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Nutanix cuts about 5% of headcount ahead of Q2 earnings
The company said the layoffs are part of a shift toward high-growth areas like hybrid multicloud services and AI infrastructure, as it targets non-GAAP operating margin near 22.5%.
Nutanix, ticker NTNX, announced layoffs affecting about 5% of its overall headcount, drawing renewed attention to the stock as the company prepares for its upcoming Q2 earnings release.
The company plans to realign its workforce toward higher-growth areas such as hybrid multicloud services and AI infrastructure. Nutanix said the changes are intended to streamline operating expenses while maintaining product innovation and customer retention, supporting a non-GAAP operating margin target near 22.5%.
Ahead of the Aug. 26 quarter, the stock has risen about 20% versus the start of the year, and the firm’s RSI is in the mid-70s, indicating overbought conditions. Consensus is for Nutanix to report $0.18 in fiscal Q2 EPS, which would be a 28.6% year-over-year increase, according to Yahoo Finance.
Nutanix also pointed to performance drivers including annual recurring revenue growth of 15% and a $750 million buyback plan announced in April. Yahoo Finance added that some analysts view the stock’s gains as already factoring in much of the upside, with a “Moderate Buy” consensus rating and a mean price target of about $59.