Key Takeaways Pure Storage's shares gained 37% in a month, outperforming its sector and the S&P 500 composite.Subscription revenues rose 14.8% with ARR hitting $1.8B, highlighting strong demand.PSTG lifted fiscal 2026 revenue outlook to $3.6-$3.63B, signaling 14% year-over-year growth.Pure Storage, Inc’s (PSTG) shares have been performing well on the trading front, with a gain of 37.1% in the past month. Since announcing strong quarterly numbers on Aug. 27, the stock has gained 29.4%.  Price PerformanceImag ...

Key Takeaways SMCI's cooling platforms generated over 70% of revenues in Q4 fiscal 2025.DCBBS cuts installation time to 3-6 months, speeding SMCI's revenue recognition.SMCI targets $33B fiscal 2026 revenues, up 48% from the prior year estimate.Super Micro Computer’s (SMCI) next-generation air-cooled and liquid-cooled GPU and AI platforms are experiencing massive growth in traction, leading to more than 70% contribution to its top line in the fourth quarter of fiscal 2025. Both the enterprise and cloud servi ...

Core Insights - Pure Storage (PSTG) reported second-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 43 cents, exceeding the Zacks Consensus Estimate by 10.3% and slightly down from 44 cents in the prior-year quarter [1][8] - Quarterly revenues increased by 13% year-over-year to $861 million, surpassing both the Zacks Consensus Estimate by 1.8% and management's guidance of $845 million, driven by strong demand from large enterprises and growth in FlashBlade and core software offerings [2][8] Financial Performance - PSTG's product revenues, which accounted for 51.8% of total revenues, reached $446.3 million, reflecting a 10.6% year-over-year increase, while subscription services revenues (48.2%) rose by 14.8% to $414.7 million [5] - Subscription annual recurring revenues (ARR) were nearly $1.8 billion, marking an 18% increase year-over-year [6] - Non-GAAP operating income is forecasted between $605 million and $625 million, indicating about 10% year-over-year growth at the midpoint, which is an improvement from prior guidance [3][4] Guidance and Market Response - For fiscal 2026, PSTG expects revenues in the range of $3.6 billion to $3.63 billion, suggesting a 14% year-over-year growth at the midpoint, which is an increase from the previously guided 11% growth [3][4] - Following the strong quarterly performance and positive guidance, PSTG shares jumped 15% in pre-market trading, with a 21% increase over the past year compared to the industry growth of 7.1% [4] Margin and Cash Flow - The non-GAAP gross margin was reported at 72.1%, slightly down from 72.8% in the prior-year quarter, while the non-GAAP operating margin decreased to 15.1% from 18.1% year-over-year [10][11] - Cash flow from operations for the quarter was $212.2 million, down from $226.6 million in the prior-year quarter, with free cash flow at $150.1 million compared to $166.6 million [12] Shareholder Returns and Obligations - In the fiscal second quarter, the company returned $42 million to shareholders through share repurchases, with $109 million remaining under its current authorization plan [13] - Remaining performance obligations totaled $2.8 billion, reflecting a 22% year-over-year increase [13] Future Outlook - For fiscal Q3, PSTG anticipates revenues in the range of $950 million to $960 million, indicating a 15% increase at the midpoint from the previous year, with non-GAAP operating income expected to be between $185 million and $195 million [14]

