Pure Storage(PSTG) ZACKS·2025-02-20 21:00Core Insights - Pure Storage, Inc. (PSTG) is set to report its fourth-quarter fiscal 2025 results on February 26, 2025 [1] - The Zacks Consensus Estimate for earnings in the upcoming quarter is 43 cents, reflecting a 14% decline year-over-year, while total revenues are estimated at 867 million, which represents a 9.7% increase from the previous year [3] - Subscription services revenues are projected to reach 3.15 billion, indicating an 11.5% growth year-over-year, surpassing the previous estimate of $3.1 billion [13] - The company’s stock has increased by 31.7% over the past three months, outperforming the Computer Storage Devices Industry's growth of 24.3% and the S&P 500's gain of 3.6% [15] Competitive Landscape - PSTG's growth is notable compared to peers such as NetApp, Netlist, and Teradata, which have experienced declines of 1.7%, 33.2%, and 19.7% respectively [17] - The company is trading at a premium with a forward 12-month Price/Earnings ratio of 35.12X compared to the industry average of 18.53X [21] Challenges and Considerations - The company faces challenges from rising costs in software, SaaS, and cloud services, as well as uncertainty surrounding AI spending, which may impact IT budgets [19] - There is an expected modest sequential decline in product gross margin due to strong growth in the FlashArray//E family and FlashArray//C solutions [14]