Pure Storage Announces Third Quarter Fiscal 2026 Financial Results

Q3 total revenue growth of 16% year-over-year Increases full-year revenue and operating profit guidance

Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technologies and services, today announced financial results for its third quarter fiscal year 2026 ended November 2, 2025.

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“Pure Storage delivered another strong quarter as global customers increasingly choose Pure to solve their toughest data management challenges,” said Charles Giancarlo, Pure Storage CEO and Chairman. “Competitive advantage in the AI era demands data accessibility. Pure's Enterprise Data Cloud breaks data free from application silos, allowing enterprises to harness the power of AI, automation, and analytics.”

ThirdQuarter Financial Highlights

— Revenue $964.5 million, up 16% year-over-year

— Subscription services revenue $429.7 million, up 14% year-over-year

— Subscription annual recurring revenue (ARR) $1.8 billion, up 17% year-over-year

— Remaining performance obligations (RPO) $2.9 billion, up 24% year-over-year

— GAAP gross margin 72.3%; non-GAAP gross margin 74.1%

— GAAP operating income $53.9 million; non-GAAP operating income $196.2 million

— GAAP operating margin 5.6%; non-GAAP operating margin 20.3%

— Operating cash flow $116.0 million; free cash flow $52.6 million

— Total cash, cash equivalents, and marketable securities $1.5 billion

— Returned approximately $53 million to stockholders through share repurchases of 0.6 million shares.

“In the third quarter, we generated strong revenue and record operating profit, exceeding the high end of our guidance,” said Pure Storage CFO Tarek Robbiati. “To sustain this momentum beyond FY26, we will continue to make significant incremental investments in both research and development and sales and marketing to capture additional profitable growth opportunities consistent with our long-term strategy.”

ThirdQuarter Company Highlights

Simplifying workload expansion with a unified data plane

— Expanded the Enterprise Data Cloud into the public cloud with the introduction of Pure Storage Cloud Azure Native, developed jointly with Microsoft – the industry's first fully managed, enterprise-grade block volume as a service.

— Continued the evolution of the FlashArray family with FlashArray//XL190 R5, FlashArray//X R5, and FlashArray//C R5.

Advancing Pure Storage's intelligent control plane

— Expanded Pure1 AI Copilot with Portworx Pure1 AI Copilot, the first AI-powered platform engineering assistant for Portworx customers and announced integration of Pure1 AI Copilot with Model Context Protocol (MCP) servers.

— Bridged the gap between traditional and modern applications with the integration of Portworx and Pure Fusion.

Expanding our partner ecosystem to deliver greater value through integrated cybersecurity and data protection

— Introduced Pure Protect Recovery Zones and cyber resilience delivered as a service with Veeam to help customers proactively detect threats and recover faster.

— Enabled built-in and integrated detection capabilities to provide broader visibility across an entire environment with tools like real-time security with CrowdStrike Falcon, and file and user monitoring and remediation with Superna.

Industry recognition and accolades

— Named a Leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Storage Platforms, positioned highest in execution and furthest in vision.

— Named a Leader in the 2025 Gartner® Magic Quadrant™ for Infrastructure Platform Consumption Services.

— Positioned in the Leaders category in the IDC MarketScape: Worldwide Hardware Support Services 2025 Vendor Assessment report.

— Named one of Fortune's “Best Workplaces in Technology 2025.”

Fourth Quarter and FY26 Guidance

Q4FY26Revenue $1.02B to $1.04BRevenue YoY Growth Rate 16.5% to 17.6%Non-GAAP Operating Income $220M to $230MNon-GAAP Operating Income YoY Growth Rate 43.7% to 50.2%FY26 Prior Guidance New GuidanceRevenue $3.60B to $3.63B $3.63B to $3.64BRevenue YoY Growth Rate 13.5% to 14.5% 14.5% to 14.9%Non-GAAP Operating Income $605M to $625M $629M to $639MNon-GAAP Operating Income YoY Growth Rate 8.2% to 11.7% 12.4% to 14.2%

These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has not reconciled its guidance for non-GAAP operating income and related year-over-year growth rate to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure's control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.

Conference Call Information Pure Storage will host a teleconference to discuss the third quarter fiscal 2026 results at 2:00 pm PT today, December 2, 2025. A live audio broadcast of the conference call will be available on the Pure Storage Investor Relations website. Pure will also post its earnings presentation and prepared remarks to this website concurrent with this release.

A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482.

