Pure Storage, Inc. (NYSE:PSTG) will release earnings results for the third quarter after the closing bell on Tuesday, Dec. 2.Analysts expect the Santa Clara, California-based company to report quarterly earnings at 58 cents per share, up from 50 cents per share in the year-ago period. The consensus estimate for Pure Storage's quarterly revenue is $956.48 million, compared to $831.07 million a year earlier, according to data from Benzinga Pro.On Nov. 4, Pure Storage named Patrick Finn as chief revenue office ...

Core Insights - Pure Storage, Inc. (PSTG) is set to report its third-quarter fiscal 2026 results on December 2, 2025, with earnings expected to be 59 cents, reflecting an 18% increase year-over-year, and total revenues estimated at $958.1 million, indicating a 15.3% growth from the previous year [1][3] Financial Performance - PSTG has achieved a trailing four-quarter earnings surprise of 12.4%, consistently beating estimates [2] - For the fiscal third quarter, PSTG anticipates revenues between $950 million and $960 million, representing a 15% increase at the midpoint compared to the previous year [4] - Non-GAAP operating income is projected to be between $185 million and $195 million, with around 14% growth at the midpoint [4] Growth Drivers - The company is experiencing widespread growth across its portfolio, driven by strong enterprise demand and increasing traction in key software and services such as Evergreen//One, Cloud Block Store, and Portworx [3] - Subscription services revenues are a significant contributor, with expectations of reaching $452.3 million, a 20.2% year-over-year increase [5] - The launch of the Enterprise Data Cloud (EDC) is expected to enhance governance, scalability, and agility while reducing costs [6][7] Strategic Initiatives - Initial collaborations with hyperscalers transitioning to DirectFlash technology are expected to support growth [3] - The co-engineering partnership with Meta is progressing, with the first volume rollout underway and initial revenue recognized [3] - Recent advancements in partnership with Cisco aim to enhance AI project scalability [9][10] Market Challenges - Management expresses caution regarding economic fluctuations and tariff volatility, alongside fierce competition in the flash-based storage market [8]

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Core Insights - Pure Storage, Inc. (PSTG) is preparing to release its quarterly earnings on December 2, 2025, with an expected EPS of $0.59 and revenue of approximately $955.5 million [1][6] - Western Digital Corporation (WDC) is experiencing strong momentum in the AI-driven storage solutions market, evidenced by a 23% year-over-year increase in shipments, totaling 204 exabytes [2][6] - The global data storage market is projected to reach $1.3 trillion by 2033, growing at a CAGR of 16.44% from 2025 to 2033, presenting significant growth opportunities for both PSTG and WDC [4][6] Company Comparisons - WDC's valuation is more attractive, trading at 19.45 times forward earnings, compared to PSTG's 82.84 times, indicating a preference among investors for WDC [3] - PSTG has a high P/E ratio of 201.86, suggesting a willingness to pay over 200 times its earnings, while maintaining a low debt-to-equity ratio of 0.17, reflecting a conservative leverage approach [3] - PSTG's current ratio of 1.58 indicates good liquidity to cover short-term liabilities, supporting its ability to navigate the expanding market [4] Financial Metrics - PSTG's enterprise value to sales ratio is 8.17, and its enterprise value to operating cash flow ratio is 34.17, reflecting its valuation in relation to sales and cash flow [5] - The earnings yield for PSTG is 0.50%, representing the percentage of each dollar invested in equity that was earned by the company [5]

