Pure Storage has posted solid financial results for the second quarter of its fiscal year 2026, ending 3 August 2025, with revenue of US$861 million, a 13% increase compared to the same period last year. Subscription services contributed US$414.7 million, up 15% year-on-year, while subscription annual recurring revenue grew 18% to US$1.8 billion. The company also reported remaining performance obligations of US$2.8 billion, representing a 22% rise.
Gross margins stood at 70.2% on a GAAP basis and 72.1% on a non-GAAP basis. GAAP operating income reached US$4.9 million, while non-GAAP operating income was significantly higher at US$130 million. Pure Storage also generated US$212.2 million in operating cash flow and US$150.1 million in free cash flow. The company ended the quarter with US$1.5 billion in cash, cash equivalents, and marketable securities, and returned US$42 million to shareholders through share repurchases of 0.8 million shares.
Chief executive officer and chairman Charles Giancarlo said the performance reflected growing confidence in the Pure Storage platform. “Today, enterprise applications are stuck in inflexible legacy systems that lock data in silos. With Purity and Pure Fusion, customers virtualise their storage to create their own Enterprise Data Cloud to unlock their data for business value,” he said.
Product innovation and industry recognition
During the quarter, Pure Storage introduced the Enterprise Data Cloud (EDC), a new architecture designed to simplify intelligent and autonomous data management. Powered by Pure Fusion, EDC enables organisations to abstract away infrastructure, helping them focus on business outcomes.
The company also expanded its portfolio with next-generation products, including FlashArray//XL, FlashArray//ST, and FlashBlade//S. These systems are designed for high-performance, scalable workloads and offer unified block, file, and object storage. In addition, Pure Storage launched Portworx for KubeVirt, a solution aimed at improving cost efficiency and resilience for Kubernetes virtual machine workloads on Red Hat OpenShift Virtualization Engine.
Recognition for its workplace culture and innovation also featured prominently in the quarter. Pure Storage was named among Fortune’s Best Workplaces in the Bay Area 2025 and Newsweek’s America’s Greatest Workplaces 2025. It was also listed in DBTA’s 100 Companies That Matter Most in Data and CRN’s Top 25 IT Innovators of 2025. The company’s IT Professional Certifications won Gold at the Brandon Hall HCM Excellence Awards.
Outlook for the rest of fiscal 2026
Pure Storage exceeded both revenue and operating profit guidance for the second quarter and has raised its outlook for the year. For the third quarter, the company expects revenue between US$950 million and US$960 million, representing year-on-year growth of 14.3% to 15.5%. Non-GAAP operating income is projected at US$185 million to US$195 million, up between 10.6% and 16.6% from last year.
For the full fiscal year 2026, guidance has been revised upwards. Revenue is now expected to be between US$3.60 billion and US$3.63 billion, up from the previous forecast of US$3.515 billion. This represents a growth rate of 13.5% to 14.5%. Non-GAAP operating income is forecast at US$605 million to US$625 million, an increase from the earlier estimate of US$595 million.
Chief financial officer Tarek Robbiati said the results reflected strong adoption of Pure Storage’s platform strategy. “Looking ahead, we remain committed to executing on our strategic priorities to drive profitable growth and maintain the flexibility to navigate evolving market conditions,” he said.
