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]

Core Viewpoint - Pure Storage will host a conference call on May 28, 2025, to discuss its financial results for the first quarter of fiscal 2026, which ended on May 4, 2025 [1]. Conference Call Details - The conference call will be available via live audio broadcast on the Pure Storage Investor Relations website, with a replay option for two weeks [2]. - The call will include participation from key executives, including the Chief Technology Officer and the Chief Financial Officer [3]. Upcoming Investor Conferences - Pure Storage will participate in the William Blair's 45th Annual Growth Stock Conference on June 3, 2025, at 6:00 a.m. PT [3]. - The company will also attend the Bank of America 2025 Global Tech Conference on the same day at 11:00 a.m. PT [3]. - A product and technology-focused meeting for financial analysts will take place during Pure//Accelerate 2025 from June 17-19, 2025, in Las Vegas [3][4]. Company Overview - Pure Storage provides advanced data storage solutions that enable organizations to manage and protect data efficiently [5]. - The company emphasizes simplicity and flexibility in its offerings, which include a unified Storage-as-a-Service platform across various environments [5]. - Pure Storage's Evergreen architecture allows for continuous improvement without planned downtime, enhancing customer capacity and reducing energy consumption [5]. Analyst Recognition - Pure Storage is recognized as a leader in the 2024 Gartner Magic Quadrant for both Primary Storage Platforms and File & Object Storage Platforms [6].

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].

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]