Core Insights - Nutanix announced its Nutanix Cloud Platform will support Microsoft Azure Virtual Desktop for hybrid environments, enhancing flexibility in virtual desktop deployment and management [1][3] - The collaboration aims to address the needs of distributed workforces, providing IT teams with more infrastructure choices while optimizing control, performance, security, and cost efficiency [2][3] Company Developments - The Nutanix Cloud Platform is designed to deliver a performant, resilient, cost-efficient, and secure infrastructure for virtual desktop infrastructure (VDI) workloads, empowering customers with more options for virtual desktops [3][4] - The support for Azure Virtual Desktop will allow customers to run it locally on Nutanix AHV while utilizing Azure's management stack for secure connections to Azure [3][4] Industry Implications - The integration of Azure Virtual Desktop for hybrid environments on Nutanix AHV addresses critical compliance and regulatory requirements in sectors like financial services, healthcare, and government, where data residency is crucial [3][4] - Key benefits include hybrid flexibility, native support for Microsoft applications, optimized performance for latency-sensitive workloads, and cost efficiency through existing Microsoft licensing [9]

Group 1: Nutanix - Oppenheimer initiates coverage on Nutanix with an "Outperform" rating and a target price of $90, citing benefits from the industry's shift towards hyper-converged infrastructure (HCI) [1] - Nutanix is positioned to gain market share as VMware faces customer resistance due to price increases, allowing Nutanix to capitalize on this opportunity [1] - The company has strong capabilities to build and deliver AI applications, leveraging the growing demand for unstructured data, which supports its business expansion in the AI era [1] Group 2: Pure Storage - Oppenheimer initiates coverage on Pure Storage with an "Outperform" rating and a target price of $120, highlighting the company's advantage in the all-flash array (AFA) market [2] - The growth in demand for unstructured data storage driven by AI applications is expected to benefit Pure Storage, allowing it to capture market share from traditional HDD and other flash vendors [2] - The expansion of its customer base to include tier-one and tier-two hyperscale data centers is anticipated to drive strong new customer growth and improve operating margins [2] Group 3: Rubrik - Oppenheimer assigns a "Market Perform" rating to Rubrik, indicating that its valuation reasonably reflects its growth prospects [3] - The increasing importance of data is expected to expand the total addressable market (TAM) for backup storage, benefiting Rubrik [3] - The rise in data security vulnerabilities and ransomware attacks aligns with Rubrik's security-first strategy, although competition in the network resilience space is intensifying [3]

Core Insights - Nutanix has a lower P/E ratio compared to the aggregate P/E of 109.79 in the Software industry, suggesting potential undervaluation or weaker future performance expectations [5] Group 1: P/E Ratio Analysis - The P/E ratio is a tool for assessing a company's market performance against historical earnings and industry benchmarks [4] - A lower P/E ratio may indicate that shareholders do not expect better future performance or that the company is undervalued [5] - While a low P/E can suggest undervaluation, it may also reflect weak growth prospects or financial instability [7] Group 2: Investment Considerations - The P/E ratio should be evaluated alongside other financial ratios, industry trends, and qualitative factors for a comprehensive analysis [7] - Investors are encouraged to take a holistic approach to analyzing a company's financial health to make informed investment decisions [7]

Core Viewpoint - Nutanix is set to report its earnings on November 25, 2025, with expectations of a slight decline in earnings per share but an increase in revenue compared to the previous year [2][3]. Financial Performance - In the latest trading session, Nutanix closed at $67.71, reflecting a decrease of 1.23% from the previous day, underperforming the S&P 500's gain of 0.06% [1]. - Over the past month, Nutanix shares increased by 0.9%, lagging behind the Computer and Technology sector's growth of 6.16% and the S&P 500's increase of 4.57% [1]. - For the upcoming earnings report, analysts anticipate earnings of $0.41 per share, representing a year-over-year decline of 2.38%, while revenue is expected to reach $677.02 million, up 14.56% from the prior-year quarter [2]. - For the entire fiscal year, earnings are projected at $1.9 per share and revenue at $2.92 billion, indicating increases of 17.28% and 15.17% respectively from the previous year [3]. Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Nutanix indicate a positive outlook on the company's business operations and profit generation capabilities [4]. - The Zacks Rank system currently rates Nutanix as 2 (Buy), with a Forward P/E ratio of 36.14, which is a premium compared to the industry average of 17.3 [6]. - Nutanix has a PEG ratio of 2.59, higher than the Computers - IT Services industry's average PEG ratio of 1.92, suggesting a higher valuation relative to growth expectations [7]. Industry Context - The Computers - IT Services industry, which includes Nutanix, is ranked 61 in the Zacks Industry Rank, placing it in the top 25% of over 250 industries [7]. - Historical data shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a favorable environment for Nutanix within its industry [8].

