Key Points
Nutanix, Inc. (NTNX) finished sharply lower, retreating from a previous close of $58.77 to $47.66. The session marked a clear downside move, with the stock down 18.91% and declining $11.11. The sell-off accelerated from the open and persisted through the day as traders reacted to fresh fundamental developments and recalibrated near-term expectations for NTNX. The depth of the move and the size of the single-day percentage decline place the session among the stock’s more volatile stretches this year.
Trading ran on above-average volume, reflecting elevated participation as institutions and short-term traders repositioned. At $47.66, NTNX now sits 43% below its 52-week high of $83.36, a notable retracement that underscores how sentiment has shifted from the spring peak. The sharp gap-down left multiple unfilled price areas overhead that may act as near-term resistance, while participants will look for stabilization and a base-building effort to identify firmer support zones.
In recent sessions, NTNX had been attempting to hold in the high-$50s before the latest break. Across the Information Technology sector, Software and Services names have seen rapid repricing when guidance clarity fades, and NTNX’s move fit that pattern. Broader risk sentiment also skewed defensive, favoring profitable, lower-volatility profiles over higher-multiple growth software, adding to the downside pressure in today’s tape.
Why Nutanix, Inc. Price is Moving
At the close, Nutanix stock traded at $47.66, reflecting a market capitalization of $15.91 billion. The company’s trailing twelve-month EPS stands at $0.65, and the shares are well off their 52-week high of $83.36. Today’s session featured above-average trading volume as the market repriced the outlook for the Software and Services provider within the Information Technology sector.
The immediate catalyst was a disappointing earnings print and a drastic reduction in forward guidance announced after the close on November 25. Management also initiated a strategic shift in revenue recognition, deferring a meaningful portion of revenue to future periods rather than recognizing it upfront. While the latest reported revenue rose to $653.27 million for the quarter ended July 31, 2025, up from $638.98 million in the prior quarter (+2.2%), the revised outlook indicated that near-term growth would be materially softer than previously communicated due to timing delays. Analysts cited the revenue recognition change as the primary driver of lower guidance; KeyBanc Capital Markets cut its price target to $65 from $95 while maintaining an Overweight view, explicitly pointing to timing issues. Following the announcement, shares fell more than 16% in after-hours trading on November 25 and continued lower into the November 26 session, including a plunge to $47.86.
Despite the guidance reset, several fundamentals remain supportive: gross margins of 86.81% and 18.11% year-over-year revenue growth signal ongoing operational strength, and demand indicators such as an 82% net retention rate and $1.2 billion in annual contract value point to durable customer engagement. Even so, with the stock near a one-year low and a relative strength index around 28.25 indicating oversold conditions, investors prioritized visibility and valuation. The market’s response reflects concern that elevated uncertainty around near-term revenues and a higher valuation multiple could pressure the risk/reward profile until the revenue timing dynamics normalize.
What is the Nutanix, Inc. Rating - Should I Sell or Buy?
Weiss Ratings assigns NTNX a C rating. Current recommendation is Hold.
The rating is built on five indices: the Good Growth Index aligns with the company’s 19.22% revenue growth trajectory; the Fair Efficiency Index is consistent with a 7.42% profit margin that indicates only modest profitability; the Good Solvency Index reflects balance sheet flexibility; the Fair Total Return Index captures middling risk-adjusted performance; and the Fair Volatility Index points to average day-to-day risk. A 91.05 P/E ratio suggests valuation sensitivity, which tempers the otherwise constructive growth and solvency characteristics.
Relative to peers, Oracle (ORCL) and Salesforce (CRM) both hold C+ ratings, while Shopify (SHOP) sits at C. NTNX’s C rating places it slightly behind the C+ cohort, reflecting a more balanced risk/reward mix than higher-scoring peers that currently exhibit a somewhat better alignment of growth, profitability, and market performance.
Overall, the C rating means Nutanix presents an average, risk-adjusted profile at current levels. The Good Growth and Good Solvency indices provide support, but only Fair readings for Efficiency, Total Return, and Volatility keep the balance neutral. Coupled with a higher P/E of 91.05, the current mix indicates that while the business is expanding, profitability and risk-adjusted returns are not yet strong enough to warrant a higher grade. Thus, the Hold stance reflects a need for improved efficiency and sustained returns to offset valuation and volatility considerations.
About Nutanix, Inc.
Nutanix, Inc. is an enterprise software company in the Software and Services industry within the Information Technology sector. The company pioneered hyperconverged infrastructure (HCI) software that integrates compute, storage, networking, and virtualization into a single, software-defined platform. Founded in 2009 and headquartered in San Jose, California, Nutanix focuses on simplifying datacenter operations and enabling hybrid multicloud deployments for organizations of all sizes, including large enterprises, public sector entities, and service providers.
Its core offering is the Nutanix Cloud Platform, anchored by the Acropolis Operating System (AOS) that delivers distributed storage and data services, and the AHV hypervisor for built-in virtualization. Management and automation are provided through software such as Prism for operations and monitoring, Calm for application orchestration, and tools that support database lifecycle management, Kubernetes, and disaster recovery. Nutanix also offers file, object, and block storage services, security features, and data protection, all delivered via a subscription model that includes software licenses, support, and professional services.
Nutanix’s strategic focus is to help customers operate applications and data seamlessly across on-premises environments and public clouds, enabling flexibility, cost control, and consistent governance. The company’s platform-agnostic approach supports a wide range of hardware partners and cloud providers, positioning it as a neutral layer for hybrid multicloud. Competitive differentiation stems from operational simplicity, integrated management, and the ability to consolidate infrastructure silos. By reducing complexity and enabling consistent performance and control across environments, Nutanix aims to provide enterprises with a pragmatic path to modernize infrastructure, accelerate application delivery, and manage data at scale.
Investor Outlook
With a C (Hold) rating and shares 43% below the 52-week high, investors should watch whether NTNX stabilizes above recent breakdown levels and how quickly management restores guidance visibility after the revenue recognition shift. Monitor the balance between growth and efficiency, as well as broader Software and Services sentiment.
See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.