The Short Answer
Nutanix (NTNX) is doubtful under this screen. Enterprise cloud, virtualization, storage and infrastructure software are broadly permissible activities. However, the April 2026 filing-backed debt/assets ratio is 39.42% and identifiable investment liquidity is 59.03%, both above the examined asset-based financial limits. Customer and downstream-use revenue is not separately classified. This is a screening judgment, not a fatwa or personalized investment advice.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-30; calculated 2026-07-13.
1,347.484 / 3,418.628
2,017.903 / 3,418.628
970.4 / 3,418.628
17.505 / 703.066
- Financial
- Fails
- Overall
- Fails
Debt/assets are 39.42% and cash plus identifiable interest-bearing securities/assets are 59.03%, both above the examined FTSE limits. Receivables plus cash are 28.39% and disclosed net interest income is 2.49%; the debt and liquidity failures drive the financial result.
- Financial
- Fails
- Overall
- Fails
Debt/assets are 39.42% and identifiable liquidity is 59.03%, above the examined MSCI total-assets limits. Receivables plus cash are 28.39% and disclosed net interest income is 2.49%; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets are 39.42% and identifiable liquidity is 59.03%, above the examined Malaysia SAC financial limits. This is a contextual calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so no unsupported market-cap percentage is substituted for the filing-backed asset-based calculation.
Business-activity disclosure
Nutanix provides enterprise cloud software through the Nutanix Cloud Platform, including hyperconverged infrastructure, virtualization, storage, databases, Kubernetes, cloud management and AI/ML workload orchestration. Enterprise software and infrastructure are broadly permissible activities, but the filing does not allocate revenue by customer industry, government contract, downstream use or a school-specific prohibited taxonomy.
Limitation: The Form 10-Q reports a consolidated software and services business rather than a reproducible prohibited-revenue numerator. Customers include enterprises and public-sector organizations, and the filing does not quantify every end use or contract category.
Purification
The filing separately reports $17.505 million of net interest income, or 2.49% of quarterly revenue, but no fixed scholar-approved purification percentage is asserted and the screened operating-revenue allocation remains incomplete.
Inputs, assumptions and primary sources
- Inputs use Nutanix's April 30, 2026 Form 10-Q; amounts are USD millions.
- Debt uses $1,347.484 million of convertible senior notes, net of debt issuance costs. The February 2025 revolving facility had no borrowings at April 30, 2026; operating lease liabilities are excluded rather than silently treated as interest-bearing debt.
- Cash uses $718.812 million of cash and cash equivalents. Identifiable interest-bearing securities use $1,299.091 million of short-term investments, which the filing describes as corporate bonds, commercial paper and U.S. government securities; equity-classified money-market cash equivalents are not separately added.
- Receivables use $251.588 million of net accounts receivable. Deferred commissions and prepaid or other current assets are excluded.
- Total quarterly revenue was $703.066 million. The filing separately reports $17.505 million of net interest income for the quarter, or 2.49% of revenue; this is a disclosed income line, not a scholar-approved purification prescription.
- Nutanix reports product, subscription, support, maintenance and professional-services revenue, but does not allocate a universal prohibited-revenue numerator by customer industry, government contract, downstream software use or product application.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
This is a reproducible ZakatInvest calculation from Nutanix's third-quarter fiscal 2026 Form 10-Q for the period ended April 30, 2026. It separates reported financial inputs from school-dependent qualitative conclusions and does not claim an official third-party index classification.
Current Quantitative Screen (April 30, 2026)
- Debt / assets: 39.42% — $1,347.484 million of convertible senior notes, net, against $3,418.628 million of total assets
- Cash plus identifiable interest-bearing securities / assets: 59.03% — $718.812 million of cash plus $1,299.091 million of short-term investments
- Receivables + cash / assets: 28.39% — $251.588 million of net accounts receivable plus cash
- Quarterly revenue: $703.066 million, including $664.792 million subscription revenue and $38.274 million professional-services and other revenue
- Net interest income: $17.505 million, or 2.49% of quarterly revenue; this is a disclosed income line, not a fixed purification prescription
- Market-cap denominator methods: Not calculated because a licensed, reproducible historical market-cap series is not stored
Debt/assets and identifiable liquidity fail the examined FTSE Yasaar, MSCI and Malaysia SAC asset-based financial limits. Receivables plus cash and disclosed net interest income are below the examined thresholds, but they do not offset the debt and liquidity failures.
Nutanix's Business Activity
Nutanix provides the Nutanix Cloud Platform across hyperconverged infrastructure, virtualization, storage, databases, Kubernetes, cloud management and AI/ML workload orchestration. The company sells subscription software, support, maintenance and professional services, with a smaller amount of hardware and non-portable software revenue.
Enterprise software and infrastructure are broadly permissible activities. Nutanix's customers include banks, insurers, retailers, manufacturers, healthcare providers and the public sector, but Nutanix sells software rather than those customers' financial or regulated services. Federal and defense contracts can create dual-use and end-use questions; the filing does not allocate those categories into a universal prohibited-revenue numerator, so the business screen remains incomplete.
Why NTNX Is Doubtful — The Financial Screen
1. Convertible debt exceeds the examined asset-based limits
Nutanix reported $1,347.484 million of convertible senior notes net against $3,418.628 million of total assets at April 30, 2026. That 39.42% ratio exceeds the 33%–33.333% debt limits used in the examined asset-based methods. The revolving facility had no borrowings at the filing date, but that does not remove the outstanding convertible notes.
2. Short-term investments are a large share of assets
The filing reports $1,299.091 million of short-term investments, primarily corporate bonds, commercial paper and U.S. government securities, alongside $718.812 million of cash and cash equivalents. The combined identifiable liquidity proxy is 59.03% of assets, above the examined asset-based limits. Instrument classification and treatment can differ by methodology, so the record identifies what was counted rather than treating the result as an official index label.
3. Interest income is disclosed but does not create a purification rule
Nutanix reports $17.505 million of net interest income, or 2.49% of quarterly revenue. That line passes the examined income threshold, but no scholar-approved fixed purification percentage is asserted. The financial screen and the business-activity screen must still be considered separately.
4. Subscription transition and dual-use customers remain qualitative
Nutanix continues its subscription-based model and invests in cloud, AI and Kubernetes capabilities. Hardware-delivery timing, partner concentration, public-sector contracts, customer workloads, repurchases and future acquisitions can change both the reported business mix and the next quantitative screen.
How to Read the Result
NTNX has a broadly permissible enterprise-software business, but the current asset-based financial screen fails because debt/assets is 39.42% and identifiable investment liquidity is 59.03%. Customer and downstream-use allocation is also incomplete. The result is doubtful—not an official index label—and can change with debt repayment, refinancing, investment-mix changes or better customer disclosure.
Bottom Line
Nutanix (NTNX) is currently doubtful for Muslim investors under the retained quantitative and qualitative framework. Its cloud and infrastructure software are broadly permissible, but reported convertible debt and investment liquidity exceed the examined asset-based limits. Investors should consult a qualified Sharia adviser for a school-specific conclusion.
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