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Pure Storage (PSTG)
NYSE:PSTG
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Pure Storage
(NYSE:PSTG)
Rating:75Outperform
Price Target:
$60.00
▲(8.03%Upside)
Positive Factors
Financial Performance
The Q1FY26 results came in above consensus, driven by strong TCV sales of Evergreen//One.
Market Expansion
Pure Storage is gaining enterprise market share due to its expanding product portfolio and a strong go-to-market organization.
Product Adoption
The company's proprietary flash solution is being adopted by hyperscalers for next-generation data centers, validated by a significant design win with Meta.
Negative Factors
Leadership Changes
Announced departure of Kevan Krysler, CFO.
Margin Pressures
Operating margins remained under pressure.
Market Concerns
Shares are likely to be slightly range bound in the near term given the lack of clear financial information about the deal with Meta or any other new hyperscaler wins.
Pure Storage (PSTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.09B
Dividend YieldN/A
Average Volume (3M)2.68M
Price to Earnings (P/E)148.8
Beta (1Y)1.93
Revenue Growth10.85%
EPS Growth30.85%
CountryUS
Employees6,000
SectorTechnology
Sector Strength84
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.29
Shares Outstanding327,142,970
10 Day Avg. Volume3,384,357
30 Day Avg. Volume2,677,210
Financial Highlights & Ratios
PEG Ratio-7.45
Price to Book (P/B)12.17
Price to Sales (P/S)0.00
P/FCF Ratio30.24
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit7.00
Enterprise Value/Ebitda14.24
Forecast
1Y Price Target
$72.24Price Target Upside30.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
Pure Storage Business Overview & Revenue Model
Company DescriptionPure Storage, Inc. provides data storage technologies, products, and services in the United States and internationally. The company's Purity software is shared across its products and provides enterprise-class data services, such as data reduction, data protection, and encryption, as well as storage protocols, including block, file, and object. Its products portfolio includes FlashArray for block-oriented storage, addressing databases, applications, virtual machines, and other traditional workloads; FlashArray//XL; and FlashArray//C, an all-QLC flash array. The company also provides FlashBlade, a solution for unstructured data workloads of various types; FlashStack that combines compute, network, and storage to provide an infrastructure platform; FlashRecover, an all-flash modern data-protection solution; and AIRI, a full-stack AI-ready infrastructure. In addition, it offers evergreen storage subscription, Pure as-a-Service, and Cloud Block Store, as well as Portworx a cloud-native Kubernetes data management solution It also offers technical and professional, training and education, and certification services. The company sells its products and subscription services through direct sales force and channel partners. The company was formerly known as OS76, Inc. and changed its name to Pure Storage, Inc. in January 2010. Pure Storage, Inc. was incorporated in 2009 and is headquartered in Mountain View, California.
How the Company Makes MoneyPure Storage primarily generates revenue through the sale of its all-flash storage solutions, which include hardware products like FlashArray and FlashBlade, as well as associated software and support services. The company sells its products through a combination of direct sales teams and a global network of channel partners and resellers. Additionally, Pure Storage offers subscription-based services, including its Evergreen Storage program, which provides customers with regular upgrades and enhancements to their storage systems without the need for disruptive data migrations. This program helps ensure steady recurring revenue. The company also partners with cloud providers and other technology firms to expand its market reach and enhance its product offerings, contributing to its overall earnings.
Pure Storage Key Performance Indicators (KPIs)
Any
Subscription Annual Recurring Revenue
Measures the predictable revenue from subscription services, indicating business stability and potential for long-term customer relationships.
Measures the predictable revenue from subscription services, indicating business stability and potential for long-term customer relationships.
Data provided by:
Main Street Data
Main Street DataPure Storage Earnings Call Summary
Earnings Call Date:May 28, 2025
(Q1-2026)
| % Change Since: 0.73%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
Pure Storage reported strong revenue growth and significant advancements in product offerings and partnerships. While there is macroeconomic uncertainty and a leadership change with the departure of the CFO, the company's performance and strategic initiatives suggest optimism for future growth.Q1-2026 Updates
Positive Updates
Double-Digit Revenue Growth
Pure Storage reported a 12% year-over-year increase in revenue for Q1 FY2026, demonstrating solid performance despite a dynamic macroeconomic environment.
