Should I Buy PSTG? PSTG 2026 Analysis

Should You Buy Pure Storage Inc (PSTG) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

72.610

1 Day change

-2.26%

52 Week Range

100.590

Analysis Updated At

2026/01/26

Pure Storage Inc (PSTG) is not a strong buy for a beginner investor with a long-term horizon at this moment. While the company has shown revenue growth, its declining net income, EPS, and mixed analyst ratings suggest caution. Additionally, the technical indicators and options data do not strongly support an immediate buy decision. The lack of recent positive news or significant trading trends further supports a hold recommendation.

Technical Analysis

The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), but RSI is neutral at 44.473, and MACD is positively contracting, which suggests limited momentum. The stock is trading near a key support level (S1: 66.611) but below the pivot (71.298). The next resistance levels are R1: 75.985 and R2: 78.881.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

The high option volume put-call ratio indicates bearish sentiment in the options market, with puts significantly outweighing calls. Implied volatility is high (72.01) and in the 96th percentile, indicating potential price swings.

Technical Summary

Sell

Buy

Positive Catalysts

Revenue growth of 16.05% YoY in Q3 2026 and gross margin improvement to 72.31% (+3.09% YoY). Analysts recognize the company's broad-based portfolio strength and potential for enterprise demand acceleration.

Neutral/Negative Catalysts

Net income and EPS declined YoY (-13.88% and -15.79%, respectively). Analysts highlight concerns about rising OpEx, margin risks, and delays in scaling hyperscaler revenue. Options data reflects bearish sentiment, and technical indicators suggest limited upward momentum. No recent news or significant trading trends to drive positive sentiment.

Financial Performance

In Q3 2026, revenue increased by 16.05% YoY to $964.45M. However, net income dropped by 13.88% YoY to $54.81M, and EPS fell by 15.79% YoY to $0.16. Gross margin improved to 72.31%, up 3.09% YoY, but the decline in profitability metrics raises concerns.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Mixed analyst sentiment. Price targets range from $60 (Sell) to $105 (Buy). Analysts highlight strong performance compared to peers but express concerns about rising costs, margin risks, and delays in hyperscaler revenue scaling. Some analysts suggest near-term turbulence and volatility.

20 Analyst Rating

Wall Street analysts forecast PSTG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSTG is 97.37 USD with a low forecast of 60 USD and a high forecast of 120 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

14 Buy

5 Hold

1 Sell

Moderate Buy

Current: 74.290

Low

Averages

97.37

High

120

Current: 74.290

Low

Averages

97.37

High

120

UBS

Sell

maintain

$55 -> $60

AI Analysis

2025-12-03

Reason

UBS

Price Target

$55 -> $60

AI Analysis

2025-12-03

maintain

Sell

Reason

UBS raised the firm's price target on Pure Storage to $60 from $55 and keeps a Sell rating on the shares.

TD Cowen

Buy

maintain

$85 -> $100

2025-12-03

Reason

TD Cowen

Price Target

$85 -> $100

2025-12-03

maintain

Buy

Reason

TD Cowen raised the firm's price target on Pure Storage to $100 from $85 and keeps a Buy rating on the shares. The firm said the problem is not that Street numbers will come down, but the company is guiding for a significant increase in OpEx which puts the OM expansion thesis on the sidelines, for now. There may be more volatility ahead but the trajectory seems to be on the right path.

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PSTG Should I Buy

PSTG Should I Buy

Should You Buy Pure Storage Inc (PSTG) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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