Data storage firm Pure Storage Q2 revenue rises 13%, lifts annual guidance
Overview
Pure Storage fiscal Q2 rev grows 13% yr/yr, totaling $861 mln
Adjusted operating income beats expectations, reaching $130 mln, per LSEG data
Company raises full-year revenue and operating profit guidance
Outlook
Company sees Q3 revenue between $950 mln and $960 mln
Pure Storage raises FY26 revenue guidance to $3.60 bln-$3.63 bln
Company expects Q3 non-GAAP operating income of $185 mln-$195 mln
Pure Storage projects FY26 non-GAAP operating income of $605 mln-$625 mln
Result Drivers
SUBSCRIPTION GROWTH - Subscription services revenue rose 15% year-over-year, with ARR up 18%, driven by customer adoption of Pure's platform
SERVICE OFFERINGS - Storage as a Service TCV sales grew 24%, reflecting strong demand for Pure's consumption-based offerings
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | $861 mln | ||
Q2 Adjusted Operating Income | Beat | $130 mln | $126.10 mln (16 Analysts) |
Q2 Adjusted Gross Margin | 72.1% | ||
Q2 Adjusted Operating Margin | 15.1% | ||
Q2 Operating Cash Flow | $212.20 mln | ||
Q2 Operating Income | $4.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy"
Wall Street's median 12-month price target for Pure Storage Inc is $70.00, about 16.3% above its August 26 closing price of $58.56
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 25 three months ago
Press Release:
