Nutanix (NASDAQ:NTNX) Shares Gap Up Following Strong Earnings

Shares of Nutanix (NASDAQ:NTNX) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $38.44, but opened at $42.16. Nutanix shares last traded at $39.8440, with a volume of 3,529,971 shares changing hands.

The technology company reported $0.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.44 by $0.12. The firm had revenue of $722.83 million for the quarter, compared to analyst estimates of $709.83 million. Nutanix had a negative return on equity of 39.30% and a net margin of 9.95%.The business’s revenue was up 10.4% on a year-over-year basis. During the same quarter last year, the company posted $0.47 earnings per share.

Nutanix News Roundup

Here are the key news stories impacting Nutanix this week:

• Positive Sentiment: Strategic AI deal with AMD — AMD agreed to a multi‑year AI infrastructure partnership and will invest in Nutanix common stock (reported as a ~$150M equity purchase at about $36.26/share), plus up to $100M in joint engineering/go‑to‑market support. The deal boosts NTNX’s credibility in enterprise AI infrastructure and is the main positive catalyst lifting the stock. Quiver Quant: Nutanix jumps as AMD takes strategic stake
• Positive Sentiment: Q2 results beat — Nutanix reported fiscal Q2 revenue of $722.8M and adjusted EPS $0.56, topping consensus on both metrics and showing ~10% YoY revenue growth, which supports the bull case that demand (especially AI/customer migrations) is intact. GlobeNewswire: Q2 results
• Positive Sentiment: Unusually heavy call buying — Volume in call options spiked (~7,474 calls), signaling speculative or hedged bullish interest from traders following the earnings/AMD news. (Market micro signal; not a fundamentals change.)
• Neutral Sentiment: Investor events — Management will present at the Morgan Stanley TMT Conference on March 2, which gives investors another forum for management to amplify the AMD strategy and roadmap. GlobeNewswire: Investor conference
• Negative Sentiment: Near‑term guidance & supply constraints — Nutanix trimmed/issued revenue guidance for the upcoming quarter (Q3 revenue guide $680–$690M vs. consensus ≈ $701M) and cited supply constraints that could cap near‑term growth despite strong bookings; this is the main drag on the stock’s forward outlook. Seeking Alpha: Demand surge running into supply constraints
• Negative Sentiment: Analyst revisions are mixed to negative — Several firms adjusted price targets and forecasts after Q2: UBS raised its target (buy), but multiple firms (Barclays, Bank of America, Piper Sandler among others) modified targets/forecasts, with some downgrades to estimates that reflect near‑term execution risk. These conflicting signals create short‑term volatility. Benzinga: Analysts cut forecasts
• Negative Sentiment: Insider selling and mixed institutional repositioning — Recent disclosures show insider sales and large institutional rebalances noted by data aggregators, which can amplify downside if selling momentum builds.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Wall Street Zen downgraded Nutanix from a “buy” rating to a “hold” rating in a report on Sunday, February 22nd. Bank of America cut their price objective on shares of Nutanix from $75.00 to $60.00 and set a “buy” rating for the company in a research report on Thursday. Northland Securities reduced their target price on shares of Nutanix from $76.00 to $53.00 and set a “market perform” rating for the company in a research note on Wednesday, November 26th. Wells Fargo & Company dropped their price target on shares of Nutanix from $57.00 to $50.00 and set an “equal weight” rating on the stock in a research note on Thursday. Finally, Royal Bank Of Canada set a $55.00 price target on shares of Nutanix in a report on Wednesday, February 11th. Eleven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Nutanix presently has an average rating of “Moderate Buy” and an average target price of $62.43.

Institutional Trading of Nutanix

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Dynamic Technology Lab Private Ltd boosted its position in Nutanix by 67.3% during the second quarter. Dynamic Technology Lab Private Ltd now owns 29,017 shares of the technology company’s stock worth $2,218,000 after purchasing an additional 11,670 shares in the last quarter. Norges Bank purchased a new position in shares of Nutanix in the second quarter valued at $263,938,000. Swiss National Bank raised its stake in shares of Nutanix by 6.7% during the 2nd quarter. Swiss National Bank now owns 766,300 shares of the technology company’s stock worth $58,576,000 after buying an additional 48,400 shares during the last quarter. Prudential Financial Inc. boosted its position in shares of Nutanix by 1,069.5% in the 2nd quarter. Prudential Financial Inc. now owns 222,472 shares of the technology company’s stock worth $15,560,000 after buying an additional 203,449 shares in the last quarter. Finally, Schroder Investment Management Group boosted its position in shares of Nutanix by 19.1% in the 2nd quarter. Schroder Investment Management Group now owns 1,190,376 shares of the technology company’s stock worth $90,992,000 after buying an additional 191,314 shares in the last quarter. Institutional investors and hedge funds own 85.25% of the company’s stock.

Nutanix Trading Up 4.0%

The stock’s 50 day moving average is $45.38 and its 200 day moving average is $58.94. The stock has a market capitalization of $10.81 billion, a price-to-earnings ratio of 43.45, a PEG ratio of 4.18 and a beta of 0.48.

About Nutanix

Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments.

The company’s product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management.