BofA Securities raised its price target on Nutanix Inc. to $78 from $65, maintaining a Buy rating as the company reported fourth-quarter fiscal 2026 revenue of $757 million, up 16% year-over-year and 2% above the top end of its guidance.
The Santa Clara-based software provider posted non-GAAP earnings of $0.60 per share, exceeding the $0.49 estimate compiled by Wall Street. Annual recurring revenue climbed 16% to $2.549 billion, with net revenue retention steady at 106%. Total contract value bookings grew in the high teens, outpacing the 12% revenue growth reported for the period.
Nutanix added more than 3,000 new customer logos in fiscal 2026, with core hyperconverged infrastructure remaining the largest revenue driver. External storage, NC2, cloud-native offerings, database services and early AI initiatives contributed to expansion into adjacent markets. Gross profit margin stood at 87%, while market capitalization reached $17.68 billion.
BofA noted that management observed no unusual revenue pull-ins or catch-up activity in the quarter. The bank expects Nutanix to sustain double-digit growth while expanding margins, citing large competitive wins and a broadening partner ecosystem. Nutanix also provided higher sales and margin guidance for fiscal 2027.
The upgrade follows the company’s fiscal 2026 results, which were released after U.S. markets closed on Thursday.