Additionally, Pure is scheduled to participate at the following investor conferences:

UBS Global Technology & AI Conference Date: Thursday, December 4, 2025 Time: 8:55 a.m. PT / 11:55 a.m. ET Chief Technology Officer Rob Lee

28th Annual Needham Growth Virtual Conference Date: Thursday, January 15, 2026 Time: 9:00 am PT / 12:00 pm ET Founder and Chief Visionary Officer John “Coz” Colgrove

About Pure Storage Pure Storage (NYSE: PSTG) delivers the industry's most advanced data storage platform to store, manage, and protect the world's data at any scale. With Pure Storage, organizations have ultimate simplicity and flexibility, saving time, money, and energy. From AI to archive, Pure Storage delivers a cloud experience with one unified Storage-as-a-Service platform across on-premises, cloud, and hosted environments. Our platform is built on our Evergreen architecture that evolves with your business – always getting newer and better with zero planned downtime, guaranteed. Our customers are actively increasing their capacity and processing power while significantly reducing their carbon and energy footprint. It's easy to fall in love with Pure Storage, which is why we've received one of the highest Net Promoter Scores in the industry across the years. For more information, visitwww.purestorage.com.

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Pure Storage, the Pure P Logo,Portworx, and the marks on the Pure Storage Trademark List are trademarks or registered trademarks of Pure Storage Inc. in the U.S. and/or other countries. The Trademark List can be found at purestorage.com/trademarks. Other names may be trademarks of their respective owners.

Forward Looking Statements This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to our future period financial and business results, our opportunity relating to hyperscale and AI environments, our ability to meet hyperscalers' performance, price and other requirements, our ability to expand with our current hyperscale customer and to land new hyperscale customers, our ability to meet the needs of hyperscalers for the entire spectrum of their online storage use cases, the timing and magnitude of large orders, including sales to hyperscalers and large enterprises, the structure, timing and amount of revenue from hyperscaler licensing and support services, demand for our products and subscription services, including Evergreen//One, the relative sales mix between our subscription and consumption offerings and traditional capital expenditure sales, our technology and product strategy, specifically ongoing development and customer adoption of new products and the Enterprise Data Cloud architecture (including Pure Fusion™), priorities around sustainability and energy saving benefits to our customers of using our products, our ability to perform during current macro conditions and expand market share, our sustainability goals and benefits, the impact of inflation, currency fluctuations, tariffs, economic or supply chain disruptions, our expectations regarding our product and technology differentiation, new technology investments and partnerships, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.

Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website at investor.purestorage.com and on the SEC website at www.sec.gov. Additional information is also set forth in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025. All information provided in this release and in the attachments is as of December 2, 2025, and Pure undertakes no duty to update this information unless required by law.

Key Performance Metrics Subscription ARR is a key business metric that refers to the annualized recurring contract value of all active, non-cancelable customer subscription agreements with subscription terms of any length at the end of the quarter, plus on-demand billings for the quarter multiplied by four.

Total Contract Value (TCV) Sales, or bookings, of Pure's Evergreen//One and similar consumption- and subscription-based offerings is an operating metric, representing the value of orders received during the period.

Non-GAAP Financial Measures To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Pure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense,payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of intangible assets acquired from acquisitions, restructuring costs related to severance and termination benefits, costs associated with the impairment and early exit of certain leased facilities, and gains and losses from mark-to-market adjustments on strategic investments that may not be indicative of our ongoing core business operating results. Pure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures” and “Reconciliation from net cash provided by operating activities to free cash flow,” included at the end of this release.

