Pure Storage 2026 Q1 Earnings Revenue Beats Expectations with 12.3% Growth

Pure Storage (PSTG) reported its fiscal 2026 Q1 earnings on May 28th, 2025. The company surpassed analyst expectations, achieving revenue of $778.5 million, a 12.3% increase year-over-year. The guidance for next quarter also exceeded estimates, projecting revenue of $845 million. Pure Storage continues to face challenges with subscription ARR growth slightly below expectations. The company's strategic focus remains on innovation, as highlighted in their earnings report, showcasing their commitment to modernizing IT infrastructures.

Revenue

Pure Storage's total revenue rose to $778.49 million in 2026 Q1, representing a 12.3% increase from the $693.48 million reported in 2025 Q1. This growth was driven by strong demand across its product and subscription services.

Earnings/Net Income

Pure Storage narrowed its losses to $0.04 per share in 2026 Q1, showing a 63.6% improvement from the $0.11 loss per share in 2025 Q1. The net loss was reduced to $-13.99 million, a 60% improvement over the previous year's $-35.01 million net loss. Despite ongoing losses, the earnings per share performance was positive.

Price Action

The stock price of Pure Storage edged down 1.43% during the latest trading day, decreased 2.48% over the most recent full trading week, but surged 20.66% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Pure Storage shares after a quarterly revenue drop on the earnings report date and holding for 30 days has consistently delivered strong results over the past three years. With a 108.63% return, this approach significantly outperformed the benchmark return of 39.33%. The strategy's excess return of 69.29% highlights substantial gains relative to the benchmark, while its CAGR of 28.11% indicates robust compounding effectiveness. However, the strategy's Sharpe ratio of 0.58 suggests moderate risk-adjusted returns. The maximum drawdown of -51.54% underscores the high risk involved, emphasizing the importance of risk management in such volatile scenarios.

CEO Commentary

Charlie Giancarlo, Chief Executive Officer, highlighted Pure Storage's solid performance in Q1, achieving double-digit growth in a dynamic macro environment. He noted the positive reception of Fusion 2.0 and strategic partnerships such as the one with Nutanix to enhance virtualization. Giancarlo expressed confidence in Pure's ability to outpace the competition and reaffirmed the company's leadership in data storage innovation amid macroeconomic uncertainties.

Guidance

For Q2, Pure Storage anticipates revenue of $845 million, reflecting a 10.6% year-over-year increase, and an operating profit of $125 million with an operating margin of 14.8%. The company reiterated its FY’26 revenue and operating margin guidance, acknowledging "elevated macroeconomic uncertainties" that could impact the second half of the year. CFO Kevan Krysler noted strong Q1 results, but less visibility for the latter half of the fiscal year.

Additional News

Pure Storage recently announced a collaboration with SK hynix Inc. to deliver advanced QLC flash storage products aimed at hyperscale data centers. This partnership focuses on enhancing performance and energy efficiency, addressing the needs of data-intensive environments. Additionally, Kevan Krysler, CFO of Pure Storage, has decided to leave the company after five years of service, remaining until a successor is named. In corporate actions, Pure Storage returned approximately $120 million to stockholders through share repurchases, demonstrating its commitment to enhancing shareholder value.