Pure Storage (PSTG) AI Stock Analysis

• Market Cap: $25.37B
• Dividend Yield: N/A
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 190.6
• Beta (1Y): 1.99
• 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: 326,831,670
• 10 Day Avg. Volume: 5,164,334
• 30 Day Avg. Volume: 3,052,238
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 5.10
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: 61.40
• 1Y Price Target: $78.53
• Price Target Upside: 1.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 65 Neutral
• Price Target: $87.00 ▲(12.30% 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

Earnings

Pure Storage reported solid second-quarter results above all key metrics and significantly raised full-year revenue guidance.

Investor Confidence

The stock is up roughly 16% after-hours as the results instill greater investor confidence in the company’s ability to sustain durable enterprise share gains.

Product Portfolio

Accelerating momentum in Evergreen//One, Cloud Block Store, and Portworx is driving broad-based strength across the product portfolio.

Negative Factors

Growth Expectations

Analyst reiterates Neutral as product growth is yet to re-accelerate, and hyperscaler deals have not yet catalyzed estimates.

Subscription Revenue

Subscription revenue was 2% light of expectations, though it is not considered a major concern.

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 demonstrates strong financial performance with consistent revenue growth and improving profitability. The balance sheet is stable with low leverage, and cash flow generation is robust, supporting operational needs and strategic investments. However, there is room for improvement in operational efficiency as indicated by the low EBIT margin.

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	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	278.43M	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: 77.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 77.47 is above the 20-day moving average (MA) of 61.10, above the 50-day MA of 58.38, and above the 200-day MA of 56.36, indicating a bullish trend. The MACD of 4.19 indicates Negative momentum. The RSI at 75.60 is Negative, neither overbought nor oversold. The STOCH value of 91.87 is Negative, 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	$22.51B	19.93	123.00%	1.80%	3.45%	9.69%
WDC	74 Outperform	$27.87B	16.65	25.98%	0.12%	2.12%	―
HPQ	73 Outperform	$26.68B	10.39	84.33%	3.95%	3.11%	-3.54%
STX	72 Outperform	$35.60B	25.19	-109.27%	1.68%	38.86%	337.22%
SMCI	67 Neutral	$24.69B	25.03	17.90%	―	47.04%	-17.89%
PSTG	65 Neutral	$25.37B	190.59	10.04%	―	11.31%	-1.30%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%

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.