Huaqin Technology's H1 Profit Soars 46%, Revenue Increases 113%

Huaqin Technology's H1 profit surged 46% and revenue rose 113%. The China-based company is engaged in the development, design, production, and operation of smart hardware products. Its businesses include smart terminals, high-performance computing, automotive electronics, and AIoT. The company operates in both domestic and overseas markets.

Pure Storage Inc (PSTG) reported a robust second quarter (Q2) with a 13% year-over-year (YoY) revenue growth, reaching $861 million [1]. The company's subscription services revenue grew 15% YoY, accounting for 48% of total revenue, while Annual Recurring Revenue (ARR) increased 18% to $1.8 billion [1]. Pure Storage also introduced the Enterprise Data Cloud architecture, which is transforming how enterprises manage data, driving demand for its platform [1].

The company's operating profit was $130 million, with an operating margin of 15.1%, and its free cash flow was $150 million, representing a free cash flow margin of 17.4% [1]. Pure Storage's gross margin was 72.1%, with subscription services gross margin at 76.5% and product gross margin at 68% [1]. The company's total remaining performance obligations (RPO) stood at $2.8 billion, up 22% YoY [1].

Pure Storage's Q2 TCV Sales for Storage-as-a-Service grew 24% YoY to $125 million [1]. The company's guidance for Fiscal Year '26 revenue is $3.6 billion to $3.63 billion, representing 14% YoY growth at the midpoint, and for operating profit is $605 million to $625 million, representing a 10% YoY increase at the midpoint [1]. For Q3, Pure Storage expects revenue of $950 million to $960 million, representing a 15% YoY increase at the midpoint, and operating profit of $185 million to $195 million, representing a 14% YoY increase at the midpoint [1].

Pure Storage's CEO, Charles Giancarlo, attributed the acceleration of growth in the back half of the fiscal year to broad-based strength across its product line, improved pipeline visibility, and strong momentum driven by the architectural shift with the enterprise data cloud and Fusion [1]. The company is experiencing strong customer interest in its offerings, particularly in large deals.

Pure Storage's relationship with Meta is progressing as expected, with revenue recognized from the first volume deployment in Q2. The revenue from Meta is based on royalty or software revenue, which is almost 100% margin, except for the service element [1]. The company expects to deploy 1 to 2 exabytes this year and potentially reach double digits next year [1].

The company's partnership with Nutanix is generating significant customer interest, and general availability is expected by the end of the year [1]. Pure Storage's early engagements with other hyperscalers are progressing, with co-engineering efforts in various phases [1].

The global macro environment remains variable and uncertain, posing potential risks to future performance. Pure Storage faces challenges in accurately forecasting the mix between as-a-service offerings and product sales, which can impact recognized revenue [1]. The company's revenue contribution from hyperscalers like Meta is not expected to be material in fiscal year '26 [1].

References:
[1] https://finance.yahoo.com/news/pure-storage-inc-pstg-q2-070737784.html