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Investing.com - Needham has raised its price target on Pure Storage (NYSE:PSTG) to $85.00 from $75.00 while maintaining a Buy rating following the company’s stronger-than-expected second-quarter fiscal 2026 results. The stock has shown significant momentum, gaining over 9% in the past week according to InvestingPro data, though current valuations suggest the stock is trading above its Fair Value.
Pure Storage exceeded consensus revenue estimates and raised its full-year revenue outlook, citing confidence in leading indicators such as RPO (Remaining Performance Obligation), which grew 22% year-over-year. The company maintains strong financial health with a current ratio of 1.61 and revenue growth of 10.85% over the last twelve months. InvestingPro analysis reveals 13 additional key insights about Pure Storage’s performance and outlook.
The company is experiencing accelerating momentum across its product portfolio, particularly in Evergreen//One, Cloud Block Store, and Portworx offerings. This growth is driven by large customers modernizing virtualization deployments, with Storage-as-a-Service TCV Sales increasing 24% year-over-year to $125 million.
Meta initiated its first volume deployment during the quarter, with plans remaining on track. Pure Storage expressed increased confidence in its target of shipping 1-2 Exabytes or more in fiscal year 2026.
Needham’s higher price target reflects Pure Storage’s anticipated stronger growth in fiscal year 2026, which comes ahead of production shipments to Meta expected in fiscal year 2027.
In other recent news, Pure Storage reported fiscal second-quarter earnings that surpassed analyst expectations, with earnings per share (EPS) of $0.43 and revenue of $861 million. These results exceeded the projected EPS of $0.39 and revenue of $846 million, marking a significant achievement for the company. The company experienced approximately 12.7% overall sales growth, including 11% growth in product sales and 15% in services and software segments. Analysts have taken note of these strong results, with BofA Securities raising its price target for Pure Storage to $80, maintaining a Neutral rating. Similarly, Evercore ISI increased its price target to $80 while keeping an Outperform rating. Piper Sandler also adjusted its price target to $78, citing the company’s improved gross profit margins and accelerating remaining performance obligations. These developments reflect a positive response from the investment community, highlighting Pure Storage’s strong financial performance in recent periods.
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