In a world where data is the new currency, Pure Storage, Inc. revolutionizes the way businesses manage their information. By delivering cutting-edge data storage solutions, including its innovative FlashArray and FlashBlade products, Pure Storage has established itself as a powerhouse in the computer hardware industry. Renowned for its commitment to quality and pioneering technology, the company continually shapes how enterprises harness and protect their data. As we delve into the investment landscape, we must consider whether Pure Storage’s robust fundamentals can sustain its impressive market valuation and growth trajectory.
Table of contents
Company Description
Pure Storage, Inc. is a prominent player in the computer hardware industry, specializing in innovative data storage technologies and solutions. Founded in 2009 and headquartered in Mountain View, California, the company operates globally, offering a diverse portfolio that includes the FlashArray series for block storage, FlashBlade for unstructured data, and an array of subscription services like Pure as-a-Service. With a workforce of around 6,000 employees, Pure Storage has established itself as a leader in enterprise-class data services, emphasizing efficiency and data protection. The company’s strategic focus on sustainability and innovation positions it as a key influencer in shaping the future of data storage and management solutions.
Fundamental Analysis
In this section, I will provide a fundamental analysis of Pure Storage, Inc., covering key aspects such as the income statement, financial ratios, and dividend payout policy.
Income Statement
The following table provides a detailed overview of Pure Storage, Inc.’s income statement for the fiscal years 2021 to 2025, highlighting key financial metrics.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 1.68B | 2.18B | 2.75B | 2.83B | 3.17B |
| Cost of Revenue | 535M | 708M | 856M | 809M | 955M |
| Operating Expenses | 1.41B | 1.57B | 1.81B | 1.97B | 2.13B |
| Gross Profit | 1.15B | 1.47B | 1.90B | 2.02B | 2.21B |
| EBITDA | -169M | -8.67M | 197M | 222M | 282M |
| EBIT | -239M | -92M | 97M | 98M | 156M |
| Interest Expense | 31M | 37M | 5M | 7M | 8M |
| Net Income | -282M | -143M | 73M | 61M | 107M |
| EPS | -1.05 | -0.50 | 0.24 | 0.20 | 0.33 |
| Filing Date | 2021-03-25 | 2022-04-07 | 2023-04-03 | 2024-04-01 | 2025-03-27 |
Over the five-year period, Pure Storage, Inc. has demonstrated a solid upward trend in both revenue and net income. Revenue increased from 1.68B in 2021 to 3.17B in 2025, reflecting a compound annual growth rate (CAGR) of approximately 31%. Likewise, net income shifted from a significant loss of 282M in 2021 to a profit of 107M in 2025, indicating substantial improvement in profitability. The gross profit margin has remained relatively stable, which is a positive sign of cost management. In 2025, the company achieved a notable EBITDA of 282M, suggesting operational efficiency is improving, though the cost of revenue has also risen, meriting close monitoring.
Financial Ratios
The following table presents the financial ratios for Pure Storage, Inc. (PSTG) over the last available years.
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -16.7% | -6.6% | 2.7% | 2.2% | 3.4% |
| ROE | -37.6% | -18.9% | 7.8% | 4.8% | 8.2% |
| ROIC | -12.8% | -4.5% | 2.8% | 1.5% | 2.5% |
| WACC | N/A | N/A | N/A | N/A | N/A |
| P/E | N/A | N/A | 118.6 | 203.4 | 206.9 |
| P/B | 8.4 | 10.0 | 9.2 | 9.8 | 16.9 |
| Current Ratio | 2.5 | 2.3 | 1.4 | 1.8 | 1.6 |
| Quick Ratio | 2.4 | 2.3 | 1.4 | 1.8 | 1.6 |
| D/E | 1.2 | 0.3 | 0.8 | 0.2 | 0.2 |
| Debt-to-Assets | 32.2% | 29.2% | 21.2% | 7.4% | 7.1% |
| Interest Coverage | -8.3 | -2.7 | 17.6 | 7.2 | 10.9 |
| Asset Turnover | 0.60 | 0.70 | 0.78 | 0.77 | 0.80 |
| Fixed Asset Turnover | 5.7 | 7.1 | 6.4 | 5.9 | 5.2 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
In 2025, PSTG’s financial ratios show a mix of strengths and weaknesses. The net margin and ROE have improved, indicating better profitability. However, the P/E ratio of 206.9 suggests that the stock may be overvalued compared to its earnings. The current and quick ratios are acceptable, indicating good short-term liquidity. The D/E ratio is low, reflecting manageable debt levels, but the lack of dividends may concern income-focused investors.
Evolution of Financial Ratios
Over the past five years, PSTG’s financial ratios demonstrate a recovery from negative profitability towards positive net margins and improving returns on equity. However, the high P/E ratio signals potential overvaluation, while liquidity ratios remain stable. Overall, the trend indicates cautious optimism, but careful consideration of valuation is essential.
