Nutanix (NasdaqGS:NTNX) Eyes Tuck-In Acquisitions With US$200 Million Share Buyback Plan

Simply Wall St.
08 Mar

Nutanix has seen a 5% increase in its stock price over the last quarter, amid a challenging market backdrop. The company's pursuit of acquisitions, as highlighted by its interest in incorporating technology such as D2iQ into its offerings, has been instrumental in bolstering its position. Nutanix's ongoing focus on share buybacks, with $200 million still authorized for repurchase, signifies a commitment to enhance shareholder value. Additionally, strong earnings reports with a notable uptick in Q2 revenue and net income have likely played a role. Amid a broader market downturn, with the S&P 500 down 3% for the week, Nutanix's sound financial performance and proactive strategic steps appear to have supported its share price resilience. This resilience is noteworthy while major indexes have faced one of their toughest weeks in recent memory, marked by concerns about tariffs and economic slowdown fears.

Unlock comprehensive insights into our analysis of Nutanix stock here.

NasdaqGS:NTNX Earnings Per Share Growth as at Mar 2025

Over the last five years, Nutanix's total shareholder returns of almost 388% reflect a very substantial increase. Key contributory factors include robust revenue growth, with a reported increase from $2.15 billion in FY2024 and ongoing improvements in profitability, demonstrated by the rise from significant net losses in prior years to a net income of US$56.43 million reported in early 2025. The company's continued execution of a substantial share buyback program, with 2.92 million shares repurchased for US$151.14 million over recent periods, underscores its commitment to returning value to shareholders.

Furthermore, Nutanix's strategic moves have been complemented by its focus on acquisitions and product development, including enhancements to its Kubernetes platform and introduction of Nutanix Enterprise AI. Partnerships with AWS and Microsoft have facilitated cloud migrations and hybrid solutions, broadening the appeal and utility of Nutanix's offerings. These combined efforts have enabled the company to outperform the broader US market over this extensive period.

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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.

Companies discussed in this article include NasdaqGS:NTNX.

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