BofA Lifts Pure Storage (PSTG) Target Price After Q1 FY26 Results

Wamsi Mohan of BofA Securities revised his rating outlook on Pure Storage, Inc. (NYSE:PSTG) on May 29, raising the price target from $73 to $76 while keeping a Neutral rating on PSTG shares. The change comes after Pure Storage’s financial results exceeded forecasts for revenue and EPS.

BofA Lifts PSTG Target Price After Q1 FY26 Results

Pure Storage’s operating margin for the first quarter of fiscal year 2026 came in at 10.6%, which was the lowest in eight quarters but marginally higher than the forecast. This comes after the fiscal year 2025 fourth quarter had a run of underwhelming product gross margins. That said, Pure Storage’s gross product margins improved by 110 basis points quarter-over-quarter during Q1 2026.

According to the company’s guidance, operating margins for the second quarter of fiscal year 2026 are expected to be 14.8%, 90 basis points lower than the 15.7% that the Street had predicted. Despite the first-quarter beat and a marginally more positive revenue expectation for the second quarter, the projection for full-year 2026 revenue and operating margin remains untouched.

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