Pure Storage (PSTG) Q3 2026 Financial Results Summary
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Pure Storage (PSTG) Q3 2026 Financial Results Summary
Release Date: December 2, 2025
Pure Storage (NYSE: PSTG), a leader in advanced data storage solutions, reported its financial results for the third quarter of fiscal year 2026, which ended on November 2, 2025. Below is a summary of their key financial metrics and performance highlights, compared to the same quarter a year ago.
Third Quarter Financial Highlights
- Total Revenue: $964.5 million (up 16% year-over-year)
- Subscription Services Revenue: $429.7 million (up 14% year-over-year)
- 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
- Share Repurchases: Approximately $53 million returned to stockholders through the repurchase of 0.6 million shares.
Company Commentary
CEO Charles Giancarlo noted the continued demand for Pure’s solutions as global customers turn to them for data management challenges. CFO Tarek Robbiati commented on the strong revenue and record operating profit, emphasizing the company’s commitment to invest further in research and development to capture profitable growth opportunities.
Third Quarter Company Highlights
- Unified Data Plane Expansion: Introduction of Pure Storage Cloud Azure Native, a fully managed enterprise-grade block volume as a service, developed in collaboration with Microsoft.
- FlashArray Evolution: Launch of upgraded models including FlashArray//XL190 R5 and FlashArray//X R5.
- AI Control Plane Advancement: Increase in capabilities with the expansion of Pure1 AI Copilot and integration with Model Context Protocol (MCP) servers to support both traditional and modern applications.
- Cybersecurity Enhancements: Introduction of Pure Protect Recovery Zones and integration with cybersecurity tools like CrowdStrike Falcon for enhanced threat detection and recovery.
Industry Recognition
- Named a Leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Storage Platforms and Infrastructure Platform Consumption Services.
- Featured in the Leaders category in the IDC MarketScape for Worldwide Hardware Support Services 2025 Vendor Assessment.
- Recognized as one of Fortune’s “Best Workplaces in Technology 2025.”
Fourth Quarter and FY26 Guidance
- Q4FY26 Revenue Guidance: $1.02 billion to $1.04 billion, projecting a year-over-year growth rate of 16.5% to 17.6%.
- Non-GAAP Operating Income Guidance: $220 million to $230 million, indicating a growth rate of 43.7% to 50.2%.
Full-Year FY26 Guidance:
– Revenue: Revised to $3.63 billion to $3.64 billion, up from previous estimates of $3.60 billion to $3.63 billion. Projected year-over-year growth rate is 14.5% to 14.9%.
– Non-GAAP Operating Income: Increased guidance to $629 million to $639 million, reflecting a growth of 12.4% to 14.2% compared to prior estimates.
Conclusion
Pure Storage’s results for Q3 2026 demonstrate a robust growth trajectory in revenue and operating income, supported by strategic investments and product enhancements in the rapidly evolving data management landscape. The company’s commitment to innovation and strong market positioning is reflected in its industry accolades and promising guidance for the upcoming quarter and fiscal year.
