 % | |
| Return On Assets IPRWA | high: 9.707 % median: 4.924 % mean: 3.95 % NTNX: 2.153 % low: -9.216 % |
|
| Return On Capital Employed (ROCE) | 4.327 % | |
| Return On Equity (ROE) | -0.099 | |
| Return On Equity QoQ | -19.834 % | |
| Return On Equity YoY | 11.554 % | |
| Return On Equity IPRWA | high: 0.188 median: 0.081 mean: 0.069 NTNX: -0.099 low: -0.266 |
|
| DuPont ROE | -9.26 % | |
| Return On Invested Capital (ROIC) | 12.019 % | |
| Return On Invested Capital QoQ | 2.648 % | |
| Return On Invested Capital YoY | 14.499 % | |
| Return On Invested Capital IPRWA | high: 19.61 % NTNX: 12.019 % median: 7.551 % mean: 6.124 % low: -13.889 % |
|