Delivers double-digit revenue growth and strong profitability in Q4Full year 2025 revenue surpasses $3 billion, representing growth of 12% year-over-yearSANTA CLARA, Calif., Feb. 26, 2025 /PRNewswire/ -- Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technologies and services, announced financial results for its fiscal fourth quarter and full year 2025 ended February 2, 2025."Pure Storage delivered solid fourth quarter and full year results as we fundame ...

Core Viewpoint - Pure Storage (PSTG) is positioned well to continue its trend of beating earnings estimates in upcoming quarterly reports [1] Group 1: Earnings Performance - Pure Storage has a strong history of surpassing earnings estimates, averaging a 16.03% beat over the last two quarters [2] - In the last reported quarter, Pure Storage achieved earnings of $0.50 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, resulting in a surprise of 16.28% [3] - In the previous quarter, the company was expected to earn $0.38 per share but reported $0.44 per share, delivering a surprise of 15.79% [3] Group 2: Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Pure Storage, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [4][7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5] - Pure Storage currently has an Earnings ESP of +2.59%, suggesting analysts are optimistic about the company's earnings prospects [7] Group 3: Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6] - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [8] - Checking a company's Earnings ESP before quarterly releases is crucial for increasing the odds of success in investment decisions [9]

Core Insights - Pure Storage (PSTG) is expected to report quarterly earnings of $0.43 per share, a decline of 14% year-over-year, with revenues forecasted at $869.92 million, reflecting a 10.1% increase compared to the same period last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1][2] Revenue Projections - Analysts predict 'Revenue- Product' to be $475.61 million, indicating a year-over-year change of +3.2% [4] - The forecast for 'Revenue- Subscription services' is $394.32 million, representing a year-over-year increase of +19.9% [4] - The estimated 'Geographic Revenue- Rest of the world' is $252.91 million, showing a year-over-year decline of -5.5% [4] Profit Estimates - The consensus for 'Non-GAAP Gross profit- Subscription services' is projected at $302.13 million, up from $243.78 million in the same quarter last year [5] - Analysts estimate 'Non-GAAP Gross profit- Product' to reach $315.58 million, compared to $338.20 million reported in the prior year [5] Stock Performance - Over the past month, shares of Pure Storage have decreased by -6.3%, while the Zacks S&P 500 composite has increased by +2.2% [6] - Currently, PSTG holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]

Core Insights - Pure Storage, Inc. (PSTG) is set to report its fourth-quarter fiscal 2025 results on February 26, 2025 [1] - The Zacks Consensus Estimate for earnings in the upcoming quarter is 43 cents, reflecting a 14% decline year-over-year, while total revenues are estimated at $869.9 million, indicating a 10.1% year-over-year growth [2] - PSTG has a trailing four-quarter earnings surprise average of 22.16%, having beaten estimates in each instance, with a 16.3% surprise in the last reported quarter [4] Financial Performance Expectations - For the fiscal fourth quarter, PSTG anticipates revenues of $867 million, which represents a 9.7% increase from the previous year [3] - Subscription services revenues are projected to reach $399.1 million, up 21.3% year-over-year, driven by strong renewals of Evergreen subscriptions [8] Strategic Developments - PSTG has strengthened its partnership with Kioxia to enhance the development of high-performance storage solutions amid rising Flash demand in the hyperscale industry [9] - The company is capitalizing on opportunities in the AI sector, having launched the Pure Storage GenAI Pod to simplify generative AI project deployments [12] Market Position and Growth Outlook - PSTG's revenue forecast for fiscal 2025 has been adjusted to $3.15 billion, indicating an 11.5% growth year-over-year, surpassing the previous estimate of $3.1 billion [13] - The company’s stock has increased by 31.7% over the past three months, outperforming the Computer Storage Devices Industry's growth of 24.3% and the S&P 500's gain of 3.6% [15] Competitive Landscape - PSTG's growth is notable compared to peers such as NetApp, Netlist, and Teradata, which have experienced declines of 1.7%, 33.2%, and 19.7% respectively [17] - The company is trading at a premium with a forward 12-month Price/Earnings ratio of 35.12X compared to the industry average of 18.53X [21] Challenges and Considerations - The company faces challenges from rising costs in software, SaaS, and cloud services, as well as uncertainty surrounding AI spending, which may impact IT budgets [19] - There is an expected modest sequential decline in product gross margin due to strong growth in the FlashArray//E family and FlashArray//C solutions [14]

