Will the recent positive trend continue leading up to its next earnings release, or is Pure Storage due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Pure Storage reported non-GAAP earnings per share (EPS) of 32 cents in first-quarter fiscal 2024, which beat the Zacks Consensus Estimate by 45.5%. The company reported non-GAAP EPS of 8 cents in the p ...

Earnings Estimates - The consensus earnings estimate for Pure Storage (PSTG) is $1.64 for the current fiscal year, reflecting a year-over-year change of +15.5% and a slight increase of +0.3% over the last 30 days [1] - For the current quarter, earnings are expected to be $0.38 per share, indicating a change of +11.8% from the year-ago quarter, with the Zacks Consensus Estimate changing by +21.1% in the last 30 days [8] - The consensus earnings estimate for the next fiscal year is $1.94, showing a change of +18.6% from the previous year, with a +2.7% change over the past month [9] Revenue Growth - The consensus sales estimate for the current quarter is $756.73 million, indicating a year-over-year change of +9.9% [12] - For the current fiscal year, revenue estimates are $3.13 billion, reflecting a change of +10.6%, and for the next fiscal year, the estimate is $3.56 billion, indicating a change of +13.6% [12] Recent Performance - Pure Storage reported revenues of $693.48 million in the last quarter, representing a year-over-year change of +17.7%, with an EPS of $0.32 compared to $0.08 a year ago [13] - The company has consistently beaten consensus EPS estimates in the trailing four quarters and has topped consensus revenue estimates each time [14] Valuation - Pure Storage is graded F in the Zacks Value Style Score, indicating it is trading at a premium to its peers [18] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for determining whether the stock is fairly valued, overvalued, or undervalued [16][17] Market Position - Pure Storage has been one of the most searched stocks on Zacks.com, indicating significant interest in its performance [3] - The stock has returned +0.6% over the past month, compared to the Zacks S&P 500 composite's +3.2% and the Zacks Computer-Storage Devices industry's +1.4% [5]

Get Pure Storage alerts: Pure Storage Today Add to Watchlist Highlights from the latest earnings report include top- and bottom-line strength driven by increased client count and deepening penetration of services, a theme echoed among leading cloud-based service providers. Among the features that set Pure Storage apart from its competitors is its ability to unify fragmented data sources in a cross-cloud environment. Pure Storage NYSE: PSTG is riding a wave of demand, with revenue rising and margins expandin ...

Core Insights - The consensus estimate for fiscal 2025 and 2026 EPS is projected to increase by 14.8% and 18.8%, reaching $1.63 and $1.94 respectively [1][17] - Pure Storage's shares have gained 76.1% year-to-date, outperforming the S&P 500's 14.6% growth, driven by strong financial performance [3] - The company has consistently surpassed earnings estimates, with an average surprise of 24.99% over the last four quarters [3] Financial Performance - Pure Storage's revenues for fiscal 2025 are anticipated to be $3.1 billion, reflecting a 10.5% increase from fiscal 2024 [11] - Subscription services revenues accounted for 49.9% of total quarterly revenues, amounting to $346.1 million, which is a 23.5% year-over-year increase [8] - The company expects second quarter fiscal 2025 revenues to be $755 million, indicating a 9.6% increase from the previous year [12] Growth Drivers - The FlashBlade platform is a primary growth driver, with strong demand for the FlashBlade//E solution [7] - The addition of over 262 new customers in the first quarter of fiscal 2025 brought the total customer count to over 12,000, including 61% of Fortune 500 companies [6] - Management noted that advancements in AI technology are creating new market opportunities, particularly in high-performance data storage [9][10] Capital Allocation and Liquidity - Pure Storage exited the fiscal first quarter with cash, cash equivalents, and marketable securities totaling $1.7 billion, alongside a minimal long-term debt of $0.1 million [14] - Cash flow from operations was $221.5 million, up from $173.3 million in the prior-year quarter, with free cash flow increasing to $172.7 million from $121.8 million [15] Market Position and Competition - The company is facing challenges from price increases on NAND from suppliers and intensified competition in the flash-based storage market [18] - Despite these challenges, Pure Storage maintains a strong balance sheet and robust growth outlook, supported by strategic investments and expanding customer base [14][11]

Pure Storage, Inc. (PSTG) recently announced three cutting-edge Storage-as-a-Service (STaaS) service-level agreements (SLAs) for the Pure Storage platform to aid enterprises in ensuring data protection and infrastructure resilience. Evergreen architecture, which forms a premium part of PSTG's offerings, delivers continuous and nondisruptive upgrades to aid enterprises in adapting to dynamic business environments. The new Cyber Recovery and Resilience SLA expands on PSTG's pioneering ransomware recovery SLA ...

Seven customers honored at Pure//Accelerate 2024 for innovative use of the Pure Storage platform among 12,500+ global customers Customers including NTT DATA, THG, SoftBank Corp., Rivian, Fiserv, MediaZen, and the Indiana Office of Technology (IOT) were selected among more than 12,500 of Pure Storage's global customers as leaders across five categories: G.O.A.T. (Greatest of All Time), Cloud Champion, Data Warrior, Visionary, and Pure Good Sustainability. 2024 Award Recipients: "Today's award further demonst ...