Core Insights - The global data storage market is projected to reach $1,304.7 billion by 2033, growing at a CAGR of 16.44% from 2025 to 2033, driven by business automation, cloud computing, and remote work trends [2] - Western Digital Corporation (WDC) and Pure Storage, Inc. (PSTG) are positioned to benefit from these trends, but their differing business models and financial metrics present varying investment opportunities [2] Group 1: Western Digital Corporation (WDC) - WDC is strategically focused on supporting the data-intensive AI ecosystem, meeting the increasing demand for storage with solid financial performance [3][4] - The company shipped 204 exabytes in the last quarter, a 23% year-over-year increase, and is set to introduce next-generation ePMR drives in early 2026 to meet rising data demands [4][7] - WDC anticipates continued revenue growth due to strong data center demand and higher-capacity drive adoption, with AI applications driving ongoing demand for scalable data infrastructure [5][8] - The company raised its quarterly dividend by 25% to 12.5 cents, returning $785 million to shareholders since FY25, indicating strong financial health and commitment to shareholder returns [7][8] - WDC's shares trade at a forward P/E ratio of 19.45, significantly lower than PSTG's 82.84, highlighting its valuation appeal [7][18] Group 2: Pure Storage, Inc. (PSTG) - PSTG benefits from increasing adoption of its Enterprise Data Cloud architecture and strong traction with hyperscalers, maintaining a positive outlook despite macroeconomic uncertainties [10][11] - The company’s platform, powered by the Purity operating system, supports non-disruptive services and the Storage-as-a-Service model, enhancing its market position [11] - PSTG's FlashBlade solutions are in high demand, supporting its growth in handling AI-driven applications and modern workloads [12][13] - The company added over 300 new customers in the fiscal second quarter, bringing its total to more than 13,500, including 62% of the Fortune 500 [13] - PSTG faces competition in the flash storage market, which may impact pricing and margins, and it has an accumulated operating loss of $1.35 billion [15] Group 3: Comparative Performance and Outlook - Over the past year, WDC's stock has increased by 120.6%, outperforming PSTG and the broader industry [17] - The Zacks Consensus Estimate for WDC's earnings for fiscal 2026 has been revised up by 13% to $7.38, while PSTG's estimate remains stagnant at $1.97 [19][23] - WDC holds a Zacks Rank 1 (Strong Buy), while PSTG has a Zacks Rank 3 (Hold), suggesting WDC is currently a more attractive investment option [24]

Core Insights - Pure Storage (PSTG) is expected to report quarterly earnings of $0.59 per share, an 18% increase year-over-year, with revenues forecasted at $958.14 million, reflecting a 15.3% year-over-year growth [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 2.8%, indicating a reassessment by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3] Key Metrics - Analysts predict 'Revenue- Product' to be $510.23 million, a 12.2% increase from the previous year [5] - The estimate for 'Revenue- Subscription services' is $447.07 million, suggesting an 18.8% year-over-year increase [5] - The consensus estimate for 'Subscription Annual Recurring Revenue (ARR)' is $1.88 billion, up from $1.60 billion in the same quarter last year [6] - Analysts expect 'Remaining Performance Obligations (RPO)' to reach $2.82 billion, compared to $2.40 billion in the same quarter of the previous year [6] - The consensus for 'Non-GAAP Gross profit- Subscription services' is $342.56 million, up from $291.33 million year-over-year [7] - 'Non-GAAP Gross profit- Product' is expected to be $343.76 million, compared to $306.39 million in the same quarter last year [7] Stock Performance - Pure Storage shares have decreased by 12.8% over the past month, while the Zacks S&P 500 composite has only declined by 0.3% [7] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [7]

Core Insights - Pure Storage (PSTG) is anticipated to report a year-over-year earnings increase driven by higher revenues for the quarter ending October 2025, with a consensus outlook suggesting a positive earnings picture [1][3] - The earnings report is scheduled for release on December 2, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2] Earnings Estimates - The Zacks Consensus Estimate predicts quarterly earnings of $0.59 per share, reflecting an 18% increase year-over-year, with revenues expected to reach $958.14 million, a 15.3% rise from the previous year [3] - Over the last 30 days, the consensus EPS estimate has been revised down by 2.77%, indicating a reassessment by analysts regarding the company's earnings prospects [4] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Pure Storage is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.85%, suggesting a bearish outlook from analysts [12] - The stock currently holds a Zacks Rank of 3, making it challenging to predict a consensus EPS beat [12] Historical Performance - In the last reported quarter, Pure Storage exceeded the expected earnings of $0.39 per share by delivering $0.43, resulting in a surprise of +10.26% [13] - The company has successfully beaten consensus EPS estimates in the last four quarters [14] Conclusion - While Pure Storage does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17]

