Expanding Data Cloud Solutions Will Strengthen Market Presence Amid Rising Demand

The analyst price target for Pure Storage has increased from about $84.94 to $89.39. This change reflects growing confidence among analysts in the company's expanding enterprise data capabilities, robust technology integrations, and strengthening position in both enterprise and hyperscaler storage markets.

Analyst Commentary

Recent Street research reveals a consensus of growing confidence from bullish analysts as Pure Storage continues to execute on its strategy and expand its market footprint. However, some caution remains as the valuation climbs and uncertainties persist regarding competition and hyperscale opportunities.

• Bullish analysts have raised their price targets, citing Pure Storage's impressive execution on its long-term vision and robust product innovation, particularly in the flash storage segment.
• The expansion of enterprise data cloud offerings and enhanced cybersecurity capabilities, including new integrations with major ecosystem partners, were highlighted as key drivers for growth.
• The company is seen as well positioned to address growing demand from both enterprise and hyperscaler customers, supported by strong results and upwardly revised fiscal outlooks.
• There is continued momentum in gaining market share, accelerated revenue growth guidance, and optimism about demand for AI-driven and cloud-based workloads.

• Bearish analysts point to the elevated valuation, with some maintaining neutral or sell ratings despite upward target revisions, reflecting caution around growth sustainability.
• There are concerns about potential margin risk due to ongoing investments and competitive pressures within the storage sector.
• Uncertainty persists over the timing and scale of hyperscaler adoption, with some estimates being left unchanged after events as analysts await concrete revenue impact from major deals.
• Mixed views remain around the durability of the upcycle, with skepticism regarding whether mid-teens to high-teens revenue and earnings growth can be maintained over the long term.

What's in the News

• Kerrisdale Capital publicly disclosed a short position against Pure Storage, criticizing its hyperscaler strategy and claiming cost advantages remain with HDDs for bulk storage applications (Kerrisdale Capital).
• Pure Storage announced major platform enhancements with deeper partner integrations, delivering significant advances in cyber resilience and unified threat detection capabilities.
• The company rolled out new AI-driven management and automation tools, including the Pure1 AI Copilot and expanded Enterprise Data Cloud services. These are now available as native integrations on Azure and support hybrid cloud workloads.
• Pure Storage raised its fiscal 2026 financial guidance, now projecting revenue of $3.60 billion to $3.63 billion with annual growth of up to 14.5%.
• Between May and August 2025, Pure Storage repurchased over 772,000 shares as part of its broader buyback program.

Valuation Changes

• Consensus Analyst Price Target has risen slightly from $84.94 to $89.39, reflecting increased optimism about future performance.
• Discount Rate has edged down marginally from 8.01% to 8.00%, which signals a minor reduction in perceived risk.
• Revenue Growth forecast has improved modestly, increasing from 15.21% to 15.46%.
• Net Profit Margin estimate has dipped slightly from 11.16% to 11.08%.
• Future P/E ratio projection has increased from 62.74x to 66.01x. This suggests higher expectations for future earnings.