PURE STORAGE, INC.Condensed Consolidated Balance Sheets(in thousands, unaudited) At the End of ThirdQuarter of Fiscal 2025 Fiscal 2026AssetsCurrent assets:Cash and cash equivalents $ 852,838 $ 723,583Marketable securities 678,775 798,237Accounts receivable, net of allowance of $204 and $940 620,959 680,862Inventory 82,421 42,810Deferred commissions, current 109,370 99,286Prepaid expenses and other current assets 307,891 222,501Total current assets 2,652,254 2,567,279Property and equipment, net 566,336 461,731Operating lease right-of-use-assets 194,409 146,655Deferred commissions, non-current 240,113 229,334Intangible assets, net 9,407 19,074Goodwill 364,742 361,427Restricted cash 19,151 12,553Other assets, non-current 171,999 165,889Total assets $ 4,218,411 $ 3,963,942Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 128,022 $ 112,385Accrued compensation and benefits 244,939 230,040Accrued expenses and other liabilities 159,827 156,791Operating lease liabilities, current 43,599 43,489Deferred revenue, current 1,028,636 953,836Debt, current – 100,000Total current liabilities 1,605,023 1,596,541Operating lease liabilities, non-current 181,948 137,277Deferred revenue, non-current 931,768 841,467Other liabilities, non-current 96,783 82,182Total liabilities 2,815,522 2,657,467Stockholders' equity:Common stock and additional paid-in capital 2,681,966 2,674,533Accumulated other comprehensive income 2,006 954Accumulated deficit (1,281,083) (1,369,012)Total stockholders' equity 1,402,889 1,306,475Total liabilities and stockholders' equity $ 4,218,411 $ 3,963,942PURE STORAGE, INC.Condensed Consolidated Statements of Operations(in thousands, except per share data, unaudited) ThirdQuarter of Fiscal First Three Quarters of Fiscal 2026 2025 2026 2025Revenue:Product $ 534,760 $ 454,735 $ 1,353,207 $ 1,204,714Subscription services 429,693 376,337 1,250,733 1,083,608Total revenue 964,453 831,072 2,603,940 2,288,322Cost of revenue:Product (1) 152,006 154,970 443,352 385,446Subscription services (1) 115,070 93,180 322,722 284,168Total cost of revenue 267,076 248,150 766,074 669,614Gross profit 697,377 582,922 1,837,866 1,618,708Operating expenses:Research and development (1) 256,364 200,086 720,130 589,396Sales and marketing (1) 293,817 255,830 858,219 757,069General and administrative (1) 93,278 67,319 231,899 213,551Restructuring and impairment (2) – – – 15,901Total operating expenses 643,459 523,235 1,810,248 1,575,917Income from operations 53,918 59,687 27,618 42,791Other income (expense), net 11,790 17,156 89,145 50,684Income before provision for income taxes 65,708 76,843 116,763 93,475Income tax provision 10,902 13,204 28,834 29,171Net income $ 54,806 $ 63,639 $ 87,929 $ 64,304Net income per share attributable to common stockholders, basic $ 0.17 $ 0.19 $ 0.27 $ 0.20Net income per share attributable to common stockholders, diluted $ 0.16 $ 0.19 $ 0.26 $ 0.19Weighted-average shares used in computing net income per share attributable 329,570 327,675 327,901 325,530to common stockholders, basicWeighted-average shares used in computing net income per share attributable 345,747 340,564 341,019 341,490to common stockholders, diluted(1) Includes stock-based compensation expense as follows:Cost of revenue — product $ 4,378 $ 3,216 $ 11,793 $ 9,443Cost of revenue — subscription services 9,293 7,800 25,014 24,632Research and development 63,598 49,227 173,194 150,390Sales and marketing 26,298 24,393 74,909 72,330General and administrative 30,920 16,436 63,245 62,161Total stock-based compensation expense $ 134,487 $ 101,072 $ 348,155 $ 318,956(2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.PURE STORAGE, INC.Condensed Consolidated Statements of Cash Flows(in thousands, unaudited) Third Quarter of Fiscal First Three Quarters of Fiscal 2026 2025 2026 2025Cash flows from operating activitiesNet income $ 54,806 $ 63,639 $ 87,929 $ 64,304Adjustments to reconcile net income to net cash provided by operatingactivities:Depreciation and amortization 37,786 27,702 107,483 97,529Stock-based compensation expense 134,487 101,072 348,155 318,956Noncash portion of lease impairment and abandonment – – – 3,270(Gain) loss on strategic investment 2,915 – (27,486) -Other 3,681 2,381 10,708 5,107Changes in operating assets and liabilities, net of effects of acquisition:Accounts receivable, net (90,527) (161,723) 59,854 83,998Inventory (29,957) 5,071 (42,225) (1,590)Deferred commissions (9,468) 669 (20,863) 6,822Prepaid expenses and other assets (86,928) (38,438) (120,329) (65,444)Operating lease right-of-use assets 11,466 9,383 31,424 25,911Accounts payable 15,203 33,755 12,057 20,597Accrued compensation and other liabilities 35,268 7,781 35,870 (70,951)Operating lease liabilities (12,079) (12,096) (35,592) (30,353)Deferred revenue 49,340 57,797 165,101 86,934Net cash provided by operating activities 115,993 96,993 612,086 545,090Cash flows from investing activitiesPurchases of property and equipment (1) (63,419) (61,788) (197,792) (170,641)Purchase of strategic investments – – – (6,081)Acquisition (4,263) – (4,263) -Purchases of marketable securities and other (69,667) (43,632) (325,795) (308,002)Sales of marketable securities 23,994 12,817 294,981 61,241Maturities of marketable securities 17,120 131,994 154,627 329,978Sale of strategic investment 52,485 – 52,485 -Net cash provided by (used in) investing activities (43,750) 39,391 (25,757) (93,505)Cash flows from financing activitiesProceeds from exercise of stock options 4,743 3,426 18,201 21,194Proceeds from issuance of common stock under employee stock purchase plan 28,802 26,408 56,042 51,736Payments of financing costs for revolving credit facility – – (2,080) -Principal payments on borrowings and finance lease obligations (2,317) (1,786) (103,442) (5,721)Tax withholding on vesting of equity awards (85,779) (54,905) (203,240) (141,591)Repurchases of common stock (53,269) (181,999) (215,447) (181,999)Net cash used in financing activities (107,820) (208,856) (449,966) (256,381)Net increase in cash, cash equivalents and restricted cash (35,577) (72,472) 136,363 195,204Cash, cash equivalents and restricted cash, beginning of period 909,690 979,807 737,750 712,131Cash, cash equivalents and restricted cash, end of period $ 874,113 $ 907,335 $ 874,113 $ 907,335(1) Includes capitalized internal-use software costs of $10.4 million and $6.0 million for the third quarter of fiscal 2026 and 2025 and $26.0 million and $15.8 million for the first three quarters of fiscal 2026 and 2025.Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measuresThe following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited): ThirdQuarter of Fiscal 2026 ThirdQuarter of Fiscal 2025 GAAP GAAP Adjustment Non- Non- GAAP GAAP Adjustment Non- Non- results gross GAAP GAAP results gross GAAP GAAP margin (a) results gross margin (a) results gross margin (b) margin (b) $ 4,378 (c) $ 3,216 (c) 165 (d) 103 (d) 2,402 (e) 3,306 (e)Gross profit — $ 382,754 71.6% $ 6,945 $ 389,699 72.9% $ 299,765 65.9% $ 6,625 $ 306,390 67.4%product $ 9,293 (c) $ 7,800 (c) 609 (d) 368 (d)Gross profit — $ 314,623 73.2% $ 9,902 $ 324,525 75.5% $ 283,157 75.2% $ 8,168 $ 291,325 77.4%subscriptionservices $ 13,671 (c) $ 11,016 (c) 774 (d) 471 (d) 2,402 (e) 3,306 (e)Total gross profit $ 697,377 72.3% $ 16,847 $ 714,224 74.1% $ 582,922 70.1% $ 14,793 $ 597,715 71.9%(a) GAAP gross margin is defined as GAAP gross profit divided by revenue.(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.(c) To eliminate stock-based compensation expense.(d) To eliminate payroll tax expense related to stock-based activities.(e) To eliminate amortization expense of acquired intangible assets.The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited): ThirdQuarter of Fiscal 2026 ThirdQuarter of Fiscal 2025 GAAP GAAP Adjustment Non- Non- GAAP GAAP Adjustment Non- Non- results operating GAAP GAAP results operating GAAP GAAP margin (a) results operating margin (a) results operating margin (b) margin (b) $ 134,487 (c) $ 101,072 (c) 5,208 (d) 2,991 (d) 2,632 (e) 3,536 (e)Operating $ 53,918 5.6% $ 142,327 $ 196,245 20.3% $ 59,687 7.2% $ 107,599 $ 167,286 20.1%income $ 134,487 (c) $ 101,072 (c) 5,208 (d) 2,991 (d) 2,632 (e) 3,536 (e) 106 (f) 154 (f) 2,915 (g) -Net income $ 54,806 $ 145,348 $ 200,154 $ 63,639 $ 107,753 $ 171,392Net income per $ 0.16 $ 0.58 $ 0.19 $ 0.50share — dilutedWeighted- 345,747 – 345,747 340,564 – 340,564average sharesused in persharecalculation –diluted(a) GAAP operating margin is defined as GAAP operating income divided by revenue.(b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue.(c) To eliminate stock-based compensation expense.(d) To eliminate payroll tax expense related to stock-based activities.(e) To eliminate amortization expense of acquired intangible assets.(f) To eliminate amortization expense of debt issuance costs related to our debt.(g) To eliminate loss from mark-to-market adjustment on strategic investment.Reconciliation from net cash provided by operating activities to free cash flow (in thousands except percentages, unaudited): ThirdQuarter of Fiscal 2026 2025Net cash provided by operating activities $ 115,993 $ 96,993Less: purchases of property and equipment (1) (63,419) (61,788)Free cash flow (non-GAAP) $ 52,574 $ 35,205(1)Includes capitalized internal-use software costs of $10.4 million and $6.0 million for the third quarter of fiscal 2026 and 2025.

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