Core Insights - Super Micro Computer (SMCI) stock has declined by 25.6% following its fourth-quarter fiscal 2025 earnings report, which showed non-GAAP earnings of 41 cents per share, missing the Zacks Consensus Estimate by 6.8% [1][6] - The stock is currently undervalued compared to the Zacks Computer-Storage Devices industry, trading at a forward 12-month P/E ratio of 19.2X, lower than the industry's 25.08X [2] Competition and Market Position - SMCI faces increasing competition from major players in the storage and server market, including Pure Storage, Dell Technologies, and Hewlett Packard Enterprise [3] - Dell Technologies reported orders worth $12.1 billion for AI servers in Q1 fiscal 2026, which increased to $14.4 billion in AI backlogs, highlighting the competitive landscape [4] Financial Performance and Margins - SMCI's server segment sales grew by 6% year over year, driven by strong demand for AI servers [7] - The company is experiencing margin compression due to competitive pricing, client delays, and rising production costs, with a non-GAAP gross margin contraction of 70 basis points year over year in Q4 fiscal 2025 [8][9] - High inventory reserves for older-generation products and increased upfront costs for production ramp-up are further pressuring margins [10][11] Earnings Estimates - The Zacks Consensus Estimates for SMCI's first-quarter fiscal 2026 earnings is 47 cents, indicating a year-over-year decline of 37.3% [11] - Year-over-year growth estimates for the current year and next year are 23.30% and 29.21%, respectively [12] Long-Term Prospects - Despite current challenges, SMCI's long-term growth prospects remain strong, particularly in the AI-driven solutions market [13][14] - The company's expertise in integrating advanced graphics processing units positions it well for future growth as enterprises expand their data centers [15] Conclusion - While SMCI is facing near-term challenges, its long-term outlook is positive, supported by high demand for its AI-driven solutions and energy-efficient server systems [16]

Western Digital Corporation's ((WDC) shares have gained 51.8% in the past three months, outperforming the Zacks Computer-Storage Devices industry's rise of 13.3%. The stock has also outpaced the Zacks Computer & Technology sector and the S&P 500's growth of 13.6% and 9.9%, respectively. This surge is powered primarily by robust cloud demand and AI-driven storage needs. The company has outperformed its competitors in the storage space, like Seagate Technology Holdings plc ((STX), Pure Storage ((PSTG) and Net ...

Core Insights - The rapid adoption of Agentic AI is increasing the demand for unstructured data storage, with Western Digital Corporation (WDC) leveraging this technology to enhance product development and efficiency [1][2] - The demand for scalable storage solutions is rising as data becomes crucial for AI-driven innovation, with HDDs providing unmatched cost efficiency and reliability [2] - WDC's product demand is growing, with significant shipments of high-capacity drives, reflecting a strong market position [3][5] Company Performance - WDC reported a 30% year-over-year revenue increase to $2.61 billion, driven by high-capacity HDD storage for cloud and generative AI workloads [5][10] - The company projects a 22% year-over-year revenue growth for the fiscal first quarter, estimating revenues of $2.7 billion (+/- $100 million) [5][10] - Shipments of PMR drives exceeding 26 terabytes more than doubled sequentially, surpassing 1.7 million units in the June quarter [3][10] Competitive Landscape - WDC competes with major players like Seagate Technology and Pure Storage in the storage and data market [6] - Seagate reported a 30% year-over-year revenue increase to $2.44 billion, driven by demand from cloud, AI, and edge computing [8] - Pure Storage focuses on software-defined all-flash solutions, enhancing performance for unstructured data workloads [9] Market Outlook - WDC's platforms business is accelerating due to the growth of AI, positioning the company to serve infrastructure providers and AI companies [4] - Despite macroeconomic uncertainties, WDC expects revenues to grow 11% to $3.5 billion for fiscal 2026, supported by strong demand for its product offerings [11] - WDC shares have gained 18.4% over the past year, outperforming the Zacks Computer-Storage Devices industry [12]

For fiscal 2025, revenues skyrocketed 51% year over year to $9.5 billion. During the quarter, WDC shipped 190 exabytes of storage to customers, up 32% year over year, fueled by strong demand for nearline drives and growing volumes of its 26TB CMR and 32TB UltraSMR products. Also, shipments of its 26TB CMR and 32TB UltraSMR drives more than doubled from the previous quarter, topping 1.7 million units in June. This was one of the fastest ramps in its history. On Feb. 21, 2025, Western Digital split its HDD an ...

