DEEP DIVE into H2 & Beyond. Maintain OP.

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DEEP DIVE into H2 & Beyond. Maintain OP.

ficant portion of the H2 EBIT step-up, we

Q3 $0.58 $0.63 $0.71 estimate Meta could contribute ~$230M in sales in H2 and likely has a

Q4 $0.69 $0.81 $0.93 path to sustained growth in FY28. 3) Secular Growth Vectors: As

FY $1.99 $2.48 $2.94 NAND pricing remains elevated, we expect enterprises and

hyperscalers/service providers to gravitate towards Pure’s product

offering to help them not just increase their underlying storage

1 Year Price History utilization rates but also perhaps shift to a more subscription-based

pricing model. Net/Net: We think the recent pullback has created a more

attractive setup in P, with the stock de-rating on what appears to be a

deliberately prudent FY27 guide rather than a deterioration in

fundamentals. We think Pure has one of the more conservative and

likely beatable H2 guides and as the beats flow through we see the

stock re-rating higher. Maintaining our OP rating and $90 target.

What’s Embedded in the FY27 Guide? Based on Everpure’s FQ1

reported operating profit and its FQ2 guide of ~$200, we estimate H1

operating profit of roughly ~$350M, which implies H2 operating profit of

approximately ~$500M and a ~$150M step-up from H1 to H2.

Source: FactSet Management has previously signaled that the substantial sequential

increase in H2 operating profit will be attributable to Meta. If at least half

of the H2 operating profit step-up is Meta-driven, that implies at least

~$75M of incremental Meta EBIT contribution in the back half based on

our estimates. At an assumed ~32.5% EBIT margin on Meta shipments,

that would imply roughly $220-240M of H2 Meta-related revenue,

depending on the exact share of the profit bridge attributable to the

customer. Importantly, our assumptions imply relatively modest