Pure Storage (PSTG) closed at $55.48 in the latest trading session, marking a -1.7% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq lost 0.18%.Heading into today, shares of the data storage company had gained 36.79% over the past month, outpacing the Computer and Technology sector's gain of 15% and the S&P 500's gain of 9% in that time.The upcoming earnings release of Pure Storage will be of great in ...

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]

SANTA CLARA, Calif., May 6, 2025 /PRNewswire/ -- Pure Storage® (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technology and services, today announced it will host a conference call on Wednesday, May 28, at 2:00 p.m. PT to discuss its financial results for first quarter fiscal 2026 ended May 4, 2025. This conference call will be held following the release of Pure Storage's financial results.First Quarter Fiscal 2026 Conference Call Details A live audio broadcast of the con ...

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]

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].

A month has gone by since the last earnings report for Pure Storage (PSTG) . Shares have lost about 9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Pure Storage due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns ou ...

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].