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Pure Storage Announces First Quarter Fiscal 2026 Financial Results

On May 28, 2025, Pure Storage (NYSE: PSTG), a leader in data storage technology, published their financial results for the first quarter of FY26, ending on May 4, 2025. The company continues to impress with a year-over-year revenue increase of 12%, driven by strong growth across multiple product lines and innovative advancements in their offerings.

Financial Highlights

During the first quarter, Pure Storage reported total revenue of $778.5 million. This figure represents a 12% increase compared to the same period last year. Of this, subscription services revenue reached $406.3 million, marking a 17% growth from the previous year. They also reported an annual recurring revenue (ARR) from subscriptions of $1.7 billion, which is an 18% increase year-over-year. Remaining performance obligations, or RPO, expanded to $2.7 billion, growing by 17% as well. The company’s GAAP gross margin for the quarter was 68.9%, while the non-GAAP gross margin stood at 70.9%.

In terms of operational performance, the first quarter saw a GAAP operating loss of $31.2 million, but on a non-GAAP basis, the company recorded an operating income of $82.7 million. The non-GAAP operating margin was 10.6%. Furthermore, Pure Storage achieved an operational cash flow of $283.9 million and a free cash flow of $211.6 million, concluding the quarter with a cash balance of $1.6 billion. Additionally, the company returned approximately $120 million to shareholders via repurchases of 2.5 million shares.

Leadership Transition

The announcement of these results coincided with the news that Kevan Krysler, the company’s CFO, would be leaving after more than five years of service. Krysler will remain at the company until a suitable successor is appointed. CEO Charles Giancarlo acknowledged Krysler’s contributions, highlighting his role in growing the business to over $3 billion in revenue and the successful transition to subscription services.

Product Innovation and Expansions

Pure Storage showcased its commitment to innovation by announcing the release of significant product advancements. They introduced the FlashBlade//EXA, which is positioned as the premier data storage platform catering to high-performance computing and AI demands. This new platform emphasizes superior metadata management and scalability, underscoring Pure's technological edge.

Moreover, Portworx Enterprise 3.3 was launched, enhancing the company's capabilities in managing container data for enterprise-level virtual machine workloads. These advancements further solidify Pure’s strategic position in the evolving data storage landscape.

To adapt to industry demands, Pure Storage has also partnered with Nutanix, integrating to enable a seamless deployment and management of virtual workloads. They have incorporated the NVIDIA AI Data Platform into their FlashBlade line, reinforcing their status as leaders in the fields of enterprise data storage solutions. They have also received accolades from NVIDIA, being recognized as high-performance storage platforms within the NVIDIA Partner Network.

Enhancing Cyber Resilience

In a move towards improving data security and resilience, Pure Storage expanded its partnership with Rubrik, focusing on comprehensive data management solutions at scale to protect against advanced cyber threats while optimizing data management capabilities. This collaboration underlines their commitment to safeguarding unstructured data while ensuring efficiency.

Recognition & Industry Awards

Recently, two of Pure's executives, Amy Fowler and Hope Galley, received recognition as part of the 2025 Women of the Channel by CRN. Pure was also acknowledged in listings such as CRN's AI 100, Data Center 50, and labeled among the 50 Coolest Software-Defined Storage Vendors for 2025, alongside winning an award for Storage Excellence from ITPro's Excellence Awards.

Future Outlook

Looking ahead, Pure has set ambitious guidance for Q2 FY26, with revenue expected to reach $845 million, representing a growth rate of 10.6%. For the full fiscal year 2026, they anticipate revenues will hit approximately $3.515 billion, equating to an 11% increase. These forward-looking statements reflect the company’s confidence in navigating the evolving tech landscape and their strategic priorities centered around growth.

In summary, the first quarter results of fiscal 2026 showcase Pure Storage's resilience, innovative approach, and strategic partnerships, setting the stage for continued success in the highly competitive data storage industry. With cutting-edge technologies and a dedicated leadership team, Pure appears well-equipped to tackle the demands of the future.