Core Viewpoint - The article emphasizes that a HODL strategy may not yield significant alpha or maintain a high Sharpe ratio over the long term, suggesting that active management is essential for maximizing returns and minimizing opportunity costs [1]. Group 1: Investment Strategy - The article argues that seeking high positive returns does not equate to generating high alpha, highlighting the importance of active management in investment strategies [1]. Group 2: Analyst Background - The analyst has a strong educational background with a degree in Business Economics from UCLA and a Master of Accounting from UMich Ross School of Business, indicating a solid foundation in financial analysis [1]. - The analyst currently works as a senior analyst at a multi-strategy hedge fund, which suggests experience in diverse investment strategies [1].

A month has gone by since the last earnings report for Pure Storage (PSTG) . Shares have lost about 9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Pure Storage due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns ou ...

Revenue Growth - Total revenue for fiscal 2025 increased by 12% to $3,168,164, compared to $2,830,621 in fiscal 2024, driven by a 5% increase in product revenue and a 22% increase in subscription services revenue [220]. - Subscription Annual Recurring Revenue (ARR) grew by 21% year-over-year, reaching $1,657,806 at the end of fiscal 2025, compared to $1,373,506 in fiscal 2024 [224]. - Total remaining performance obligations (RPO) at the end of fiscal 2025 were $2.6 billion, reflecting a year-over-year growth of 14% [225]. - The increase in subscription services revenue was largely driven by renewals of Evergreen subscription services and increased revenue from Evergreen//One offerings [220]. - Total revenue in the United States grew by 12% from $2.0 billion to $2.2 billion, while revenue from the rest of the world increased by 13% from $851.3 million to $960.8 million [221]. Cost and Expenses - Product cost of revenue increased by 22% to $562,736 in fiscal 2025, while subscription services cost of revenue rose by 12% to $347,497 [228]. - Operating expenses are expected to increase in absolute dollars, with significant investments in research and development to support production deployment ramp starting in fiscal 2027 [212]. - Research and development expenses increased by $33.9 million (6%) from $569.5 million in fiscal 2024 to $603.3 million in fiscal 2025, primarily due to higher employee compensation and stock-based compensation costs [234]. - Sales and marketing expenses rose by $54.3 million (6%) from $870.3 million in fiscal 2024 to $924.6 million in fiscal 2025, driven by increased employee compensation and travel costs [235]. - General and administrative expenses increased by $33.9 million (13%) from $252.2 million in fiscal 2024 to $286.2 million in fiscal 2025, mainly due to higher stock-based compensation [236]. - Stock-based compensation expense in fiscal 2025 included $36.6 million related to modifications of performance restricted stock units, contributing to higher overall operating expenses [232]. Income and Cash Flow - Net cash provided by operating activities increased by $75.4 million from $677.7 million in fiscal 2024 to $753.1 million in fiscal 2025, driven by higher net income [252]. - Net cash used in investing activities was $217.7 million in fiscal 2025, primarily due to capital expenditures of $226.7 million [255]. - Other income increased by $25.5 million from $37.0 million in fiscal 2024 to $62.6 million in fiscal 2025, attributed to higher interest income and a larger cash balance [239]. - Cash, cash equivalents, and marketable securities totaled $1.5 billion at the end of fiscal 2025, sufficient to fund operating and capital needs for at least the next 12 months [242]. - The company had cash, cash equivalents, and marketable securities totaling $1.5 billion at the end of fiscal 2024 and 2025 [269]. Tax and Obligations - Provision for income taxes rose by $11.8 million (40%) from $29.3 million in fiscal 2024 to $41.1 million in fiscal 2025, primarily due to increased profits in foreign jurisdictions [240]. - Non-cancelable contractual purchase obligations amounted to $540.1 million at the end of fiscal 2025, with $385.9 million classified as short-term [244]. Market and Risk Factors - A hypothetical 1.00% increase in interest rates would have resulted in a decrease in the fair value of marketable securities by approximately $8.8 million as of the end of fiscal 2025 [270]. - Adverse changes in foreign currency exchange rates of 10% could have resulted in an adverse impact on income before provision for income taxes of approximately $9.0 million at the end of fiscal 2025 [272]. Share Repurchase - The company repurchased 6.7 million shares at an average price of $55.57 per share for a total of $373.8 million during fiscal 2025 [250].

Purpose-built to bring unmatched performance, scalability and power of FlashBlade technology to next-generation, GPU-intensive AI and HPC workloadsSANTA CLARA, Calif., March 11, 2025 /PRNewswire/ -- Pure Storage® (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technology and services, today debuted FlashBlade//EXA™, the industry's highest performing data storage platform engineered for the most demanding requirements of AI and High-Performance Computing (HPC). While legacy ...

Group 1 - The author has over 30 years of experience as a Merchant Seaman and has developed a strong interest in investing over the last 15 years [1] - The author has learned a significant amount about investing from The MF and has a background in engineering, leading to a focus on Tech stocks [1] Group 2 - There is no stock, option, or similar derivative position held by the author in any mentioned companies, nor any plans to initiate such positions in the next 72 hours [1] - The article expresses the author's own opinions and is not compensated for it, except from Seeking Alpha [1]

Pure Storage (PSTG -14.80%), a provider of all-flash data storage technologies and services, held its fourth-quarter and full-year fiscal 2025 earnings call on February 26, 2025. The company discussed its progress in transforming enterprise data architecture, growing adoption of its subscription services, and continued development of its hyperscaler and AI opportunities.Fusion v2 Marks Strategic Shift in Enterprise Data ManagementPure Storage's new Fusion v2 software represents a significant evolution in ho ...

Pure Storage (PSTG -11.90%) stock is falling in Thursday's trading following the company's recent fourth-quarter report. The company's share price was down 10.9% as of 2:30 p.m. ET.Pure Storage published its Q4 results after the market closed yesterday and actually posted results that came in better than Wall Street had anticipated. But the company's margins showed signs of weakening, and management's forward guidance disappointed the market.Pure Storage stock slumps as Q4 margins disappointPure Storage rep ...

Pure Storage (PSTG) reported fourth-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 45 cents, which beat the Zacks Consensus Estimate by 7.1%. The company reported non-GAAP EPS of 50 cents in the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Quarterly revenues expanded 11% from the year-ago quarter to $879.8 million, beating the Zacks Consensus Estimate by 1.08%. The top line outpaced management’s guidance owing to record sales across FlashBlade, FlashA ...

Pure Storage, Inc. (NYSE:PSTG) Q4 2025 Earnings Conference Call February 26, 2025 5:00 PM ET Company Participants Paul Ziots - VP of IR Charlie Giancarlo - CEO Kevan Krysler - CFO Robert Lee - CTO Conference Call Participants Mike Cikos - Needham & Company Aaron Rakers - Wells Fargo Amit Daryanani - Evercore ISI Howard Ma - Guggenheim Securities Krish Sankar - TD Cowen Jason Ader - William Blair Simon Leopold - Raymond James Quinton Gabrielli - Piper Sandler Wamsi Mohan - Bank of America Meta Marshall - Mor ...

For the quarter ended January 2025, Pure Storage (PSTG) reported revenue of $879.84 million, up 11.4% over the same period last year. EPS came in at $0.45, compared to $0.50 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $870.43 million, representing a surprise of +1.08%. The company delivered an EPS surprise of +7.14%, with the consensus EPS estimate being $0.42.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...