Pure Storage (PSTG) AI Stock Analysis

• Market Cap: $29.10B
• Dividend Yield: N/A
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 217.5
• Beta (1Y): 2.18
• Revenue Growth: 11.31%
• EPS Growth: -1.30%
• Country: US
• Employees: 6,000
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.58
• Shares Outstanding: 328,636,600
• 10 Day Avg. Volume: 2,897,777
• 30 Day Avg. Volume: 2,764,546
• 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: 0.59
• Enterprise Value/Revenue: 5.10
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: 54.38
• 1Y Price Target: $99.73
• Price Target Upside: 12.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $98.00 ▲(10.67% Upside)

Pure Storage's strong financial performance and positive earnings call are the primary drivers of its stock score. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed signals, contributing to a moderate overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Pure Storage's products and services, enhancing its market position and long-term viability.

Strategic Partnerships

Partnerships with industry leaders like Cisco enhance product offerings and market reach, supporting long-term growth and competitive advantage.

Subscription Revenue Growth

Growing subscription revenue provides a stable and recurring income stream, contributing to financial stability and predictability.

Negative Factors

Supply Chain Challenges

Supply chain issues can lead to cost increases and delays, potentially impacting margins and operational efficiency in the medium term.

Potential Gross Margin Shift

Potential margin shifts in the hyperscaler business could affect profitability, necessitating strategic adjustments to maintain financial performance.

Free Cash Flow Decline

A decline in free cash flow growth may constrain investment capacity and limit financial flexibility, impacting long-term strategic initiatives.

Pure Storage Business Overview & Revenue Model

Company Description

Pure Storage (PSTG) is a publicly traded data storage company headquartered in Mountain View, California. Specializing in enterprise data storage solutions, Pure Storage offers flash-based storage products and cloud services designed to help businesses manage their data more efficiently. The company's core offerings include the FlashArray and FlashBlade products, which provide high-performance storage solutions for a variety of workloads, including databases, virtual machines, and big data analytics. Pure Storage operates primarily in the information technology sector, serving a wide range of industries from finance to healthcare.

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 exhibits strong financial health with impressive revenue growth and profitability. The income statement shows robust growth trends, the balance sheet indicates financial stability with low leverage, and cash flow generation remains solid despite a recent dip in free cash flow growth.

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	951.49M	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: 88.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 88.55 is above the 20-day moving average (MA) of 87.17, below the 50-day MA of 89.12, and above the 200-day MA of 64.39, indicating a neutral trend. The MACD of -1.39 indicates Negative momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 92.66 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
WDC	79 Outperform	$55.91B	23.84	31.48%	0.13%	-16.35%	316.56%
NTAP	76 Outperform	$22.24B	19.54	125.35%	1.90%	2.64%	4.12%
PSTG	71 Outperform	$29.10B	217.46	10.04%	―	11.31%	-1.30%
STX	66 Neutral	$57.68B	34.67	―	1.08%	31.56%	106.00%
HPQ	63 Neutral	$22.83B	9.22	―	4.75%	3.94%	-5.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SMCI	58 Neutral	$19.94B	26.78	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.

The most recent analyst rating on (PSTG) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Pure Storage stock, see the PSTG Stock Forecast page.

Pure Storage Inc. Reports Strong Growth and Optimistic Outlook

The recent earnings call for Pure Storage Inc. conveyed a generally positive sentiment, highlighting strong revenue growth and successful client engagements, notably with Meta. The company raised its financial guidance, reflecting optimism despite some challenges in forecasting product and subscription mixes and the non-material impact of hyperscaler revenue. While the macroeconomic environment remains uncertain, its immediate impact on Pure Storage appears limited.

Pure Storage Reports Strong Q2 Growth and Raises Guidance

Pure Storage Inc. is a leading IT company specializing in advanced data storage technologies and services, offering solutions that enhance data management and storage capabilities across various environments. In its latest earnings report for the second quarter of fiscal 2026, Pure Storage reported a 13% increase in total revenue year-over-year, reaching $861 million, and a notable 24% growth in its Storage as a Service offerings. The company also raised its full-year revenue and operating profit guidance, reflecting strong market performance and customer adoption.