Pure Storage vs Hewlett Packard Enterprise

This page compares Pure Storage and Hewlett Packard Enterprise, outlining how their business models, financial performance, and market context differ. It provides neutral, accessible analysis to help readers understand each company’s position within the storage and enterprise technology landscape. Educational content, not financial advice.

This page compares Pure Storage and Hewlett Packard Enterprise, outlining how their business models, financial performance, and market context differ. It provides neutral, accessible analysis to help ...

About The Companies

Pure Storage (PSTG)

Pure Storage, Inc. (PSTG) is a US-based technology firm specialising in all‑flash enterprise storage arrays, data management software and cloud data services. With a market capitalisation around $29.9 billion, Pure aims to replace legacy disk-based systems with faster, more energy-efficient flash solutions and recurring software subscriptions. Investors often watch its mix of product sales and growing recurring revenue — software licences and support — as indicators of profit stability and margin expansion. Strengths include product innovation, a focus on ease of use and a shift toward subscription models; challenges include strong competition from established storage vendors and cloud hyperscalers, plus sensitivity to IT spending cycles and execution risk. This summary is educational and not investment advice: stock prices can fall as well as rise, and suitability depends on an investor’s circumstances and risk tolerance.

Hewlett Packard Enterprise (HPE)

Hewlett Packard Enterprise (HPE) is an enterprise technology company focused on servers, storage, networking, edge computing and hybrid cloud software and services. Investors should know HPE is transitioning revenue toward recurring software and as-a-service offerings while still deriving substantial sales from hardware and integrated solutions for large businesses and public-sector customers. This mix can offer more predictable income over time but depends on successful execution and customer adoption. HPE faces competition from large cloud providers and other hardware vendors, and its results remain sensitive to corporate IT spending cycles and macroeconomic conditions. With a market capitalisation of about $30.70bn, HPE may suit investors looking for exposure to enterprise IT transformation, but outcomes can vary and past performance is not indicative of future returns. This is general information only—not personalised advice—and investors should assess risk tolerance and diversify accordingly.

Comparison Snapshot

Key Financial Metrics

PSTG

Metric

HPE

$23.55B

Market Cap

$31.48B

32.61%

Potential Profit

8.22%

Buy

Analyst Rating

Buy

Why It's Moving

Pure Storage rides post-earnings rebound amid AI innovations and S&P 500 buzz despite Q3 margin miss.

Q3 revenue hit $964M with hyperscale shipments beating full-year forecasts early, but margins contracted on higher expenses, sparking the initial selloff[1][3][6].
Company lifted FY2026 revenue outlook to $3.63B-$3.64B and authorized $400M share repurchase on Dec 10, signaling board confidence in AI-driven trajectory[6][7].
December updates unveiled AI innovations like Data Stream for automated prep and FlashStack for NVIDIA AI Factory, plus Nutanix-Azure integrations, as S&P 500 inclusion hopes linger despite recent doubts[1][2].

Sentiment:

🌋Volatile

HPE’s AI-and-networking push lifts profit and guidance despite a revenue miss that keeps traders cautious.

Earnings beat: Adjusted EPS of $0.62 beat Street estimates, signaling improved profitability driven by margin expansion and cost controls, which management said reflect portfolio simplification and structural efficiencies.
Revenue miss but momentum: Q4 revenue came in around $9.67–9.68B versus higher consensus, yet HPE posted record quarterly gross profit and an annualized revenue run‑rate up sharply — evidence that subscription and AI‑related recurring revenue is growing even if product timing weighed on the quarter.
Raised FY26 outlook: HPE lifted its FY26 adjusted EPS range and modestly raised free‑cash‑flow expectations after closing the Juniper acquisition and accelerating networking and AI/cloud businesses, a constructive signal for medium‑term earnings power despite mixed segment trends (Networking strong, Server & Hybrid Cloud softer).

Sentiment:

🌋Volatile

Pure Storage rides post-earnings rebound amid AI innovations and S&P 500 buzz despite Q3 margin miss.

Q3 revenue hit $964M with hyperscale shipments beating full-year forecasts early, but margins contracted on higher expenses, sparking the initial selloff[1][3][6].
Company lifted FY2026 revenue outlook to $3.63B-$3.64B and authorized $400M share repurchase on Dec 10, signaling board confidence in AI-driven trajectory[6][7].
December updates unveiled AI innovations like Data Stream for automated prep and FlashStack for NVIDIA AI Factory, plus Nutanix-Azure integrations, as S&P 500 inclusion hopes linger despite recent doubts[1][2].