Company Overview - Nutanix (NTNX) ended the recent trading session at $68.80, showing a -1.31% change from the previous day's closing price, underperforming the S&P 500 which lost 1.12% [1] - Over the past month, Nutanix shares have decreased by 2.02%, while the Computer and Technology sector gained 3.58% and the S&P 500 gained 1.26% [1] Financial Performance Forecast - Nutanix is expected to report an EPS of $0.41, reflecting a 2.38% decrease from the same quarter last year, with quarterly revenue forecasted at $677.02 million, up 14.56% year-over-year [2] - For the entire fiscal year, earnings are projected at $1.9 per share and revenue at $2.92 billion, indicating increases of +17.28% and +20.16% respectively from the previous year [3] Analyst Estimates and Valuation - Recent revisions to analyst forecasts for Nutanix are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] - Nutanix currently holds a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 36.75, which is a premium compared to the industry average Forward P/E of 16.9 [5] - The company has a PEG ratio of 2.63, compared to the industry average PEG ratio of 1.92, indicating a higher expected earnings growth rate relative to its price [6] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups by evaluating the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1 - Nutanix, Inc. will report its financial results for the first quarter of fiscal year 2026 on November 25, 2025, after U.S. markets close [1] - A conference call and earnings webcast will be held on the same day at 4:30 p.m. Eastern Time to discuss the financial results [2] - An archived replay of the webcast will be available shortly after the call on the Nutanix Investor Relations website [3] Group 2 - Nutanix is a leader in hybrid multicloud computing, providing a unified software platform for running applications and managing data [4] - The company serves over 29,000 customers globally, helping them to digitally transform and manage hybrid multicloud environments effectively [4]

Core Insights - Nutanix Inc. (NASDAQ:NTNX) share price is currently at $71.36, reflecting a 3.30% increase, but has decreased by 6.53% over the past month and increased by 13.97% over the past year [1] Group 1: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [5] - Nutanix Inc. has a P/E ratio of 106.28, which is lower than the software industry average P/E ratio of 119.19, suggesting potential undervaluation or weaker future performance expectations [6] - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability, necessitating a cautious approach in its interpretation [9]

Company Overview - Nutanix (NTNX) is a networking IT services company with a market cap of $18 billion [2] - GitLab (GTLB) is another tech name with a market cap of $8 billion [11] Financial Performance - Nutanix - Nutanix has a strong buy rating with growth divergence [1] - The company has beaten earnings estimates for the last four quarters, averaging 20% over the past year [4] - Topline growth is expected to be 15% this fiscal year and 14% next fiscal year, reaching $3 billion in sales [5][6] - Operating margins have increased from 4.4% to 6.4% to 8% over the last three quarters [7] Financial Performance - GitLab - GitLab also has a strong buy rating with growth divergence [11] - The company is beating earnings estimates handily, with some seasonality [12][13] - Revenue is expected to grow 23-24% next year, reaching $1.13 billion, with 20% topline growth [14] - Operating margins are moving from negative to positive [15] Valuation - Nutanix has a forward earnings multiple of 36 times [2][6] - GitLab has a high forward earnings multiple of 58 times, but is growing at about 30% [14][15] - GitLab's price to sales is 930% [15] Market Dynamics and Strategy - There is speculative M&A interest around Nutanix [3][11] - GitLab's earnings estimates are moving higher, indicating good margin expansion [18]

Core Viewpoint - The performance of storage systems is crucial for enhancing overall training efficiency in AI, as insufficient storage performance can significantly limit GPU utilization [2] Summary by Sections MLPerf Storage v2.0 and Testing Loads - MLPerf Storage is a benchmark suite designed to replicate real AI training loads, assessing storage systems' performance in distributed training environments [3] - The latest version, v2.0, includes three types of training loads that represent the most common I/O patterns in deep learning [3] Specific Training Loads - The 3D U-Net medical segmentation load requires handling large 3D medical images, focusing on throughput performance during sequential reads [4] - The ResNet-50 image classification load emphasizes high-concurrency random reads, demanding high IOPS from storage systems [4] - The CosmoFlow cosmological prediction load tests small file concurrent access and bandwidth scalability, requiring stable metadata handling and low latency [4][5] Performance Comparison Standards - The testing involved various vendors with different storage types, making horizontal comparisons limited; the focus is on shared file systems for more relevant conclusions [6] - Shared file systems are categorized into Ethernet-based systems and InfiniBand (IB) network solutions, each with distinct performance characteristics [7] Test Results Interpretation - For the 3D U-Net load, Ethernet-based storage products like Oracle and JuiceFS excelled, with JuiceFS supporting the most H100 GPUs and achieving a bandwidth utilization of 86.6% [11] - IB network solutions provided high total bandwidth but often exhibited lower bandwidth utilization, typically below 50% [14] - The CosmoFlow load highlighted the challenges of reading numerous small files, with JuiceFS and Oracle leading in GPU support [16][18] - The ResNet-50 load required high IOPS, with JuiceFS supporting the most GPUs and achieving a bandwidth utilization of 72% among Ethernet solutions [21][24] Conclusion - Understanding the type of storage product, including architecture and hardware resources, is essential for evaluating GPU utilization [27] - Ethernet-based storage solutions offer flexibility and cost-effectiveness while providing excellent performance, making them a popular choice for large-scale AI training [27]

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, aiding investors in selecting stocks likely to outperform the market in the short term [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future outlook by examining projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, helping investors identify optimal buying opportunities [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.81%, significantly outperforming the S&P 500 [7] Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings outlooks [10] Company Spotlight: Nutanix Inc. - Nutanix Inc. specializes in enterprise cloud operating systems, offering integrated solutions for server, storage, virtualization, and networking [11] - Currently rated 3 (Hold) with a VGM Score of B, Nutanix is positioned as a potential growth investment [11] - The company forecasts a year-over-year earnings growth of 17.3% for the current fiscal year, with upward revisions in earnings estimates from analysts [12]