Pure Storage Announces Third Quarter Fiscal 2026 Financial Results
Q3 total revenue growth of 16% year-over-year
Increases full-year revenue and operating profit guidance
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
"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
Advancing Pure Storage's intelligent control plane
Expanding our partner ecosystem to deliver greater value through integrated cybersecurity and data protection
Industry recognition and accolades
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
385,446
Subscription services (1)
115,070
93,180
322,722
284,168
Total cost of revenue
267,076
248,150
766,074
669,614
Gross profit
697,377
582,922
1,837,866
1,618,708
Operating expenses:
Research and development (1)
256,364
200,086
720,130
589,396
Sales and marketing (1)
293,817
255,830
858,219
757,069
General and administrative (1)
93,278
67,319
231,899
213,551
Restructuring and impairment (2)
—
—
—
15,901
Total operating expenses
643,459
523,235
1,810,248
1,575,917
Income from operations
53,918
59,687
27,618
42,791
Other income (expense), net
11,790
17,156
89,145
50,684
Income before provision for income taxes
65,708
76,843
116,763
93,475
Income tax provision
10,902
13,204
28,834
29,171
Net income
$ 54,806
$ 63,639
$ 87,929
$ 64,304
Net income per share attributable to common stockholders, basic
$ 0.17
$ 0.19
$ 0.27
$ 0.20
Net income per share attributable to common stockholders, diluted
$ 0.16
$ 0.19
$ 0.26
$ 0.19
Weighted-average shares used in computing net income per share attributable
to common stockholders, basic
329,570
327,675
327,901
325,530
Weighted-average shares used in computing net income per share attributable
to common stockholders, diluted
345,747
340,564
341,019
341,490
(1) Includes stock-based compensation expense as follows:
Cost of revenue -- product
$ 4,378
$ 3,216
$ 11,793
$ 9,443
Cost of revenue -- subscription services
9,293
7,800
25,014
24,632
Research and development
63,598
49,227
173,194
150,390
Sales and marketing
26,298
24,393
74,909
72,330
General and administrative
30,920
16,436
63,245
62,161
Total stock-based compensation expense
$ 134,487
$ 101,072
$ 348,155
$ 318,956
(2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.
PURE STORAGE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Third Quarter of Fiscal
First Three Quarters of Fiscal
2026
2025
2026
2025
Cash flows from operating activities
Net income
$ 54,806
$ 63,639
$ 87,929
$ 64,304
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
37,786
27,702
107,483
97,529
Stock-based compensation expense
134,487
101,072
348,155
318,956
Noncash portion of lease impairment and abandonment
—
—
—
3,270
(Gain) loss on strategic investment
2,915
—
(27,486)
—
Other
3,681
2,381
10,708
5,107
Changes in operating assets and liabilities, net of effects of acquisition:
Accounts receivable, net
(90,527)
(161,723)
59,854
83,998
Inventory
(29,957)
5,071
(42,225)
(1,590)
Deferred commissions
(9,468)
669
(20,863)
6,822
Prepaid expenses and other assets
(86,928)
(38,438)
(120,329)
(65,444)
Operating lease right-of-use assets
11,466
9,383
31,424
25,911
Accounts payable
15,203
33,755
12,057
20,597
Accrued compensation and other liabilities
35,268
7,781
35,870
(70,951)
Operating lease liabilities
(12,079)
(12,096)
(35,592)
(30,353)
Deferred revenue
49,340
57,797
165,101
86,934
Net cash provided by operating activities
115,993
96,993
612,086
545,090
Cash flows from investing activities
Purchases of property and equipment (1)
(63,419)
(61,788)
(197,792)
(170,641)
Purchase of strategic investments
—
—
—
(6,081)
Acquisition
(4,263)
—
(4,263)
—
Purchases of marketable securities and other
(69,667)
(43,632)
(325,795)
(308,002)
Sales of marketable securities
23,994
12,817
294,981
61,241
Maturities of marketable securities
17,120
131,994
154,627
329,978
Sale of strategic investment
52,485
—
52,485
—
Net cash provided by (used in) investing activities
(43,750)
39,391
(25,757)
(93,505)
Cash flows from financing activities
Proceeds from exercise of stock options
4,743
3,426
18,201
21,194
Proceeds from issuance of common stock under employee stock purchase plan
28,802
26,408
56,042
51,736
Payments of financing costs for revolving credit facility
—
—
(2,080)
—
Principal payments on borrowings and finance lease obligations
(2,317)
(1,786)
(103,442)
(5,721)
Tax withholding on vesting of equity awards
(85,779)
(54,905)
(203,240)
(141,591)
Repurchases of common stock
(53,269)
(181,999)
(215,447)
(181,999)
Net cash used in financing activities
(107,820)
(208,856)
(449,966)
(256,381)
Net increase in cash, cash equivalents and restricted cash
(35,577)
(72,472)
136,363
195,204
Cash, cash equivalents and restricted cash, beginning of period
909,690
979,807
737,750
712,131
Cash, cash equivalents and restricted cash, end of period
$ 874,113
$ 907,335
$ 874,113
$ 907,335
( 1) Includes capitalized internal-use software costs of $10.4 million and $6.0 million for the third quarter of fiscal 2026 and 2025 and $26.0 million and $15.8 million for the first three quarters of fiscal 2026 and 2025.
Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures
The following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited):
Third Quarter of Fiscal 2026
Third Quarter of Fiscal 2025
GAAP
results
GAAP
gross
margin (a)
Adjustment
Non-
GAAP
results
Non-
GAAP
gross
margin (b)
GAAP
results
GAAP
gross
margin (a)
Adjustment
Non-
GAAP
results
Non-
GAAP
gross
margin (b)
$ 4,378
(c)
$ 3,216
(c)
165
(d)
103
(d)
2,402
(e)
3,306
(e)
Gross profit --
product
$ 382,754
71.6 %
$ 6,945
$ 389,699
72.9 %
$ 299,765
65.9 %
$ 6,625
$ 306,390
67.4 %
$ 9,293
(c)
$ 7,800
(c)
609
(d)
368
(d)
Gross profit --
subscription
services
$ 314,623
73.2 %
$ 9,902
$ 324,525
75.5 %
$ 283,157
75.2 %
$ 8,168
$ 291,325
77.4 %
$ 13,671
(c)
$ 11,016
(c)
774
(d)
471
(d)
2,402
(e)
3,306
(e)
Total gross profit
$ 697,377
72.3 %
$ 16,847
$ 714,224
74.1 %
$ 582,922
70.1 %
$ 14,793
$ 597,715
71.9 %
(a) GAAP gross margin is defined as GAAP gross profit divided by revenue.
(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.
(c) To eliminate stock-based compensation expense.
(d) To eliminate payroll tax expense related to stock-based activities.
(e) To eliminate amortization expense of acquired intangible assets.
The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):
Third Quarter of Fiscal 2026
Third Quarter of Fiscal 2025
GAAP
results
GAAP
operating
margin (a)
Adjustment
Non-
GAAP
results
Non-
GAAP
operating
margin (b)
GAAP
results
GAAP
operating
margin (a)
Adjustment
Non-
GAAP
results
Non-
GAAP
operating
margin (b)
$ 134,487
(c)
$ 101,072
(c)
5,208
(d)
2,991
(d)
2,632
(e)
3,536
(e)
Operating
income
$ 53,918
5.6 %
$ 142,327
$ 196,245
20.3 %
$ 59,687
7.2 %
$ 107,599
$ 167,286
20.1 %
$ 134,487
(c)
$ 101,072
(c)
5,208
(d)
2,991
(d)
2,632
(e)
3,536
(e)
106
(f)
154
(f)
2,915
(g)
—
Net income
$ 54,806
$ 145,348
$ 200,154
$ 63,639
$ 107,753
$ 171,392
Net income per
share -- diluted
$ 0.16
$ 0.58
$ 0.19
$ 0.50
Weighted-
average shares
used in per
share
calculation --
diluted
345,747
—
345,747
340,564
—
340,564
(a) GAAP operating margin is defined as GAAP operating income divided by revenue.
(b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue.
(c) To eliminate stock-based compensation expense.
(d) To eliminate payroll tax expense related to stock-based activities.
(e) To eliminate amortization expense of acquired intangible assets.
(f) To eliminate amortization expense of debt issuance costs related to our debt.
(g) To eliminate loss from mark-to-market adjustment on strategic investment.
Reconciliation from net cash provided by operating activities to free cash flow (in thousands except percentages, unaudited):
Third Quarter of Fiscal
2026
2025
Net cash provided by operating activities
$ 115,993
$ 96,993
Less: purchases of property and equipment (1)
(63,419)
(61,788)
Free cash flow (non-GAAP)
$ 52,574
$ 35,205
(1) Includes capitalized internal-use software costs of $10.4 million and $6.0 million for the third quarter of fiscal 2026 and 2025.
SOURCE Pure Storage