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Everpure Exited from Both Russell Small Cap Indices

By Markets Desk · 2026-09-20 · 2 min read
A tall stack of dark grey hard drives neatly arranged inside an open server rack frame.
Illustration: Tradingbird

Pure Storage lost its place in two key benchmark indices on September 18, 2026. The company is now out of both the Value and Growth small-cap baskets.

Pure Storage, trading as Everpure, was removed from the Russell Small Cap Comp Value Index and the Russell Small Cap Comp Growth Index. The change took effect on 18 September 2026 following the standard annual reconstitution. This dual exit signals a significant shift in passive investment flows tracking these specific benchmarks.

The removal affects the composition of the shareholder base rather than the company's operational fundamentals. Index funds holding these baskets must now sell their positions in the stock. This mechanical selling pressure creates short-term volatility unrelated to product performance or revenue growth.

Financial Metrics Remain Strong

Pure Storage reported an 82.1% increase in earnings over the past year. Net profit margins expanded to 5.9% from 4.2% in the prior period. Analysts project annual earnings growth of 42.1% over the next three years. Revenue is expected to expand by 16.9% annually during the same timeframe.

The consensus forecast targets US$6.1 billion in revenue by 2029. This figure implies a yearly growth rate of 15.7%. Earnings are projected to reach US$671.0 million by that date. This represents a threefold increase from the current US$226.3 million level.

Index Flows Impact Ownership

Passive capital flows drive a large portion of trading volume for benchmark constituents. Exiting the Russell small-cap indices removes a steady source of buying pressure from these funds. The company must now rely more heavily on active investor interest to support its share price.

The structural change does not alter the core business risks. Demand for on-premises hardware versus cloud-based services remains the primary operational challenge. Competition in AI and cloud storage sectors continues to shape the market landscape. The index status is a secondary factor compared to these fundamental drivers.

Valuation Premium Limits Downside

Current fair value models indicate a 10% potential downside from the market price. This valuation premium leaves little room for execution errors. Optimistic analysts project revenue of US$6.7 billion and earnings of US$791.2 million by 2029. These figures exceed the consensus path significantly.

Investors must weigh the mechanical selling pressure against the company's growth trajectory. The removal from the Russell indices changes the investor base but not the product roadmap. Success depends on converting AI workload interest into recurring subscription revenue. The data presented by GN auto markets/indices: stock index reflects this shift in benchmark composition.

Based on reporting by simplywall.st, compiled by the Tradingbird desk.

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