Sentiment:

🌋Volatile

HPE’s AI-and-networking push lifts profit and guidance despite a revenue miss that keeps traders cautious.

Earnings beat: Adjusted EPS of $0.62 beat Street estimates, signaling improved profitability driven by margin expansion and cost controls, which management said reflect portfolio simplification and structural efficiencies.
Revenue miss but momentum: Q4 revenue came in around $9.67–9.68B versus higher consensus, yet HPE posted record quarterly gross profit and an annualized revenue run‑rate up sharply — evidence that subscription and AI‑related recurring revenue is growing even if product timing weighed on the quarter.
Raised FY26 outlook: HPE lifted its FY26 adjusted EPS range and modestly raised free‑cash‑flow expectations after closing the Juniper acquisition and accelerating networking and AI/cloud businesses, a constructive signal for medium‑term earnings power despite mixed segment trends (Networking strong, Server & Hybrid Cloud softer).

Sentiment:

🌋Volatile

Which Baskets Do They Appear In?

AI Data Centers: Could Nvidia's $100B Drive Growth?

Nvidia's landmark $100 billion investment in OpenAI is set to create the world's most powerful AI supercomputing infrastructure. This monumental undertaking will drive massive demand for the underlying physical components, from power and cooling to specialized hardware, creating a ripple effect for companies that build and support large-scale data centers.

Published: September 24, 2025

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Which Baskets Do They Appear In?

AI Data Centers: Could Nvidia's $100B Drive Growth?

Nvidia's landmark $100 billion investment in OpenAI is set to create the world's most powerful AI supercomputing infrastructure. This monumental undertaking will drive massive demand for the underlying physical components, from power and cooling to specialized hardware, creating a ripple effect for companies that build and support large-scale data centers.

Published: September 24, 2025

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Investment Analysis

Pure Storage

PSTG

Pros

Pure Storage achieved record annual revenue exceeding $3 billion in fiscal 2025, reflecting strong double-digit growth and solid operating profitability.
Subscription services revenue grew 22% year-over-year, indicating a successful shift towards recurring, high-margin business models.
The company's Fusion platform is driving enterprise adoption by modernising legacy storage architectures and improving operational efficiency for customers.

Considerations

Pure Storage faces intense competition from established players like Dell, NetApp, and Hewlett Packard Enterprise, which could pressure pricing and market share.
Valuation metrics suggest the stock may be stretched, with some analysts rating it as modestly undervalued based on traditional checks.
The company's rapid growth trajectory increases execution risk, particularly in maintaining profitability as it scales globally.

Hewlett Packard Enterprise

HPE

Pros

Hewlett Packard Enterprise maintains a diversified portfolio across hybrid cloud, edge computing, and enterprise services, supporting stable revenue streams.
The company has a strong balance sheet and consistent cash flow generation, enabling strategic investments and shareholder returns.
HPE is actively restructuring and focusing on higher-growth areas like AI infrastructure and software, positioning itself for future technology trends.

Considerations

HPE's legacy hardware businesses face ongoing secular decline, which could constrain overall growth and margin expansion.
The company operates in a highly competitive enterprise IT market, with pressure from both cloud providers and specialist vendors.
Recent strategic shifts and restructuring efforts introduce execution risk and may impact near-term operational performance.

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Pure Storage vs Hewlett Packard Enterprise

About The Companies

Comparison Snapshot

Why It's Moving

Pure Storage rides post-earnings rebound amid AI innovations and S&P 500 buzz despite Q3 margin miss.

HPE’s AI-and-networking push lifts profit and guidance despite a revenue miss that keeps traders cautious.

Pure Storage rides post-earnings rebound amid AI innovations and S&P 500 buzz despite Q3 margin miss.

HPE’s AI-and-networking push lifts profit and guidance despite a revenue miss that keeps traders cautious.

Which Baskets Do They Appear In?

AI Data Centers: Could Nvidia's $100B Drive Growth?

Which Baskets Do They Appear In?

AI Data Centers: Could Nvidia's $100B Drive Growth?