Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score emphasizes a company's financial health and future growth potential [4] - Momentum Score tracks price trends to capitalize on upward or downward movements [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Its Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - Investors face a challenge in selecting from over 800 top-rated stocks, making the Style Scores a valuable tool for narrowing down choices [8] Stock Analysis: Pure Storage (PSTG) - Pure Storage Inc. is currently rated 3 (Hold) with a VGM Score of B, indicating a mixed outlook [11] - The company has a strong Momentum Style Score of A, with shares increasing by 1.1% over the past four weeks [11] - Recent upward revisions in earnings estimates by analysts have raised the Zacks Consensus Estimate for fiscal 2026 to $1.82 per share, reflecting a positive trend [12] - PSTG has an average earnings surprise of 13.8%, suggesting potential for exceeding expectations [12]

Core Viewpoint - Pure Storage (PSTG) shares have increased by approximately 3.7% since the last earnings report, underperforming the S&P 500 index [1] Group 1: Earnings Report and Market Reaction - The consensus estimate for Pure Storage has decreased by 6.02% over the past month, indicating a flatlining of fresh estimates [2] - The stock has received a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return in the upcoming months [4] Group 2: VGM Scores - Pure Storage has a strong Growth Score of A, but a low Momentum Score of D, indicating mixed performance across different investment strategies [3] - The stock has been assigned a grade of F on the value side, placing it in the fifth quintile for value investment strategy [3] - The overall aggregate VGM Score for Pure Storage is C, which is relevant for investors not focused on a single strategy [3]

Core Insights - Pure Storage, Inc. (PSTG) has partnered with TierPoint to launch an Imaging Storage-as-a-Service solution tailored for the healthcare sector, addressing challenges such as rising storage costs, performance limitations, and stringent security requirements [1][10] Group 1: Product Offering - The new solution integrates Pure Storage's high-performance infrastructure with TierPoint's HIPAA-compliant data centers, providing a scalable, cloud-enabled storage service that supports AI-driven imaging workloads and long-term data retention [2][10] - The per-study billing model enhances cost predictability for healthcare organizations while improving image retrieval speed and data protection for critical assets [2][10] Group 2: Market Impact - This service allows healthcare providers to align storage costs with patient care delivery models, enabling them to scale operations efficiently and focus on improving patient outcomes [3][4] - The collaboration aims to enhance diagnostic capabilities, boost operational efficiency, and support better patient outcomes in healthcare IT [4] Group 3: Technological Advancements - Pure Storage continues to innovate in enterprise storage, particularly for modern data workloads such as AI and high-performance computing, with the release of Portworx Enterprise 3.3 enhancing its Kubernetes-native storage capabilities [5] - The rollout of FlashBlade//EXA and the adoption of the //E family, which support AI and HPC workloads, indicate strong growth potential, with Storage-as-a-Service TCV sales increasing by 70% in the fiscal first quarter [6] Group 4: Strategic Partnerships - Pure Storage has partnered with Nutanix to provide a solution for managing virtual workloads, enhancing operational efficiency for IT teams in hybrid cloud environments [7] - The firm has also expanded its partnership with Rubrik to improve protection for unstructured data, enhancing threat detection and recovery capabilities in a ransomware-prone environment [8]

