From Nasdaq: 2025-04-16 10:50:00

Nutanix (NTNX) shares have declined by 11.6% in the past month, underperforming the Computer and Technology sector, the S&P 500 index, and the Computers – IT Services industry. Despite being a pioneer in the hyper-converged infrastructure market, Nutanix faces tough competition from companies like Hewlett Packard Enterprise (HPE), Cisco Systems (CSCO), and Dell Technologies (DELL).

In the second quarter of fiscal 2025, Nutanix added 710 customers, bringing its total customer base to 27,870. The company reported record quarterly revenue of $655 million, representing a 16% year-over-year growth rate. However, challenges such as stretched sales cycles and revenue visibility persist, leading to a projected sequential decline in revenues and margins in the second half of fiscal 2025.

Nutanix expects revenues of $620-$630 million in the third quarter of fiscal 2025, with a consensus estimate of 38 cents per share for earnings, indicating a year-over-year increase of 35.71%. The company has beaten the Zacks Consensus Estimate for earnings in the past four quarters, with an average surprise of 38.59%.

Despite near-term headwinds, Nutanix’s long-term growth potential remains strong, supported by a recurring revenue model and expanding customer base. Investors may consider holding the stock and monitoring upcoming quarters for improved profitability. Nutanix currently carries a Zacks Rank #3 (Hold), suggesting a cautious approach for potential investors.



Read more at Nasdaq: Nutanix Dips 12% in a Month: Should You Hold or Fold the Stock?