Nutanix (NTNX), a provider of hybrid-cloud infrastructure software, is seeing a healthier demand backdrop ahead of fiscal Q4 results, with accelerating VMware migration activity and stronger partner pipeline trends, UBS Securities said Monday in a report.

Analyst checks indicated Nutanix's pipeline rose 40% to 50% from a year earlier, driven by stronger VMware migrations, higher demand for Nutanix Cloud Clusters and increased interest in external storage, while hardware availability and pricing remained stable headwinds, the report said.

Q4 results are due Wednesday. UBS expects Nutanix to potentially deliver a 1% to 2% revenue beat versus the high end of guidance, implying 16% growth from a year earlier. Investors likely will focus on preliminary fiscal 2027 revenue growth guidance, the report said.

A 13% fiscal 2027 revenue growth outlook appears reasonable and aligns with Wall Street expectations, though Nutanix's 43% stock gain since late May may have pushed investor expectations toward 14% to 15% or higher, the report said.

UBS raised its price target on Nutanix stock to $80 from $62 and maintained its buy rating.

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