Core Viewpoint - Pure Storage is witnessing an increase in demand for its products driven by the growing effectiveness of artificial intelligence [1] Company Summary - The rise in demand for Pure Storage's products is attributed to advancements in artificial intelligence technology [1]

Core Insights - Pure Storage (PSTG) is expected to report quarterly earnings of $0.25 per share, reflecting a decline of 21.9% year-over-year, while revenues are forecasted to reach $771.15 million, an increase of 11.2% year-over-year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions to stock performance, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [2] Analyst Forecasts - Analysts estimate 'Revenue- Product' to be $370.97 million, indicating a 6.8% increase from the previous year [4] - 'Revenue- Subscription services' is projected to be $391.59 million, reflecting a 13.1% increase year-over-year [4] - 'Geographic Revenue- Rest of the world' is expected to reach $220.50 million, a significant increase of 36% from the year-ago quarter [5] - 'Non-GAAP Gross profit- Subscription services' is anticipated to be $297.86 million, up from $259.12 million in the same quarter last year [5] - 'Non-GAAP Gross profit- Product' is estimated at $241.54 million, down from $253.04 million in the previous year [6] Stock Performance - Pure Storage shares have increased by 24.2% over the past month, outperforming the Zacks S&P 500 composite, which rose by 10.7% [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7]

Core Insights - Pure Storage announced Portworx for KubeVirt, a software-defined storage solution designed for virtualization-centric workloads on Kubernetes using Red Hat OpenShift Virtualization Engine [1][2] - The integration of Portworx with Red Hat OpenShift allows enterprises to deploy and manage virtual machines (VMs) more efficiently, optimizing functionality while reducing total cost of ownership [2][3] Group 1: Product Features and Benefits - Portworx for KubeVirt provides a cost-effective and low-risk approach for running VM workloads on Kubernetes, addressing modern virtualization challenges [1][2] - The Red Hat OpenShift Virtualization Engine focuses on VM workloads, simplifying the deployment, management, and scaling of VMs [3] - Customers using Portworx with Red Hat OpenShift have reported approximately 30% to 50% cost savings in the past year compared to previous virtualization expenditures [6] Group 2: Strategic Partnerships and Market Position - The partnership between Pure Storage and Red Hat aims to support organizations transitioning to cloud-native environments while still relying on virtualization solutions [4] - The collaboration enhances the capabilities of Red Hat OpenShift Virtualization Engine by integrating Portworx's enterprise-grade data management [4] - Pure Storage emphasizes its commitment to evolving its platform with zero planned downtime, aligning with customer needs for flexibility and modernization [5][6]

Group 1 - Pure Storage (PSTG) closed at $55.48, reflecting a -1.7% change from the previous day, underperforming the S&P 500 which gained 0.41% [1] - Over the past month, shares of Pure Storage have increased by 36.79%, significantly outperforming the Computer and Technology sector's gain of 15% and the S&P 500's gain of 9% [1] Group 2 - The upcoming earnings report for Pure Storage is scheduled for May 28, 2025, with projected earnings per share (EPS) of $0.25, indicating a 21.88% decrease year-over-year, while revenue is expected to be $771.15 million, reflecting an 11.2% increase [2] - For the entire year, Zacks Consensus Estimates forecast earnings of $1.72 per share and revenue of $3.51 billion, representing changes of +1.78% and +10.86% respectively compared to the previous year [3] Group 3 - Recent changes to analyst estimates for Pure Storage are important as they often reflect short-term business dynamics, with upward revisions indicating analysts' positive outlook on the company's operations and profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Pure Storage at 3 (Hold), with a Forward P/E ratio of 32.79, which is a premium compared to the industry average of 12.87 [6] Group 4 - Pure Storage has a PEG ratio of 1.95, which is in line with the average PEG ratio for the Computer-Storage Devices industry, also at 1.95 [7] - The Computer-Storage Devices industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 229, placing it in the bottom 8% of over 250 industries [8]

