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1. Company Snapshot

1.a. Company Description

Pure Storage, Inc.provides data storage technologies, products, and services in the United States and internationally.The company's Purity software is shared across its products and provides enterprise-class data services, such as data reduction, data protection, and encryption, as well as storage protocols, including block, file, and object.


Its products portfolio includes FlashArray for block-oriented storage, addressing databases, applications, virtual machines, and other traditional workloads; FlashArray//XL; and FlashArray//C, an all-QLC flash array.The company also provides FlashBlade, a solution for unstructured data workloads of various types; FlashStack that combines compute, network, and storage to provide an infrastructure platform; FlashRecover, an all-flash modern data-protection solution; and AIRI, a full-stack AI-ready infrastructure.In addition, it offers evergreen storage subscription, Pure as-a-Service, and Cloud Block Store, as well as Portworx a cloud-native Kubernetes data management solution It also offers technical and professional, training and education, and certification services.


The company sells its products and subscription services through direct sales force and channel partners.The company was formerly known as OS76, Inc.and changed its name to Pure Storage, Inc.


in January 2010.Pure Storage, Inc.was incorporated in 2009 and is headquartered in Mountain View, California.

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1.b. Last Insights on PSTG

Pure Storage's recent performance was negatively impacted by several factors. The company's stock has dropped 25% in the past six months due to cost pressures and AI spending uncertainty. Additionally, several institutional investors have reduced their holdings in the company, including Stanley Laman Group Ltd., which cut its holdings by 18.4%, and Artisan Partners Limited Partnership, which trimmed its position by 7.1%. Congress Asset Management Co. and Diversified Trust Co. also decreased their stakes in the company. Despite a strong Q4 earnings report, with revenue and EPS beating estimates, investor sentiment remains cautious.

1.c. Company Highlights

2. Everpure's Q4 Fiscal 2026 Earnings: A Strong Finish to a Record Year

Everpure reported a strong Q4 FY2026, with revenue reaching $1 billion for the first time, driven by a 25% year-over-year growth in product revenue to $618 million and a 14% year-over-year growth in subscription revenue to $440 million. The company's full-year revenue grew 20% to $3.7 billion, with an implied operating margin of 17.3%. However, EPS came in at $0.2897, missing estimates of $0.65. The company's guidance for FY2027 is bullish, with revenue expected to grow 18.8% to $4.3-4.4 billion and operating profit expected to increase 26% to $780-820 million.

Publication Date: Feb -27

📋 Highlights
  • Record Revenue Milestone: Achieved first $1B revenue quarter in Q4, with full-year revenue reaching $3.7B (20% YoY growth).
  • Enterprise Data Cloud Adoption: Over 600 customers adopted Fusion, now supporting all enterprise storage needs via unified Purity OS and Evergreen hardware.
  • AI-Driven Data Management: Acquisition of 1touch added contextual data intelligence, embedding AI capabilities into core Purity software for AI-ready data.
  • Revenue Growth by Segment: Product revenue rose 25% to $618M, subscription revenue grew 14% to $440M, and TCV for Storage-as-a-Service climbed 28% to $179M.
  • International Expansion: International revenue surged 48% to $385M (36% of total), with FY27 guidance projecting $4.3–4.4B revenue (18.8% YoY growth at midpoint).

Segment Performance

The company's Enterprise Data Cloud architecture continues to resonate with customers, with over 600 customers adopting Fusion since its introduction a year ago. The acquisition of 1touch is expected to further differentiate Everpure by embedding unique data management capabilities into its core Purity software offerings. As Charles Giancarlo stated, "we are shifting from managing storage to managing data, providing context for AI workloads." The company's hyperscaler business is also expected to drive growth, with revenues expected to accelerate in FY2027.

Valuation Metrics

With a P/E Ratio of 115.87 and an EV/EBITDA of 67.51, Everpure's valuation appears to be stretched. However, the company's growth prospects, driven by its Enterprise Data Cloud architecture and hyperscaler business, may justify the premium. The company's ROE of 13.91% and ROIC of 3.79% are also respectable. Investors should monitor the company's ability to execute on its growth plans and manage the impact of component price volatility on its margins.

