Piper Sandler raised its price target on Nutanix Inc. to $75 from $60 on Wednesday, citing accelerating revenue growth and expanding demand for the company’s storage and hybrid cloud solutions.
The stock was trading at $70.34 at the time of the note, up 71% over the past six months. Piper Sandler maintained an Overweight rating, pointing to top-line acceleration, positive lead metrics, and better-than-expected guidance as primary catalysts. The firm also highlighted contributions from external storage partnerships, increased adoption of AI and Kubernetes, and replacements of legacy VMware infrastructure.
Rival brokerages followed with higher targets: BofA Securities raised its target to $78, RBC Capital to $90, Needham to $85, and Wells Fargo to $65. Nutanix reported fourth-quarter fiscal 2026 revenue of $757.1 million, exceeding analyst estimates of $738.31 million, while non-GAAP earnings reached $0.60 per share, surpassing the $0.49 per share consensus.
Annual recurring revenue grew 16% year-over-year to $2.549 billion, with fourth-quarter fiscal 2026 revenue growth projected at 16%. Gross profit margin stood at 87%, underscoring the company’s strong pricing power in enterprise storage.
Nutanix’s growth outlook reflects broader enterprise migration to hybrid cloud and AI-driven workloads, as well as customer shifts away from VMware following its acquisition. Recent large government contract wins have also bolstered future-order visibility.
The company acknowledged ongoing supply chain constraints and is working with customers on payment terms, which has weighed on near-term free cash flow guidance. InvestingPro analysis separately flagged the stock as trading above fair value, placing it among overvalued equities.
