Upside case
Bull case
$36-46.9%
The bull case prices PSTG at 16x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewBuyUpdated May 1, 2026
Pure Storage, Inc. (PSTG) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
32
analysts
24 bullish · 1 bearish · 32 covering PSTG
Strong Buy
0
Buy
24
Hold
7
Sell
1
Strong Sell
0
Consensus Target
$87
+29.4% vs today
Scenario Range
— – $36
Model bear to bull value window
Coverage
32
Published analyst ratings
Valuation Context
29.2x
Forward P/E · Market cap $22.0B
PSTG price targets
Three scenarios for where PSTG stock could go
Current
~$67
Confidence
58 / 100
Updated
May 1, 2026
Where we are now
Current · $67
Base
$67
Bull
$36
Market caseClosest to today
Base case
$67+0.0%
This is close to how the market is already pricing PSTG — at roughly 29x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Pure Storage, Inc.
PSTG · NYSETechnologyComputer HardwareDecember year-end
Pure Storage is an enterprise data storage company that provides all-flash storage arrays and software-defined storage solutions. It generates revenue primarily through hardware sales of its FlashArray and FlashBlade systems (roughly 60% of revenue) and subscription services including Evergreen Storage and Pure as-a-Service (roughly 40%). The company's key advantage is its proprietary Purity software platform — which delivers superior data reduction, simplicity, and cloud-like consumption models — creating strong customer lock-in through its subscription ecosystem.
Market Cap
$22.0B
Revenue TTM
$3.7B
Net Income TTM
$188M
Net Margin
5.1%
PSTG Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
91%Exceptional
12 quarters tracked
Revenue Beat Rate
90%Exceptional
vs consensus estimates
Avg EPS Surprise
+16.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$0.29/$0.25
Revenue
$778M/$770M
Q3 2025
EPS
$0.43/$0.39
Revenue
$861M/$846M
Q4 2025
EPS
$0.58/$0.58
Revenue
$964M/$956M
Q1 2026
EPS
$0.69/$0.65
Revenue
$1.1B/$1.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.29/$0.25 | +18.0% | $778M/$770M | +1.0% |
| Q3 2025 | $0.43/$0.39 | +10.8% | $861M/$846M | +1.7% |
| Q4 2025 | $0.58/$0.58 | +0.0% | $964M/$956M | +0.9% |
| Q1 2026 | $0.69/$0.65 | +7.0% | $1.1B/$1.0B | +2.6% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$4.3B
+16.4% YoY
FY2
$4.9B
+14.3% YoY
EPS Outlook
FY1
$1.37
+152.6% YoY
FY2
$1.51
+9.9% YoY
Trailing FCF (TTM)$256M
FCF Margin: 7.0%
Next Earnings
May 27, 2026
Expected EPS
$0.40
Expected Revenue
$998M
PSTG beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
PSTG Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $3.2B
Product Mix
Latest annual revenue by segment or product family
Product
53.6%
+4.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
69.7%
+11.5% YoY
Tap, hover, or focus a slice to inspect segment detail.
Product is the largest disclosed segment at 53.6% of FY 2025 revenue, up 4.7% YoY.
UNITED STATES is the largest reported region at 69.7%, up 11.5% YoY.
PSTG Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Overvalued
Fair value est. $45 — implies -32.9% from today's price.
