# Nutanix (NTNX.US)

Canonical: https://gigainvestors.com/s/NTNX

Analysis as of: 2026-10-16T07:30:42.796Z. Financial observations: FY2013–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $69.98 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 8

- Operating margin variation: 0.98×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.41×

- FY2018: -0.24×

- FY2019: -0.48×

- FY2020: -0.63×

- FY2021: -0.47×

- FY2022: -0.29×

- FY2023: -0.11×

- FY2024: 0.00×

- FY2025: 0.07×

- FY2026: 0.10×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -41.4%

- ROIC, second-lowest year: -181.4%

- Typical minus recent gross margin: -7.4 pp

- Typical gross margin (annual median): 79.4%

- Recent gross margin (lower of latest and 3-year median): 86.8%

- Years with nonpositive capital: 10

- Capital spending / revenue: 3.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -97.5%

- FY2018: -25.5%

- FY2019: -62.3%

- FY2020: -181.4%

- FY2021: -303.6%

- FY2022: -56.5%

- FY2023: -26.3%

- FY2024: >100%

- FY2025: 19.5%

- FY2026: 12.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.10×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $570M

- Net income, five-year total: $518M

- Return on incremental invested capital: 372.2%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, change between three-year averages: -8.9 pp

- Working capital / revenue, final three-year average: 8.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.95×

- FY2023: 0.96×

- FY2024: 1.00×

- FY2025: 1.01×

- FY2026: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -62.3% vs 19.5%

- Per-share earnings: -1.81 to 0.64 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 7.7%

- Ordinary dilution, 5-year annual growth: 7.2%

- Market cap gain: $14B

- Cumulative retained earnings: -$2.8B

- Diluted shares, 10-year annual growth: 7.7%

- Diluted shares, 5-year annual growth: 7.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: $2.45

- Per-share value, starting three-year median: -$1.81

- Per-share value, ending three-year median: $0.64

- Buybacks concentrated in cheaper years (correlation): 0.09

- Average buyback yield: 1.6%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: $46M

- Cumulative net income, 10 years: -$2.7B

- ROIC, first three-year median: -62.3%

- ROIC, last three-year median: 19.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$2.96

- FY2018: -$1.81

- FY2019: -$3.43

- FY2020: -$4.48

- FY2021: -$5.01

- FY2022: -$3.62

- FY2023: -$1.09

- FY2024: -$0.51

- FY2025: $0.64

- FY2026: $5.16

### accounting: fail

- Sloan accruals exceed 10%

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 11.6%

- Receivables to sales index (DSRI): 0.74×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 39.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.61×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.27×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -53.3%

- FY2018: -24.4%

- FY2019: -37.1%

- FY2020: -40.3%

- FY2021: -41.0%

- FY2022: -36.6%

- FY2023: -20.9%

- FY2024: -37.2%

- FY2025: -19.3%

- FY2026: 11.6%

## Holders

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 93% since Oct 2023 · "Nutanix Surges as Cloud and Agentic AI Partnerships With AMD Pay Off" (finance.yahoo.com, Aug 2026) · sales +12.4%

Story as of 2026-10-16T09:59:17.010Z; price observation 2026-10-15.

- 2025-08-27: Nutanix shares tumble despite earnings beat as guidance disappoints ([finance.yahoo.com](https://finance.yahoo.com/news/nutanix-shares-tumble-despite-earnings-204108934.html))

- 2025-11-25: Nutanix plunges as Q1 revenue, Q2 outlook outlook falls short of expectations ([seekingalpha.com](https://seekingalpha.com/news/4526038-nutanix-plunges-as-q1-revenue-q2-outlook-outlook-falls-short-of-expectations?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-17: Nutanix (NTNX) Is Down 14.5% After Cutting Revenue Outlook Amid Probes Into Disclosure Practices ([finance.yahoo.com](https://finance.yahoo.com/news/nutanix-ntnx-down-14-5-110908189.html))

- 2026-04-17: A Look At Nutanix (NTNX) Valuation After Strong Revenue And Weaker Outlook Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/look-nutanix-ntnx-valuation-strong-070527896.html))

