Pure Storage 2026 Q3 Earnings Revenue Grows 16% Despite 13.9% Net Income Drop

Pure Storage (PSTG) reported fiscal 2026 Q3 earnings on December 10, 2025, with revenue rising 16.0% year-over-year to $964.45 million, outpacing the $831.07 million in the prior-year quarter. The company raised its full-year 2026 revenue guidance to $3.64 billion, reflecting stronger-than-expected performance. However, net income declined 13.9% to $54.81 million, underscoring ongoing profitability challenges.

Revenue

Pure Storage’s total revenue surged to $964.45 million in Q3 2026, a 16.0% increase from $831.07 million in Q3 2025. Product revenue accounted for $534.76 million, while subscription services contributed $429.69 million, combining to form the $964.45 million total. This marks a $80.01 million year-over-year expansion in product and subscription offerings.

Earnings/Net Income

The company’s earnings per share (EPS) fell 10.5% to $0.17 in Q3 2026, down from $0.19 in Q3 2025. Net income contracted to $54.81 million, a 13.9% decline from $63.64 million in the prior-year period. The EPS and net income reductions highlight persistent operational challenges, with the company reporting sustained losses for 12 consecutive years in the same quarter.

Price Action

Pure Storage’s stock price posted a 4.90% gain during the latest trading day, extending its weekly rally to 6.97%. However, the stock reversed sharply in the month-to-date period, retreating 18.23% as of the reporting date.

Post-Earnings Price Action Review

The stock’s post-earnings trajectory reflects mixed investor sentiment. While a strong revenue beat and guidance raise initially buoyed shares, concerns over margin compression and net income contraction pressured the stock over the subsequent month. Analysts remain divided, with some emphasizing growth potential in cloud solutions and others cautioning over sustainability of current profitability trends.

CEO Commentary

Pure Storage CEO Charlie Giancarlo emphasized the company’s focus on accelerating growth in hybrid cloud and AI-driven storage solutions during the earnings call. “Our revenue growth underscores the demand for modern data solutions, but we remain vigilant about optimizing margins and operational efficiency,” Giancarlo stated. He highlighted investments in expanding hyperscaler partnerships and R&D as key priorities for FY27, signaling confidence in long-term market positioning despite near-term profitability headwinds.

Guidance

The company raised its full-year 2026 revenue guidance to $3.64 billion, reflecting stronger Q3 performance and optimism about fourth-quarter momentum. While no explicit EPS guidance was provided, management indicated plans to maintain disciplined cost management and expand hyperscaler investments in FY27.

Additional News

Pure Storage’s board approved an additional $400 million for its share repurchase program, bringing the total available authorization to $620 million. The move follows a $250 million buyback program announced in February 2025, with $20 million remaining. Meanwhile, insider John Colgrove, an officer and director, sold 100,000 shares worth $7.1 million under a prearranged trading plan, raising questions about internal confidence amid mixed market sentiment.