Premium to Fair Value
32.9%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PSTG
142.5x
vs
S&P 500
25.2x
+465% premium
vs Technology Trailing P/E
PSTG
142.5x
vs
Technology
27.2x
+424% premium
vs PSTG 5Y Avg P/E
Today
142.5x
vs
5Y Average
134.2x
+6% premium
Forward PE
29.2x
S&P 500
19.1x
+53%
Technology
21.7x
+35%
5Y Avg
—
—
Trailing PE
142.5x
S&P 500
25.2x
+465%
Technology
27.2x
+424%
5Y Avg
134.2x
+6%
PEG Ratio
—
S&P 500
1.74x
—
Technology
1.47x
—
5Y Avg
—
—
EV/EBITDA
81.3x
S&P 500
15.2x
+434%
Technology
17.3x
+370%
5Y Avg
70.8x
+15%
Price/FCF
35.7x
S&P 500
21.3x
+68%
Technology
19.8x
+80%
5Y Avg
30.0x
+19%
Price/Sales
6.0x
S&P 500
3.1x
+91%
Technology
2.4x
+148%
5Y Avg
5.1x
+18%
Dividend Yield
—
S&P 500
1.87%
—
Technology
1.18%
—
5Y Avg
—
—
| Metric | PSTG | S&P 500 | Technology | 5Y Avg PSTG |
|---|---|---|---|---|
| Forward PE | 29.2x | 19.1x+53% | 21.7x+35% | — |
| Trailing PE | 142.5x | 25.2x+465% | 27.2x+424% | 134.2x |
| PEG Ratio | — | 1.74x | 1.47x | — |
| EV/EBITDA | 81.3x | 15.2x+434% | 17.3x+370% | 70.8x+15% |
| Price/FCF | 35.7x | 21.3x+68% | 19.8x+80% | 30.0x+19% |
| Price/Sales | 6.0x | 3.1x+91% | 2.4x+148% | 5.1x+18% |
| Dividend Yield | — | 1.87% | 1.18% | — |
PSTG trades above S&P 500 benchmarks on 5 of 5 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolPSTG Financial Health
Verdict
Strong
PSTG 10.3% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$3.7B
Revenue Growth
TTM vs prior year
+15.6%
Gross Margin
Gross profit as a share of revenue
70.4%
Operating Margin
Operating income divided by revenue
3.1%
Net Margin
Net income divided by revenue
5.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.54
Free Cash Flow (TTM)
Cash generation after capex
$256M
FCF Margin
FCF as share of revenue — the primary cash quality signal
7.0%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
10.3%
ROA
Return on assets, trailing twelve months
4.0%
Cash & Equivalents
Liquid assets on the balance sheet
$855M
Net Cash
Cash exceeds total debt — no net leverage
$639M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
13.0%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.3%
Dividend
—
Buyback
0.3%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$56M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
346M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pagePSTG Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Valuation and Growth Concerns
Pure Storage trades at a premium valuation, significantly higher than its legacy hardware peers, which can lead to volatility if growth slows. Analysts express concerns that the stock's multiple is rich, offering limited upside without clearer evidence of sustained growth.
High Risk
Competition and Market Dynamics
The company faces stiff competition in all-flash arrays and challenges in penetrating the hyperscaler market, where historical preferences for custom storage systems could hinder share gains. The replicability of Pure's product capabilities raises concerns about defending initial wins with hyperscalers.
High Risk
Input Costs and Margins
A sharp increase in NAND pricing is impacting gross margins, with the company exposed to input cost volatility despite long-term supply agreements. Management's plans to increase R&D and marketing investments could further compress margins, raising concerns about profitability.
Medium
Operational and Execution Risks
Recent insider selling by executives, although often part of scheduled plans, can negatively affect investor sentiment. Additionally, increasing inventory to secure components may indicate anticipated supply chain disruptions.
Medium
Broader Economic and Market Factors
Customers are facing rising costs across software and cloud services, straining IT budgets and slowing purchasing decisions. Macroeconomic uncertainty and margin pressures could lead to further deterioration in demand before improvement.
Lower
Balance Sheet
As of February 2024, Pure Storage has a solid balance sheet with $100 million in debt and $1.53 billion in cash, resulting in a net cash position of $1.43 billion. This indicates the company can manage its debt safely, with liabilities roughly equal to liquid assets.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why PSTG Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Financial Performance and Growth
Pure Storage has demonstrated consistent financial growth, with revenues surpassing $3 billion in fiscal year 2025, a 12% increase from the previous year. For fiscal year 2027, the company guides for revenues of $4.3-$4.4 billion, projecting approximately 19% year-over-year growth.
Successful Subscription Model Transition
The company's revenue growth is driven by a successful transition to subscription-based models, which provide predictable income and enhance customer loyalty. This model has contributed to Pure Storage reporting its first $1 billion quarter with a revenue climb of 20% in Q4 of fiscal year 2026.
Technological Leadership in Data Storage
Pure Storage is a leader in offering advanced data storage and management systems, with innovative solutions like FlashArray and Pure Fusion. Its offerings are specifically targeted at AI workloads, supporting higher value, recurring revenue streams.