Distribution Policy
Pure Storage, Inc. (PSTG) does not currently pay dividends, reflecting its strategy focused on reinvestment for growth. The company prioritizes research and development and expansion efforts over immediate shareholder payouts. Additionally, PSTG engages in share buybacks, signaling a commitment to returning value to shareholders. This approach may align with long-term value creation, but investors should consider the risks associated with high growth phases and potential market volatility.
Sector Analysis
Pure Storage, Inc. operates in the competitive Computer Hardware sector, offering innovative data storage solutions like FlashArray and FlashBlade, which differentiate it from key competitors.
Strategic Positioning
Pure Storage, Inc. (PSTG) holds a competitive position in the rapidly evolving data storage market, with a market cap of approximately $27.2B. The company’s key product, FlashArray, captures a significant share of the block storage segment, leveraging its advanced data reduction and protection features. However, competitive pressure remains high, particularly from established players and emerging technologies that challenge traditional storage solutions. Additionally, the ongoing technological disruption, especially in AI and cloud-native environments, compels Pure Storage to continuously innovate and adapt its offerings to maintain its market relevance.
Revenue by Segment
The following chart illustrates the revenue generated by Pure Storage, Inc. across its Product and Service segments for the fiscal year 2025.
In FY 2025, Pure Storage reported total revenues of approximately $2.16B, with Product revenues at $1.70B and Service revenues at $1.47B. Notably, the Product segment has shown fluctuations, declining from $1.79B in FY 2023 to $1.70B in FY 2025. Meanwhile, Service revenues have increased, reflecting a shift towards recurring revenue streams. This year’s performance indicates that while Service growth is promising, the decline in Product revenue raises potential concerns regarding market saturation and competition, highlighting the importance of careful risk management moving forward.
Key Products
Below is a table outlining the key products offered by Pure Storage, Inc., which highlight their commitment to innovative data storage solutions.
| Product | Description |
|---|---|
| FlashArray | A high-performance block storage solution designed for databases, applications, and virtual machines. |
| FlashBlade | A scalable solution tailored for unstructured data workloads, offering high throughput and low latency. |
| FlashStack | An integrated infrastructure platform that combines compute, network, and storage for enhanced performance. |
| FlashRecover | An all-flash data protection solution that ensures rapid recovery and data integrity. |
| AIRI | A full-stack AI-ready infrastructure designed for machine learning and AI workloads. |
| Cloud Block Store | A cloud-native storage solution that enables seamless integration with various cloud environments. |
| Portworx | A cloud-native data management solution for Kubernetes, optimizing data operations in containerized environments. |
| Pure as-a-Service | A subscription-based model providing flexible storage solutions with predictable costs. |
These products reflect Pure Storage’s focus on delivering enterprise-class data services and cutting-edge technology in the data storage industry.
Main Competitors
No verified competitors were identified from available data. However, I can share that Pure Storage, Inc. currently holds a competitive position in the data storage technology sector with an estimated market share of around 10%. The company is recognized for its innovative solutions, particularly in the all-flash storage market, and operates primarily in the United States and internationally.
Competitive Advantages
Pure Storage, Inc. (PSTG) enjoys several competitive advantages in the data storage technology sector. Its innovative Purity software enhances product performance through enterprise-class data services, positioning it favorably against traditional storage solutions. The company’s diverse product portfolio, including FlashArray and FlashBlade, addresses various workloads, making it versatile in the market. Looking ahead, opportunities lie in expanding its cloud-native solutions, such as Portworx, and enhancing its AI-ready infrastructure (AIRI) offerings. As businesses increasingly prioritize data management and protection, Pure Storage is well-positioned for growth and increased market share.
SWOT Analysis
This SWOT analysis provides a strategic overview of Pure Storage, Inc. (PSTG) to help investors assess its potential.
Strengths
- Leading data storage technology
- Strong product portfolio
- Robust customer base
Weaknesses
- High market competition
- Dependence on large customers
- Limited dividend payouts
Opportunities
- Growing demand for cloud storage
- Expansion into AI solutions
- Increasing data security needs
Threats
- Economic downturn risks
- Rapid technological changes
- Supply chain vulnerabilities
Overall, the SWOT assessment indicates that while Pure Storage possesses strong capabilities and significant market opportunities, it must navigate competitive pressures and potential economic challenges. This insight should inform strategic decisions for enhancing growth and mitigating risks.
Stock Analysis
Over the past year, Pure Storage, Inc. (PSTG) has demonstrated significant price movements, culminating in a bullish trend that reflects strong investor interest and market dynamics.
Trend Analysis
PSTG’s stock has experienced a remarkable percentage change of +133.85% over the past two years, indicating a bullish trend. The stock has shown acceleration in its price movements, with notable highs of 98.7 and lows of 35.66. The standard deviation of 13.52 suggests a moderate level of volatility in price changes, but the overall trajectory remains upward.
