Pure Storage Inc (NYSE:PSTG) shares rallied in early trading on Thursday, after the company reported upbeat fiscal second-quarter results.
PSTG shares are testing new highs. Get the scoop here.
Here are some analyst takeaways.
- JPMorgan analyst Samik Chatterjee reiterated an Overweight rating, while raising the price target from $70 to $80.
- Needham analyst Mike Cikos maintained a Buy rating, while lifting the price target from $75 to $85.
Check out other analyst stock ratings.
JPMorgan: Pure Storage reported revenue of $861 million, beating consensus of $846 million, "driven by robust broad broad-based demand across all segments," Chatterjee said in a note.
The company's gross margins came in at 72.1%, surpassing consensus of 70.7%, "driven by a favorable mix shift between product and software revenue, customers opting for higher-end solutions, and pricing discipline," he added.
Management guided to revenue of $950-$960 million for the fiscal third quarter, with the midpoint of $955 million higher than consensus of $913 million, the analyst stated.
Pure Storage raised its full-year outlook to $3.60-$3.63 billion, higher than expectations of $3.5 billion, reflecting the quarterly beat and "increased confidence from robust demand signals in an improving macro environment," he further wrote.
Needham: Pure Storage's remaining performance obligations (RPO) grew 22% year-on-year, Cikos said. Management raised its fiscal 2026 revenue outlook, which now implies 13.5%-14.5% year-on-year growth versus 11% previously, he added.
"Predictable pricing from Pure Storage’s Storage-as-a-Service offerings is protecting customers from tariff unpredictability and driving continued strength," the analyst wrote. Management indicated that Pure Storage is on track for shipping one or two exabytes to Meta Platforms Inc (NASDAQ:META) in fiscal 2026, "although there is potential for upside," he added.
PSTG Price Action: Shares of Pure Storage had risen by 30.64% to $79.56 at the time of publication on Thursday.
Read More:
• Why Pure Storage Is a Core Investment for the AI Era
Photo: jackpress via Shutterstock
