PSTG Earnings Prediction
The chart below shows how PSTG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PSTG sees a -0.74% change in stock price 10 days leading up to the earnings, and a +2.24% change 10 days following the report. On the earnings day itself, the stock moves by +0.70%. This data can give you a slight idea of what to expect for the next quarter's release.
PSTG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
879.84M
11.40%
5.87%
Gross Margin
67.51%
-6.21%
-3.75%
Operating Margin
4.83%
-49.42%
-32.73%
Net Margin
4.82%
-41.86%
-37.08%
EPS
0.12
-25.00%
-36.84%
No Data Available
PSTG Earnings Analysis
Pure Storage Inc Corporation (PSTG.N) Earnings Conference Call
Positive
Strong Q4 Results: Solid Q4 performance exceeding revenue and earnings guidance, marking a successful end to FY '25.
Design Win with Hyperscaler: Achieved a design win with a top four hyperscaler, progressing well in testing and deployment.
DirectFlash Module Launch: Launched a 150 terabyte DirectFlash module, significantly increasing capacity over standard hard disks and SSDs.
E Family Expansion for AI Data: Expansion of the E family to address the expected tenfold increase in unstructured data driven by AI, offering better economics compared to disk.
Enterprise Data Cloud Transformation: Successful GA release of Fusion v.2, transforming enterprise data storage architectures into enterprise data clouds.
Quarterly TCV Sales Surge: Record quarterly TCV sales of Evergreen//One at $140 million, a 20% increase, indicating strong customer interest.
Record Revenue Achievement: Total revenue for FY '25 surpassed $3 billion for the first time, reaching $3.2 billion with a 12% growth.
Record Operating Profit: Achieved highest annual operating profit of $559 million, with an operating margin of 17.4%.
Subscription Revenue Growth: Subscription services revenue increased by 17% in Q4, with annual recurring revenue (ARR) growing 21% to $1.7 billion.
Remaining Obligations Growth: Total remaining obligations (RPO) grew 14% to $2.6 billion, indicating strong future revenue potential.
Revenue Growth Overview: U.S. revenue grew by 12% and international revenue increased by 13% for FY '25, showcasing broad market strength.
Gross Margin Performance: Total gross margin for Q4 was 69.2%, supported by a robust subscription services margin of 77.2%.
Strong Cash Generation: Free cash flow for Q4 was $152 million and $526 million for the year, demonstrating strong cash generation capabilities.
Share Repurchase Program Announcement: Announced a new share repurchase program for an additional $250 million, reflecting confidence in financial health.
Negative
NAND Price Impact on Margins: The rise of NAND prices in 2024 negatively affected gross margins, which are expected to settle in the mid-60s for FY '26, lower than previous expectations.
Revenue Growth Challenges: Total revenue growth for FY '25 was 12%, but TCV sales for Evergreen//One and other service-based offerings declined by 3%, indicating challenges in closing larger deals.
International Revenue Decline: International revenue decreased by 3% year-over-year in Q4, suggesting potential weaknesses in global markets.
Gross Margin Decline: Product gross margins were impacted by higher QLC flash costs, leading to a temporary reduction to 62.9% in Q4, down from 73.2% in FY '24.
Extended Deal Closure Impact: The company faced extended timelines in closing Evergreen//One deals greater than $5 million, which contributed to the decline in TCV sales.
Customer Acquisition Challenges: Despite achieving record sales in Q4, the overall growth in customer acquisition remained flat compared to previous quarters, indicating potential market saturation.
PSTG FAQs
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PSTG Earning Call Sentiment
Pure Storage, Inc. (PSTG) Q4 2025 Earnings Call Transcript
PSTG.N
-14.8%Positive
The earnings call highlights several positive aspects: strong revenue growth, raised guidance for FY 2025, and a significant design win with a top hyperscaler. The Q&A session indicates positive sentiment from analysts, with management addressing concerns and providing optimistic future guidance. While there are some uncertainties, such as gross margin challenges, the raised guidance and strategic partnerships suggest a positive outlook. The lack of market cap information makes it difficult to assess the scale of impact, but the overall sentiment is positive, likely leading to a 2% to 8% stock price increase.
