Shares of Nutanix Inc (NASDAQ:NTNX) slipped nearly 2% in premarket trading on Friday after JPMorgan Chase & Co lowered its rating on the stock.
JPMorgan downgraded Nutanix to “neutral” from “overweight” and reduced its price target to $44 from $55.
The bank cited expectations of a more volatile macroeconomic backdrop in the second half of calendar 2026 and into 2027 as the main reason for the downgrade. It pointed to the risk of a slowdown in enterprise IT spending, along with a potential pause following recent growth, which could limit visibility on the company’s path toward its medium-term goal of mid-to-high teens revenue growth by fiscal 2029. JPMorgan also flagged concerns about limited expansion in free cash flow margins over the same period.
“While the inexpensive valuation for NTNX shares at this time leaves open the opportunity for significant upward momentum in the shares from potential partnerships to position the company for Enterprise AI investments, we believe the improvement in the fundamentals will take more time, and are opting to step into a Neutral rating while waiting for the same,” analysts told investors in a note.
At its 2026 Investor Day, Nutanix outlined a growth strategy focused on becoming a major player in hybrid multi-cloud infrastructure and enterprise AI adoption, targeting sustained revenue growth and improved profitability.
The company has also recently expanded its partnership ecosystem, including a new agreement with NetApp. This collaboration is expected to deliver a fully integrated solution later this year, enabling customers to combine existing NetApp systems with the Nutanix platform.
Additionally, Nutanix announced a collaboration with Dell, bringing its platform to Dell PowerStore (currently in early access), and extended its partnership with Cisco through a joint solution that integrates Cisco UCS servers, Nutanix software, and NetApp within a validated FlexPod architecture.