Core Insights - Western Digital (WDC) is positioned to potentially continue its earnings-beat streak in upcoming reports, particularly within the Zacks Computer-Storage Devices industry [1] - The company has a history of beating earnings estimates, with an average surprise of 6.31% over the last two quarters [1] Earnings Performance - For the most recent quarter, Western Digital reported earnings of $1.22 per share, missing the expected $1.36 per share by 11.48% [2] - In the previous quarter, the company reported $1.77 per share against an expectation of $1.75 per share, resulting in a surprise of 1.14% [2] Earnings Estimates and Predictions - Recent estimates for Western Digital have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong potential for an earnings beat [5] - The current Earnings ESP for Western Digital is +3.70%, suggesting that analysts are optimistic about the company's earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank 1 (Strong Buy) indicates a high likelihood of another earnings beat [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

Core Insights - Western Digital Corporation (WDC) is set to release its fourth-quarter fiscal 2025 results on July 30, with earnings estimated at $1.47, reflecting a 2% growth year-over-year [1] - Revenue estimates are pegged at $2.45 billion, indicating a significant decline of 34.8% from the previous year [2] - The company has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 7.3% [2] Revenue and Earnings Expectations - The consensus estimate for revenues stands at $2.45 billion, which is a 34.8% decline from the prior-year quarter [2] - Management projects non-GAAP earnings of $1.45, with a potential variance of +/- 20 cents [1][2] - WDC anticipates sequential revenue growth in Q4, driven by strong demand from cloud service providers [3][4] Market Demand and Product Performance - Continued strong demand from cloud service providers is expected to benefit WDC's fiscal fourth-quarter performance, with cloud revenues reaching $2 billion, up 38% year-over-year [3] - The company has shipped over 800,000 units of its 11-disk drives in the fiscal third quarter, with expectations to exceed 1 million units in the June quarter [4] - Management is focusing on HAMR technology and has secured long-term agreements with two major customers through mid-2026 [4] Strategic Initiatives and Innovations - WDC is investing in generative AI-driven storage deployments, which are anticipated to refresh client and consumer devices, thereby increasing content growth across various platforms [5] - The company has established a separate entity, Sandisk, to further expand its Flash business [5] - Recent developments include a partnership with Ingrasys to engineer a new Top-of-Rack Ethernet Bunch of Flash switch, aimed at meeting the surging data demands of AI workloads [13] Financial Strategies - WDC has launched a $2 billion share buyback program, reflecting a strong capital allocation strategy focused on long-term returns for investors [14] - Management expects operating expenses to rise slightly to $330–$340 million due to increased variable pay, new hires, and R&D investments [11] Challenges and Market Conditions - Ongoing macroeconomic volatility and trade conflicts are likely to impact WDC's performance in the upcoming quarter [6][10] - Despite broader uncertainties, demand from hyperscale customers remains strong amid a constrained supply situation [10]

Core Insights - Quantum Corporation (QMCO) has launched two new high-capacity models in its DXi T-Series data protection line, the DXi T-10-240 and DXi T-10-480, which are the first 1U high-performance deduplication appliances offering up to 480 TB of raw NVMe capacity [1][9] Product Features - The new models provide faster backups, ultra-rapid data recovery, and significant reductions in rack space usage, power consumption, and management complexity, enabling organizations to protect more data using less physical space [2] - The DXi T-10-240 and T-10-480 utilize high-speed NVMe flash and Quantum's inline deduplication technology, achieving data reduction ratios of up to 70:1, making them effective for ransomware protection and DevOps workflows [3] - These models are designed to scale with growing data needs without causing disruptions, featuring a pay-as-you-grow licensing model that allows customers to activate only the capacity they need initially and expand in increments of 15 TB or 30 TB [4] Integration and Ecosystem - The new DXi T-Series models integrate seamlessly with Quantum's broader data protection ecosystem, acting as a high-speed landing zone for daily backups and virtual machine recovery, with options for replication or tiering to larger systems [5] - Long-term backups can be securely stored in Quantum's ActiveScale object storage or Scalar tape libraries, providing immutability and cloud-scale durability within a unified environment [5] Market Performance - Quantum has quadrupled the usable capacity of its T-Series in the same compact 1U form factor while maintaining affordability and flexibility through its software-based capacity activation [6] - QMCO currently holds a Zacks Rank 3 (Hold), with shares increasing by 4.6% over the past year, contrasting with a 16.8% decline in the Computer-Storage Devices industry [7]