Citi Cuts Pure Storage Price Target to $90 as Q3 Revenue Rises 16%
Citi trimmed its price target on Pure Storage to $90 from $105 while maintaining a Buy rating, citing sector valuation adjustments and mixed end-market demand. In Q3 fiscal 2026, the company posted revenue of $964 million (+16% YoY), operating income of $196 million (+17%, 20.3% margin), and guided Q4 revenue to $1.02–1.04 billion with FY revenue at $3.63–3.64 billion.
1. Analyst Price Target Cut
On February 17, Citi trimmed Pure Storage’s price target to $90 from $105 while reaffirming a Buy rating, citing broader hardware sector valuation resets and varied end-market demand commentary.
2. Third-Quarter Financial Performance
Pure Storage reported Q3 fiscal 2026 revenue of $964 million, up 16% year-over-year, alongside operating income of $196 million, up 17%, and an operating margin of 20.3%.
3. Subscription and ARR Growth
Subscription services revenue grew 14% to $430 million, representing 45% of total revenue, while annual recurring revenue expanded 17% to $1.8 billion, underscoring the durability of its recurring model.
4. Q4 and Full-Year Outlook
Management guided Q4 revenue between $1.02 billion and $1.04 billion with operating profit of $220 million to $230 million, and forecast full-year fiscal 2026 revenue of $3.63–3.64 billion and operating profit between $629 million and $639 million.