Barclays Raises Price Target on Pure Storage to $70, Maintains Equal Weight Rating

Barclays raised its price target on Pure Storage (PSTG) to $70 from $57 while maintaining an Equal Weight rating. The firm cited the company's strength across all metrics and its fiscal 2026 outlook. Pure Storage reported 13% YoY total revenue growth in Q2 2025, with subscription services revenue rising 15% YoY to $414.7 million. The company delivers innovative data storage, services, and products that allow customers to maximize the value of their data.

Pure Storage (PSTG), a leading provider of data storage technologies and services, announced its second quarter fiscal 2026 financial results on August 27, 2025. The company reported a 13% year-over-year (YoY) total revenue growth, with subscription services revenue rising 15% YoY to $414.7 million. This performance has led Barclays to raise its price target on PSTG to $70 from $57, while maintaining an Equal Weight rating.

The company's CEO, Charles Giancarlo, highlighted the strong customer adoption of the Pure Storage platform, stating, "Today, enterprise applications are stuck in inflexible legacy systems that lock data in silos. With Purity and Pure Fusion, customers virtualize their storage to create their own Enterprise Data Cloud to unlock their data for business value."

Pure Storage's subscription annual recurring revenue (ARR) grew 18% YoY to $1.8 billion, while remaining performance obligations (RPO) increased 22% YoY to $2.8 billion. The company's gross margin was 70.2% under GAAP and 72.1% on a non-GAAP basis, with operating income of $4.9 million under GAAP and $130.0 million on a non-GAAP basis.

Barclays' analyst noted the company's strength across all metrics and its fiscal 2026 outlook. The firm cited the company's innovative data storage solutions, services, and products that allow customers to maximize the value of their data. The analyst also mentioned the company's ability to meet the needs of hyperscalers for the entire spectrum of their online storage use cases.

Pure Storage's third quarter and full-year 2026 guidance includes revenue of $950M to $960M and non-GAAP operating income of $185M to $195M for the third quarter, with full-year revenue guidance of $3.515B to $3.63B and non-GAAP operating income of $595M to $625M.

References:
[1] https://investor.purestorage.com/news-and-events/press-releases/press-release-details/2025/Pure-Storage-Announces-Second-Quarter-Fiscal-2026-Financial-Results/default.aspx