Pure Storage (PSTG) AI Stock Analysis

• Market Cap: $18.11B
• Dividend Yield: N/A
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): 155.0
• Beta (1Y): 1.93
• Revenue Growth: 10.85%
• EPS Growth: 30.85%
• Country: US
• Employees: 6,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.29
• Shares Outstanding: 326,831,670
• 10 Day Avg. Volume: 3,221,890
• 30 Day Avg. Volume: 2,959,297
• PEG Ratio: 6.17
• Price to Book (P/B): 13.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.52
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 15.10
• 1Y Price Target: $72.38
• Price Target Upside: 31.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: $60.00 ▲(8.66%Upside)

The overall score reflects strong financial performance and positive earnings call sentiment as key strengths. However, high valuation metrics and mixed technical signals moderate the score. Continued focus on operational efficiency and strategic initiatives supports a positive outlook.

Positive Factors

Financial Performance

The Q1FY26 results came in above consensus, driven by strong TCV sales of Evergreen//One.

Market Position

Partners and customers are positive on Pure’s market position, highlighting ease-of-use, non-disruptive upgrade, and the effectiveness of the Evergreen model.

Product Innovation

Pure Storage introduced the Enterprise Data Cloud, a new platform designed to simplify data and storage management, allowing organizations to focus on business outcomes rather than infrastructure.

Negative Factors

Financial Information

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.

Operating Margins

Operating margins remained under pressure.

Pure Storage Business Overview & Revenue Model

Company Description

Pure 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 Money

Pure 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 Financial Statement Overview

Summary

Pure Storage demonstrates strong financial performance with robust revenue growth, positive net income, and effective cost management. The balance sheet shows low leverage and good financial stability, while cash flow metrics are solid, supporting strategic growth initiatives.

Income Statement

Pure Storage has demonstrated strong revenue growth over recent years, with a notable increase from $2.18 billion in 2022 to $3.17 billion in TTM (Trailing-Twelve-Months). The gross profit margin stands at an impressive 71.1% for TTM, indicating effective cost management. Net income has turned positive in recent years, reflecting improved profitability, with a net profit margin of 4.03% in TTM. However, the EBIT margin is relatively low at 3.03%, suggesting room for improvement in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.22, indicating low leverage and good financial stability. Return on equity (ROE) is a modest 10.27%, showing decent profitability from shareholders' equity. The equity ratio of 32.64% indicates a solid equity base, though there is potential for strengthening further. Overall, the balance sheet reflects a stable financial position with controlled debt levels.

Cash Flow

Cash flow performance is strong, with a free cash flow of $565.78 million in TTM, reflecting a healthy cash generation capability. The operating cash flow to net income ratio is 6.39, indicating robust cash flow efficiency in supporting net income. While free cash flow growth has been solid, ongoing capital expenditures suggest continued investment in growth opportunities. The company exhibits strong cash flow metrics, supporting its operational and strategic initiatives.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.17B	3.17B	2.83B	2.75B	2.18B	1.68B
Gross Profit	2.25B	2.21B	2.02B	1.90B	1.47B	1.15B
EBITDA	288.90M	285.85M	222.49M	183.94M	-8.67M	-168.72M
Net Income	127.75M	106.74M	61.31M	73.07M	-143.26M	-282.08M
Balance Sheet
Total Assets	3.81B	3.96B	3.66B	3.55B	3.14B	2.82B
Cash, Cash Equivalents and Short-Term Investments	1.58B	1.52B	1.53B	1.58B	1.41B	1.25B
Total Debt	271.30M	281.15M	272.25M	750.69M	915.36M	908.41M
Total Liabilities	2.57B	2.66B	2.39B	2.60B	2.38B	2.07B
Stockholders Equity	1.24B	1.31B	1.27B	941.23M	754.34M	750.01M
Cash Flow
Free Cash Flow	565.78M	526.87M	482.56M	609.10M	307.84M	92.67M
Operating Cash Flow	816.03M	753.60M	677.72M	767.23M	410.13M	187.64M
Investing Cash Flow	-281.59M	-218.20M	3.25M	-221.41M	-153.28M	-418.11M
Financing Cash Flow	-684.51M	-509.78M	-560.24M	-431.17M	-127.79M	200.24M

Pure Storage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 55.22 is above the 20-day moving average (MA) of 54.32, above the 50-day MA of 52.00, and above the 200-day MA of 54.85, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 54.97 is Neutral, neither overbought nor oversold. The STOCH value of 80.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSTG.

Pure Storage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	79 Outperform	$21.18B	18.63	108.51%	1.97%	5.02%	22.19%
PSTG	76 Outperform	$18.11B	154.95	9.76%	―	10.85%	30.85%
DELL	70 Outperform	$84.17B	19.77	-179.12%	1.71%	7.68%	27.73%
WDC	63 Neutral	$22.08B	12.17	28.45%	0.16%	21.22%	―
HPQ	61 Neutral	$23.27B	9.55	84.33%	4.67%	2.08%	-12.41%
STX	61 Neutral	$30.02B	20.44	-109.27%	2.04%	36.29%	―
Sector *	56 Neutral	$3.16B	5.05	-5.68%	5.76%	8.05%	-41.83%

Pure Storage Corporate Events

Pure Storage Appoints Tarek Robbiati as New CFO

On June 24, 2025, Pure Storage announced the appointment of Tarek Robbiati as the new Chief Financial Officer. Robbiati brings extensive experience from previous roles at RingCentral, Hewlett Packard Enterprise, and Sprint Corporation. His appointment is accompanied by a comprehensive compensation package, including stock unit awards tied to performance metrics and market capitalization goals. This strategic leadership change follows the departure of former CFO Kevan Krysler, who will remain with the company to ensure a smooth transition.

The most recent analyst rating on (PSTG) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Pure Storage stock, see the PSTG Stock Forecast page.

Pure Storage Holds Annual Stockholders Meeting

On June 11, 2025, Pure Storage held its annual stockholders meeting via webcast, where stockholders voted on three key proposals. All four nominees for Class I director were elected, Deloitte & Touche LLP was ratified as the independent accounting firm for the fiscal year ending February 1, 2026, and the compensation of Pure’s executive officers was approved on an advisory basis. These decisions reflect continued support for Pure’s leadership and strategic direction.

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.

Pure Storage Reports Strong Q1 2026 Revenue Growth

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.