Core Viewpoint - Pure Storage (PSTG) is experiencing a decline in stock performance, with a recent closing price of $67.89, reflecting a -1.48% change from the previous session, while the broader market indices showed gains [1] Company Performance - Pure Storage is expected to report earnings on February 26, 2025, with an anticipated EPS of $0.43, representing a 14% decrease compared to the same quarter last year [2] - Revenue is projected to reach $869.92 million, indicating a 10.14% increase year-over-year [2] - Over the past month, shares of Pure Storage have decreased by 1.67, contrasting with a 1.76% gain in the Computer and Technology sector and a 2.37% gain in the S&P 500 [1] Analyst Estimates - Recent changes in analyst estimates for Pure Storage are crucial as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks Pure Storage at 3 (Hold), suggesting a neutral outlook [5] Valuation Metrics - Pure Storage has a Forward P/E ratio of 35.95, which is significantly higher than the industry average of 16.28 [6] - The company holds a PEG ratio of 1.92, compared to the industry average PEG ratio of 2.27, indicating a relatively favorable valuation in terms of expected earnings growth [7] Industry Context - The Computer-Storage Devices industry, part of the broader Computer and Technology sector, has a Zacks Industry Rank of 178, placing it in the bottom 30% of over 250 industries [7][8] - The Zacks Industry Rank suggests that industries in the top 50% outperform those in the bottom half by a factor of 2 to 1 [8]

Core Insights - Pure Storage, Inc. (PSTG) has achieved a remarkable 58.5% stock gain over the past year, significantly outperforming the Computer Storage Devices industry's decline of 9.2% and surpassing the growth of the Zacks Computer and Technology sector and the S&P 500 composite, both at 22% [1][2] Financial Performance - In the last reported quarter, PSTG's revenues increased by 9% year-over-year to $831.1 million, exceeding the Zacks Consensus Estimate by 2% [6] - Subscription services revenues accounted for 45.3% of total revenues, amounting to $376.4 million, which represents a 22% increase driven by strong renewals of Evergreen subscriptions [6] - The company has raised its revenue forecast for fiscal 2025 to $3.15 billion, reflecting an 11.5% year-over-year growth, up from a previous estimate of $3.1 billion with 10.5% growth [10] - Non-GAAP operating income guidance has been increased to $540 million from $532 million, maintaining a non-GAAP operating margin estimate of 17% [11] Product and Market Developments - There is accelerating demand for FlashBlade solutions, particularly FlashBlade//E, which is becoming the preferred storage choice for data center operators due to cost-effectiveness [5] - The launch of Pure Storage GenAI Pod aims to simplify the deployment of generative AI projects, providing full-stack solutions that reduce implementation time and costs [8] - The company has secured a significant design win for its DirectFlash technology with a top-four hyperscaler, which is expected to become the standard for hyperscaler online storage by 2026 [12] Strategic Collaborations - PSTG has deepened its partnership with Kioxia to enhance the development of high-performance storage solutions [13] - The company has extended its collaboration with Micron Technology to integrate advanced NAND technology into its data solutions [14] Competitive Landscape - PSTG faces increasing competition in the flash-based storage market, which may lead to a decline in average selling prices (ASP) [15] - The overall market is experiencing subdued IT spending, which has impacted the anticipated performance of Evergreen//One [16] Valuation Concerns - PSTG's stock is currently trading at a forward Price/Earnings ratio of 34.89X, significantly higher than the industry's 16.42X, indicating high growth expectations but also raising concerns about valuation [19]

