Pure Storage Shares Surge 31%

Pure Storage (PSTG) has risen 31.0% to $79.70, or $18.84, driven by a strong performance in the market. This significant increase highlights the company's growing popularity and potential for future growth. Investors should consider using TipRanks Premium for advanced data and expert analyst insights to make informed investment decisions.

Pure Storage (PSTG) stock has surged by 31.0% to $79.70, or $18.84, following the company's strong second-quarter (Q2) earnings report and the confirmation of its deepening partnership with Meta Platforms. The stock's performance highlights the company's growing popularity and potential for future growth.

Pure Storage reported adjusted earnings of 43 cents per share on sales of $861 million for its fiscal Q2, which ended on August 3, 2025. This exceeded analyst expectations of 39 cents per share and $846 million in sales. The company also raised its full-year revenue guidance to a range of $3.6 to $3.63 billion, up from a previous outlook of $3.52 billion. This guidance hike signals growing confidence in the company’s ability to capture accelerating demand in the data storage market.

The catalyst for Pure Storage's dramatic ascent was its partnership with Meta Platforms. In March, Pure Storage inked a deal to become Meta's primary storage provider. The company confirmed during its latest earnings call that revenue from Meta deployments began flowing in during the second quarter. This partnership validates Pure Storage's technology at the highest level and positions the company as a go-to provider for hyperscale customers.

Pure Storage's CEO, Charles Giancarlo, emphasized that targeting hyperscalers is now a core growth strategy. Hyperscalers, such as Meta, Amazon, and Google, represent some of the largest and fastest-growing consumers of data storage. Their unique demands for immense capacity and efficiency in power, space, and cooling make Pure Storage's technology a key differentiator.

Several Wall Street analysts have responded to Pure Storage's strong performance and strategic wins by raising their price targets and reiterating bullish ratings. JP Morgan maintained its Overweight rating and boosted its price target from $70 to $80, citing the company's robust results and growing hyperscaler traction. Lake Street and Northland Capital Markets also raised their targets to $80 and $71, respectively.

Pure Storage's stock has been on a rollercoaster ride in recent years, with gains of nearly 80% in 2024 and a 1% year-to-date loss as of the report. The recent surge in stock price erases the year-to-date loss and returns the stock to a record high. Pure Storage's stock had an IBD Composite Rating of 77, while NetApp's stock had a rating of 66 before the earnings reports.

References:
[1] https://www.investors.com/news/technology/pure-storage-stock-netapp-stock-ntap-pstg-earnings-2025/
[2] https://www.wealthdaily.com/why-pure-storage-pstg-stock-soared-3240-record-results-meta-partnership-and-hyperscaler-momentum/