SANTA CLARA, Calif., Dec. 2, 2025 /PRNewswire/ -- Pure Storage (NYSE:PSTG), the IT pioneer that delivers the world's most advanced data storage technologies and services, today announced financial results for its third quarter fiscal year 2026 ended November 2, 2025.
"Pure Storage delivered another strong quarter as global customers increasingly choose Pure to solve their toughest data management challenges," said Charles Giancarlo, Pure Storage CEO and Chairman. "Competitive advantage in the AI era demands data accessibility. Pure's Enterprise Data Cloud breaks data free from application silos, allowing enterprises to harness the power of AI, automation, and analytics."
Third Quarter Financial Highlights
Revenue $964.5 million, up 16% year-over-year
Subscription services revenue $429.7 million, up 14% year-over-year
Subscription annual recurring revenue (ARR) $1.8 billion, up 17% year-over-year
Remaining performance obligations (RPO) $2.9 billion, up 24% year-over-year
GAAP gross margin 72.3%; non-GAAP gross margin 74.1%
GAAP operating income $53.9 million; non-GAAP operating income $196.2 million
GAAP operating margin 5.6%; non-GAAP operating margin 20.3%
Operating cash flow $116.0 million; free cash flow $52.6 million
Total cash, cash equivalents, and marketable securities $1.5 billion
Returned approximately $53 million to stockholders through share repurchases of 0.6 million shares.
"In the third quarter, we generated strong revenue and record operating profit, exceeding the high end of our guidance," said Pure Storage CFO Tarek Robbiati. "To sustain this momentum beyond FY26, we will continue to make significant incremental investments in both research and development and sales and marketing to capture additional profitable growth opportunities consistent with our long-term strategy."
Third Quarter Company Highlights
Simplifying workload expansion with a unified data plane
Expanded the Enterprise Data Cloud into the public cloud with the introduction of Pure Storage Cloud Azure Native, developed jointly with Microsoft - the industry's first fully managed, enterprise-grade block volume as a service.
Continued the evolution of the FlashArray family with FlashArray//XL190 R5, FlashArray//X R5, and FlashArray//C R5.
Advancing Pure Storage's intelligent control plane
Expanded Pure1 AI Copilot with Portworx Pure1 AI Copilot, the first AI-powered platform engineering assistant for Portworx customers and announced integration of Pure1 AI Copilot with Model Context Protocol (MCP) servers.
Bridged the gap between traditional and modern applications with the integration of Portworx and Pure Fusion.
Expanding our partner ecosystem to deliver greater value through integrated cybersecurity and data protection
Introduced Pure Protect Recovery Zones and cyber resilience delivered as a service with Veeam to help customers proactively detect threats and recover faster.
Enabled built-in and integrated detection capabilities to provide broader visibility across an entire environment with tools like real-time security with CrowdStrike Falcon, and file and user monitoring and remediation with Superna.
Industry recognition and accolades
Named a Leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Storage Platforms, positioned highest in execution and furthest in vision.
Named a Leader in the 2025 Gartner® Magic Quadrant™ for Infrastructure Platform Consumption Services.
Positioned in the Leaders category in the IDC MarketScape: Worldwide Hardware Support Services 2025 Vendor Assessment report.
Named one of Fortune's "Best Workplaces in Technology 2025."
Fourth Quarter and FY26 Guidance
Q4FY26
Revenue
$1.02B to $1.04B
Revenue YoY Growth Rate
16.5% to 17.6%
Non-GAAP Operating Income
$220M to $230M
Non-GAAP Operating Income YoY Growth Rate
43.7% to 50.2%
FY26
Prior Guidance
New Guidance
Revenue
$3.60B to $3.63B
$3.63B to $3.64B
Revenue YoY Growth Rate
13.5% to 14.5%
14.5% to 14.9%
Non-GAAP Operating Income
$605M to $625M
$629M to $639M
Non-GAAP Operating Income YoY Growth Rate
8.2% to 11.7%
12.4% to 14.2%
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 related 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.
Conference Call Information Pure Storage will host a teleconference to discuss the third quarter fiscal 2026 results at 2:00 pm PT today, December 2, 2025. A live audio broadcast of the conference call will be available on the Pure Storage Investor Relations website. Pure will also post its earnings presentation and prepared remarks to this website concurrent with this release.
A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482.
Additionally, Pure is scheduled to participate at the following investor conferences:
UBS Global Technology & AI Conference Date: Thursday, December 4, 2025 Time: 8:55 a.m. PT / 11:55 a.m. ET Chief Technology Officer Rob Lee
28th Annual Needham Growth Virtual Conference Date: Thursday, January 15, 2026 Time: 9:00 am PT / 12:00 pm ET Founder and Chief Visionary Officer John "Coz" Colgrove
About Pure Storage Pure Storage (NYSE:PSTG) delivers the industry's most advanced data storage platform to store, manage, and protect the world's data at any scale. With Pure Storage, organizations have ultimate simplicity and flexibility, saving time, money, and energy. From AI to archive, Pure Storage delivers a cloud experience with one unified Storage-as-a-Service platform across on-premises, cloud, and hosted environments. Our platform is built on our Evergreen architecture that evolves with your business, always getting newer and better with zero planned downtime, guaranteed. Our customers are actively increasing their capacity and processing power while significantly reducing their carbon and energy footprint. It's easy to fall in love with Pure Storage, which is why we've received one of the highest Net Promoter Scores in the industry across the years. For more information, visit www.purestorage.com.
