Why Nutanix Stock Is Soaring Today
Key Points
Nutanix reported fourth-quarter 2026 financial results yesterday.
Management forecasts year-over-year growth in revenue and free cash flow in fiscal 2027.
- 10 stocks we like better than Nutanix ›
It's been a rough week for Nutanix (NASDAQ: NTNX) stock. Before today, shares of the cloud stock had closed lower than in each of the previous market sessions. That trend, however, doesn't seem likely to continue. With the company reporting fourth-quarter 2026 financial results and strong fiscal 2027 guidance yesterday after the market closed, investors have found plenty of reason to click the buy button.
As of 10:54 a.m. ET, shares of Nutanix are up 6.9%, retreating from an earlier 13.8% rise.
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Growing free cash flow is just part of the story
Beating analysts' estimates of $738.3 million, Nutanix reported Q4 2026 revenue of $757.1 million, a 16% year-over-year increase. At the bottom of the income statement, the company also exceeded expectations, reporting diluted earnings per share of $0.60 -- better than the $0.49 that analysts anticipated.
Nutanix also reported stronger free cash flow. In Q4 2026, the company generated $277.6 million in free cash flow, up from $207.8 million in the same period last year.
In addition to the Q4 2026 financial results, management provided an auspicious outlook for fiscal 2027: revenue of $3.18 billion to $3.23 billion and free cash flow of $850 million to $950 million. For fiscal 2026, Nutanix reported revenue and free cash flow of $2.85 billion and $840.7 million, respectively.
What's a cloud investor to do now?
While Nutanix's stock is jumping today, those interested in cloud computing stocks haven't missed the boat. Shares of Nutanix are changing hands at 24.8 times operating cash flow -- a valuation that may seem pricey but is, in fact, lower than their five-year average cash flow multiple of 36.4.
Should you buy stock in Nutanix right now?
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Nutanix. The Motley Fool has a disclosure policy.
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