Key Stats for Pure Storage Stock
- Earnings Reaction: -10.30%
- Current Price: $73.56
- Valuation Model Target: $118.00
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What Happened?
Pure Storage (PSTG) is executing a massive strategic pivot.
The company officially rebranded to “Everpure” following a milestone fourth-quarter earnings release.
The data infrastructure leader delivered its first-ever billion-dollar revenue quarter.
Fourth quarter revenue surged 20% year over year, while remaining performance obligations (RPO) accelerated to a massive 40% growth rate.
Management announced a definitive agreement to acquire 1touch, a leader in artificial intelligence-driven data intelligence.
This acquisition transitions the company from operational storage hardware to comprehensive global data governance.
CEO Charlie Giancarlo detailed exactly why this evolution fundamentally expands their total addressable market.
Giancarlo stated verbatim: “Our rebranding and name change reflect our growth from operational storage to intelligent data management, empowering customers to extract greater value from their data in an increasingly AI-driven world.”
To support massive AI workloads, the company successfully secured the first sales of its new FlashBlade//EXA offering.
See analysts’ growth forecasts and price targets for Pure Storage stock (It’s free!) >>>
Is Pure Storage Undervalued Today?
The TIKR Model indicates that Wall Street is severely underestimating the massive operational leverage driven by the company’s subscription transition and hyperscaler growth.
The model projects a strong target price of $118.00, representing an attractive 60.4% potential total return from current levels.
The company is experiencing unprecedented demand from hyperscalers aggressively building out artificial intelligence data centers.
While a massive component cost super cycle is dramatically increasing NAND and memory pricing, management is aggressively protecting profitability.
The company successfully implemented portfolio wide price increases on February 9 to offset these surging supply chain costs.
CFO Tarek Robbiati explained exactly how the company is maintaining pricing discipline and protecting the bottom line.
Robbiati stated verbatim: “When component costs such as NAND rise, the industry typically sees higher pricing as competitors face similar input cost pressures. This dynamic supports improved pricing discipline and can act as a tailwind to revenue over the medium term.”
Read the full Pure Storage Transcript on TIKR to see the 2027 guidance breakdown >>>
Valuation Deep Dive
The TIKR Advanced Valuation Model identifies Pure Storage as a dominant infrastructure monopoly successfully capturing the enterprise shift toward intelligent AI data governance.
- Target Price: $118.00
- Current Price: $73.56
- Annualized Return (IRR): 10.1%
The Hyperscaler AI Catalyst: Pure Storage is rapidly expanding its footprint within the most lucrative segment of the technology sector. The company’s hyperscaler business is scaling dramatically, with the vast majority of revenue recognition expected to hit in the second half of fiscal year 2027 as data center buildouts accelerate. By procuring specific non-NAND components for these hyperscalers, management expects to generate highly accretive hyperscaler gross margins ranging between 75% and 85%.
The Subscription Profit Engine: The company’s transition toward highly predictable recurring revenue is fundamentally transforming its margin profile. According to the TIKR Historical Breakdown, Pure Storage drove its Net Income Margin to an impressive 18.4% over the last year. The subscription services segment generated $440 million in the fourth quarter, operating at a massive 77% gross margin. As the Evergreen storage as a service model continues to scale, this structural profitability provides a clear runway to the $118.00 valuation target.
Conclusion: A highly disciplined data infrastructure leader successfully evolving into a comprehensive AI data governance platform. Pure Storage offers a highly attractive 60.4% projected total return potential. The path to the $118.00 target is paved by explosive RPO growth, hyperscaler acceleration, and the strategic acquisition of 1touch.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