Core Viewpoint - Pure Storage (PSTG) is currently a stock of interest, with recent performance and earnings estimates influencing its near-term outlook [1][2]. Earnings Estimates - Pure Storage is expected to report earnings of $0.25 per share for the current quarter, reflecting a year-over-year decline of 21.9% [5]. - The consensus earnings estimate for the current fiscal year stands at $1.72, indicating a slight increase of 1.8% year-over-year, with no changes in the last 30 days [5]. - For the next fiscal year, the consensus estimate is $2.26, representing a significant increase of 31.2% compared to the previous year, also remaining unchanged over the past month [6]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is $771.15 million, which shows a year-over-year growth of 11.2% [11]. - For the current fiscal year, the revenue estimate is $3.51 billion, indicating a growth of 10.9%, while the next fiscal year is projected at $4.04 billion, reflecting a 15% increase [11]. Last Reported Results and Surprise History - In the last reported quarter, Pure Storage achieved revenues of $879.84 million, marking an 11.4% increase year-over-year, with an EPS of $0.45 compared to $0.50 a year ago [12]. - The company exceeded the Zacks Consensus Estimate for revenues by 1.08% and for EPS by 7.14% [12]. - Pure Storage has consistently beaten consensus EPS and revenue estimates over the last four quarters [13]. Valuation - Pure Storage is currently graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17]. - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued or undervalued [15][16]. Overall Market Position - The Zacks Rank for Pure Storage is 3 (Hold), suggesting that its performance may align with the broader market in the near term [7][18].

Core Insights - Nutanix and Pure Storage have announced a partnership to create an integrated solution for managing virtual workloads on a scalable infrastructure, addressing the needs of high-demand environments [1][2] - The collaboration comes at a crucial time as organizations are increasingly focused on virtualization and operational effectiveness, with Gartner predicting significant migration of virtual workloads by 2028 [2] Group 1: Partnership Overview - The partnership aims to combine Nutanix Cloud Infrastructure with Pure Storage FlashArray, enhancing customer experience for data-intensive workloads, including AI [2][4] - The solution will be supported by major server hardware partners such as Cisco, Dell, HPE, Lenovo, and Supermicro, facilitating both existing and new deployments [4][5] Group 2: Key Benefits - The integrated solution will provide high-performance, flexible, and efficient infrastructure for mission-critical workloads, enhancing operational agility [5][6] - Built-in cyber resilience features will be included, leveraging Nutanix's capabilities like Flow micro-segmentation and Pure Storage's data-at-rest encryption [5][6] - Customers will benefit from increased freedom of choice, allowing for better control over their mission-critical environments [5][6] Group 3: Market Context - The virtualization market is evolving rapidly, with IT leaders needing to adapt to changing technology landscapes while improving operational effectiveness [2] - The partnership is expected to help both companies reach more customers and modernize their storage-rich environments [4][5]