Group 1: Company Performance - Pure Storage (PSTG) closed at $69.71, reflecting a -0.36% change from the previous day, underperforming the S&P 500's 0.36% gain [1] - Over the past month, shares of Pure Storage gained 8.87%, outperforming the Computer and Technology sector's 0% and the S&P 500's 2.11% [1] Group 2: Upcoming Earnings Report - Pure Storage is scheduled to release its earnings on February 26, 2025, with projected earnings per share (EPS) of $0.43, indicating a 14% decrease from the same quarter last year [2] - The consensus estimate forecasts revenue of $869.92 million, representing a 10.14% growth compared to the same quarter of the prior year [2] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Pure Storage indicate changing near-term business trends, with positive revisions reflecting analyst optimism about the company's profitability [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Pure Storage at 3 (Hold) [5] Group 4: Valuation Metrics - Pure Storage is trading at a Forward P/E ratio of 36.49, which is a premium compared to the industry average Forward P/E of 13.44 [6] - The company has a PEG ratio of 1.95, aligning with the average PEG ratio of the Computer-Storage Devices industry [7] Group 5: Industry Ranking - The Computer-Storage Devices industry holds a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Pure Storage will host a conference call on February 26, 2025, to discuss its financial results for the fiscal fourth quarter and full year 2025, which ended on February 2, 2025 [1] Group 1: Conference Call Details - The conference call will be available live on the Pure Storage Investor Relations website, with a replay option for two weeks [2] - The call will be followed by participation in investor conferences, including the Bernstein Insights TMT Forum on February 27, 2025, and the Susquehanna Tech Conference on February 28, 2025 [3] Group 2: Company Overview - Pure Storage provides advanced data storage solutions that enable organizations to store, manage, and protect data at any scale, emphasizing simplicity and flexibility [4] - The company’s platform is built on Evergreen architecture, which allows for continuous improvement without planned downtime [4] - Pure Storage has been recognized as a leader in the 2024 Gartner Magic Quadrant for Primary Storage Platforms and Object Storage Platforms [5]

Core Viewpoint - Pure Storage (PSTG) has reached a significant support level and shows potential for investors from a technical perspective, particularly after breaking through the 20-day moving average, indicating a short-term bullish trend [1]. Technical Analysis - The 20-day moving average is a key indicator for traders, smoothing out short-term price trends and providing more trend reversal signals compared to longer-term moving averages [1][2]. - A stock price above the 20-day moving average indicates a positive trend, while a price below suggests a downward trend [2]. Performance Metrics - PSTG shares have increased by 8.6% over the past four weeks, indicating positive momentum [3]. - The company holds a Zacks Rank of 3 (Hold), suggesting potential for continued growth [3]. - Positive earnings estimate revisions support the bullish outlook, with no estimates decreasing in the past two months and one estimate increasing, alongside a rise in the consensus estimate [3]. Investment Consideration - Given the important technical indicators and positive earnings estimate revisions, PSTG should be considered for investors' watchlists [4].

Core Insights - Pure Storage has launched an updated Reseller Partner Program aimed at enhancing profitability for partners by facilitating customer transitions to the Pure Storage Platform [1] - The program is designed to address the growing demand for modern data storage solutions, particularly in the context of AI and cyber resilience [2] Industry Significance - The IT landscape is shifting towards consumption-based models and AI, necessitating scalable and flexible data storage frameworks [2] - Pure Storage's program empowers partners to meet these evolving demands by providing tailored solutions that adapt to customer needs [2] Updated Features - The Reseller Partner Program includes new solution-oriented training to equip partners with necessary resources for driving profitability and growth [3] - Partners can access on-demand courses and in-person technical boot camps to enhance their skills and deepen customer relationships [4] Profitability Accelerators - The program offers enhanced rewards and rebates to partners, recognizing their role in delivering transformative solutions and driving adoption of the Pure Storage Platform [5] - Partners are provided with unique tools such as Pure Partner Intelligence for real-time insights and analytics to identify growth opportunities [6] Solution-Oriented Use Cases - The program focuses on key areas such as hybrid cloud optimization, AI-ready infrastructure, modern applications, and cyber resilience to address pressing IT challenges [7] - Partners are equipped to help customers unify data, automate processes, and secure data against cyber threats [7] Executive and Partner Insight - Company leadership emphasizes a commitment to shared success with partners, highlighting the value of the Pure Storage Platform in solving complex data storage challenges [8] - Partners express satisfaction with the revamped program, noting improvements in tools, incentives, and growth opportunity recognition [8] Resources - An exclusive event is available for partners to learn about the updated program and incentives [9] - Additional information on becoming a Pure Partner can be found on Pure Storage's partner page [9] About Pure Storage - Pure Storage provides advanced data storage solutions that are scalable and flexible, designed to save time, money, and energy for organizations [10] - The company is recognized for its Evergreen architecture, which allows for continuous improvement without planned downtime [10]