Group 1 - Pure Storage (NYSE: PSTG) was recovering from a decline after its fourth-quarter earnings announcement, which disappointed the market due to full-year guidance falling short of analysts' estimates [1] - Concerns were raised regarding the company's future performance following the earnings report [1] Group 2 - The article does not provide any additional relevant information regarding the industry or company beyond the performance of Pure Storage [2]

Group 1: The Trade Desk - The Trade Desk operates the largest independent demand-side platform (DSP) for digital advertising, recognized for its growth and innovation [4] - The company maintains a strong position in connected TV and retail advertising due to its independent business model, avoiding conflicts of interest seen in companies like Alphabet and Meta Platforms [5] - In Q1, The Trade Desk reported a revenue increase of 25% to $616 million and non-GAAP earnings rose 27% to $0.33 per diluted share, with a customer retention rate above 95% [6] - Wall Street estimates adjusted earnings growth at 12% annually through 2026, with a median target price of $90 per share, indicating a potential 10% upside from the current price of $82 [7] Group 2: Pure Storage - Pure Storage specializes in enterprise data storage products, particularly known for all-flash arrays that utilize flash memory for speed and reliability [9] - The company has been ranked as a leader in primary storage platforms by Gartner for 11 consecutive years and has a high net promoter score of 82, indicating strong customer satisfaction [10] - In Q1, Pure Storage's revenue increased 12% to $778 million, but non-GAAP operating margin fell by four percentage points, and non-GAAP earnings dropped 9% to $0.29 per diluted share [11] - Wall Street expects adjusted earnings to grow at 19% annually through January 2027, with a median target price of $70 per share, suggesting a 25% upside from the current price of $55 [7][13]

Group 1: Stock Performance - Pure Storage (PSTG) stock increased by 1.52% to $58.12, outperforming the S&P 500 which had a daily loss of 0.01% [1] - Over the past month, PSTG shares gained 8.28%, surpassing the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37% [1] Group 2: Upcoming Earnings - Pure Storage is projected to report earnings of $0.4 per share, reflecting a year-over-year decline of 9.09% [2] - The consensus estimate for revenue is $845.76 million, indicating a 10.74% increase compared to the same quarter last year [2] Group 3: Annual Estimates - For the annual period, earnings are anticipated to be $1.82 per share and revenue is expected to reach $3.52 billion, representing shifts of +7.69% and +11.01% respectively from the previous year [3] - Recent changes to analyst estimates suggest evolving short-term business trends, with positive revisions indicating analysts' confidence in business performance [3] Group 4: Valuation Metrics - Pure Storage has a Forward P/E ratio of 31.47, indicating a premium compared to its industry's Forward P/E of 13.88 [6] - The company holds a PEG ratio of 1.69, while the Computer-Storage Devices industry has an average PEG ratio of 2 [6] Group 5: Industry Ranking - The Computer-Storage Devices industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 11, placing it in the top 5% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - The global economy is experiencing a data-driven transformation, with artificial intelligence (AI) as the driving force, necessitating high-performance data infrastructure [1][2] - Pure Storage operates in this critical sector, providing essential high-speed data delivery systems that support modern AI applications, presenting a compelling investment opportunity [2] Company Overview - Pure Storage's all-flash technology platform addresses the challenge of data access speed, which is crucial for large-scale AI initiatives [3] - Traditional storage systems are inadequate for AI needs, leading to performance bottlenecks that can hinder significant investments in AI [3] Product Innovation - The company has launched products like FlashArray//XL and FlashBlade//S, designed for the scale required to train large language models, allowing parallel data access without delays [4] - The FlashArray//ST product line is specifically tailored for AI inference, ensuring minimal latency for real-time applications [4] Strategic Partnerships - Pure Storage has established a strong partnership with NVIDIA, integrating its systems into NVIDIA's AI data center blueprints, enhancing its credibility in the AI ecosystem [5] Business Model Transformation - The company has transitioned from a hardware vendor to a platform company focused on high-margin subscription services, enhancing its value proposition [6][7] - This shift has resulted in predictable, recurring revenue, which is favored by investors for its visibility and customer loyalty [8] Financial Performance - In the first quarter of fiscal 2026, Pure Storage reported a revenue growth of 12% to $778.5 million and a free cash flow of $211.6 million [10] - The Annual Recurring Revenue (ARR) reached $1.7 billion, growing 18% year-over-year, with Storage-as-a-Service contract sales increasing by 70% [10] Market Outlook - Analysts project an 11% revenue growth and a non-GAAP operating margin of 17.0%, with a consensus rating of Moderate Buy and an average 12-month price target of $69.95, indicating a potential upside of 20.27% from the current price [9][11]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score emphasizes a company's financial health and future growth potential [4] - Momentum Score tracks price trends to capitalize on upward or downward movements [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Its Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - Investors face a challenge in selecting from over 800 top-rated stocks, making the Style Scores a valuable tool for narrowing down choices [8] Stock Analysis: Pure Storage (PSTG) - Pure Storage Inc. is currently rated 3 (Hold) with a VGM Score of B, indicating a mixed outlook [11] - The company has a strong Momentum Style Score of A, with shares increasing by 1.1% over the past four weeks [11] - Recent upward revisions in earnings estimates by analysts have raised the Zacks Consensus Estimate for fiscal 2026 to $1.82 per share, reflecting a positive trend [12] - PSTG has an average earnings surprise of 13.8%, suggesting potential for exceeding expectations [12]

Core Viewpoint - Pure Storage (PSTG) shares have increased by approximately 3.7% since the last earnings report, underperforming the S&P 500 index [1] Group 1: Earnings Report and Market Reaction - The consensus estimate for Pure Storage has decreased by 6.02% over the past month, indicating a flatlining of fresh estimates [2] - The stock has received a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return in the upcoming months [4] Group 2: VGM Scores - Pure Storage has a strong Growth Score of A, but a low Momentum Score of D, indicating mixed performance across different investment strategies [3] - The stock has been assigned a grade of F on the value side, placing it in the fifth quintile for value investment strategy [3] - The overall aggregate VGM Score for Pure Storage is C, which is relevant for investors not focused on a single strategy [3]

Core Insights - Pure Storage, Inc. (PSTG) has partnered with TierPoint to launch an Imaging Storage-as-a-Service solution tailored for the healthcare sector, addressing challenges such as rising storage costs, performance limitations, and stringent security requirements [1][10] Group 1: Product Offering - The new solution integrates Pure Storage's high-performance infrastructure with TierPoint's HIPAA-compliant data centers, providing a scalable, cloud-enabled storage service that supports AI-driven imaging workloads and long-term data retention [2][10] - The per-study billing model enhances cost predictability for healthcare organizations while improving image retrieval speed and data protection for critical assets [2][10] Group 2: Market Impact - This service allows healthcare providers to align storage costs with patient care delivery models, enabling them to scale operations efficiently and focus on improving patient outcomes [3][4] - The collaboration aims to enhance diagnostic capabilities, boost operational efficiency, and support better patient outcomes in healthcare IT [4] Group 3: Technological Advancements - Pure Storage continues to innovate in enterprise storage, particularly for modern data workloads such as AI and high-performance computing, with the release of Portworx Enterprise 3.3 enhancing its Kubernetes-native storage capabilities [5] - The rollout of FlashBlade//EXA and the adoption of the //E family, which support AI and HPC workloads, indicate strong growth potential, with Storage-as-a-Service TCV sales increasing by 70% in the fiscal first quarter [6] Group 4: Strategic Partnerships - Pure Storage has partnered with Nutanix to provide a solution for managing virtual workloads, enhancing operational efficiency for IT teams in hybrid cloud environments [7] - The firm has also expanded its partnership with Rubrik to improve protection for unstructured data, enhancing threat detection and recovery capabilities in a ransomware-prone environment [8]

ST. LOUIS, June 23, 2025 (GLOBE NEWSWIRE) -- TierPoint, a leading provider of secure, connected IT infrastructure solutions, today announced the launch of a new Imaging Storage-as-a-Service solution utilizing Pure Storage technology. Developed specifically for healthcare organizations, the service helps address the challenges of managing the extensive demands of medical imaging data, including storage costs, performance constraints, and security risks. "We are proud to collaborate with TierPoint to bring a ...

