• In recent days, Nutanix was downgraded by multiple major analysts, who shifted their ratings to more neutral stances amid questions about near-term growth visibility.
• This tension between cautious short-term views and still-supportive longer-term assessments offers a nuanced window into how the market is reassessing Nutanix’s outlook.
• Next, we’ll examine how these concerns about slowing growth momentum may influence Nutanix’s broader investment narrative and investor expectations.

Find companies with promising cash flow potential yet trading below their fair value.

What Is Nutanix's Investment Narrative?

To own Nutanix today, you have to believe in its transition from a growth-at-all-costs story to a durable, profitable infrastructure software platform, even as expectations reset. Recent downgrades from Barclays and Morgan Stanley, alongside a Zacks Rank pointing to earnings estimate pressure, sharpen the focus on near term revenue visibility and subscription momentum, which had been key bullish catalysts. With shares already pulling back sharply over the past quarter, the immediate impact of these rating changes looks more like a reinforcement of existing concerns than a fresh shock, but it does raise the bar for upcoming quarters to confirm Nutanix’s FY2026 guidance and margin progress. At the same time, high leverage and negative equity remain important watchpoints if growth or cash generation were to soften.

However, one financial structural risk here is something investors should not overlook. Despite retreating, Nutanix's shares might still be trading 46% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community span roughly US$32 to US$118, showing how far apart individual views on Nutanix run. Against that spread, the recent analyst downgrades and questions over short term growth visibility underline why different investors may draw very different conclusions about how much uncertainty is already reflected in the current share price.

Explore 8 other fair value estimates on Nutanix - why the stock might be worth 19% less than the current price!

Build Your Own Nutanix Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nutanix research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Nutanix research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nutanix's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.