Pure Storage (PSTG) AI Stock Analysis

• Market Cap: $22.82B
• Dividend Yield: N/A
• Average Volume (3M): 4.72M
• Price to Earnings (P/E): 182.5
• Beta (1Y): 2.17
• Revenue Growth: 13.18%
• EPS Growth: -0.92%
• Country: US
• Employees: 6,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.58
• Shares Outstanding: 330,171,660
• 10 Day Avg. Volume: 4,186,572
• 30 Day Avg. Volume: 4,722,131
• 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: 1.44
• Enterprise Value/Revenue: 9.42
• Enterprise Value/Gross Profit: 13.50
• Enterprise Value/Ebitda: 105.40
• 1Y Price Target: $97.37
• Price Target Upside: 40.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 1.93
• Revenue Forecast (FY): $3.63B

• Rating: 64 Neutral
• Price Target: $79.00 ▲(14.28% Upside)

Pure Storage's overall stock score reflects strong financial performance and positive earnings call insights, which are offset by technical indicators suggesting bearish momentum and a high valuation. The company's strategic initiatives and increased guidance provide optimism, but the high P/E ratio and bearish technical signals warrant caution.

Positive Factors

Revenue Growth

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

Strategic Partnerships

Partnerships with cloud providers expand market access and product integration, strengthening competitive positioning and revenue streams.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability, providing flexibility for future investments and growth.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to fund new projects or return capital to shareholders, impacting long-term growth.

Supply Chain Challenges

Ongoing supply chain issues could lead to cost increases and operational delays, affecting profitability and customer satisfaction.

Gross Margin Pressure

Potential shifts in gross margin dynamics could reduce profitability, particularly in the hyperscaler segment, impacting overall financial performance.

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 storage hardware, which includes its FlashArray and FlashBlade systems. The company also earns recurring revenue through software subscriptions and storage-as-a-service offerings, allowing customers to pay for storage capacity based on their usage. Key revenue streams include initial hardware sales, software licenses, and ongoing support and maintenance contracts. Additionally, Pure Storage has formed strategic partnerships with major cloud providers and technology companies, enhancing its market reach and contributing to its earnings through joint offerings and integrations.

Pure Storage Financial Statement Overview

Summary

Pure Storage has demonstrated consistent revenue growth and improved profitability metrics, reflecting strong operational performance. The balance sheet is solid with reduced leverage, enhancing financial stability. However, the decline in free cash flow growth poses a potential risk.

Income Statement

Pure Storage has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.98%. The company maintains a strong gross profit margin of 69.17% in TTM, indicating efficient cost management. However, the net profit margin is relatively low at 4.15%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have shown improvement over the years, reflecting better operational efficiency.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio to 0.17 in TTM, indicating a strong balance sheet and reduced financial risk. The return on equity has improved to 10.55%, showcasing better utilization of equity. However, the equity ratio stands at 33.25%, suggesting a moderate reliance on equity financing.

Cash Flow

Operating cash flow remains strong, but free cash flow has decreased by 62.31% in TTM, which could impact future investments. The operating cash flow to net income ratio is healthy at 0.52, indicating good cash generation relative to net income. However, the decline in free cash flow growth is a concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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
EBITDA	282.30M	222.49M	196.99M	-8.67M	-168.72M
Net Income	106.74M	61.31M	73.07M	-143.26M	-282.08M
Balance Sheet
Total Assets	3.96B	3.66B	3.55B	3.14B	2.82B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.53B	1.58B	1.41B	1.25B
Total Debt	281.15M	272.25M	760.88M	915.36M	908.41M
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

• Technical Analysis Sentiment: Negative
• Last Price: 69.13
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 69.13 is below the 20-day moving average (MA) of 75.30, below the 50-day MA of 84.49, and above the 200-day MA of 65.37, indicating a neutral trend. The MACD of -4.84 indicates Positive momentum. The RSI at 37.90 is Neutral, neither overbought nor oversold. The STOCH value of 16.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSTG.

Pure Storage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	77 Outperform	$61.91B	26.40	31.48%	0.18%	-16.35%	316.56%
NTAP	76 Outperform	$22.16B	19.48	125.35%	1.86%	2.64%	4.12%
STX	68 Neutral	$63.29B	38.04	―	0.97%	31.56%	106.00%
PSTG	64 Neutral	$22.82B	182.50	9.27%	―	13.18%	-0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$21.35B	8.77	―	5.04%	4.09%	-5.77%
SMCI	58 Neutral	$18.57B	24.90	12.79%	―	12.22%	-48.34%

Pure Storage Corporate Events

Pure Storage Appoints Patrick Finn as Chief Revenue Officer

On November 4, 2025, Pure Storage announced the appointment of Patrick S. Finn as its new Chief Revenue Officer, succeeding Dan FitzSimons, who will transition to a senior advisory role. Finn brings extensive experience from leadership roles at Cloudflare, Iron Mountain, and Cisco, and his appointment is expected to drive Pure Storage’s next phase of growth. The company reaffirmed its third quarter and full-year FY26 guidance, highlighting its strategic focus on expanding its market presence and enhancing customer loyalty.