Positive Analyst Sentiment
Analysts generally maintain a 'Buy' rating for Pure Storage, with around 70% recommending the stock. Recent analyst upgrades have lifted earnings forecasts, projecting a substantial year-on-year increase in next-quarter earnings per share.
Strong Customer Base and Market Position
Pure Storage boasts a significant customer base, with 62% of the Fortune 500 being its customers. This strong market position, combined with expanding operating margins and strong international sales growth, underpins the company's bullish outlook.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
PSTG Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$66.97
52W Range Position
38%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$46.31
+44.6% from the low
52-Week High
$100.59
-33.4% from the high
1 Month
+9.48%
3 Month
-5.66%
YTD
-3.0%
1 Year
+40.8%
3Y CAGR
+43.3%
5Y CAGR
+29.7%
10Y CAGR
+16.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
PSTG vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
29.2x
vs 18.2x median
+61% above peer median
Revenue Growth
+16.4%
vs +4.9% median
+232% above peer median
Net Margin
5.1%
vs 15.6% median
-67% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
PST PSTG Pure Storage, Inc. | $22.0B | 29.2x | +16.4% | 5.1% | Buy | +29.4% |
NTA NTAP NetApp, Inc. | $22.1B | 14.0x | +3.0% | 18.1% | Hold | +7.8% |
HPE HPE Hewlett Packard Enterprise Company | $40.3B | 12.6x | +11.7% | -0.4% | Hold | -5.4% |
DEL DELL Dell Technologies Inc. | $79.7B | 23.9x | +4.6% | 5.2% | Buy | -29.4% |
IBM IBM International Business Machines Corporation | $211.8B | 18.2x | +4.9% | 15.6% | Hold | +37.2% |
STX STX Seagate Technology Holdings plc | $171.5B | 53.3x | +13.7% | 21.6% | Buy | -20.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
PSTG Dividend and Capital Return
PSTG returns 0.3% annually — null% through dividends and 0.3% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
0.3%
Dividend + buyback return per year
Buyback Yield
0.3%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$56M
Estimated Shares Retired
836.8K
Approx. Share Reduction
0.2%
Shares Outstanding
Current diluted share count from the screening snapshot
346M
FAQ
7 questionsPSTG Investor Questions
Common questions answered from live analyst data and company financials.
01Is Pure Storage, Inc. (PSTG) stock a buy or sell in 2026?
Pure Storage, Inc. (PSTG) is rated Buy by Wall Street analysts as of 2026. Of 32 analysts covering the stock, 24 rate it Buy or Strong Buy, 7 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $87, implying +29.4% from the current price of $67.
02What is the PSTG stock price target for 2026?
The Wall Street consensus price target for PSTG is $87 based on 32 analyst estimates. The high-end target is $105 (+56.8% from today), and the low-end target is $60 (-10.4%). The base case model target is $67.
03Is Pure Storage, Inc. (PSTG) stock overvalued in 2026?
PSTG trades at 29.2x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals significantly overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Pure Storage, Inc. (PSTG) stock in 2026?
The primary risks for PSTG in 2026 are: (1) Valuation and Growth Concerns — Pure Storage trades at a premium valuation, significantly higher than its legacy hardware peers, which can lead to volatility if growth slows. (2) Competition and Market Dynamics — The company faces stiff competition in all-flash arrays and challenges in penetrating the hyperscaler market, where historical preferences for custom storage systems could hinder share gains. (3) Input Costs and Margins — A sharp increase in NAND pricing is impacting gross margins, with the company exposed to input cost volatility despite long-term supply agreements. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Pure Storage, Inc.'s revenue and earnings forecast?
Analyst consensus estimates PSTG will report consensus revenue of $4.3B (+16.4% year-over-year) and EPS of $1.37 (+152.6% year-over-year) for the upcoming fiscal year. The following year, analysts project $4.9B in revenue.
06When does Pure Storage, Inc. (PSTG) report its next earnings?
Pure Storage, Inc. is expected to report its next earnings on approximately 2026-05-27. Consensus expects EPS of $0.40 and revenue of $998M. Over recent quarters, PSTG has beaten EPS estimates 91% of the time.
07How much free cash flow does Pure Storage, Inc. generate?
Pure Storage, Inc. (PSTG) generated $256M in free cash flow over the trailing twelve months — a free cash flow margin of 7.0%. PSTG returns capital to shareholders through and share repurchases ($56M TTM).