Was Nutanix’s Rise Driven By The Company Or Its Industry?
For questions about this article or underlying research, email help@trefis.com.
Over the past five years, a single stock outperformed 61 of the 69 other companies in its industry. That stock belongs to Nutanix (NTNX), a hybrid cloud software provider operating in the Systems Software space. Before you read on, take a guess: did the industry lift Nutanix, or did Nutanix pull away from its industry on its own?
How Far Nutanix Is Ahead Of Its Industry
Shares of Nutanix advanced 78.3% over the five years through November 3, 2026. Over that same period, the typical company in the Systems Software industry lost 54.1%.
| 1-year | 3-year | 5-year | |
|---|---|---|---|
| Nutanix (NTNX) | -9.1% | 72.5% | 78.3% |
| Systems Software industry (median company) | -11.6% | 23.6% | -54.1% |
| Information Technology sector (median company) | -6.5% | 25.9% | -24.9% |
| All stocks in our data (median company) | 2.9% | 25.8% | -4.7% |
| S&P 500 index | 10.5% | 73.4% | 62.4% |
Total return to 2026-11-03, including dividends; the S&P 500 row is the index level, price only. Industry, sector and all-stock rows are the median company of each group.
Most systems software stocks lost money for their investors over those five years, whereas Nutanix delivered gains. Among the larger companies in the space, CrowdStrike and Zeta Global performed even better.
Was It Nutanix’s Industry?
The broader market provided some help. The S&P 500 advanced 62.4% over the same five years, although the largest companies dominate that index, and the typical stock across the market fell 4.7%. Nutanix still finished ahead of the index.
The company received no such support from its sector or industry. The typical Information Technology company fell 24.9% over five years, and within that sector, Systems Software ranked 11th of 12 industries. Nutanix rose against its industry’s tide, not with it.
What Did Nutanix’s Business Do?
Nutanix expanded at a slightly faster pace than its peers. The company posted average annual revenue growth of 15.3% over the last three years, compared with 13.6% for the typical systems software company.
A more significant change occurred over the five-year window. Nutanix more than doubled its revenue between fiscal 2021 and fiscal 2026, and over the same years, its operating margin shifted from a loss of 47.5% of revenue to a profit of 9.6%. Its diluted share count also rose 37.7%, so revenue per share grew about 49%.
Investors paid only slightly more for each unit of sales. Nutanix traded at 5.8 times sales on June 30, 2021, and reached 6.1 times at the November 3, 2026 close. Five years to the day after the 2021 figure, on June 30, 2026, it traded at 4.8 times. The business itself, rather than a higher multiple, made the difference.
Nutanix reports two lines of business: product, and support, entitlements and other services. The product segment accounted for 52.9% of revenue in fiscal 2025, following a 25.6% increase that year. During the latest call, management pointed to support for external storage, noting the offering brought several large wins in fiscal Q4 2026, including a new customer among the Global 2000.
Is Nutanix Still Ahead Over The Past Year?
Over the past year, Nutanix outperformed 54.7% of its industry peers, compared with 88.4% over the five-year period. The company remains ahead of most competitors, but the lead has narrowed. Over that year, Nutanix shares fell 9.1%, while the S&P 500 rose 10.5%.
During its August 26, 2026 call, management guided to an adjusted operating margin of 24% to 25% for fiscal 2027, up from an adjusted 22.5% in fiscal 2026. That guide is a forecast, and management said it reflects the expected operating impact of a restructuring that affected about 5% of the workforce. Management also assumed that server supply constraints will continue.
Nutanix’s operating margin is the figure to watch when the company next reports, expected in December 2026.
How To Act On NTNX?
Not necessarily on Nutanix alone, if your goal is long-term wealth. Wealth is built by owning the companies that keep outperforming, the leaders of their industries, wherever they are. Nutanix is one. Over the five years to November 2026, its stock rose 78.3%, ahead of 61 of the 69 other companies in Systems Software, where the typical company fell 54.1%.
Finding companies like these takes comparison across industries and sectors, and that is what the Trefis High Quality (HQ) Portfolio does. It holds 30 quality companies in equal weight and, since its inception in September 2020, has returned more than 105%, ahead of a benchmark that combines the S&P 500, S&P Mid-cap and Russell 2000. See how we find the leaders.
Spot an error or want more like this? Tell us in 10 seconds.