Pure Storage (PSTG) AI Stock Analysis

• Market Cap: $30.39B
• Dividend Yield: N/A
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 214.8
• Beta (1Y): 2.10
• Revenue Growth: 11.31%
• EPS Growth: -1.30%
• Country: US
• Employees: 6,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.43
• Shares Outstanding: 328,636,600
• 10 Day Avg. Volume: 2,634,263
• 30 Day Avg. Volume: 2,657,614
• PEG Ratio: 3.18
• Price to Book (P/B): 16.90
• Price to Sales (P/S): 6.97
• P/FCF Ratio: 41.92
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 6.92
• Enterprise Value/Gross Profit: 9.92
• Enterprise Value/Ebitda: 74.65
• 1Y Price Target: $90.88
• Price Target Upside: -1.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 1.94
• Revenue Forecast (FY): $3.62B

• Rating: 76 Outperform
• Price Target: $103.00 ▲(11.39% Upside)

Pure Storage's overall stock score is driven by strong financial performance and positive technical analysis, indicating robust growth and bullish momentum. The high valuation score reflects potential overvaluation risks, while the positive earnings call supports future growth prospects. The absence of corporate events in the analysis did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business prospects.

Subscription Services Growth

Growth in subscription services reflects a successful shift towards recurring revenue, improving financial predictability and customer retention.

Financial Stability

Low leverage enhances financial stability and flexibility, allowing for strategic investments and resilience against economic fluctuations.

Negative Factors

Challenges in Product Forecasting

Difficulty in forecasting product versus service revenue can lead to unpredictable financial results, complicating strategic planning.

Hyperscaler Strategy Concerns

Concerns about the hyperscaler strategy suggest potential competitive disadvantages, impacting long-term growth in this segment.

Macro Environment Uncertainty

Global economic uncertainty can affect demand and operational costs, posing risks to sustained growth and profitability.

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 generates revenue primarily through the sale of its all-flash storage hardware and software solutions. The company's key revenue streams include direct product sales, subscription-based software licenses, and support and maintenance services. Additionally, Pure Storage offers a consumption-based pricing model known as Evergreen, which allows customers to pay for storage based on their usage, providing flexibility and cost efficiency. Significant partnerships with major cloud providers and technology firms also contribute to its earnings, as these collaborations enhance its product offerings and expand its market reach.

Pure Storage Financial Statement Overview

Summary

Pure Storage exhibits strong financial health with impressive revenue growth and profitability. The income statement shows robust growth trends, the balance sheet indicates financial stability with low leverage, and cash flow generation remains solid despite a recent dip in free cash flow growth.

Income Statement

Pure Storage has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 2.99%. The company maintains a healthy gross profit margin of 69.17% and a net profit margin of 4.15%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also positive, reflecting operational efficiency. Overall, the income statement shows robust growth and profitability trends.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.17, indicating prudent leverage management. The return on equity (ROE) stands at 10.55%, showcasing effective use of equity to generate profits. The equity ratio of 32.76% suggests a stable capital structure. Overall, the balance sheet indicates financial stability with manageable debt levels.

Cash Flow

The cash flow statement reveals a slight decline in free cash flow growth at -2.90% TTM, but the company maintains a strong operating cash flow to net income ratio of 5.76, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 0.69, suggesting efficient cash conversion. Despite the recent dip in free cash flow growth, the cash flow position remains solid.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.47B	3.17B	2.83B	2.75B	2.18B	1.68B
Gross Profit	1.72B	2.21B	2.02B	1.90B	1.47B	1.15B
EBITDA	229.03M	282.30M	222.49M	196.99M	-8.67M	-168.72M
Net Income	96.76M	106.74M	61.31M	73.07M	-143.26M	-282.08M
Balance Sheet
Total Assets	4.03B	3.96B	3.66B	3.55B	3.14B	2.82B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.52B	1.53B	1.58B	1.41B	1.25B
Total Debt	222.71M	281.15M	272.25M	750.69M	951.49M	908.41M
Total Liabilities	2.71B	2.66B	2.39B	2.60B	2.38B	2.07B
Stockholders Equity	1.32B	1.31B	1.27B	941.23M	754.34M	750.01M
Cash Flow
Free Cash Flow	396.93M	526.87M	482.56M	609.10M	307.84M	92.67M
Operating Cash Flow	593.09M	753.60M	677.72M	767.23M	410.13M	187.64M
Investing Cash Flow	57.38M	-218.20M	3.25M	-221.41M	-153.28M	-418.11M
Financing Cash Flow	-551.00M	-509.78M	-560.24M	-431.17M	-127.79M	200.24M

Pure Storage Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 92.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSTG, the sentiment is Neutral. The current price of 92.47 is below the 20-day moving average (MA) of 93.62, above the 50-day MA of 88.83, and above the 200-day MA of 63.38, indicating a neutral trend. The MACD of 1.19 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 19.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PSTG.

Pure Storage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	80 Outperform	$55.71B	23.76	31.48%	0.13%	-16.35%	316.56%
PSTG	76 Outperform	$30.39B	214.83	10.04%	―	11.31%	-1.30%
NTAP	72 Outperform	$22.55B	19.96	123.00%	1.88%	3.45%	9.69%
STX	70 Outperform	$59.66B	35.86	―	1.08%	31.56%	106.00%
SMCI	64 Neutral	$23.63B	32.21	12.79%	―	12.22%	-48.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	56 Neutral	$23.64B	9.20	―	4.68%	3.11%	-3.54%

Pure Storage Corporate Events

Pure Storage Inc. Reports Strong Growth and Optimistic Outlook

The recent earnings call for Pure Storage Inc. conveyed a generally positive sentiment, highlighting strong revenue growth and successful client engagements, notably with Meta. The company raised its financial guidance, reflecting optimism despite some challenges in forecasting product and subscription mixes and the non-material impact of hyperscaler revenue. While the macroeconomic environment remains uncertain, its immediate impact on Pure Storage appears limited.

Pure Storage Reports Strong Q2 Growth and Raises Guidance

Pure Storage Inc. is a leading IT company specializing in advanced data storage technologies and services, offering solutions that enhance data management and storage capabilities across various environments. In its latest earnings report for the second quarter of fiscal 2026, Pure Storage reported a 13% increase in total revenue year-over-year, reaching $861 million, and a notable 24% growth in its Storage as a Service offerings. The company also raised its full-year revenue and operating profit guidance, reflecting strong market performance and customer adoption.