Group 1 - Pure Storage, Inc. has received positive ratings from analysts, with Oppenheimer initiating coverage with a Buy rating and a $120 price target, while J.P. Morgan raised its price target from $105 to $110, maintaining a Buy rating [1][2] - The company's upcoming fiscal Q3 2026 results are anticipated to show revenue between $950 million and $960 million, indicating a year-over-year growth of 14.3% to 15.5%, and non-GAAP operating income is expected to be between $185 million and $195 million, reflecting a growth of 10.6% to 16.6% year-over-year [3] - The bullish outlook is supported by the increasing demand for data storage driven by the growth of unstructured data for AI and data centers, as well as expanding collaborations with tier 1 and 2 hyperscalers [2][3] Group 2 - Pure Storage, Inc. specializes in advanced data storage and management solutions that cater to various data types and workloads across on-premises, cloud, and hosted environments [4]

Core Viewpoint - The comparison between Teradata (TDC) and Pure Storage (PSTG) indicates that TDC currently offers better value for investors based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Estimates - Teradata has a Zacks Rank of 1 (Strong Buy), while Pure Storage has a Zacks Rank of 3 (Hold), suggesting that TDC has a more favorable earnings estimate revision trend [3]. - The improving analyst outlook for TDC makes it a more attractive option for investors focused on earnings estimates [3]. Group 2: Valuation Metrics - TDC has a forward P/E ratio of 11.11, significantly lower than PSTG's forward P/E of 39.19, indicating that TDC may be undervalued relative to its earnings potential [5]. - The PEG ratio for TDC is 2.29, while PSTG's PEG ratio is 2.33, suggesting that TDC's expected earnings growth is more favorable when considering its valuation [5]. - TDC's P/B ratio is 11.32 compared to PSTG's P/B of 19.23, further highlighting TDC's relative undervaluation [6]. Group 3: Overall Value Grades - Based on various valuation metrics, TDC holds a Value grade of B, while PSTG has a Value grade of D, indicating that TDC is the superior choice for value investors at this time [6].

Core Viewpoint - Oppenheimer has initiated coverage on several technology companies, highlighting their potential in the evolving landscape of data storage, cloud computing, and cybersecurity, with varying ratings based on their growth prospects and market positions [1] Group 1: Pure Storage (PSTG) - Oppenheimer initiated coverage with an Outperform rating and a price target of $120, citing Pure Storage as a beneficiary of the increasing creation and storage of unstructured data for AI applications [1] - The company is expected to gain market share in the all-flash array market due to its technological advantages and is expanding its customer base to include tier-1 and tier-2 hyperscalers [1] Group 2: Akamai (AKAM) - Oppenheimer initiated coverage with an Outperform rating and a price target of $100, believing Akamai will benefit from trends in AI inferencing within cloud computing and API security in cybersecurity [1] - The transformation of Akamai is seen as a key factor in enhancing its growth profile [1] Group 3: Fastly (FSLY) - Oppenheimer initiated coverage with a Perform rating, acknowledging recent operational improvements but remaining cautious until a strong continuation in performance is observed [1] Group 4: NetApp (NTAP) - Oppenheimer initiated coverage with a Perform rating, recognizing NetApp as a leading provider of data storage solutions [1] - The company is currently facing near-term growth challenges, particularly in the US Public Sector and EMEA regions [1] Group 5: Rubrik (RBRK) - Oppenheimer initiated coverage with a Perform rating, agreeing with consensus on Rubrik's product differentiation and market opportunity [1] - The neutral view is attributed to increasing competition in cyber-resilience and the belief that the stock is fairly valued at its current growth trajectory [1]