Strong Growth in Subscription Services
Subscription services revenue grew 17% to $406 million, representing over half of the total revenue, and Annual Recurring Revenue (ARR) grew 18% to $1.7 billion.
Evergreen//One and Evergreen//Forever Sales
The company saw very strong sales in its storage-as-a-service offerings, with Q1 TCV sales jumping 70% to $95 million.
Launch of FlashBlade//EXA
Pure Storage launched FlashBlade//EXA, expected to be the industry's highest performing storage platform for AI and high-performance computing.
New Partnership with Nutanix
A major agreement with Nutanix was announced to integrate the Nutanix Cloud Platform with Pure Storage, providing a high-performance virtualized environment.
Expansion of Hyperscale Collaboration
The hyperscale collaboration with Meta continues to advance, with production validation testing on schedule and strong progress in certifying solutions.
Negative Updates
Macro Economic Uncertainty
The company is navigating increased macroeconomic uncertainties which may impact the second half of the fiscal year.
Departure of CFO Kevan Krysler
CFO Kevan Krysler will be leaving Pure Storage to pursue a new opportunity, which could lead to a period of transition for the company's financial leadership.
Company Guidance
During the Pure Storage First Quarter Fiscal 2026 Financial Results Conference Call, the company provided guidance reflecting confidence in its growth trajectory despite macroeconomic uncertainties. The guidance reiterated expectations for the fiscal year with revenue anticipated to rise 10.6% year-over-year in Q2 to $845 million, and operating profit predicted to be $125 million with a margin of 14.8%. For the full fiscal year, Pure Storage maintained its revenue and operating margin outlook, underscoring its solid start with a Q1 revenue increase of 12% and an operating profit of $83 million, achieving an operating margin of 10.6%. Subscription services delivered strong performance with $406 million in revenue, a 17% increase year-over-year, while total remaining performance obligations grew 17% to $2.7 billion, indicating robust customer commitments. The company highlighted the successful adoption of its Evergreen//One and Evergreen//Forever offerings, alongside its strategic product innovations like FlashBlade//EXA and Fusion 2.0, which are expected to drive future growth and market share expansion.Pure Storage Financial Statement Overview
Summary
Pure Storage demonstrates strong financial health with consistent revenue growth and improving profitability. The balance sheet is stable, with low debt levels and a good equity ratio, providing a solid foundation for future expansion. Cash flow is robust, though attention is needed on financing activities. Overall, the company is well-positioned within the computer hardware industry with a trajectory towards sustainable growth.Income Statement
Pure Storage has shown impressive revenue growth with an annual increase from $2.75 billion in 2023 to $3.17 billion in 2025. The gross profit margin is robust at 69.8%, indicating efficient cost management. The net profit margin has improved to 3.4% in 2025, showing profitability over previous losses. EBIT and EBITDA margins remain modest, suggesting room for operational efficiency improvements.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio stands at 0.21, indicating a low reliance on debt financing and a strong equity base. The return on equity (ROE) improved significantly to 8.2% in 2025 from previous years' losses, showing better profitability. The equity ratio is 33.0%, reflecting a solid capital structure with potential for leveraging growth.80
Positive
Cash Flow
Operating cash flow increased steadily, reaching $753 million in 2025, which is a positive sign of cash generation capability. Free cash flow also grew, with a free cash flow to net income ratio of 4.93. However, the cash flow from financing activities is negative, indicating potential challenges in external financing or debt repayment.78
