Pure Storage (PSTG)
NYSE:PSTG
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Pure Storage
(NYSE:PSTG)
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Rating:71Outperform
Price Target:
$72.00
▲(9.97% Upside)
Action:ReiteratedDate:03/25/26
The score is driven primarily by improved underlying financial strength (strong margins, low leverage, positive profitability) and a bullish earnings-call outlook with raised growth/profit expectations. These positives are tempered by expensive valuation (high P/E), mixed technicals (below key moving averages with negative MACD), and stated near-term margin/supply-chain and hyperscaler timing risks.
Positive Factors
High gross margins & improving profitability
Sustained ~70% gross margins and expanding operating margins provide a durable structural advantage in all‑flash storage. High product and subscription margins create pricing power and a cushion vs cost swings, supporting reinvestment, R&D and long‑term margin stability.
Negative Factors
TTM growth slowed materially
A material deceleration in trailing growth reduces the margin for execution error and increases reliance on returning to higher growth to justify investments. Slower top‑line momentum makes earnings and cash conversion more sensitive to competitive pressure and macro weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & improving profitability
Sustained ~70% gross margins and expanding operating margins provide a durable structural advantage in all‑flash storage. High product and subscription margins create pricing power and a cushion vs cost swings, supporting reinvestment, R&D and long‑term margin stability.
Read all positive factors
Pure Storage (PSTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.62B
Dividend YieldN/A
Average Volume (3M)3.49M
Price to Earnings (P/E)123.5
Beta (1Y)2.04
Revenue Growth13.18%
EPS Growth-0.92%
CountryUS
Employees6,000
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.69
Shares Outstanding330,171,660
10 Day Avg. Volume2,605,692
30 Day Avg. Volume3,492,143
Financial Highlights & Ratios
PEG Ratio2.55
Price to Book (P/B)16.08
Price to Sales (P/S)6.35
P/FCF Ratio37.75
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue5.73
Enterprise Value/Gross Profit8.14
Enterprise Value/Ebitda56.10
Forecast
1Y Price Target
$90.94Price Target Upside38.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)2.31
Revenue Forecast (FY)$4.37B
Pure Storage Business Overview & Revenue Model
Company Description
Everpure 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 pro...
How the Company Makes Money
Pure Storage primarily makes money by selling data storage products and related support and services to enterprise customers.
Key revenue streams include:
1) Product revenue (hardware and embedded software): The company sells all‑flash storage sy...
Pure Storage Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyPure Storage Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record quarterly revenue, broad-based product and subscription growth, improved margins, large-deal momentum, solid cash generation, industry-leading NPS, early traction for new EXA product and a strategic acquisition to broaden AI/data capabilities. The main risks are short-term: rapid component cost inflation, supply-chain volatility, temporary margin pressure (Q1), hyperscaler revenue timing uncertainty, and modest near-term dilution from the 1touch acquisition. Overall, the positives in growth, profitability and strategic positioning materially outweigh the near-term headwinds.Positive Updates
Record Q4 and FY '26 Revenue Growth
Q4 revenue surpassed $1.0 billion for the first time (first billion-dollar quarter) and grew ~20% year-over-year; fiscal year 2026 revenue reached $3.7 billion, up 16% year-over-year.
Negative Updates
Component Cost Volatility and Supply-Chain Risk
Rapid, industry-wide component price increases (company noted some components more than doubled over ~6 months) and unpredictable shortages are creating extended lead times and shipment risk across the industry.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Q4 and FY '26 Revenue Growth
Q4 revenue surpassed $1.0 billion for the first time (first billion-dollar quarter) and grew ~20% year-over-year; fiscal year 2026 revenue reached $3.7 billion, up 16% year-over-year.
