In 2025, data storage emerged as a strong theme tied to the global data center buildout, with Sandisk and Western Digital leading the charge as AI stocks normalized. Pure Storage, focusing on modern data storage platforms, is now in focus with analysts anticipating double-digit upside potential for its stock heading into 2026.

Pure Storage, valued at about $22.12 billion, offers software-driven, all-flash storage designed for speed, scale, and cloud flexibility. Despite a rally and subsequent decline in 2025, PSTG stock is still up 16.38% over the past six months, with technical indicators showing signs of improvement.

Pure Storage’s third quarter of fiscal 2026 showcased strong revenue growth and profitability, with a focus on expanding its Enterprise Data Cloud and launching new products like Pure Storage Cloud Azure Native. Analysts expect a 15.2% increase in EPS for 2026 and a further 43.4% rise in fiscal 2027.

Wall Street’s view on Pure Storage stock is bullish, with most analysts leaning towards a “Strong Buy” rating and an average price target of $95.44, suggesting an upside potential of 42.43% and potential for a rally of almost 80% from the Street-high target of $120.

Read more at Barchart: After Record Runs for Western Digital and Sandisk in 2025, Consider This 1 Data Center Storage Stock for 2026