Pure Storage PSTG 2026Q1 Earnings Preview Upside Expected on Strong Revenue Growth and Subscription ARR

Forward-Looking Analysis
Pure Storage is projected to deliver a solid 2026Q1 performance with anticipated revenue of $770 million, marking an 11% year-over-year increase. This aligns with their fiscal year 2026 guidance, which forecasts a total revenue of $3.515 billion, maintaining an 11% growth trajectory. Earnings expectations are bolstered by a significant 36.7% annual EPS growth forecast, supported by robust demand for subscription services and innovative solutions like Pure Fusion™. Analysts anticipate a stable non-GAAP operating income of $80 million for Q1 and $595 million for the full fiscal year, reflecting a consistent operating margin of around 10.4% for the quarter and 17.0% for the year. The company's ongoing strategic partnerships and technological advancements are expected to continue driving its market leadership, particularly in hyperscale and AI environments. However, investors should note the deceleration in subscription ARR growth, now at 21%, which may pose a challenge to achieving higher growth rates.

Historical Performance Review
In 2025Q4, Pure Storage reported revenue of $879.84 million, reflecting an 11% year-over-year increase. The company achieved a net income of $42.44 million and an EPS of $0.13. Gross profit stood at $594.00 million, supported by strong product and subscription service performance. This solid financial performance was highlighted by the company's ability to exceed expectations, particularly in EPS, marking a positive surprise of 9.8%.

Additional News
Pure Storage's recent strategic initiatives include a major hyperscaler win with Meta, enhancing its position in large-scale environments traditionally dominated by HDDs. The company has also expanded its partnership with Micron Technology, facilitating high-capacity solutions for hyperscale environments. Additionally, Pure Storage launched the Pure GenAI Pod, a comprehensive AI solution aimed at accelerating enterprise AI deployments. The company continues to strengthen its partner ecosystem, unveiling a revamped Reseller Partner Program to boost partner profitability and transition to all-flash storage. These initiatives underscore Pure Storage's commitment to innovation and market expansion, positioning it well for future growth.

Summary & Outlook
Pure Storage demonstrates solid financial health with consistent revenue and EPS growth, driven by innovative products and strategic partnerships. The company’s focus on hyperscale and AI environments, alongside its robust subscription model, positions it for sustained growth. However, the deceleration in subscription ARR growth presents a potential risk. Overall, the outlook remains bullish, supported by strong revenue projections and strategic market positioning. The company’s ability to adapt and innovate in a competitive landscape further solidifies its growth prospects, making it a favorable investment opportunity.