Financial Data and Key Metrics Changes - The meeting discussed the voting results on three proposals, but specific financial data and key metrics changes were not provided in the documents [8][10]. Business Line Data and Key Metrics Changes - No specific data or key metrics changes for various business lines were mentioned in the documents [8][10]. Market Data and Key Metrics Changes - The documents did not include any specific market data or key metrics changes [8][10]. Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong stockholder engagement and has proposed the election of directors and the ratification of independent auditors, indicating a commitment to governance and oversight [8][10]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting, as no questions were received from stockholders [12]. Other Important Information - The meeting was conducted via live webcast to ensure broad stockholder access and participation, and the rules of conduct were outlined for orderly proceedings [3][4]. Summary of Q&A Session Question: Were there any questions from stockholders? - No questions were received during the Q&A session, leading to its conclusion [12].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents unaudited condensed consolidated financial statements for Q1 FY2026, covering balance sheets, operations, comprehensive loss, equity, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$3.81 billion** from **$3.96 billion** as of May 4, 2025, with liabilities and stockholders' equity also declining Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | End of Fiscal 2025 | End of Q1 Fiscal 2026 | | :--- | :--- | :--- | | **Total current assets** | $2,567,279 | $2,400,227 | | **Total assets** | **$3,963,942** | **$3,810,365** | | **Total current liabilities** | $1,596,541 | $1,494,511 | | **Total liabilities** | **$2,657,467** | **$2,566,310** | | **Total stockholders' equity** | **$1,306,475** | **$1,244,055** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2026 total revenue grew **12.3%** to **$778.5 million**, driven by subscription services, with net loss improving to **$14.0 million** Q1 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 Fiscal 2025 | Q1 Fiscal 2026 | Change (%) | | :--- | :--- | :--- | :--- | | Product Revenue | $347,384 | $372,144 | 7.1% | | Subscription Services Revenue | $346,095 | $406,341 | 17.4% | | **Total Revenue** | **$693,479** | **$778,485** | **12.3%** | | Gross Profit | $495,706 | $536,153 | 8.2% | | Loss from Operations | $(41,774) | $(31,171) | (25.4%) | | **Net Loss** | **$(35,009)** | **$(13,995)** | **(60.0%)** | | Net Loss Per Share | $(0.11) | $(0.04) | (63.6%) | [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss for Q1 FY2026 significantly improved to **$13.1 million** from **$36.8 million**, driven by a smaller net loss and unrealized gains Comprehensive Loss Summary (in thousands) | Metric | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Net loss | $(35,009) | $(13,995) | | Change in unrealized net gains (losses) on available-for-sale securities | $(1,802) | $877 | | **Comprehensive loss** | **$(36,811)** | **$(13,118)** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to **$1.24 billion** from **$1.31 billion**, primarily due to **$119.9 million** in common stock repurchases and net loss - The company repurchased and retired approximately **2.5 million shares** of its common stock for an aggregate price of **$119.9 million** during the first quarter of fiscal 2026[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$283.9 million**, while investing activities used **$111.8 million**, and financing activities shifted to a **$149.8 million** outflow Cash Flow Summary (in thousands) | Activity | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Net cash provided by operating activities | $221,500 | $283,936 | | Net cash used in investing activities | $(48,395) | $(111,782) | | Net cash provided by (used in) financing activities | $24,974 | $(149,762) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, financial components, and significant events, including a new **$500 million** unsecured credit facility in June 2025 - Total remaining performance obligations (RPO) were **$2.7 billion** at the end of Q1 FY2026, with approximately **48%** expected to be recognized as revenue over the next 12 months[69](index=69&type=chunk) - In June 2025, the company entered into a new five-year, **$500 million** senior unsecured revolving credit facility, terminating and repaying the previous **$300 million** facility[131](index=131&type=chunk) - During Q1 FY2026, the company repurchased and retired approximately **2.5 million shares** of common stock for **$119.9 million**. At the end of the quarter, **$151.6 million** remained available for future repurchases[98](index=98&type=chunk) - In February 2024, the company initiated a workforce realignment plan, reducing headcount by nearly **250 employees** and incurring restructuring costs of **$27.9 million**, of which **$9.9 million** was recognized in Q1 FY2025[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2026 financial results, noting a **12%** revenue increase to **$778.5 million**, improved net loss, and shifts in gross margins Revenue Performance (in thousands) | Revenue Type | Q1 Fiscal 2025 | Q1 Fiscal 2026 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product revenue | $347,384 | $372,144 | $24,760 | 7% | | Subscription services revenue | $346,095 | $406,341 | $60,246 | 17% | | **Total revenue** | **$693,479** | **$778,485** | **$85,006** | **12%** | - Subscription Annual Recurring Revenue (ARR) grew **18%** year-over-year to **$1.71 billion** at the end of Q1 FY2026[158](index=158&type=chunk) - Total Remaining Performance Obligations (RPO) grew **17%** year-over-year to **$2.7 billion** at the end of Q1 FY2026[160](index=160&type=chunk) Gross Margin Performance | Margin Type | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Product gross margin | 71% | 62% | | Subscription services gross margin | 72% | 75% | | **Total gross margin** | **71%** | **69%** | - Net cash provided by operating activities increased to **$283.9 million** in Q1 FY2026, up from **$221.5 million** in Q1 FY2025, driven by lower net loss and improved working capital management[183](index=183&type=chunk)[184](index=184&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations on its **$1.6 billion** in marketable securities and foreign currency volatility, without using derivatives - **Interest Rate Risk:** A hypothetical **1.00%** (**100 basis points**) increase in interest rates would result in a decrease of approximately **$8.8 million** in the fair value of the company's marketable securities[198](index=198&type=chunk) - **Foreign Currency Risk:** A hypothetical adverse **10%** change in foreign exchange rates would result in an adverse impact of approximately **$6.8 million** on income before income taxes[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of May 4, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the first quarter of fiscal 2026[201](index=201&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[202](index=202&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings deemed to have a material adverse effect on its business or financial position - The company is not presently party to any legal proceedings that, in the opinion of management, would have a material adverse effect on its business[205](index=205&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from macroeconomic conditions, intense competition, supply chain reliance, subscription model transition, security breaches, and new product adoption - The business is subject to risks from uncertain macroeconomic conditions, tariffs, and trade policies which can affect customer demand and costs[208](index=208&type=chunk)[209](index=209&type=chunk) - The company faces intense competition from established companies and cloud providers, which may have greater resources, brand recognition, and existing customer relationships[218](index=218&type=chunk)[220](index=220&type=chunk) - Significant resources are being devoted to developing solutions for hyperscalers, including a design win with Meta, but there is no assurance this will lead to successful sales[214](index=214&type=chunk)[215](index=215&type=chunk) - Reliance on a limited number of suppliers, including single-source suppliers, for key components exposes the company to risks of supply disruption, price volatility, and quality control issues[223](index=223&type=chunk) - A compromise of security measures could lead to data loss, reputational harm, loss of customers, and significant liabilities[254](index=254&type=chunk)[255](index=255&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 FY2026, the company repurchased **2.5 million shares** for **$119.9 million**, with **$151.6 million** remaining for future repurchases Q1 FY2026 Stock Repurchase Activity (in thousands, except price) | Period | Average Price Paid per Share | Total Shares Repurchased | Value of Shares Remaining for Repurchase | | :--- | :--- | :--- | :--- | | Feb 3 - Mar 2, 2025 | $63.35 | 434 | $244,013 | | Mar 3 - Mar 30, 2025 | $49.77 | 954 | $196,516 | | Mar 31 - May 4, 2025 | $40.66 | 1,104 | $151,642 | [Item 3. Defaults Upon Senior Securities](index=62&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities for the period - No defaults upon senior securities were reported for the period[302](index=302&type=chunk) [Item 4. Mine Safety Disclosures](index=62&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures for the period - No mine safety disclosures were reported for the period[303](index=303&type=chunk) [Item 5. Other Information](index=62&type=section&id=Item%205.%20Other%20Information) On June 10, 2025, the company entered a new **$500 million** senior unsecured revolving credit facility, and no directors or officers adopted or terminated Rule 10b5-1 trading plans - On June 10, 2025, the company entered into a new **$500 million** senior unsecured revolving credit facility, replacing its existing one. The new agreement matures on June 10, 2030[304](index=304&type=chunk)[305](index=305&type=chunk) - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the first quarter of fiscal 2026[309](index=309&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including the new Credit Agreement, CEO/CFO certifications, and XBRL data files - Key exhibits filed with this report include the new Credit Agreement (Exhibit 10.12) and CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1)[311](index=311&type=chunk)