Needham increased its price target for Pure Storage to $140 from $100, maintaining a Buy rating as the company posted a 38% year-over-year revenue increase in the second quarter of fiscal 2027.
The firm cited strong contract growth and an upward revision to full-year guidance as justification for the adjustment. Pure Storage’s Q2 revenue reached $1.186 billion, while its market capitalization stood at $36.2 billion as of the report’s publication.
The company also raised its fiscal 2027 revenue guidance by approximately $580 million at the midpoint, lifting its full-year outlook to a range of $5.0 billion to $5.7 billion. Large contracts exceeding $5 million grew 59% year-over-year, with deals over $20 million surging 385%. The total contract value for its Storage-as-a-Service offering climbed 121% to $277 million.
Operating profit advanced 77% to $230 million, driven by a 54% rise in product growth and a 20% increase in subscription revenue, according to Evercore ISI’s breakdown. The stock was trading at $108.90, per InvestingPro data, placing it above the Street’s average price target range of $80 to $170.
Other analysts have also adjusted their outlooks. Evercore ISI maintained an Outperform rating with a $130 target, while BofA Securities upgraded the stock to Buy from Neutral and raised its target to $150. The highest Street estimate remains $170.
