Needham analyst Mike Cikos reiterated a Buy rating on Nutanix ( NTNX ) and maintains a $92 price forecast.

On Wednesday, the company reported a third-quarter adjusted EPS of $0.42, surpassing the analyst estimate of $0.38, and sales of $638.98 million, exceeding the estimate of $626.00 million.

Nutanix ( NTNX ) anticipates fourth-quarter revenue of $635 million to $645 million and raised FY25 sales guidance to $2.52 billion-$2.53 billion from $2.50 billion-$2.52 billion earlier, vs. consensus of $2.51 billion.

The analyst writes that the company exceeded all guided metrics, notably with strong Operating Margin outperformance.

The analyst says that demand drivers continue to benefit Nutanix ( NTNX ), as seen in VMware displacements and successful Partner programs attracting new logos.

Additionally, the General Availability of Dell PowerFlex in late April, which is consistent with management’s earlier timeline for the first half of the 2025 launch, acted as a tailwind.

Cikos expects Nutanix ( NTNX ) to sustain its strong execution, prompting them to significantly increase the Free Cash Flow estimates due to faster operating margin expansion.

The analyst estimates EPS of $1.73 (vs. $1.61 prior) for FY25, $1.87 (vs. $1.83 earlier) for FY26 and $2.19 for FY27.

Price Action: NTNX shares are down 3.8% at $75.83  at the last check on Thursday.

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