How Analyst Optimism Ahead of Pure Storage (PSTG) Earnings Could Influence Its Growth Story

• Pure Storage is preparing to report its quarterly earnings on August 27, 2025, with analysts expecting a year-over-year increase in revenue and growth in subscription services, despite an anticipated dip in earnings per share.
• The company’s track record of surpassing earnings estimates and the current positive outlook by analysts have focused investor attention, especially amid fluctuations in the broader technology sector following recent movements in AI-related stocks and upcoming Federal Reserve commentary.
• We’ll examine how the heightened analyst expectations ahead of Pure Storage’s earnings report influence its overall investment narrative.

Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

Pure Storage Investment Narrative Recap

Owning shares in Pure Storage means believing in the company's ability to capture long-term growth in enterprise data storage, driven by its innovation in flash technology and expansion of its as-a-Service offerings. The recent dip in share price, triggered by broader tech sector volatility and profit-taking in AI-related stocks, does not appear to materially impact the biggest short-term catalyst for Pure Storage: delivering strong subscription revenue growth and exceeding earnings expectations. The biggest immediate risk remains margin pressure from fluctuating NAND prices and any resulting impact on profitability.

Among Pure Storage's recent announcements, its new collaboration with SK hynix to deliver high-efficiency QLC flash storage for hyperscale data centers stands out. This move directly relates to expanding market reach and could be a key enabler for sustained revenue growth in future quarters as AI infrastructure investments increase demand for scalable solutions. However, even with such growth catalysts at play, it's important to remember...

Read the full narrative on Pure Storage (it's free!)

Pure Storage's narrative projects $4.7 billion in revenue and $569.8 million in earnings by 2028. This requires 13.0% yearly revenue growth and a $442 million earnings increase from $127.8 million today.

Uncover how Pure Storage's forecasts yield a $71.21 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided four fair value estimates for Pure Storage ranging from US$71.21 to US$93.39 per share. While these show broad optimism, margin pressures from rising NAND prices may sway company performance in either direction, inviting you to explore many viewpoints.

Explore 4 other fair value estimates on Pure Storage - why the stock might be worth as much as 60% more than the current price!

Build Your Own Pure Storage Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pure Storage research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Pure Storage research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pure Storage's overall financial health at a glance.

Want Some Alternatives?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• This technology could replace computers: discover 23 stocks that are working to make quantum computing a reality.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com