Company Performance - Pure Storage (PSTG) closed at $47.58, showing no change from the previous session, outperforming the S&P 500 which fell by 0.77% [1] - Over the past month, shares of Pure Storage have increased by 23.58%, surpassing the Computer and Technology sector's gain of 16.73% and the S&P 500's gain of 11.54% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.25, reflecting a 21.88% decline compared to the same quarter last year [2] - Revenue is anticipated to be $771.15 million, indicating an 11.2% increase from the same quarter last year [2] Annual Estimates - For the annual period, earnings are projected at $1.72 per share and revenue at $3.51 billion, representing increases of 1.78% and 10.86% respectively from the previous year [3] - Changes in analyst estimates are crucial as they indicate shifts in business trends and analyst optimism regarding profitability [3] Valuation Metrics - Pure Storage has a Forward P/E ratio of 27.65, which is a premium compared to the industry average of 12.02 [6] - The PEG ratio for PSTG is 1.65, aligning with the industry average PEG ratio of 1.65 [6] Industry Context - The Computer-Storage Devices industry is part of the broader Computer and Technology sector, currently holding a Zacks Industry Rank of 232, placing it in the bottom 7% of all industries [7] - The Zacks Industry Rank evaluates the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Pure Storage will host a conference call on May 28, 2025, to discuss its financial results for the first quarter of fiscal 2026, which ended on May 4, 2025 [1]. Conference Call Details - The conference call will be available via live audio broadcast on the Pure Storage Investor Relations website, with a replay option for two weeks [2]. - The call will include participation from key executives, including the Chief Technology Officer and the Chief Financial Officer [3]. Upcoming Investor Conferences - Pure Storage will participate in the William Blair's 45th Annual Growth Stock Conference on June 3, 2025, at 6:00 a.m. PT [3]. - The company will also attend the Bank of America 2025 Global Tech Conference on the same day at 11:00 a.m. PT [3]. - A product and technology-focused meeting for financial analysts will take place during Pure//Accelerate 2025 from June 17-19, 2025, in Las Vegas [3][4]. Company Overview - Pure Storage provides advanced data storage solutions that enable organizations to manage and protect data efficiently [5]. - The company emphasizes simplicity and flexibility in its offerings, which include a unified Storage-as-a-Service platform across various environments [5]. - Pure Storage's Evergreen architecture allows for continuous improvement without planned downtime, enhancing customer capacity and reducing energy consumption [5]. Analyst Recognition - Pure Storage is recognized as a leader in the 2024 Gartner Magic Quadrant for both Primary Storage Platforms and File & Object Storage Platforms [6].

Company Performance - Pure Storage (PSTG) closed at $40.36, with a slight increase of +0.37% from the previous session, underperforming the S&P 500's gain of 2.51% [1] - Over the past month, shares of Pure Storage have depreciated by 23.96%, compared to the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86% [1] Upcoming Earnings - The upcoming EPS for Pure Storage is projected at $0.25, indicating a 21.88% drop from the same quarter last year [2] - Revenue is estimated to be $771.15 million, reflecting an 11.2% increase from the equivalent quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are expected to be $1.72 per share, with revenue projected at $3.51 billion, representing changes of +1.78% and +10.86% respectively from the previous year [3] Analyst Estimates - Changes in analyst estimates for Pure Storage are crucial as they reflect short-term business trends and can influence stock performance [4] - The Zacks Rank system, which incorporates estimate changes, provides an actionable rating system for investors [5] Zacks Rank and Valuation - The Zacks Rank for Pure Storage is currently 3 (Hold), with a recent decline of 2.78% in the consensus EPS estimate [6] - Pure Storage has a Forward P/E ratio of 23.36, which is a premium compared to the industry average of 11.3 [7] - The PEG ratio for PSTG is 1.39, aligning with the industry average [7] Industry Context - The Computer-Storage Devices industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 33, placing it in the top 14% of over 250 industries [8]

Core Insights - Varonis Systems, Inc. has announced a partnership with Pure Storage to enhance data security and cyber resilience for customers [1][2] - The collaboration allows Varonis to integrate its AI-powered data security platform with Pure Storage's advanced data storage solutions, enabling proactive data protection and rapid recovery from cyber incidents [2][6] Company Overview - Varonis is recognized as a leader in data security, focusing on discovering and classifying critical data, removing exposures, and detecting advanced threats using AI automation [3][4] - Pure Storage is a leading provider of advanced data storage solutions, known for its simplicity and flexibility, and has been recognized as a leader in the 2024 Gartner Magic Quadrant for Primary Storage Platforms [2][5] Partnership Benefits - The partnership aims to empower organizations to secure sensitive data, detect threats, and recover quickly from cyber incidents, addressing the rising risks of ransomware [2][6] - Varonis' platform will enable Pure Storage customers to automate security outcomes such as data classification, access governance, and threat detection [4][6] Technology Integration - Varonis will scan data in Pure Storage systems in real-time, matching classification results with identities and permissions to identify and mitigate data exposure risks [6] - The integration includes features like mapping complex permissions, right-sizing access, and using AI to analyze user behavior for threat detection [6]