Nutanix: The Great Exodus From VMware And, Possibly, An Explosion Of Operating Leverage

Nutanix stands at an inflection point, benefiting from Broadcom's missteps with VMware and accelerating client migration. NTNX's SaaS transformation is complete, with revenue reaching $2.6B in 2025 and quarterly net profit surging to $103.5 million in early 2026. Operating leverage is materializing; stabilized expenses mean incremental revenue converts efficiently to profit, supporting a forward P/E of ~21x and P/S of ~4x.