# Pure Storage (PSTG) Q2 2026 Financial Results Summary
Pure Storage released its financial results for the second quarter of fiscal year 2026 on August 27, 2025. Here is a detailed summary of the results and significant metrics.
## Financial Highlights
– **Total Revenue**: $861.0 million, up **13%** year-over-year.
– **Subscription Services Revenue**: $414.7 million, up **15%** year-over-year.
– **Subscription Annual Recurring Revenue (ARR)**: $1.8 billion, up **18%** year-over-year.
– **Remaining Performance Obligations (RPO)**: $2.8 billion, up **22%** year-over-year.
– **GAAP Gross Margin**: 70.2%; **Non-GAAP Gross Margin**: 72.1%.
– **GAAP Operating Income**: $4.9 million; **Non-GAAP Operating Income**: $130.0 million.
– **GAAP Operating Margin**: 0.6%; **Non-GAAP Operating Margin**: 15.1%.
– **Operating Cash Flow**: $212.2 million; **Free Cash Flow**: $150.1 million.
– **Total Cash and Marketable Securities**: $1.5 billion.
– **Share Repurchase**: Returned approximately $42 million to stockholders through the repurchase of 0.8 million shares.
## Company Highlights
– **New Architecture**: Launched the **Enterprise Data Cloud** (EDC), which transforms data storage and management for organizations, emphasizing simplicity and efficiency. This was enabled by **Pure Fusion**.
– **Product Innovations**: Expanded product portfolio with the introduction of next-generation storage offerings including FlashArray//XL, FlashArray//ST, and FlashBlade//S, designed for optimal performance and scalability across various enterprise applications.
– **New Offerings Launch**: Released **Portworx for KubeVirt**, which is aimed at simplifying and reducing costs related to managing virtual machine workloads through Kubernetes.
– **Industry Recognition**: Received several accolades including:
– Listed among Fortune’s Best Workplaces in the Bay Area™ 2025.
– Featured as one of America’s Greatest Workplaces 2025 by Newsweek.
– Included in DBTA’s 100 for 2025 and recognized as a Top 25 IT Innovators by CRN.
– Won a Gold award for its IT Professional Certifications program.
## Guidance
### Third Quarter FY26 Guidance:
– **Revenue**: $950M to $960M, representing a year-over-year growth of **14.3% to 15.5%**.
– **Non-GAAP Operating Income**: $185M to $195M, with a year-over-year growth of **10.6% to 16.6%**.
### Fiscal Year 2026 Guidance:
– **Revenue**: Adjusted from $3.515 billion to $3.60 billion to $3.63 billion, indicating a year-over-year growth of **13.5% to 14.5%**.
– **Non-GAAP Operating Income**: Adjusted from $595 million to $605 million to $625 million which shows a year-over-year growth of **8.2% to 11.7%**.
## Additional Information
– **Teleconference**: A conference call to discuss the financial results was scheduled for 2:00 PM PT on August 27, 2025, available on the Pure Storage Investor Relations website.
## Conclusion
Pure Storage’s strong performance in Q2 FY26, highlighted by significant revenue and subscription growth, demonstrates the company’s effective strategic focus on innovation and customer value. The guidance for the upcoming quarters signals continued optimism regarding its growth trajectory in the evolving data storage landscape.
