Nutanix (NTNX) Stock Forecast & Price Target

Nutanix has demonstrated robust growth by adding over 600 new customers for six consecutive quarters, positioning the company well to capture market share through strong competitive strategies and partnerships. The company's Annual Recurring Revenue (ARR) reached $2.28 billion, reflecting an 18% year-over-year growth, and Net New Annual Recurring Revenue (NNARR) accelerated to 17%, showcasing positive business momentum. Additionally, Nutanix is ahead of its Free Cash Flow targets, benefiting from a disciplined cost strategy and industry disruptions, which further strengthens its financial outlook.

Nutanix Inc has faced significant challenges, resulting in a share price decline of approximately 15% following its first earnings miss in over five years, largely attributed to slower start dates on migrations and increased supply chain issues, which led to a downward revision in FY26 revenue guidance by 3%. The company's guidance for FQ2 fell short of expectations, forecasting revenue between $705 million and $715 million, reflecting only an 8% year-over-year growth, which indicates diminishing growth prospects. Additionally, the anticipated decline in FY26 average contract duration due to the non-recurrence of larger contracts from FY25 and headwinds in Annual Recurring Revenue (ARR) and Net Revenue Retention (NRR) further compound the negative outlook.