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.17B | 2.83B | 2.75B | 2.18B | 1.68B | Gross Profit |
| 2.21B | 2.02B | 1.90B | 1.47B | 1.15B | EBIT |
| 85.26M | 53.55M | 83.51M | -98.40M | -230.03M | EBITDA |
| 285.85M | 222.49M | 183.94M | -8.67M | -168.72M | Net Income Common Stockholders |
| 106.74M | 61.31M | 73.07M | -143.26M | -282.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.52B | 1.53B | 1.58B | 1.41B | 1.25B | Total Assets |
| 3.96B | 3.66B | 3.55B | 3.14B | 2.82B | Total Debt |
| 281.15M | 272.25M | 750.69M | 915.36M | 908.41M | Net Debt |
| -442.43M | -430.28M | 169.83M | 449.16M | 571.26M | Total Liabilities |
| 2.66B | 2.39B | 2.60B | 2.38B | 2.07B | Stockholders Equity |
| 1.31B | 1.27B | 941.23M | 754.34M | 750.01M |
| Cash Flow | Free Cash Flow | |||
| 526.87M | 482.56M | 609.10M | 307.84M | 92.67M | Operating Cash Flow |
| 753.60M | 677.72M | 767.23M | 410.13M | 187.64M | Investing Cash Flow |
| -218.20M | 3.25M | -221.41M | -153.28M | -418.11M | Financing Cash Flow |
| -509.78M | -560.24M | -431.17M | -127.79M | 200.24M |
Pure Storage Technical Analysis
Positive
55.54
Price Trends
48.38
Positive
54.39
Positive
54.78
Positive
Market Momentum
1.53
Positive
62.99
Neutral
76.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSTG, the sentiment is Positive. The current price of 55.54 is above the 20-day moving average (MA) of 55.16, above the 50-day MA of 48.38, and above the 200-day MA of 54.78, indicating a bullish trend. The MACD of 1.53 indicates Positive momentum. The RSI at 62.99 is Neutral, neither overbought nor oversold. The STOCH value of 76.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSTG.
Pure Storage Risk Analysis
Pure Storage disclosed 48 risk factors in its most recent earnings report. Pure Storage reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We are devoting significant resources toward developing flash storage solutions for hyperscalers. We recently secured a design win with a major hyperscale customer, but there can be no assurance that our efforts will be successful or lead to any sales. Q4, 2024
Pure Storage Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.93B | 18.74 | 108.51% | 1.96% | 5.00% | 22.19% | |
75 Outperform | $18.09B | 148.79 | 9.76% | ― | 10.85% | 30.85% | |
72 Outperform | $77.75B | 18.15 | -179.12% | 1.64% | 7.67% | ― | |
70 Neutral | $19.35B | 10.84 | 28.45% | ― | 21.22% | ― | |
65 Neutral | $26.95B | 18.35 | -109.27% | 2.24% | 36.29% | ― | |
64 Neutral | $23.65B | 9.70 | 84.33% | 4.49% | 2.08% | -12.41% | |
62 Neutral | $11.80B | 10.31 | -7.45% | 2.91% | 7.43% | -7.78% |
* Technology Sector Average
Performance Comparison
PSTG
Pure Storage
55.54
-11.02
-16.56%
HPQ
HP
25.12
-9.97
-28.41%
NTAP
NetApp
103.06
-20.03
-16.27%
STX
Seagate Tech
130.17
31.43
31.83%
WDC
Western Digital
57.02
-0.69
-1.20%
DELL
Dell Technologies
114.22
-15.15
-11.71%
Pure Storage Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Pure Storage Reports Strong Q1 2026 Revenue Growth
Positive
May 28, 2025
On May 28, 2025, Pure Storage announced its financial results for the first quarter of fiscal year 2026, reporting a 12% year-over-year revenue growth to $778.5 million. The company highlighted significant growth in its subscription services, with a 17% increase in revenue and an 18% rise in annual recurring revenue. Pure Storage also introduced new products and strengthened industry collaborations, positioning itself as a leader in enterprise data storage. Additionally, the company announced the departure of CFO Kevan Krysler, who will remain until a successor is named, and emphasized that his departure is unrelated to any financial integrity issues.
The most recent analyst rating on (PSTG) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Pure Storage stock, see the PSTG Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.