Read all positive updates
Company Guidance
Everpure guided Q1 FY‑27 revenue of $990M–$1.01B (≈28% YoY at the midpoint) and Q1 operating profit of $125M–$135M (≈57% YoY at the midpoint); for FY‑27 they expect revenue of $4.3B–$4.4B (≈18.8% YoY at the midpoint) and operating profit of $780M–$820M (≈26% YoY at the midpoint) while absorbing a ~1.5% operating profit dilution from the 1touch acquisition. Management expects 47% of FY‑27 revenues in H1 (a 2‑point improvement YoY), the bulk of hyperscaler revenue to be recognized in Q3–Q4, Q1 product gross margins to be at the low end of their typical 65%–70% range (with recovery through the year), hyperscaler gross margins to be ~75%–85% (accretive), and noted a February 9 pricing action (roughly a 20% average increase) to help offset rapid component cost inflation.Pure Storage Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
70
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.66B | 3.17B | 2.83B | 2.75B | 2.18B |
| Gross Profit | 2.58B | 2.21B | 2.02B | 1.90B | 1.47B |
| EBITDA | 379.44M | 282.30M | 222.49M | 196.99M | -8.67M |
| Net Income | 188.18M | 106.74M | 61.31M | 73.07M | -143.26M |
Balance Sheet | |||||
| Total Assets | 4.67B | 3.96B | 3.66B | 3.55B | 3.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.55B | 1.52B | 1.53B | 1.58B | 1.41B |
| Total Debt | 216.14M | 281.15M | 272.25M | 760.88M | 915.36M |
| Total Liabilities | 3.23B | 2.66B | 2.39B | 2.60B | 2.38B |
| Stockholders Equity | 1.45B | 1.31B | 1.27B | 941.23M | 754.34M |
Cash Flow | |||||
| Free Cash Flow | 615.74M | 526.87M | 482.56M | 609.10M | 307.84M |
| Operating Cash Flow | 880.09M | 753.60M | 677.72M | 767.23M | 410.13M |
| Investing Cash Flow | -108.07M | -218.20M | 3.25M | -221.41M | -153.28M |
| Financing Cash Flow | -644.79M | -509.78M | -560.24M | -431.17M | -127.79M |
Pure Storage Technical Analysis
Neutral
65.47
Price Trends
68.27
Negative
73.18
Negative
71.55
Negative
Market Momentum
-1.05
Negative
50.44
Neutral
75.69
Neutral
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 65.47 is above the 20-day moving average (MA) of 63.16, below the 50-day MA of 68.27, and below the 200-day MA of 71.55, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 75.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PSTG.
Pure Storage Risk Analysis
Pure Storage disclosed 49 risk factors in its most recent earnings report. Pure Storage reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pure Storage Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $100.40B | 8.79 | 64.18% | 0.18% | -16.35% | 316.56% | |
71 Outperform | $21.62B | 123.52 | 13.91% | ― | 13.18% | -0.92% | |
70 Outperform | $90.11B | 26.06 | -889.39% | 1.02% | 31.56% | 106.00% | |
64 Neutral | $20.82B | 14.44 | 116.57% | 1.89% | 2.64% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $14.41B | 10.90 | 13.33% | ― | 12.22% | -48.34% | |
57 Neutral | $17.80B | 8.26 | 1135.29% | 5.09% | 4.09% | -5.77% |
* Technology Sector Average
PSTG
Pure Storage
65.47
14.83
29.29%
HPQ
HP
19.46
-7.87
-28.79%
NTAP
NetApp
105.50
14.63
16.10%
STX
Seagate Tech
424.22
337.71
390.35%
SMCI
Super Micro Computer
24.05
-12.99
-35.07%
WDC
Western Digital
296.14
253.70
597.85%
Pure Storage Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Pure Storage Rebrands as Everpure in Corporate Name Change
Neutral
Feb 23, 2026
On February 23, 2026, data storage provider Pure Storage, Inc. formally changed its corporate name to Everpure, Inc. via a certificate of amendment filed with the Delaware Secretary of State on February 20, 2026, with no stockholder vote required ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.