Why Pure Storage (PSTG) Is Up 8.9% After Launching Cloud Platform and Integrating with Azure

• In late September 2025, Pure Storage announced significant enhancements to its platform, including the launch of Pure Storage Cloud, expanded AI-powered management tools, and integration with Microsoft Azure for easier migration and unified data management across hybrid and public cloud environments.
• This marks a material step forward in enabling enterprises to boost cyber resilience and empower AI applications through seamless, policy-driven access to data wherever it resides.
• We'll explore how Pure Storage's expansion into Azure Native cloud services could reshape its investment narrative and long-term growth outlook.

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Pure Storage Investment Narrative Recap

For Pure Storage shareholders, conviction hinges on the company's shift from traditional storage to software-driven, cloud-native services capable of capitalizing on strong AI and cloud infrastructure demand. The recent launch of Pure Storage Cloud and deep Azure integration may accelerate enterprise cloud migration, enhancing near-term revenue catalysts, yet lingering uncertainty remains over Pure's ability to consistently forecast and grow recurring revenues in step with elevated R&D investment, this remains the principal risk even after the news. Among recent announcements, the unveiling of Pure Storage Cloud as an Azure Native service directly aligns with the company’s cloud-first ambitions. This integration can help enterprises manage large-scale AI workloads more efficiently, supporting the growing demand for unified data infrastructure, an immediate catalyst to watch in the context of rising hyperscaler partnerships and subscription revenue momentum. However, investors should be aware that even with recent progress, the risk around the predictability of recurring revenue remains...

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

Pure Storage's narrative projects $5.1 billion in revenue and $571.5 million in earnings by 2028. This requires 15.2% yearly revenue growth and a $432.3 million increase in earnings from $139.2 million today.

Uncover how Pure Storage's forecasts yield a $80.22 fair value, a 11% downside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community place Pure Storage between US$80.22 and US$102.82, highlighting considerable differences in individual outlooks. With recurring revenue growth still facing forecasting challenges, you can examine how these varying perspectives reflect broader uncertainty about the company’s future performance.

Explore 4 other fair value estimates on Pure Storage - why the stock might be worth as much as 14% 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 3 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.

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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.

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