Pure Storage (NYSE:PSTG) Issues Earnings Results

Pure Storage (NYSE:PSTG) released its quarterly earnings data on Wednesday. The technology company reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.04, FiscalAI reports. The company had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.03 billion. Pure Storage had a return on equity of 14.69% and a net margin of 5.14%.The company’s revenue was up 20.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.45 EPS.

Here are the key takeaways from Pure Storage’s conference call:

• First billion-dollar revenue quarter (Q4) and FY26 revenue of $3.7B; company guides FY27 revenue of $4.3B–$4.4B (~19% YoY) and Q1 ~$990M–$1.01B, signaling strong momentum.
• Hyperscaler business exceeded expectations, Everpure standardized a hyperscaler model and expects most hyperscaler revenue in H2 FY27 with 75%–85% gross margins that should be accretive to company margins.
• Management warned of sharp component shortages and price volatility (NAND/memory/CPUs), implemented average price increases of ~20%, and expects Q1 product gross margins near the low end of the 65%–70% range before recovery.
• Announced acquisition of 1touch to add data discovery/classification and accelerate AI-ready data management — expected to be ~1.5% dilutive to operating profit in FY27 but accretive within 24 months.

Pure Storage Stock Down 2.9%

NYSE:PSTG traded down $1.92 during trading hours on Friday, hitting $64.06. 3,172,005 shares of the stock were exchanged, compared to its average volume of 3,854,035. The company has a market capitalization of $21.15 billion, a P/E ratio of 116.73, a price-to-earnings-growth ratio of 6.45 and a beta of 1.27. The company’s 50 day moving average is $70.45 and its two-hundred day moving average is $77.44. Pure Storage has a twelve month low of $34.51 and a twelve month high of $100.59.

Key Stories Impacting Pure Storage

Here are the key news stories impacting Pure Storage this week:

• Positive Sentiment: Company reported a Q4 beat and its first $1B revenue quarter, with revenue up ~20% YoY and adjusted EPS above estimates; management offered strong FY27 revenue guidance that reflects hyperscaler momentum. Everpure Announces Fiscal Fourth Quarter and Full Year 2026 Financial Results
• Positive Sentiment: Major strategic shift: Pure Storage rebranded to Everpure and agreed to acquire data intelligence firm 1touch, signaling a move from hardware-centric storage toward data discovery/AI-enabled services — a change that could expand TAM and improve gross margins over time. Everpure Rebrand And 1touch Deal Shift Story Toward Data Intelligence
• Positive Sentiment: Analyst support: Barclays raised its price target from $77 to $81 (Equal Weight), implying material upside from current levels. Barclays price target note
• Neutral Sentiment: Market commentary and transcripts provide color on strategy and hyperscaler traction (earnings call and Bernstein presentation transcripts available for deeper read). Q4 Earnings Call Transcript
• Neutral Sentiment: Analyst writeups and earnings summaries (Zacks, Seeking Alpha) highlight the beat and improved outlook but also note execution risks as the company shifts strategy. Zacks: PSTG Beats on Q4
• Negative Sentiment: Mixed analyst views on valuation: UBS raised its target slightly to $63 but retained a “sell” rating, signaling concerns about current valuation/near-term upside despite the good quarter. UBS price target note

Insiders Place Their Bets

In other Pure Storage news, insider John Colgrove sold 100,000 shares of the business’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $71.31, for a total transaction of $7,131,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Ajay Singh sold 7,178 shares of the company’s stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $67.14, for a total transaction of $481,930.92. Following the transaction, the insider owned 215,091 shares in the company, valued at approximately $14,441,209.74. The trade was a 3.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Pure Storage

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Atreides Management LP bought a new stake in shares of Pure Storage during the 2nd quarter valued at $204,552,000. Polar Capital Holdings Plc grew its stake in shares of Pure Storage by 90.5% during the third quarter. Polar Capital Holdings Plc now owns 2,831,141 shares of the technology company’s stock worth $237,278,000 after purchasing an additional 1,345,207 shares during the period. AQR Capital Management LLC increased its holdings in Pure Storage by 62.7% in the fourth quarter. AQR Capital Management LLC now owns 3,414,715 shares of the technology company’s stock valued at $228,820,000 after purchasing an additional 1,315,351 shares during the last quarter. Alyeska Investment Group L.P. acquired a new position in Pure Storage in the fourth quarter valued at about $49,915,000. Finally, Man Group plc grew its position in shares of Pure Storage by 917.2% during the 2nd quarter. Man Group plc now owns 740,113 shares of the technology company’s stock worth $42,616,000 after buying an additional 667,354 shares during the period. 83.42% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on PSTG shares. TD Cowen reiterated a “buy” rating on shares of Pure Storage in a research report on Wednesday, December 3rd. Wells Fargo & Company decreased their price objective on shares of Pure Storage from $100.00 to $90.00 and set an “overweight” rating on the stock in a research note on Thursday. Wall Street Zen upgraded shares of Pure Storage from a “hold” rating to a “buy” rating in a research note on Saturday, February 21st. Wedbush restated an “outperform” rating and set a $100.00 price target on shares of Pure Storage in a research report on Monday. Finally, Piper Sandler reaffirmed a “buy” rating on shares of Pure Storage in a report on Thursday. Twelve equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $94.32.

Pure Storage Company Profile

Pure Storage, Inc (NYSE: PSTG) is a technology company that designs and sells data storage hardware and software for enterprise and cloud environments. The company is best known for its all-flash storage arrays that are engineered to deliver high performance, low latency and simplified management compared with traditional disk-based systems. Its product portfolio includes purpose-built arrays and software aimed at transactional databases, virtualized infrastructures, analytics and large-scale file/object workloads.

Key product and software offerings include the FlashArray family for block storage and FlashBlade for file and object workloads, together with Purity, the company’s storage operating environment.