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].

Core Viewpoint - Pure Storage (PSTG) shares have declined approximately 9% since the last earnings report, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Estimates Movement - Estimates for Pure Storage have trended downward over the past month, with the consensus estimate shifting by -300% due to these changes [2] VGM Scores - Pure Storage currently holds an average Growth Score of C, but significantly lags in Momentum Score with an F. The stock also received an F grade on the value side, placing it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F, which is critical for investors not focused on a single strategy [3] Outlook - The downward trend in estimates indicates a broader negative shift for Pure Storage. The company holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns from the stock in the upcoming months [4]

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].

Core Insights - Pure Storage integrates NVIDIA AI Data Platform into its FlashBlade platform, enhancing enterprise-grade scalable, AI-ready solutions for customers [1][2][5] - FlashBlade supports NVIDIA's reference design for intelligent AI Data Platforms, enabling rapid data processing for AI reasoning applications [2][4] - Recent certifications for FlashBlade//S500 and FlashBlade//EXA affirm its high-performance storage capabilities for AI infrastructure [3][5] Industry Impact - The growth of large-scale AI and machine learning workloads has increased demand for high-performance storage systems to support GPU cloud providers [4] - Traditional storage solutions often create bottlenecks in data access, impacting the efficiency of GPU workloads and complicating management in multi-tenant environments [4][6] - Pure Storage's solutions eliminate these bottlenecks, ensuring high-level read/write performance and simplifying management for enterprise AI projects [6][7] Customer Benefits - Organizations can deploy storage solutions that enhance GPU workload efficiency and provide real ROI by integrating with NVIDIA accelerated computing [6] - The integration of NVIDIA AI Data Platform capabilities into FlashBlade allows enterprises to achieve near-real-time data processing for improved customer service and operational efficiency [8] - Collaborations with partners like Cisco aim to streamline AI workloads and unlock the full potential of data through advanced storage solutions [9]

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 ...