Nutanix surged Thursday after delivering fiscal second-quarter earnings that topped consensus estimates and raised full-year revenue guidance.
Reported after the market close on Wednesday, Nutanix earnings for the quarter ended Jan. 31 were 56 cents a share on an adjusted basis vs. 46 cents a year earlier. That topped estimates for 47-cent adjusted profit.
The maker of cloud-computing network management software said revenue rose 16% to $654.7 million, topping views for $642 million in sales.
Further, Nutanix hiked its fiscal 2025 revenue outlook to a range of $2.495 billion to $2.515 billion.
Further, Nutanix's software manages network, storage and server infrastructure in cloud-computing platforms. Nutanix competes against Broadcom's VMware unit.
Price hikes at rival VMware has led to some customers switching to Nutanix, said JPMorgan analyst Pinjalim Bora in a report.
"The strength in the quarter was driven by continued solid new logo additions, which was partially influenced by an increase in engagement from customers looking for VMware alternatives, along with the help of channel partners (Cisco and Dell), some of whom are now specifically incentivized to drive new logo growth," Bora said.
Nutanix Stock Poised For A Break Out
On the stock market today, NTNX stock popped more than 14% to 79.30 in early trading, signaling a breakout.
Nutanix stock has a 75.80 cup-base buy point, according to MarketSurge. Investors could use 72.46 as an early entry from an almost-handle.
Heading into the Nutanix earnings report, shares had gained 13% in 2025.
The stock holds a Relative Strength Rating of 81 out of a best-possible 99, according to IBD Stock Checkup.
Also, Nutanix has transitioned to a software subscription business model from selling hardware appliances.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