- 2026-08-27: Nutanix Surges as Cloud and Agentic AI Partnerships With AMD Pay Off ([finance.yahoo.com](https://finance.yahoo.com/m/449c6e48-d45c-3156-b639-69601b6b914a/nutanix-surges-as-cloud-and.html))

- 2026-09-14: Nutanix Eyes External Storage, AI Growth as Supply-Chain Pressures Persist ([finance.yahoo.com](https://finance.yahoo.com/technology/articles/nutanix-eyes-external-storage-ai-100202273.html))

### Sales · FY2025–2026

sales +12.4%; source https://www.sec.gov/Archives/edgar/data/1618732/000119312526394793/ntnx-20260731.htm; observed 2026-09-18.

- FY2017: $846M 

- FY2018: $1.2B 

- FY2019: $1.2B 

- FY2020: $1.3B 

- FY2021: $1.4B 

- FY2022: $1.6B 

- FY2023: $1.9B 

- FY2024: $2.1B 

- FY2025: $2.5B 

- FY2026: $2.9B 

### Gross margin · FY2026

gross margin 86.8%; source https://www.sec.gov/Archives/edgar/data/1618732/000119312526394793/ntnx-20260731.htm; observed 2026-09-18.

- FY2017: 61.3% 

- FY2018: 66.6% 

- FY2019: 75.4% 

- FY2020: 78.1% 

- FY2021: 79.1% 

- FY2022: 79.7% 

- FY2023: 82.2% 

- FY2024: 84.9% 

- FY2025: 86.8% 

- FY2026: 86.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 2.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1618732/000119312526394793/ntnx-20260731.htm (filed 2026-09-18); FY2026: revenue 2853545000; grossProfit 2476902000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 84.9% to 86.8% during 2024–26; it lost 41.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-18); FY2024: grossProfit / revenue = 84.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-18); FY2025: grossProfit / revenue = 86.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1618732/000119312526394793/ntnx-20260731.htm (filed 2026-09-18); FY2026: grossProfit / revenue = 86.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-18); 10-year return on capital observations [[2017,-0.9748951053904814],[2018,-0.25507016889355605],[2019,-0.6230793243425027],[2020,-1.8139370209606962],[2021,-3.0359195672488144],[2022,-0.5653081026962202],[2023,-0.262892112843036],[2024,1.000001],[2025,0.19480353962536215],[2026,0.12554230655125673]]; median -0.41410010776962813. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.4% of cash earnings; paid dividends in 3 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-18); FY2025: growth capex 0; upkeep 71283000; cash acquisitions 0; owner earnings 189784000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1618732/000119312526394793/ntnx-20260731.htm (filed 2026-09-18); FY2026: growth capex 5368000; upkeep 70645000; cash acquisitions 0; owner earnings 1506837000. Growth capex plus acquisitions / owner earnings = 0.0035624291147615833.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-18); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,65766000],[2022,67826000],[2023,36287000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1618732/000119312526394793/ntnx-20260731.htm (filed 2026-09-18); FY2026: cash repurchases 483543000 USD.

### Are managers owners

Insiders own 1.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NTNX.US SharesStats.PercentInsiders = 1.8290000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price is 7.2 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-18); Closing price 69.98 USD; reporting-to-trading FX 1; FY2026 annual sales per share 9.766293726876649; price multiple 7.165461326174986. FY2026 cash earnings/share 5.157168623773457. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $24.50 per share

