Wells Fargo has raised its price target on Nutanix to $65 from $55, maintaining an Equal Weight rating as the company’s annual recurring revenue (ARR) and earnings continue to outpace expectations.
The upgrade follows Nutanix’s reported ARR growth of $114 million sequentially, bringing total ARR to $2.549 billion, a 16% increase year-over-year. The company also posted Q4 fiscal 2026 revenue of $757.1 million, exceeding the consensus estimate of $738.31 million, while non-GAAP EPS reached $0.60, surpassing the $0.49 forecast. Gross margin remained robust at 87%, underscoring strong pricing power.
Nutanix’s stock has gained 71% over the past six months, closing at $65.39 on Wednesday. Market capitalization stands at $17.68 billion. BofA Securities separately lifted its target to $78, maintaining a Buy rating.
Industry-wide hardware supply constraints continue to shape Nutanix’s near-term outlook. The company expects a higher share of fiscal 2027 orders to commence in later periods due to delays and elevated pricing, though demand for its cloud-based and third-party storage solutions remains strong. Nutanix highlighted multi-year contracts with NetApp and Lenovo, alongside existing partnerships with Dell and Everpure, as key growth drivers. Its Nutanix Cloud Clusters offering has also benefited from on-premises hardware limitations.
InvestingPro ranks Nutanix’s financial health as "Great," reflecting sustained revenue growth and profitability trends amid broader IT infrastructure demand.