Pure Storage (PSTG) FY 2025 Annual General Meeting June 11, 2025 10:30 AM ET Speaker0 Good morning, ladies and gentlemen. Welcome to PURE's twenty twenty five Annual Meeting of Stockholders. This meeting will now be called to order. My name is Charles Strong Carlo. I am the CEO and Chairman of Pure Storage, and I will be presiding over the meeting. I'm joined by John Calgrove, our Founder and Chief Visionary Officer Kevin Kreisler, our Chief Financial Officer and Nikki Armstrong, our Chief Administrative an ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents unaudited condensed consolidated financial statements for Q1 FY2026, covering balance sheets, operations, comprehensive loss, equity, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$3.81 billion** from **$3.96 billion** as of May 4, 2025, with liabilities and stockholders' equity also declining Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | End of Fiscal 2025 | End of Q1 Fiscal 2026 | | :--- | :--- | :--- | | **Total current assets** | $2,567,279 | $2,400,227 | | **Total assets** | **$3,963,942** | **$3,810,365** | | **Total current liabilities** | $1,596,541 | $1,494,511 | | **Total liabilities** | **$2,657,467** | **$2,566,310** | | **Total stockholders' equity** | **$1,306,475** | **$1,244,055** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2026 total revenue grew **12.3%** to **$778.5 million**, driven by subscription services, with net loss improving to **$14.0 million** Q1 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 Fiscal 2025 | Q1 Fiscal 2026 | Change (%) | | :--- | :--- | :--- | :--- | | Product Revenue | $347,384 | $372,144 | 7.1% | | Subscription Services Revenue | $346,095 | $406,341 | 17.4% | | **Total Revenue** | **$693,479** | **$778,485** | **12.3%** | | Gross Profit | $495,706 | $536,153 | 8.2% | | Loss from Operations | $(41,774) | $(31,171) | (25.4%) | | **Net Loss** | **$(35,009)** | **$(13,995)** | **(60.0%)** | | Net Loss Per Share | $(0.11) | $(0.04) | (63.6%) | [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss for Q1 FY2026 significantly improved to **$13.1 million** from **$36.8 million**, driven by a smaller net loss and unrealized gains Comprehensive Loss Summary (in thousands) | Metric | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Net loss | $(35,009) | $(13,995) | | Change in unrealized net gains (losses) on available-for-sale securities | $(1,802) | $877 | | **Comprehensive loss** | **$(36,811)** | **$(13,118)** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to **$1.24 billion** from **$1.31 billion**, primarily due to **$119.9 million** in common stock repurchases and net loss - The company repurchased and retired approximately **2.5 million shares** of its common stock for an aggregate price of **$119.9 million** during the first quarter of fiscal 2026[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$283.9 million**, while investing activities used **$111.8 million**, and financing activities shifted to a **$149.8 million** outflow Cash Flow Summary (in thousands) | Activity | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Net cash provided by operating activities | $221,500 | $283,936 | | Net cash used in investing activities | $(48,395) | $(111,782) | | Net cash provided by (used in) financing activities | $24,974 | $(149,762) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, financial components, and significant events, including a new **$500 million** unsecured credit facility in June 2025 - Total remaining performance obligations (RPO) were **$2.7 billion** at the end of Q1 FY2026, with approximately **48%** expected to be recognized as revenue over the next 12 months[69](index=69&type=chunk) - In June 2025, the company entered into a new five-year, **$500 million** senior unsecured revolving credit facility, terminating and repaying the previous **$300 million** facility[131](index=131&type=chunk) - During Q1 FY2026, the company repurchased and retired approximately **2.5 million shares** of common stock for **$119.9 million**. At the end of the quarter, **$151.6 million** remained available for future repurchases[98](index=98&type=chunk) - In February 2024, the company initiated a workforce realignment plan, reducing headcount by nearly **250 employees** and incurring restructuring costs of **$27.9 million**, of which **$9.9 million** was recognized in Q1 FY2025[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2026 financial results, noting a **12%** revenue increase to **$778.5 million**, improved net loss, and shifts in gross margins Revenue Performance (in thousands) | Revenue Type | Q1 Fiscal 2025 | Q1 Fiscal 2026 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product revenue | $347,384 | $372,144 | $24,760 | 7% | | Subscription services revenue | $346,095 | $406,341 | $60,246 | 17% | | **Total revenue** | **$693,479** | **$778,485** | **$85,006** | **12%** | - Subscription Annual Recurring Revenue (ARR) grew **18%** year-over-year to **$1.71 billion** at the end of Q1 FY2026[158](index=158&type=chunk) - Total Remaining Performance Obligations (RPO) grew **17%** year-over-year to **$2.7 billion** at the end of Q1 FY2026[160](index=160&type=chunk) Gross Margin Performance | Margin Type | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Product gross margin | 71% | 62% | | Subscription services gross margin | 72% | 75% | | **Total gross margin** | **71%** | **69%** | - Net cash provided by operating activities increased to **$283.9 million** in Q1 FY2026, up from **$221.5 million** in Q1 FY2025, driven by lower net loss and improved working capital management[183](index=183&type=chunk)[184](index=184&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations on its **$1.6 billion** in marketable securities and foreign currency volatility, without using derivatives - **Interest Rate Risk:** A hypothetical **1.00%** (**100 basis points**) increase in interest rates would result in a decrease of approximately **$8.8 million** in the fair value of the company's marketable securities[198](index=198&type=chunk) - **Foreign Currency Risk:** A hypothetical adverse **10%** change in foreign exchange rates would result in an adverse impact of approximately **$6.8 million** on income before income taxes[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of May 4, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the first quarter of fiscal 2026[201](index=201&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[202](index=202&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings deemed to have a material adverse effect on its business or financial position - The company is not presently party to any legal proceedings that, in the opinion of management, would have a material adverse effect on its business[205](index=205&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from macroeconomic conditions, intense competition, supply chain reliance, subscription model transition, security breaches, and new product adoption - The business is subject to risks from uncertain macroeconomic conditions, tariffs, and trade policies which can affect customer demand and costs[208](index=208&type=chunk)[209](index=209&type=chunk) - The company faces intense competition from established companies and cloud providers, which may have greater resources, brand recognition, and existing customer relationships[218](index=218&type=chunk)[220](index=220&type=chunk) - Significant resources are being devoted to developing solutions for hyperscalers, including a design win with Meta, but there is no assurance this will lead to successful sales[214](index=214&type=chunk)[215](index=215&type=chunk) - Reliance on a limited number of suppliers, including single-source suppliers, for key components exposes the company to risks of supply disruption, price volatility, and quality control issues[223](index=223&type=chunk) - A compromise of security measures could lead to data loss, reputational harm, loss of customers, and significant liabilities[254](index=254&type=chunk)[255](index=255&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 FY2026, the company repurchased **2.5 million shares** for **$119.9 million**, with **$151.6 million** remaining for future repurchases Q1 FY2026 Stock Repurchase Activity (in thousands, except price) | Period | Average Price Paid per Share | Total Shares Repurchased | Value of Shares Remaining for Repurchase | | :--- | :--- | :--- | :--- | | Feb 3 - Mar 2, 2025 | $63.35 | 434 | $244,013 | | Mar 3 - Mar 30, 2025 | $49.77 | 954 | $196,516 | | Mar 31 - May 4, 2025 | $40.66 | 1,104 | $151,642 | [Item 3. Defaults Upon Senior Securities](index=62&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities for the period - No defaults upon senior securities were reported for the period[302](index=302&type=chunk) [Item 4. Mine Safety Disclosures](index=62&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures for the period - No mine safety disclosures were reported for the period[303](index=303&type=chunk) [Item 5. Other Information](index=62&type=section&id=Item%205.%20Other%20Information) On June 10, 2025, the company entered a new **$500 million** senior unsecured revolving credit facility, and no directors or officers adopted or terminated Rule 10b5-1 trading plans - On June 10, 2025, the company entered into a new **$500 million** senior unsecured revolving credit facility, replacing its existing one. The new agreement matures on June 10, 2030[304](index=304&type=chunk)[305](index=305&type=chunk) - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the first quarter of fiscal 2026[309](index=309&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including the new Credit Agreement, CEO/CFO certifications, and XBRL data files - Key exhibits filed with this report include the new Credit Agreement (Exhibit 10.12) and CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1)[311](index=311&type=chunk)

