Technology

Pure Storage Rallies After Boosting Full-Year Outlook

The data storage firm's shares climbed after it beat quarterly estimates and raised its revenue and profit forecasts for fiscal 2026.

Pure Storage Inc. (PSTG) shares gained after the data storage provider reported stronger-than-expected quarterly results and lifted its full-year forecast, signaling robust demand for its flash storage and subscription services.

The Santa Clara-based company announced fiscal second-quarter revenue of $861 million, a 13% increase from the prior year, surpassing its own guidance of $845 million. Non-GAAP earnings per share came in at $0.43, beating analyst estimates of $0.39. The positive results sent the stock up nearly 4% in regular trading, with gains continuing in after-hours activity.

A key driver of the performance was the company’s subscription business. Subscription Annual Recurring Revenue (ARR), a metric of future revenue, grew 18% year-over-year to $1.8 billion. The company’s remaining performance obligations, which represent contracted future revenue, climbed 22% to $2.8 billion.

“Our strong second quarter results demonstrate ever more customers' confidence in the value of the Pure Storage platform,” said CEO and Chairman Charles Giancarlo, attributing the success to the company's strategy of helping clients create their own "Enterprise Data Cloud" to unlock value from siloed data.

Buoyed by the strong quarter, Pure Storage raised its financial outlook for the full fiscal year 2026. It now projects revenue between $3.60 billion and $3.63 billion, up from a previous forecast of $3.515 billion. The company also increased its non-GAAP operating income guidance to a range of $605 million to $625 million.

“Pure Storage exceeded both its revenue and operating profit guidance in the second quarter, reflecting strong customer adoption of our platform strategy,” said CFO Tarek Robbiati. The company generated $150.1 million in free cash flow during the quarter and returned approximately $42 million to shareholders through stock repurchases.

The results suggest renewed investor confidence after a mixed first quarter. The company's focus on expanding its enterprise customer base and developing its technology for large-scale cloud providers appears to be driving momentum heading into the second half of the year.