| Second Quarter of Fiscal | First Two Quarters of Fiscal | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Product | $446,303 | $402,595 | $818,447 | $749,979 |
| Subscription services | $414,699 | $361,176 | $821,040 | $707,271 |
| Total revenue | $861,002 | $763,771 | $1,639,487 | $1,457,250 |
| Cost of revenue: | ||||
| Product(1) | $150,296 | $129,723 | $291,346 | $230,476 |
| Subscription services(1) | $106,370 | $93,968 | $207,652 | $190,988 |
| Total cost of revenue | $256,666 | $223,691 | $498,998 | $421,464 |
| Gross profit | $604,336 | $540,080 | $1,140,489 | $1,035,786 |
| Operating expenses: | ||||
| Research and development(1) | $242,026 | $195,490 | $463,766 | $389,310 |
| Sales and marketing(1) | $285,890 | $250,267 | $564,402 | $501,239 |
| General and administrative(1) | $71,549 | $69,445 | $138,621 | $146,232 |
| Restructuring and impairment(2) | $— | $— | $— | $15,901 |
| Total operating expenses | $599,465 | $515,202 | $1,166,789 | $1,052,682 |
| Income (loss) from operations | $4,871 | $24,878 | $-26,300 | $-16,896 |
| Other income (expense), net | $45,700 | $19,437 | $77,355 | $33,528 |
| Income before provision for income taxes | $50,571 | $44,315 | $51,055 | $16,632 |
| Income tax provision | $3,453 | $8,641 | $17,932 | $15,967 |
| Net income | $47,118 | $35,674 | $33,123 | $665 |
| Net income per share attributable to common stockholders, basic | $0.14 | $0.11 | $0.10 | $0.00 |
| Net income per share attributable to common stockholders, diluted | $0.14 | $0.10 | $0.10 | $0.00 |
| Weighted-average shares used in computing net income per share attributable to common stockholders, basic | 327,594 | 326,326 | 327,066 | 324,458 |
| Weighted-average shares used in computing net income per share attributable to common stockholders, diluted | 337,734 | 343,443 | 337,306 | 341,509 |
(1) Includes stock-based compensation expense as follows:
Cost of revenue — product $ 4,149 $ 3,445 $ 7,415 $ 6,227
Cost of revenue — subscription services 8,559 7,961 15,721 16,832
Research and development 60,354 50,869 109,596 101,163
Sales and marketing 26,527 24,418 48,611 47,937
General and administrative 17,804 18,197 32,325 45,725
Total stock-based compensation expense $ 117,393 $ 104,890 $ 213,668 $ 217,884
(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.
| Assets | At the End of | |
|---|---|---|
| Current assets: | Second Quarter of Fiscal 2026 | Fiscal 2025 |
| Cash and cash equivalents | $887,849 | $723,583 |
| Marketable securities | $649,661 | $798,237 |
| Accounts receivable, net of allowance of $509 and $940 | $530,481 | $680,862 |
| Inventory | $46,812 | $42,810 |
| Deferred commissions, current | $104,795 | $99,286 |
| Prepaid expenses and other current assets | $305,140 | $222,501 |
| Total current assets | $2,524,738 | $2,567,279 |
| Property and equipment, net | $544,119 | $461,731 |
| Operating lease right-of-use-assets | $191,202 | $146,655 |
| Deferred commissions, non-current | $235,220 | $229,334 |
| Intangible assets, net | $11,143 | $19,074 |
| Goodwill | $361,427 | $361,427 |
| Restricted cash | $19,770 | $12,553 |
| Other assets, non-current | $138,918 | $165,889 |
| Total assets | $4,026,537 | $3,963,942 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $112,162 | $112,385 |
| Accrued compensation and benefits | $212,869 | $230,040 |
| Accrued expenses and other liabilities | $156,720 | $156,791 |
| Operating lease liabilities, current | $46,460 | $43,489 |
| Deferred revenue, current | $1,006,197 | $953,836 |
| Debt, current | $— | $100,000 |
| Total current liabilities | $1,534,408 | $1,596,541 |
| Operating lease liabilities, non-current | $176,253 | $137,277 |
| Deferred revenue, non-current | $904,867 | $841,467 |
| Other liabilities, non-current | $92,188 | $82,182 |
| Total liabilities | $2,707,716 | $2,657,467 |
| Stockholders’ equity: | ||
| Common stock and additional paid-in capital | $2,652,794 | $2,674,533 |
| Accumulated other comprehensive income | $1,916 | $954 |
| Accumulated deficit | -$1,335,889 | -$1,369,012 |
| Total stockholders’ equity | $1,318,821 | $1,306,475 |
| Total liabilities and stockholders’ equity | $4,026,537 | $3,963,942 |