Pure Storage (PSTG) 2025 Conference June 03, 2025 04:00 PM ET Speaker0 Everyone, thank you for joining us here at BFA's Global Tech Conference on day one. I'm Wamsi Mohan. I cover IT hardware and tech supply chain here. Delighted that you could all join us here. Also delighted to welcome Pure, Charlie Giancarlo, CEO with a long history in tech and obviously a experienced veteran both at Pure and and Cisco before that and can talk deep into tech and deep about the market. So we're looking forward to that con ...

Summary of Pure Storage Conference Call Company Overview - **Company**: Pure Storage - **Industry**: Data Storage Solutions Key Opportunities and Strategic Focus - **Enterprise Growth**: Pure Storage sees significant growth potential in the enterprise sector, focusing on expanding its portfolio and addressing a full suite of enterprise storage needs [4][5] - **AI Integration**: The company is positioned as a leader in providing a comprehensive suite of AI storage solutions, catering to both small and large-scale environments [5] - **Hyperscaler Engagement**: Pure Storage has been actively engaging with hyperscalers, transitioning from initial discussions to design wins and production [5][6] Hyperscaler Market Insights - **Infrastructure Design**: Hyperscalers design their infrastructure stacks holistically, integrating compute, networking, storage, and software, which differs from traditional enterprise environments [6][7] - **Flash Adoption Lag**: Historically, hyperscalers have lagged in adopting flash technology compared to enterprises, but are now recognizing the limitations of hard disk drives and the need for flash solutions [8][9] - **Transition to Flash**: The transition from hard disk drives to flash is driven by the need for improved performance, capacity, and efficiency, particularly in light of power and space constraints [10][11] Design Win with Meta - **Collaboration with Meta**: Pure Storage has been working with Meta for several years, culminating in a design win that emphasizes cost savings, power efficiency, and seamless integration into Meta's existing technology stack [12][14][17] - **Technology Licensing Model**: The business model involves technology licensing and royalties rather than direct hardware sales, allowing Meta to leverage its supply chain [24][25] Competitive Landscape - **Limited Competition**: Pure Storage faces minimal competition from third-party vendors, primarily competing against hyperscalers' internal development efforts and existing technologies [28][46] - **Value Proposition**: The value of Pure's solutions is framed around total cost of ownership (TCO) compared to SSD and hard disk drive systems, emphasizing simplicity, reliability, and efficiency [29][31] Storage as a Service (STaaS) - **Growth of STaaS**: Pure Storage has pioneered storage as a service models, which have gained traction due to their flexibility and adaptability to changing customer needs [34][39] - **Outcome-Based Sales**: The approach focuses on SLA-based sales rather than traditional product sales, allowing for ongoing adjustments to meet customer requirements [35][38] Enterprise Storage Market Outlook - **Market Growth**: The enterprise storage market is expected to grow at low to mid-single-digit rates over the next few years, with Pure Storage aiming to capture a larger market share [41][42] - **Strategic Positioning**: The company is well-positioned to engage in strategic conversations with enterprises, offering a comprehensive solution that spans various storage needs [43] Additional Insights - **Storage Tiers**: Hyperscalers design storage solutions across multiple tiers, from high-performance to archival storage, and Pure's technology aims to provide a unified architecture for these diverse needs [50][52] - **Operational Margin Accretion**: The licensing model is expected to be accretive to operating margins, with potential improvements in gross margins as well [32][33]

Core Viewpoint - The investment outlook for Pure Storage (NYSE: PSTG) remains positive due to strong demand and attractive valuation, with no signs of growth slowdown [1] Company Analysis - Pure Storage continues to demonstrate robust growth, indicating a solid demand for its products and services [1] - The company is positioned well for medium to long-term investments, focusing on fundamental strengths and sustainable competitive advantages [1] Investment Strategy - The investment approach emphasizes bottom-up analysis to identify companies with strong fundamentals and growth potential [1] - The strategy includes a mix of long-term investments and short-term shorts to uncover alpha opportunities [1]

Group 1 - The Q1 earnings season has been characterized by significant volatility, influenced by unstable stock markets and fluctuating headlines regarding tariffs [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [2]

Core Insights - Pure Storage (PSTG) reported revenue of $778.49 million for the quarter ended April 2025, reflecting a year-over-year increase of 12.3% [1] - The earnings per share (EPS) for the quarter was $0.29, down from $0.32 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $771.15 million, resulting in a surprise of +0.95% [1] - The company achieved an EPS surprise of +16.00%, with the consensus EPS estimate being $0.25 [1] Financial Performance Metrics - Product revenue was $372.14 million, slightly above the nine-analyst average estimate of $370.97 million, representing a year-over-year change of +7.1% [4] - Subscription services revenue reached $406.34 million, exceeding the average estimate of $391.59 million, with a year-over-year increase of +17.4% [4] - Non-GAAP Gross profit from subscription services was $313.60 million, surpassing the average estimate of $297.86 million [4] - Non-GAAP Gross profit from product sales was $238.11 million, slightly below the average estimate of $241.54 million [4] Stock Performance - Shares of Pure Storage have returned +22% over the past month, outperforming the Zacks S&P 500 composite's +7.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]