Guidance and Outlook

The company's guidance for FY2027 is aggressive, with revenue expected to grow 18.8% and operating profit expected to increase 26%. The company's hyperscaler business is expected to drive growth, with revenues expected to accelerate in Q3 and Q4 of FY2027. However, the company also warned of continued component price volatility and potential shipment delays, which could impact its margins and growth prospects.

Conclusion on Financial Health

Everpure's balance sheet remains robust, with over $1.5 billion in cash and investments at the end of the year. Cash flow from operations was $880 million for the year, and capital expenditures were $264 million, representing approximately 7.2% of revenue for fiscal year '26. The company's financial health is expected to support its growth plans, and its guidance suggests that it is well-positioned to navigate the challenges in the storage industry.

3. NewsRoom

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TTEC vs. PSTG: Which Stock Is the Better Value Option?

Apr -13

Source: zacks.com

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3 Under-the-Radar Tech Names Investors Might Have Missed

Apr -11

Source: marketbeat.com

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Everpure, Inc. (PSTG) is Attracting Investor Attention: Here is What You Should Know

Apr -10

Source: zacks.com

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Everpure (PSTG) Stock Sinks As Market Gains: What You Should Know

Apr -09

Source:

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Everpure to Change Ticker Symbol to "P"

Apr -07

Source: prnewswire.com

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Everpure (PSTG) Outpaces Stock Market Gains: What You Should Know

Apr -02

Source: zacks.com

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Everpure (PSTG) Down 6% Since Last Earnings Report: Can It Rebound?

Mar -27

Source: zacks.com

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Everpure Stock Down 25% in Past 6 Months: Should You Hold or Offload?

Mar -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.71%)

6. Segments

Data Storage Product

Expected Growth: 8%

Pure Storage's 8% growth in Data Storage Products is driven by increasing demand for flash-based storage, adoption of cloud-based infrastructure, and growing need for data analytics and AI workloads. Additionally, the company's focus on innovation, customer satisfaction, and strategic partnerships contribute to its market share expansion.

Subscription Services

Expected Growth: 12%

Pure Storage's subscription services growth is driven by increasing demand for cloud-based data storage, adoption of 'as-a-service' models, and growing need for data management and analytics. Additionally, the company's focus on innovation, customer satisfaction, and strategic partnerships contribute to its 12% growth rate.

7. Detailed Products

FlashArray

All-flash storage array designed for high-performance and low-latency applications

FlashBlade

Scale-out, all-flash storage system for unstructured data

Portworx

Kubernetes-native storage and data management platform

Pure1

Cloud-based management and monitoring platform

Purity

Operating system for FlashArray and FlashBlade

Evergreen Storage

Subscription-based storage service with built-in upgrades and support

8. Pure Storage, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Pure Storage, Inc. faces moderate threat from substitutes due to the presence of alternative storage solutions such as cloud storage and traditional hard disk drives.

Bargaining Power Of Customers

Customers have limited bargaining power due to Pure Storage, Inc.'s strong brand reputation and the complexity of its products, making it difficult for customers to switch to alternative solutions.

Bargaining Power Of Suppliers

Suppliers have moderate bargaining power due to the presence of multiple suppliers of components and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and the need for specialized expertise in the storage industry.

Intensity Of Rivalry

The storage industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.49%
Debt Cost 4.06%
Equity Weight 89.51%
Equity Cost 9.67%
WACC 9.08%
Leverage 11.72%

11. Quality Control: Pure Storage, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
InterDigital

A-Score: 6.6/10

Value: 3.7

Growth: 8.8

Quality: 9.0

Yield: 3.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
HP

A-Score: 5.6/10

Value: 9.0

Growth: 4.1

Quality: 4.8

Yield: 8.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
NetApp

A-Score: 5.5/10

Value: 3.4

Growth: 5.7

Quality: 7.4

Yield: 5.0

Momentum: 4.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Gen Digital

A-Score: 5.2/10

Value: 3.0

Growth: 4.6

Quality: 6.7

Yield: 4.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
SAIC

A-Score: 5.0/10

Value: 6.6

Growth: 5.4

Quality: 7.1

Yield: 3.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Pure Storage

A-Score: 4.3/10

Value: 0.2

Growth: 7.8

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

64.0$

Current Price

64$

Potential

-0.00%

Expected Cash-Flows