Pure Storage (PSTG) AI Stock Analysis

• Market Cap: $18.24B
• Dividend Yield: N/A
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 150.2
• Beta (1Y): 1.96
• Revenue Growth: 10.85%
• EPS Growth: 30.85%
• Country: US
• Employees: 6,000
• Sector: Technology
• Sector Strength: 94
• Industry: Computer Hardware
• EPS (TTM): 0.29
• Shares Outstanding: 326,831,670
• 10 Day Avg. Volume: 2,263,377
• 30 Day Avg. Volume: 2,469,650
• PEG Ratio: 6.41
• Price to Book (P/B): 14.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.67
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: 15.57
• 1Y Price Target: $72.38
• Price Target Upside: 29.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: $60.00 ▲(7.53%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 unveiled its next-generation storage products designed to support high-performance workloads at any scale, enhancing performance, reliability, and flexibility.

Negative Factors

AI Adoption Challenges

Pure's recently introduced Enterprise Data Cloud solution enables unification of enterprise storage management, which is seen as challenging for AI adoption.

Hyperscaler Progress

Hyperscaler progress remains steady but likely slow.

Operating Margins

Operating margins remained under pressure.

Pure Storage Business Overview & Revenue Model

Company Description

Pure Storage, Inc. is a technology company specializing in providing data storage solutions. Headquartered in Mountain View, California, the company develops all-flash data storage hardware and software products that replace legacy mechanical disk systems. Its core product offerings include the FlashArray, a high-performance storage array, and FlashBlade, a scale-out file and object storage platform. These products are designed to deliver a streamlined, efficient, and high-performing storage experience for businesses across various sectors, including healthcare, financial services, and cloud computing.

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 exhibits strong revenue growth and profitability improvements, with a healthy balance sheet and robust cash flow performance. The low EBIT margin indicates room for operational efficiency improvements, but overall, the financial trajectory is positive.

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	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
EBITDA	285.85M	222.49M	183.94M	-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	750.69M	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: Positive
• Last Price: 55.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 55.8 is below the 20-day moving average (MA) of 56.32, above the 50-day MA of 55.24, and above the 200-day MA of 55.36, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 60.54 is Neutral, 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	$21.03B	18.49	108.51%	2.46%	5.02%	22.19%
PSTG	76 Outperform	$18.24B	150.16	9.76%	―	10.85%	30.85%
DELL	70 Outperform	$84.40B	19.82	-179.12%	1.50%	7.68%	27.73%
WDC	63 Neutral	$23.72B	12.93	28.45%	0.14%	21.22%	―
Sector *	63 Neutral	$34.27B	4.89	-11.70%	1.94%	5.41%	-20.02%
HPQ	61 Neutral	$23.87B	9.79	84.33%	5.59%	2.08%	-12.41%
STX	61 Neutral	$31.11B	21.18	-109.27%	1.95%	36.29%	―

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.