Pure Storage (PSTG) AI Stock Analysis

• Market Cap: $27.08B
• Dividend Yield: N/A
• Average Volume (3M): 3.89M
• Price to Earnings (P/E): 202.4
• Beta (1Y): 2.01
• 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: 3,288,238
• 30 Day Avg. Volume: 3,885,191
• PEG Ratio: 3.14
• Price to Book (P/B): 16.65
• Price to Sales (P/S): 6.87
• P/FCF Ratio: 41.29
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 5.10
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: 54.38
• 1Y Price Target: $85.44
• Price Target Upside: 3.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 65 Neutral
• Price Target: $87.00 ▲(5.58% Upside)

Pure Storage's overall stock score is driven by strong financial performance and positive technical indicators, though tempered by high valuation concerns. The company's robust revenue growth and financial stability are significant strengths, but the high P/E ratio suggests overvaluation, which could limit upside potential. Technical analysis indicates strong momentum, but overbought conditions may lead to short-term volatility.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Pure Storage's expanding market presence and strong demand for its data storage solutions, supporting long-term business sustainability.

Strategic Partnerships

Partnerships with major tech firms like Meta enhance product offerings and market reach, providing a competitive edge and potential for high-margin revenue growth.

Financial Stability

Low leverage and strong financial health provide Pure Storage with the flexibility to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Challenges in Revenue Forecasting

Difficulty in predicting revenue streams can lead to uncertainty in financial planning, potentially impacting strategic decisions and investor confidence.

Non-Material Hyperscaler Revenue

Limited revenue from hyperscaler partnerships may restrict growth potential in a rapidly expanding segment, affecting long-term revenue diversification.

Macro Environment Uncertainty

Uncertain macroeconomic conditions could impact demand for Pure Storage's products, posing risks to revenue stability and growth prospects.

Pure Storage Business Overview & Revenue Model

Company Description

Pure Storage (PSTG) is a leading data storage technology company specializing in all-flash storage solutions that help businesses manage and analyze data more efficiently. Founded in 2009, the company operates in the technology sector, primarily focusing on enterprise data storage systems. Pure Storage offers a range of products and services, including its FlashArray and FlashBlade systems, which provide high-performance, scalable, and reliable storage options for various workloads, along with software solutions for data management and analytics.

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 robust revenue growth and profitability. The income statement shows efficient cost management and operational efficiency, while the balance sheet indicates financial stability with low leverage. Despite a slight decline in free cash flow growth, cash flow generation remains solid.

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	3.35B	3.17B	2.83B	2.75B	2.18B	1.68B
Gross Profit	2.32B	2.21B	2.02B	1.90B	1.47B	1.15B
EBITDA	314.36M	282.30M	222.49M	196.99M	-8.67M	-168.72M
Net Income	139.20M	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	915.36M	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	549.35M	526.87M	482.56M	609.10M	307.84M	92.67M
Operating Cash Flow	801.59M	753.60M	677.72M	767.23M	410.13M	187.64M
Investing Cash Flow	-67.31M	-218.20M	3.25M	-221.41M	-153.28M	-418.11M
Financing Cash Flow	-804.40M	-509.78M	-560.24M	-431.17M	-127.79M	200.24M

Pure Storage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.40
• 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 82.4 is below the 20-day moving average (MA) of 82.85, above the 50-day MA of 68.30, and above the 200-day MA of 59.05, indicating a neutral trend. The MACD of 5.15 indicates Positive momentum. The RSI at 60.27 is Neutral, neither overbought nor oversold. The STOCH value of 25.57 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	74 Outperform	$23.93B	21.18	120.10%	1.74%	3.45%	9.69%
WDC	74 Outperform	$37.08B	22.15	33.59%	0.19%	2.12%	―
STX	72 Outperform	$46.32B	32.13	-324.28%	1.31%	38.86%	337.22%
SMCI	68 Neutral	$27.23B	27.61	16.64%	―	47.04%	-17.89%
HPQ	66 Neutral	$24.97B	9.72	-209.75%	4.33%	3.11%	-3.54%
PSTG	65 Neutral	$27.08B	202.36	10.04%	―	11.31%	-1.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.

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.