Update shared on29 Aug 2025
Fair value Increased 10%Pure Storage’s consensus price target has been notably raised to $77.94, reflecting stronger-than-expected Q2 results, upward revisions to revenue and EPS estimates amid accelerating product and subscription demand, and improved forward guidance, though some analysts remain cautious on competitive risks.
Analyst Commentary
- Stronger-than-expected Q2 results, with broad-based outperformance across the product portfolio, driving revenue and earnings beats and supporting guidance raises for FY26.
- Upward revisions to full-year revenue and EPS estimates, underpinned by robust leading indicators such as RPO growth (+22% y/y) and improved demand across offerings, including secular tailwinds for flash and subscription products.
- Raised outlook for FY26 growth, with anticipation of further benefit ahead of production shipments to Meta in FY27, despite minimal current contribution from Meta.
- Sustained revenue acceleration, including guidance for 15.5% second-half growth and three consecutive quarters of accelerating revenue, surprising some analysts who expected mid-teens growth would be unachievable.
- Cautious notes remain from some bearish analysts, citing unproven re-acceleration in product growth, pending hyperscaler deal catalysts, competitive and margin risks, and relatively modest price target hikes despite guidance improvement.
What's in the News
- Raised full-year 2026 revenue guidance to $3.60–$3.63 billion (13.5–14.5% YoY growth), up from prior $3.515 billion (11% growth).
- Issued Q3 FY26 revenue guidance of $950–$960 million (14.3–15.5% YoY growth).
- Completed repurchase of 7.1 million shares (2.18% of shares outstanding) for $390.27 million under existing buyback plan.
- Appointed Tarek Robbiati as CFO, bringing significant experience from previous executive roles at RingCentral, HPE, Sprint, and others.
- Announced major product enhancements: launched Enterprise Data Cloud (EDC) platform with unified block/file/object storage, expanded FlashArray and FlashBlade offerings, new cybersecurity integrations, GA rollout for AI Copilot, and partnered with TierPoint for Healthcare Imaging Storage-as-a-Service.
Valuation Changes
Summary of Valuation Changes for Pure Storage
- The Consensus Analyst Price Target has significantly risen from $70.61 to $77.94.
- The Consensus Revenue Growth forecasts for Pure Storage has significantly risen from 13.0% per annum to 15.1% per annum.
- The Future P/E for Pure Storage has significantly risen from 50.84x to 56.77x.
Disclaimer
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