Core Insights - The article emphasizes the importance of the Zacks Rank and Style Scores in helping investors make informed decisions and maximize their investment potential [4][18]. Zacks Rank - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to assist investors in building successful portfolios [4]. - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5]. - There are over 200 companies with a Strong Buy rank and an additional 600 with a 2 (Buy) rank available at any given time [5]. Style Scores - The Style Scores categorize stocks based on three investing styles: Value, Growth, and Momentum, providing complementary indicators to the Zacks Rank [18]. - A stock with a 4 (Sell) or 5 (Strong Sell) rating, even with high Style Scores, is likely to experience a decline in share price due to a downward-trending earnings forecast [7]. - The VGM Score combines all three Style Scores, helping investors identify stocks with attractive value, strong growth forecasts, and promising momentum [22]. Company Spotlight: Pure Storage Inc. (PSTG) - Pure Storage Inc. (PSTG) is rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a solid position among stocks [12]. - PSTG has a Growth Style Score of A, forecasting a year-over-year earnings growth of 14.8% for the current fiscal year [9]. - Six analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.04 to $1.63 per share [13].

Extends STaaS leadership, now with 10 concurrent SLAs, the industry's most comprehensive set of service level agreements AI is revolutionizing business, and not always for the better. Cyber criminals are increasingly using AI to increase the frequency and impact of cyber attacks, especially ransomware. However, existing IT infrastructure generally lacks flexibility to react to the rapid pace of change required to protect data, and rapidly recover if needed. Further advancing Pure's existing cyber resiliency ...

Core Insights - Pure Storage is redefining enterprise storage with a unified platform that addresses AI and cyber resilience challenges faced by IT leaders [1][2] - The platform offers a simple, consistent storage experience across various environments, enhancing agility and risk reduction for organizations [3] Innovations and Features - Pure Fusion™ is introduced as a first-of-its-kind storage automation solution that optimizes storage pools across structured and unstructured data [1] - The industry-first Generative AI Copilot for Storage utilizes natural language to assist storage teams in managing and protecting data [1][4] - Evergreen//One™ is launched as a purpose-built AI Storage as-a-Service, providing guaranteed performance for GPU workloads [6] Market Demand and Trends - A survey of 1,500 global CIOs revealed that 98% believe their data infrastructure must improve to support AI initiatives [4] - Companies are facing challenges with inflexible storage architectures that hinder their ability to adapt to AI demands [4][5] Strategic Partnerships and Certifications - Pure Storage is collaborating with NVIDIA to achieve certification for NVIDIA DGX SuperPOD, enhancing its AI-ready infrastructure offerings [7][9] - The Ethernet-based storage solution simplifies large-scale AI training and inference, promoting energy efficiency [8] Customer Perspectives - ServiceNow emphasizes the importance of performance and reliability in scaling operations with Pure Storage [9] - Paylocity highlights the value of Pure Fusion in providing flexibility and self-service capabilities for developers [9]

Revenue Growth - Total revenue increased by $104.2 million, or 18%, in Q1 FY2025 compared to Q1 FY2024, driven by sales to new and existing enterprise customers [151]. - Product revenue rose to $347.4 million, a 12% increase from $308.9 million in Q1 FY2024, primarily due to strong demand for FlashBlade solutions [151][152]. - Subscription services revenue grew by 23% to $346.1 million, up from $280.3 million in Q1 FY2024, largely driven by Evergreen subscription services [151][153]. - Subscription Annual Recurring Revenue (ARR) reached $1.45 billion, reflecting a year-over-year growth of 25% [156]. Financial Performance - Total remaining performance obligations (RPO) stood at $2.3 billion, with an expectation to recognize approximately 48% over the next 12 months [157]. - Total gross margin improved to 71% in Q1 FY2025, up from 70% in Q1 FY2024 [160]. - Net cash provided by operating activities increased to $221.5 million in Q1 FY2025 from $173.2 million in Q1 FY2024, driven by improved sales collections [182]. Expenses - Cost of revenue increased by $21.8 million, or 12%, during Q1 FY2025, with product cost of revenue at $100.8 million and subscription services cost at $97.0 million [160]. - Research and development expenses increased by $8.5 million, or 5%, in Q1 FY2025, primarily due to stock-based compensation adjustments [164]. - Sales and marketing expenses increased by $18.5 million, or 8%, in Q1 FY2025 compared to Q1 FY2024, primarily due to a $22.8 million increase in employee compensation [166]. - General and administrative expenses rose by $9.4 million, or 14%, in Q1 FY2025 compared to Q1 FY2024, driven by additional stock-based compensation [168]. - The company recognized $15.9 million in restructuring and impairment costs during Q1 FY2025, including $9.5 million in severance and termination benefits [169]. Cash and Investments - Cash, cash equivalents, and marketable securities totaled $1.7 billion at the end of Q1 FY2025, sufficient to fund operating and capital needs for at least the next 12 months [174]. - Net cash used in investing activities was $48.4 million in Q1 FY2025, primarily for capital expenditures related to new product innovation [184]. - The share repurchase authorization increased to $395.4 million, with no repurchases made during Q1 FY2025 [180]. Market Risks - A hypothetical 1.00% increase in interest rates could decrease the fair value of marketable securities by approximately $9.3 million [196]. - The company assessed a potential adverse change of 10% in foreign currency exchange rates, which could impact loss before income taxes by approximately $6.9 million [198]. - The company has not engaged in derivative or hedging transactions for foreign currency exchange risks due to their historical insignificance [197]. - The company’s sales contracts are primarily in U.S. dollars, with a small proportion in foreign currencies, exposing it to currency fluctuations [197]. - The company incurs a portion of its operating expenses in foreign currencies, which may lead to transaction gains and losses [197]. - The company may consider entering into hedging transactions in the future if foreign currency exposure increases significantly [197]. - The company is exposed to market risks from fluctuations in interest rates affecting interest income and investment values [195]. Operational Developments - The company introduced new self-service capabilities in March 2024, enhancing customer control over their data storage environment [138]. - Operating expenses as a percentage of total revenue decreased from 31% in Q1 FY2024 to 28% in Q1 FY2025 [164].