The data storage company beats revenue expectations but the stock is falling sharply.
Pure Storage is upgraded to a "Buy" after a post-Q3 dip despite strong results and accelerating AI-driven demand. PSTG delivered 16% y/y revenue growth, 17% ARR growth, and expanding gross margins, signaling robust near-term fundamentals. Investors are likely selling off the stock on management commentary that the company may be changing the economics of its sales to AI hyperscalers, likely to gain market share.
Pure Storage, Inc. (PSTG) Q3 2026 Earnings Call Transcript
While the top- and bottom-line numbers for Pure Storage (PSTG) give a sense of how the business performed in the quarter ended October 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Pure Storage (PSTG) came out with quarterly earnings of $0.58 per share, missing the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.5 per share a year ago.
PSTG readies fiscal Q3 2026 results as enterprise demand, subscription momentum and new tech partnerships shape its growth outlook.
Pure Storage, Inc. is rapidly growing in data management, benefiting from increased Fortune 500 adoption and a shift toward subscription services. PSTG's transition from product sales to subscription services is driving higher margins and more stable, recurring revenue streams. Despite strong operational performance and optimism around AI-related offerings, shares remain expensive relative to fundamentals.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for Pure Storage (PSTG), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended October 2025.
In the latest trading session, Pure Storage (PSTG) closed at $83.15, marking a +1.24% move from the previous day.
Pure Storage (PSTG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Recently, Zacks.com users have been paying close attention to Pure Storage (PSTG). This makes it worthwhile to examine what the stock has in store.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?