Street View: Nutanix plummets as brokerages flag structural revenue delays

Shares of cloud platform provider Nutanix NTNX.O plummet over 17% to its lowest level in more than a year

NTNX cuts FY26 revenue forecast to $2.82 bln to $2.86 bln from the prior range of $2.90 bln to $2.94 bln

Up to last close, stock had fallen ~4% this year

Revenue recognition delays are structural, not temporary

Piper Sandler ("overweight," $72) says delayed migration deal starts, an increasing partner mix, supply chain constraints, and OEM (Original Equipment Manufacturer) shipment delays contribute to revenue miss and 3% FY26 cut

JP Morgan ("overweight," $65) says shift in bookings-to-revenue cadence is structural, especially with delayed virtual machine migration deals

JPM adds rising share of revenue driven by third-party OEM partners, where NTNX recognizes revenue when partner ships the appliance, pushing some revenue into future periods due to limited control

Wells Fargo ("equalweight," $57) argues the elongated conversion cycle is a structural change in the business model, not a timing hiccup, warranting a more conservative valuation

Needham ("buy," $65) says staged rollouts mean revenue is recognized later until licenses are deployed, which depends on customer readiness, pressuring near-term reported growth, even though cash is collected upfront