Update shared on26 Sep 2025
Fair value Increased 2.19%Pure Storage’s analyst price target was raised to $80.22, reflecting increased confidence in sustained revenue growth, enterprise demand, and successful new product traction—particularly in AI and flash storage—despite some margin and competitive concerns.
Analyst Commentary
- Bullish analysts cite Pure Storage’s strong Q2 results, including broad-based outperformance across the product portfolio, repeated revenue acceleration, and consensus-beating revenue/earnings that drove raised FY26 guidance.
- The company is seen benefiting from expanding enterprise and hyperscale demand, with particular upside from continued ramp with Meta (META), growing role in AI/data-intensive workloads, and ongoing share gains in the enterprise storage market.
- Durable mid-teens revenue growth, robust leading indicators such as a 22% y/y rise in RPO, and improved confidence in the sustainability of the current upcycle—especially in US enterprise storage—support higher price targets.
- The rollout and strong early traction of new products (notably FlashBlade//EXA) are highlighted as key differentiators likely to drive future growth and market share gains, with secular tailwinds from flash adoption and subscription offerings.
- Some bearish analysts remain cautious, maintaining Sell/Neutral ratings due to unresolved margin risk, competitive pressures, limited near-term hyperscaler revenue impact, and concerns that product growth has yet to meaningfully re-accelerate despite better guidance.
What's in the News
- Kerrisdale Capital disclosed a short position on Pure Storage, arguing its hyperscaler strategy will disappoint and citing persistent HDD cost advantages over Pure's flash solutions for bulk storage; they believe Pure's differentiation in enterprise storage is weakening (Periodicals: Kerrisdale Capital).
- Pure Storage announced significant platform enhancements, deepened cybersecurity partnerships, and native threat detection at the storage layer, aiming for unified cyber resilience and rapid remediation capabilities (Key Developments: Client Announcements, 2025-09-25).
- The company expanded its Enterprise Data Cloud into the public cloud with the launch of Pure Storage Cloud, including Azure Native integrations, and enhanced AI/ML pipeline support with next-gen FlashArray products; Pure1 AI Copilot and Portworx integration now generally available (Key Developments: Product-Related Announcements, 2025-09-25).
- Pure Storage completed a buyback tranche, acquiring 772,000 shares (0.24%) for $42.23 million, contributing to the completion of 2.17% total buybacks ($390.5 million) since February 2024 (Key Developments: Buyback Tranche Update, 2025-08-27).
- The company raised fiscal year 2026 revenue guidance to $3.60-3.63 billion (YoY growth of 13.5%-14.5%) from $3.515 billion (11%), and expects Q3 FY26 revenue of $950-960 million (YoY growth of 14.3%-15.5%) (Key Developments: Corporate Guidance, 2025-08-27).
Valuation Changes
Summary of Valuation Changes for Pure Storage
- The Consensus Analyst Price Target has risen slightly from $78.50 to $80.22.
- The Future P/E for Pure Storage has risen from 56.45x to 59.31x.
- The Discount Rate for Pure Storage remained effectively unchanged, moving only marginally from 8.03% to 8.04%.
Disclaimer
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