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Pure Storage, the Pure P Logo, Portworx, and the marks on the Pure Storage Trademark List are trademarks or registered trademarks of Pure Storage Inc. in the U.S. and/or other countries. The Trademark List can be found at purestorage.com/trademarks. Other names may be trademarks of their respective owners.
Forward Looking Statements This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to our future period financial and business results, our opportunity relating to hyperscale and AI environments, our ability to meet hyperscalers' performance, price and other requirements, our ability to expand with our current hyperscale customer and to land new hyperscale customers, our ability to meet the needs of hyperscalers for the entire spectrum of their online storage use cases, the timing and magnitude of large orders, including sales to hyperscalers and large enterprises, the structure, timing and amount of revenue from hyperscaler licensing and support services, demand for our products and subscription services, including Evergreen//One, the relative sales mix between our subscription and consumption offerings and traditional capital expenditure sales, our technology and product strategy, specifically ongoing development and customer adoption of new products and the Enterprise Data Cloud architecture (including Pure Fusion™), priorities around sustainability and energy saving benefits to our customers of using our products, our ability to perform during current macro conditions and expand market share, our sustainability goals and benefits, the impact of inflation, currency fluctuations, tariffs, economic or supply chain disruptions, our expectations regarding our product and technology differentiation, new technology investments and partnerships, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.
Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website at investor.purestorage.com and on the SEC website at www.sec.gov. Additional information is also set forth in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025. All information provided in this release and in the attachments is as of December 2, 2025, and Pure undertakes no duty to update this information unless required by law.
Key Performance Metrics Subscription ARR is a key business metric that refers to the annualized recurring contract value of all active, non-cancelable customer subscription agreements with subscription terms of any length at the end of the quarter, plus on-demand billings for the quarter multiplied by four.
Total Contract Value (TCV) Sales, or bookings, of Pure's Evergreen//One and similar consumption- and subscription-based offerings is an operating metric, representing the value of orders received during the period.
Non-GAAP Financial Measures To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Pure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense, payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of intangible assets acquired from acquisitions, restructuring costs related to severance and termination benefits, costs associated with the impairment and early exit of certain leased facilities, and gains and losses from mark-to-market adjustments on strategic investments that may not be indicative of our ongoing core business operating results. Pure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.
For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures" and "Reconciliation from net cash provided by operating activities to free cash flow," included at the end of this release.
PURE STORAGE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
At the End of
Third Quarter of Fiscal 2026
Fiscal 2025
Assets
Current assets:
Cash and cash equivalents
$ 852,838
$ 723,583
Marketable securities
678,775
798,237
Accounts receivable, net of allowance of $204 and $940
620,959
680,862
Inventory
82,421
42,810
Deferred commissions, current
109,370
99,286
Prepaid expenses and other current assets
307,891
222,501
Total current assets
2,652,254
2,567,279
Property and equipment, net
566,336
461,731
Operating lease right-of-use-assets
194,409
146,655
Deferred commissions, non-current
240,113
229,334
Intangible assets, net
9,407
19,074
Goodwill
364,742
361,427
Restricted cash
19,151
12,553
Other assets, non-current
171,999
165,889
Total assets
$ 4,218,411
$ 3,963,942
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 128,022
$ 112,385
Accrued compensation and benefits
244,939
230,040
Accrued expenses and other liabilities
159,827
156,791
Operating lease liabilities, current
43,599
43,489
Deferred revenue, current
1,028,636
953,836
Debt, current
—
100,000
Total current liabilities
1,605,023
1,596,541
Operating lease liabilities, non-current
181,948
137,277
Deferred revenue, non-current
931,768
841,467
Other liabilities, non-current
96,783
82,182
Total liabilities
2,815,522
2,657,467
Stockholders' equity:
Common stock and additional paid-in capital
2,681,966
2,674,533
Accumulated other comprehensive income
2,006
954
Accumulated deficit
(1,281,083)
(1,369,012)
Total stockholders' equity
1,402,889
1,306,475
Total liabilities and stockholders' equity
$ 4,218,411
$ 3,963,942
PURE STORAGE, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
Third Quarter of Fiscal
First Three Quarters of Fiscal
2026
2025
2026
2025
Revenue:
Product
$ 534,760
$ 454,735
$ 1,353,207
$ 1,204,714
Subscription services
429,693
376,337
1,250,733
1,083,608
Total revenue
964,453
831,072
2,603,940
2,288,322
Cost of revenue:
Product (1)
152,006
154,970
443,352
