Highlights

  • Nutanix has 694.13% basic EPS growth, a P/E of 13.65 and PEG of 0.99.
  • Fiscal 2026 net income was $1,506,837 thousand, against $188,366 thousand.
  • Annual recurring revenue reached $2,548,797 thousand; revenue was $2,853,545 thousand.
  • Nutanix repurchased about $482.5 million of shares; $728.9 million remained authorized.

An undervalued growth stock pairs earnings growth with its P/E and PEG ratios, and Nutanix (NASDAQ:NTNX) shows all three: basic earnings per share grew 694.13% over one year, the trailing twelve-month P/E ratio is 13.65 and the PEG ratio, on an expected basis, is 0.99, with shares trading at USD 72.62 on October 28, 2026, down 0.16%. Alongside those figures, the hybrid cloud and AI platform company raised its share repurchase authorization by $750.0 million in April, sold Class A shares to Advanced Micro Devices for approximately $150.0 million in May, and filed its fiscal 2026 Form 10-K on September 18.

Nutanix is headquartered in San Jose, California, and was incorporated in Delaware in September 2009. It offers the Nutanix Cloud Platform, a unified infrastructure software platform for running applications, data and AI workloads in data centers, at the edge and in public clouds, sold on a subscription basis through channel partners and OEMs. It operates as a single reportable segment, had approximately 8,350 employees worldwide and over 32,000 end customers at July 31, 2026, and reports on a fiscal year ending July 31.

Growth: Fiscal 2026 Earnings, Revenue and ARR

Net income was $1,506,837 thousand in fiscal 2026 against $188,366 thousand in fiscal 2025. Basic earnings per share were $5.61 against $0.70, and diluted earnings per share were $5.17 against $0.65. The income statement shows a benefit from income taxes of $1,179,729 thousand, and the company disclosed a $1,094.2 million tax benefit from releasing the valuation allowance on U.S. federal deferred tax assets, plus a one-time release of a $114.0 million valuation allowance on state deferred tax assets.

Total revenue was $2,853,545 thousand against $2,537,927 thousand, a 12% year-over-year increase, with subscription revenue of $2,712,274 thousand. Annual recurring revenue, a performance measure, was $2,548,797 thousand against $2,201,672 thousand. Operating income was $273,970 thousand against $172,541 thousand, and non-GAAP operating income was $675,360 thousand against $536,120 thousand. Gross margin was 86.8%.

Valuation: P/E of 13.65, PEG of 0.99 and Cash Flow

The P/E ratio of 13.65 is measured on trailing twelve-month earnings, and the PEG ratio of 0.99 on expected growth. Net cash provided by operating activities was $916,688 thousand against $821,456 thousand, and free cash flow, a non-GAAP measure, was $840,675 thousand against $750,173 thousand. Total stockholders' equity was $702,565 thousand at July 31, 2026, against a deficit of $694,520 thousand a year earlier.

On the fourth quarter fiscal 2026 call, the chief financial officer said the $300 million accelerated share repurchase and the later increase in the repurchase authorization were indicative of the company's conviction and confidence in the business.

Capital Returns, Convertible Notes and Liquidity

The Board authorized up to $350.0 million of repurchases in August 2023 and approved increases of $350.0 million in August 2025 and $750.0 million in April 2026. In fiscal 2026 Nutanix repurchased approximately 9.4 million shares at a weighted average price of $51.24 for approximately $482.5 million, including a $300.0 million accelerated share repurchase with Bank of America. About $728.9 million remained available at July 31, 2026. The company states a current intention not to pay dividends.

In May 2026 it sold 4,136,789 Class A shares to Advanced Micro Devices at $36.26 per share. At July 31, 2026, cash and cash equivalents were approximately $777.3 million and short-term investments were $1,584.2 million. Convertible senior notes outstanding were $500.0 million of 0.25% notes due 2027 and $862.5 million of 0.50% notes due December 15, 2029. The $500.0 million Revolver matures in February 2030, had no borrowings, and the company was in compliance with its financial covenant.

Disclosed Risks and Outlook for Fiscal 2027

The U.S. Department of Justice is investigating federal government IT purchases, including historical conduct by a former employee. The company received a grand jury subpoena, is cooperating, and said it cannot predict the outcome or estimate any potential loss, and does not expect a material adverse effect. Tessell, Inc. filed a complaint on March 17, 2026 asserting defamation and trade libel claims; the action is stayed pending arbitration.

In August 2026 the company announced a plan to reduce global headcount by approximately 5%, with restructuring charges of approximately $27.6 million recognized as of July 31, 2026. International customers accounted for approximately 46% of fiscal 2026 revenue. The company has $1,343,818 thousand of convertible senior notes, net, and notes that servicing and repaying them may require a large amount of cash.

On the call, management gave initial fiscal 2027 guidance of revenue of $3.18 billion to $3.23 billion, non-GAAP operating margin of 24% to 25% and free cash flow of $850 million to $950 million, including $33 million to $43 million of nonrecurring restructuring charges. First quarter fiscal 2027 revenue guidance is $755 million to $765 million. Management said the guidance assumes server supply constraints continue, which could affect the size and timing of customer projects.