| Third Quarter of Fiscal | First Three Quarters of Fiscal | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Product | $534,760 | $454,735 | $1,353,207 | $1,204,714 |
| Subscription services | $429,693 | $376,337 | $1,250,733 | $1,083,608 |
| Total revenue | $964,453 | $831,072 | $2,603,940 | $2,288,322 |
| Cost of revenue: | ||||
| Product(1) | $152,006 | $154,970 | $443,352 | $385,446 |
| Subscription services(1) | $115,070 | $93,180 | $322,722 | $284,168 |
| Total cost of revenue | $267,076 | $248,150 | $766,074 | $669,614 |
| Gross profit | $697,377 | $582,922 | $1,837,866 | $1,618,708 |
| Operating expenses: | ||||
| Research and development(1) | $256,364 | $200,086 | $720,130 | $589,396 |
| Sales and marketing(1) | $293,817 | $255,830 | $858,219 | $757,069 |
| General and administrative(1) | $93,278 | $67,319 | $231,899 | $213,551 |
| Restructuring and impairment(2) | $— | $— | $— | $15,901 |
| Total operating expenses | $643,459 | $523,235 | $1,810,248 | $1,575,917 |
| Income from operations | $53,918 | $59,687 | $27,618 | $42,791 |
| Other income (expense), net | $11,790 | $17,156 | $89,145 | $50,684 |
| Income before provision for income taxes | $65,708 | $76,843 | $116,763 | $93,475 |
| Income tax provision | $10,902 | $13,204 | $28,834 | $29,171 |
| Net income | $54,806 | $63,639 | $87,929 | $64,304 |
| Net income per share attributable to | ||||
| common stockholders, basic | $0.17 | $0.19 | $0.27 | $0.20 |
| Net income per share attributable to | ||||
| common stockholders, diluted | $0.16 | $0.19 | $0.26 | $0.19 |
| Weighted-average shares used in | ||||
| computing net income per share | 329,570 | 327,675 | 327,901 | 325,530 |
| attributable to common stockholders, basic | ||||
| Weighted-average shares used in | ||||
| computing net income per share | 345,747 | 340,564 | 341,019 | 341,490 |
| attributable to common stockholders, diluted |
(1) Includes stock-based compensation expense as follows:
| 2026 | 2025 | 2026 | 2025 | |
|---|---|---|---|---|
| Cost of revenue — product | $4,378 | $3,216 | $11,793 | $9,443 |
| Cost of revenue — subscription services | $9,293 | $7,800 | $25,014 | $24,632 |
| Research and development | $63,598 | $49,227 | $173,194 | $150,390 |
| Sales and marketing | $26,298 | $24,393 | $74,909 | $72,330 |
| General and administrative | $30,920 | $16,436 | $63,245 | $62,161 |
| Total 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.
| Assets | At the End of | Third Quarter of Fiscal 2026 | Fiscal 2025 |
|---|---|---|---|
| Current assets: | |||
| Cash and cash equivalents | $852,838 | $723,583 | |
| Marketable securities | $678,775 | $798,237 | |
| Accounts receivable, net of allowance of $204 and $940 | $620,959 | $680,862 | |
| Inventory | $82,421 | $42,810 | |
| Deferred commissions, current | $109,370 | $99,286 | |
| Prepaid expenses and other current assets | $307,891 | $222,501 | |
| Total current assets | $2,652,254 | $2,567,279 | |
| Property and equipment, net | $566,336 | $461,731 | |
| Operating lease right-of-use-assets | $194,409 | $146,655 | |
| Deferred commissions, non-current | $240,113 | $229,334 | |
| Intangible assets, net | $9,407 | $19,074 | |
| Goodwill | $364,742 | $361,427 | |
| Restricted cash | $19,151 | $12,553 | |
| Other assets, non-current | $171,999 | $165,889 | |
| Total assets | $4,218,411 | $3,963,942 | |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities: | |||
| Accounts payable | $128,022 | $112,385 | |
| Accrued compensation and benefits | $244,939 | $230,040 | |
| Accrued expenses and other liabilities | $159,827 | $156,791 | |
| Operating lease liabilities, current | $43,599 | $43,489 | |
| Deferred revenue, current | $1,028,636 | $953,836 | |
| Debt, current | $— | $100,000 | |
| Total current liabilities | $1,605,023 | $1,596,541 | |
| Operating lease liabilities, non-current | $181,948 | $137,277 | |
| Deferred revenue, non-current | $931,768 | $841,467 | |
| Other liabilities, non-current | $96,783 | $82,182 | |
| Total liabilities | $2,815,522 | $2,657,467 | |
| Stockholders’ equity: | |||
| Common stock and additional paid-in capital | $2,681,966 | $2,674,533 | |
| Accumulated other comprehensive income | $2,006 | $954 | |
| Accumulated deficit | -$1,281,083 | -$1,369,012 | |
| Total stockholders’ equity | $1,402,889 | $1,306,475 | |
| Total liabilities and stockholders’ equity | $4,218,411 | $3,963,942 |