From Yahoo Finance: 2025-05-27 15:01:00

B of A Securities analyst Wamsi Mohan adjusted full-year estimates for Pure Storage, Inc. (NYSE: PSTG) ahead of its earnings release on May 28. Forecasting first quarter fiscal 2026 revenue at $772 million and EPS at 26 cents, slightly exceeding Street expectations. The first quarter typically shows a 16% sequential revenue decline.

Mohan predicts a 12% quarter/quarter decline for Pure Storage, reflecting continued momentum from FlashBlade/E adoption. Despite the impact on product margins in the first fiscal quarter, an operating margin of 10.7% is forecasted, higher than both Street’s estimate and the company’s guidance.

For the second quarter, revenue is expected to be $835 million, slightly below the Street estimate. Weakness in NAND pricing is anticipated to support margin expansion in the second and third quarters, with Pure Storage likely to reiterate its full-year operating margin guidance of 17%.

The analyst revised EPS for FY27 to $2.07 and FY28 to $2.46. Upside risks include a faster commercial segment recovery and lower flash costs. Downside risks involve an extended economic slowdown and intense competition from established vendors and private companies, impacting storage industry growth.

Maintaining a Neutral rating, the analyst sets a price forecast of $73 due to product growth not re-accelerating yet, with competitive pressures from HDD and ongoing investments presenting margin risks. PSTG shares are trading lower by 0.08% at $55.40.



Read more at Yahoo Finance: Pure Storage Margin To Expand From NAND Pricing Weakness: Analyst