Despite navigating turbulent market conditions, Nutanix continues to demonstrate robust fundamental performance. The company’s stock recently experienced some profit-taking following a period of upward momentum, but the most compelling developments are occurring beneath the surface.
Strong Institutional Backing Amid Insider Activity
A notable divergence has emerged between insider transactions and institutional positioning. While several executives have recently liquidated portions of their holdings, institutional investors maintain substantial confidence in the cloud computing specialist. CEO Rajiv Ramaswami divested 144,707 shares valued at over $11 million, reducing his position by 21.62%. Chief Financial Officer Rukmini Sivaraman similarly sold 11,391 shares at $78.34 per share.
Contrasting this insider selling, financial institutions hold a commanding 85.25% of outstanding shares, signaling strong long-term conviction from major investment firms.
Exceptional Quarterly Performance
Nutanix delivered impressive fourth-quarter 2025 results that surpassed market expectations across key metrics, demonstrating sustained growth momentum in the competitive cloud infrastructure sector.
Financial highlights include:
* Revenue of $653.3 million, representing 19% year-over-year expansion
* Non-GAAP earnings per share of $0.37, exceeding the $0.31 consensus estimate
* Subscription revenue accounting for 94.4% of total sales
* Full fiscal year 2025 revenue reaching $2.54 billion
The company’s subscription-based business model continues to prove its effectiveness, generating predictable revenue streams in the dynamic cloud services industry.
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Strategic Expansion Through Partnerships
Nutanix is strengthening its market position through targeted alliances within the technology ecosystem. Recent developments include DartPoints joining the Nutanix Elevate Service Provider Program to deliver fully managed private cloud solutions. Simultaneously, Leostream renewed its partnership with enhanced focus on virtual desktop infrastructure offerings for enterprise clients.
Ambitious Fiscal 2026 Outlook
Management has established aggressive targets for the coming year, projecting continued robust expansion alongside improving profitability. For the first quarter of fiscal 2026, Nutanix anticipates revenue between $670 million and $680 million, maintaining approximately 18% growth.
More significantly, operating margins are expected to settle between 19.5% and 20.5%. For the full fiscal year 2026, the company is targeting revenue of $2.90 billion to $2.94 billion with margins expanding to 21%-22%, demonstrating that growth and profitability are advancing together.
Wall Street’s Bullish Stance
Market analysts express strong optimism regarding Nutanix’s prospects. Among covering firms, 14 out of 19 recommend purchasing the shares. The consensus price target ranges between $87.67 and $88.07, implying potential upside of 25%-26% from current trading levels.
Price expectations among analysts vary considerably, with targets spanning from $71 to an optimistic $100 projection. This broad range indicates substantial confidence in the company’s capacity for further appreciation.
The investment community awaits the next quarterly report, expected in late November 2025, which will reveal whether Nutanix can maintain its impressive growth trajectory and fulfill elevated market expectations.
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