Examining the Future: Pure Storage's Earnings Outlook

Pure Storage (NYSE:PSTG) is set to give its latest quarterly earnings report on Wednesday, 2025-08-27. Here's what investors need to know before the announcement.

Analysts estimate that Pure Storage will report an earnings per share (EPS) of $0.27.

Pure Storage bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.04, leading to a 2.72% drop in the share price the following trading session.

Here's a look at Pure Storage's past performance and the resulting price change:

Pure Storage Share Price Analysis

Shares of Pure Storage were trading at $59.05 as of August 25. Over the last 52-week period, shares are up 0.17%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Pure Storage

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Pure Storage.

Analysts have provided Pure Storage with 7 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $67.57, suggesting a potential 14.43% upside.

Comparing Ratings with Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of NetApp, Super Micro Computer and Western Digital, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for NetApp, with an average 1-year price target of $115.0, suggesting a potential 94.75% upside.
• Analysts currently favor an Neutral trajectory for Super Micro Computer, with an average 1-year price target of $44.09, suggesting a potential 25.33% downside.
• Analysts currently favor an Outperform trajectory for Western Digital, with an average 1-year price target of $83.94, suggesting a potential 42.15% upside.

Peer Metrics Summary

The peer analysis summary outlines pivotal metrics for NetApp, Super Micro Computer and Western Digital, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Pure Storage ranks at the top for Revenue Growth with 12.26%. It ranks at the bottom for Gross Profit with $536.15M. It ranks at the bottom for Return on Equity with -1.10%.

About Pure Storage

Pure Storage Inc is a U.S.-based company that provides an enterprise data storage platform that transforms business through a dramatic increase in performance and reduction in complexity and costs. It generates revenue from two sources: product revenue, which includes the sale of integrated storage hardware and embedded operating system software; and subscription services revenue, which includes Evergreen Storage subscriptions, a unified subscription that includes Pure as-a-Service, Cloud Block Store, and Portworx. Subscription services revenue also includes professional services offerings such as installation and implementation consulting services.

Pure Storage: Financial Performance Dissected

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Pure Storage showcased positive performance, achieving a revenue growth rate of 12.26% as of 30 April, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Pure Storage's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -1.8%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Pure Storage's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -1.1%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Pure Storage's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.36% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Pure Storage's debt-to-equity ratio is below the industry average. With a ratio of 0.22, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Pure Storage visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.