Pure Storage: Fiscal 2Q26 Financial Results
Q2 total revenue growth of 13% YoY, subscription sales growth of 24% and increases full-year revenue and operating profit guidance
This is a Press Release edited by StorageNewsletter.com on August 29, 2025 at 2:02 pmPure Storage Inc., an IT pioneer that delivers advanced data storage technologies and services, announced financial results for its second quarter fiscal year 2026 ended August 3, 2025.
“Our strong second quarter results demonstrate ever more customers’ confidence in the value of the Pure Storage platform to advance their data storage and management now and into the future,” said Charles Giancarlo, CEO and chairman, Pure Storage . “Today, enterprise applications are stuck in inflexible legacy systems that lock data in silos. With Purity and Pure Fusion, customers virtualize their storage to create their own Enterprise Data Cloud to unlock their data for business value.”
Second Quarter Financial Highlights
- Revenue $861.0 million, up 13% year-over-year
- Subscription services revenue $414.7 million, up 15% year-over-year
- Subscription annual recurring revenue (ARR) $1.8 billion, up 18% year-over-year
- Remaining performance obligations (RPO) $2.8 billion, up 22% year-over-year
- GAAP gross margin 70.2%; non-GAAP gross margin 72.1%
- GAAP operating income $4.9 million; non-GAAP operating income $130.0 million
- GAAP operating margin 0.6%; non-GAAP operating margin 15.1%
- Operating cash flow $212.2 million; free cash flow $150.1 million
- Total cash, cash equivalents, and marketable securities $1.5 billion
- Returned approximately $42 million to stockholders through share repurchases of 0.8 million shares.
“Pure Storage exceeded both its revenue and operating profit guidance in the second quarter, reflecting strong customer adoption of our platform strategy,” said Tarek Robbiati, CEO, Pure Storage. “Looking ahead, we remain committed to executing on our strategic priorities to drive profitable growth and maintaining the flexibility to navigate evolving market conditions.”
Second Quarter Company Highlights
- A New Architectural Approach for Data & Storage Management
- Introduced the Enterprise Data Cloud (EDC), an industry-changing architecture that transforms how organizations store and manage their data. Enabled by Pure Fusion, EDC sets a new standard for simplicity in intelligent and autonomous data and storage management, enabling organizations to prioritize business outcomes by abstracting away infrastructure.
- Accelerating Innovation with Next-Generation Products
- Expanded Pure Storage’s portfolio with next-gen storage products, including FlashArray//XL, FlashArray//ST, and FlashBlade//S, built to support high-performance and scalable workloads across diverse enterprise use cases and offering unified block, file, and object storage capabilities.
- Enhancing Efficiency and Resilience
- Launched Portworx for KubeVirt, a virtualization-centric storage solution for Kubernetes, enabling more cost-effective and simplified management of VM workloads using Red Hat OpenShift Virtualization Engine.
Third Quarter and FY26 Guidance
|
Q3FY26 |
|
|
Revenue |
$950M to $960M |
|
Revenue YoY Growth Rate |
14.3% to 15.5% |
|
Non-GAAP Operating Income |
$185M to $195M |
|
Non-GAAP Operating Income YoY Growth Rate |
10.6% to 16.6% |
|
FY26 |
||
|
Prior Guidance |
New Guidance |
|
|
Revenue |
$3.515B |
$3.60B to $3.63B |
|
Revenue YoY Growth Rate |
11 % |
13.5% to 14.5% |
|
Non-GAAP Operating Income |
$595M |
$605M to $625M |
|
Non-GAAP Operating Income YoY Growth Rate |
6 % |
8.2% to 11.7% |
These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating income year-over-year growth rate to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure’s control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.
Comments
For the FY2023, FY2024 and FY2025, the company respectively delivered $2.75 billion, $2.83 billion, up 2.8%, and $3.16 billion, up 11.9%. The first 6 months reach $1.64 billion as 2Q26 delivered $861 million up 12.7% YoY and 10.6% QoQ. It means an ARR of $3.35 billion.
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We notice that the company never passed the $900 million, 4 times $800 million in 4Q23, 3Q25, 4Q25 plus this last 2Q26. With the current market dynamic we estimate the company will beat this $900 million barrier for 3Q26 and even the famous $1 billion mark for 4Q26 inviting the company to pass another key level at $4 billion for the fiscal year 2026.
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Even if we can "do everything" with flash media, the $/TB still is in favor of HDD and tape depending finally on the usage, the desire of users and the price they can afford. But for primary storage, flash is by far the obvious choice especially as it offers low latency, high IOPS and high throughput performance levels at the same time. For secondary storage, HDD and tape continue to have a significant role. We recently saw solid annual financial results for WDC at $9.52 billion and Seagate at $9.1 billion, but a vast majority of their revenue comes from hyperscalers.
On the flash media aspect, Pure Storage has chosen its own format with its DFM - DirectFlash Modules - and it will offer very soon 150TB per blade and later 300TB. With deals with hyperscalers, the company has made some changes as DFM supports NVMe and some dedicated software element moved to the user space as these special clients have specific requirements, building a lot of things by themselves. These clients are looking for high capacity SSD, so QLC, at a very attractive cost and today we find on the market 122-128TB SSDs, soon (next year) 245-256TB outside of Pure's approach we DFM model. Pure Storage works on the density of NAND on the board with also more denser NAND chips.
Other key developments for the company, announced recently, are EDC - Enterprise Data Cloud - providing a global pool of storage, pretty granular, for storage silos, chassis and entities unification, the second touches FlashArray with several iterations with //XL, //ST and FlashBlade with //S and //EXA.
On the AI side, Pure Storage offered AIRI since 2018 but the Nvidia GDS compatibility and certification is more recent, this is also critical for RFPs and end-users selection based on what they already developed.
File and S3 access methods appear to be the preferred modes for AI. As parallelism is everything at scale to sustain high IO levels, Pure has extended FlashBlade with pNFS represented by the //EXA model, continuing in the initial choice of open standards, here with NFS, a key asset at scale and for end-users. This //EXA joins competition for large scale file- or object-access based AI workloads.
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Pure Storage also is a leader in the annual Coldago Research Map 2024 for File Storage and Object Storage.
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