- 2016-11: $32.00 per share

- 2016-12: $26.56 per share

- 2017-01: $30.27 per share

- 2017-02: $29.99 per share

- 2017-03: $18.77 per share

- 2017-04: $15.19 per share

- 2017-05: $18.65 per share

- 2017-06: $20.15 per share

- 2017-07: $21.25 per share

- 2017-08: $22.00 per share

- 2017-09: $22.39 per share

- 2017-10: $28.50 per share

- 2017-11: $32.80 per share

- 2017-12: $35.28 per share

- 2018-01: $32.10 per share

- 2018-02: $36.45 per share

- 2018-03: $49.11 per share

- 2018-04: $50.59 per share

- 2018-05: $53.45 per share

- 2018-06: $51.57 per share

- 2018-07: $48.89 per share

- 2018-08: $56.32 per share

- 2018-09: $42.72 per share

- 2018-10: $41.51 per share

- 2018-11: $44.71 per share

- 2018-12: $41.59 per share

- 2019-01: $51.23 per share

- 2019-02: $50.09 per share

- 2019-03: $37.74 per share

- 2019-04: $43.19 per share

- 2019-05: $28.07 per share

- 2019-06: $25.94 per share

- 2019-07: $22.70 per share

- 2019-08: $24.23 per share

- 2019-09: $26.25 per share

- 2019-10: $29.22 per share

- 2019-11: $37.35 per share

- 2019-12: $31.26 per share

- 2020-01: $32.47 per share

- 2020-02: $23.84 per share

- 2020-03: $15.80 per share

- 2020-04: $20.49 per share

- 2020-05: $24.06 per share

- 2020-06: $23.71 per share

- 2020-07: $22.19 per share

- 2020-08: $28.71 per share

- 2020-09: $22.18 per share

- 2020-10: $24.34 per share

- 2020-11: $27.39 per share

- 2020-12: $31.87 per share

- 2021-01: $30.52 per share

- 2021-02: $30.29 per share

- 2021-03: $26.56 per share

- 2021-04: $27.04 per share

- 2021-05: $31.51 per share

- 2021-06: $38.22 per share

- 2021-07: $36.02 per share

- 2021-08: $36.91 per share

- 2021-09: $37.70 per share

- 2021-10: $34.31 per share

- 2021-11: $33.22 per share

- 2021-12: $31.86 per share

- 2022-01: $27.34 per share

- 2022-02: $26.70 per share

- 2022-03: $26.82 per share

- 2022-04: $25.03 per share

- 2022-05: $16.20 per share

- 2022-06: $14.63 per share

- 2022-07: $15.13 per share

- 2022-08: $17.30 per share

- 2022-09: $20.83 per share

- 2022-10: $27.40 per share

- 2022-11: $28.26 per share

- 2022-12: $26.05 per share

- 2023-01: $27.87 per share

- 2023-02: $28.25 per share

- 2023-03: $25.99 per share

- 2023-04: $23.98 per share

- 2023-05: $29.62 per share

- 2023-06: $28.05 per share

- 2023-07: $30.20 per share

- 2023-08: $31.10 per share

- 2023-09: $34.88 per share

- 2023-10: $36.19 per share

- 2023-11: $43.09 per share

- 2023-12: $47.69 per share

- 2024-01: $56.20 per share

- 2024-02: $63.16 per share

- 2024-03: $61.72 per share

- 2024-04: $60.70 per share

- 2024-05: $55.32 per share

- 2024-06: $56.85 per share

- 2024-07: $50.51 per share

- 2024-08: $63.19 per share

- 2024-09: $59.25 per share

- 2024-10: $62.10 per share

- 2024-11: $65.28 per share

- 2024-12: $61.18 per share

- 2025-01: $68.77 per share

- 2025-02: $76.89 per share

- 2025-03: $69.81 per share

- 2025-04: $68.70 per share

- 2025-05: $76.69 per share

- 2025-06: $76.44 per share

- 2025-07: $75.17 per share

- 2025-08: $67.21 per share

- 2025-09: $74.39 per share

- 2025-10: $71.24 per share

- 2025-11: $47.80 per share

- 2025-12: $51.69 per share

- 2026-01: $39.33 per share

- 2026-02: $38.28 per share

- 2026-03: $38.01 per share

- 2026-04: $40.89 per share

- 2026-05: $52.07 per share

- 2026-06: $50.96 per share

- 2026-07: $59.01 per share

- 2026-08: $68.57 per share

- 2026-09: $70.41 per share

- 2026-10: $69.98 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1618732/000119312526394793/ntnx-20260731.htm); period 2026-07-31, filed 2026-09-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.