Nutanix (NTNX) Stock Forecast & Price Target

Nutanix Inc. has achieved significant growth, adding over 600 new customers for six consecutive quarters, indicating strong competitive positioning and a healthy market presence. The company reported an Annual Recurring Revenue (ARR) of $2.28 billion, which grew 18% year-over-year, coupled with accelerated Net New ARR at 17%, all contributing to positive management confidence in sustained business fundamentals. Furthermore, ongoing partnerships, cost discipline, and a solid base of renewals are enhancing profitability and Free Cash Flow, positioning Nutanix favorably amidst market disruptions from industry mergers and acquisitions.

Nutanix Inc has experienced a decline in stock value, approximately 15% after-hours, following the company's first earnings miss in over five years, which was attributed to a combination of delayed migration start dates, a changed partner mix, and ongoing supply chain challenges. The company has also revised its fiscal year 2026 guidance downwards by 3%, anticipating a slight decrease in average contract duration year-over-year and reporting a revenue of $670.6 million, which met the lower end of management's expectations. Furthermore, both Annual Recurring Revenue (ARR) and Net Revenue Retention (NRR) faced headwinds due to a higher number of customers signing contracts with future start dates, signaling potential ongoing growth challenges.