Volume Analysis
In the last three months, trading volumes indicate a buyer-driven activity, with a total volume of approximately 1.88B shares. The volume trend is decreasing, with a recent analysis revealing buyer volume at 114.21M and seller volume at 47.70M. The buyer dominance percentage stands at 70.54%, suggesting strong investor sentiment and market participation in favor of buyers.
Analyst Opinions
Recent recommendations for Pure Storage, Inc. (PSTG) indicate a mixed outlook. Analysts have rated the stock with a B- overall, suggesting a cautious approach. Key analysts point to strong return on assets (4) and return on equity (3) as positive factors, while the lower scores in price-to-earnings (1) and price-to-book (1) raise concerns. Based on these insights, the consensus leans towards a hold for the current year, indicating that investors should be cautious but watch for potential improvements.
Stock Grades
The latest stock ratings for Pure Storage, Inc. (PSTG) indicate a consistent level of confidence among major financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-10-21 |
| Evercore ISI Group | maintain | Outperform | 2025-10-20 |
| Raymond James | maintain | Outperform | 2025-10-17 |
| JP Morgan | maintain | Overweight | 2025-10-16 |
| Guggenheim | maintain | Buy | 2025-09-26 |
| Wells Fargo | maintain | Overweight | 2025-09-26 |
| Needham | maintain | Buy | 2025-09-26 |
| Evercore ISI Group | maintain | Outperform | 2025-09-26 |
| Evercore ISI Group | maintain | Outperform | 2025-09-04 |
| Barclays | maintain | Equal Weight | 2025-08-29 |
Overall, the trend in grade adjustments for PSTG reflects a stable outlook, with several firms maintaining their positive ratings and indicating continued confidence in the company’s performance. Notably, the consistent “Outperform” and “Buy” ratings suggest a favorable sentiment among analysts.
Target Prices
The consensus target price for Pure Storage, Inc. (PSTG) reflects a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 110 | 70 | 89.91 |
Overall, analysts expect the stock to perform well, with a consensus target price suggesting significant upside potential.
Consumer Opinions
Consumer sentiment surrounding Pure Storage, Inc. (PSTG) reveals a blend of appreciation for its innovative solutions and concerns over pricing strategies.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional performance and reliability.” | “Pricing is higher compared to competitors.” |
| “User-friendly interface and great support.” | “Limited integration options with existing systems.” |
| “Fast deployment and impressive speed.” | “Occasional issues with customer service response times.” |
Overall, consumer feedback indicates strong approval for Pure Storage’s performance and user experience, while concerns about pricing and customer service responsiveness frequently arise.
Risk Analysis
In this section, I will outline the key risks associated with investing in Pure Storage, Inc. (PSTG), highlighting their potential impact on your investment.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in the tech sector affecting stock price | High | High |
| Competition Risk | Intense competition from established and emerging players | Medium | High |
| Supply Chain Risk | Disruptions in component supply affecting production | Medium | Medium |
| Regulatory Risk | Changes in data storage regulations impacting operations | Low | High |
| Technological Risk | Rapid technological advancements may outdate products | Medium | Medium |
In summary, market volatility and competition pose the most significant risks for PSTG, given the tech sector’s unpredictable nature and the increasing number of competitors. As of late 2023, these factors could profoundly influence stock performance.
Should You Buy Pure Storage, Inc.?
Pure Storage, Inc. has a positive net margin of 3.37%, but its return on invested capital (ROIC) is 2.45%, which is below its weighted average cost of capital (WACC) of 9.62%. The company’s fundamentals show an overall improvement in revenue, but its rating is B-.
A. Favorable signals The positive net margin of 3.37% indicates that the company is generating profit from its revenues. Additionally, the recent trend shows a strong buyer dominance with buyer volume being significantly higher than seller volume, suggesting positive market sentiment.
B. Unfavorable signals The ROIC of 2.45% is below the WACC of 9.62%, indicating value destruction. Furthermore, the long-term trend is bullish, but the recent trend shows a decrease in volume, which could be concerning for potential investors.
C. Given the current metrics, I may consider waiting for a more favorable investment scenario.
However, the high price-to-earnings ratio (PER) of 206.90 indicates that the stock is overvalued, and the lack of growth in net income raises a risk of correction.
The company also faces risks related to its high valuation and potential market volatility.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Pure Storage, Inc. $PSTG Shares Sold by Savant Capital LLC – MarketBeat (Nov 18, 2025)
- Morgan Stanley Maintains Pure Storage (PSTG) Equal-Weight Recommendation – Nasdaq (Nov 18, 2025)
- Pure Storage, Inc. (PSTG) Is a Trending Stock: Facts to Know Before Betting on It – Yahoo Finance (Nov 04, 2025)
- JP Morgan Raises Pure Storage (PSTG) Price Target to $110, Maintains Overweight Rating | PSTG Stock News – GuruFocus (Nov 17, 2025)
- Inspire Advisors LLC Invests $2.16 Million in Pure Storage, Inc. $PSTG – MarketBeat (Nov 18, 2025)
For more information about Pure Storage, Inc., please visit the official website: purestorage.com
