BofA update shows where active managers are putting money
Investing.com - BofA Securities lowered its price target on Nutanix (NASDAQ:NTNX) to $93 from $95 while maintaining a Buy rating following the company’s fourth-quarter results. According to InvestingPro data, the stock has delivered an impressive 33.1% return over the past year, though current analysis suggests the stock is trading above its Fair Value.
Nutanix delivered fourth-quarter revenue and operating margin above guidance, with product revenues growing 28% year-over-year. The company added 800 new logos during the quarter, demonstrating continued strong customer acquisition. The company maintains an exceptional gross profit margin of 86.37%, with InvestingPro analysis revealing multiple additional growth indicators available to subscribers.
Operating margins came in at 18.3%, exceeding the midpoint of the company’s guidance range of 15.5-16.5% by 230 basis points. For fiscal 2026, Nutanix guided revenue to $2.90-2.94 billion, representing 15% year-over-year growth at the midpoint, building on its current revenue growth rate of 16.11%. The company maintains a healthy financial position, with a "GOOD" overall financial health score according to InvestingPro’s comprehensive analysis.
The company expects fiscal 2026 operating margins of 21-22%, a 40 basis point improvement year-over-year at the midpoint. Nutanix cited higher operating expenses in fiscal 2026, including $25 million for increased headcount and $10-15 million for non-recurring partner payments.
BofA noted that Nutanix management has historically provided conservative initial guidance, exceeding operating margin forecasts by 500 basis points on average over the past three years. The firm sees continued opportunity for Nutanix to gain market share against VMware and benefit from partnerships with Dell, Cisco, and Red Hat.
In other recent news, Nutanix Inc . reported its fourth-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.37, exceeding the forecasted $0.33. Additionally, Nutanix’s revenue reached $653 million, outpacing the anticipated $642.19 million. These results indicate a strong performance for the company in the recent quarter. The earnings announcement reflects positively on Nutanix’s financial health. Investors showed confidence in the company’s performance following the release of these results. The recent developments underscore Nutanix’s ability to exceed market expectations.
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