Overview

* Pure Storage ( PSTG ) 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 ( PSTG ) 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 ( PSTG ) 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/Mis Actual Consensu

s s

Estimate

Q2 $861 mln

Revenue

Q2 Beat $130 mln $126.10

Adjusted mln (16

Operatin Analysts

g Income )

Q2 72.1%

Adjusted

Gross

Margin

Q2 15.1%

Adjusted

Operatin

g Margin

Q2 $212.20

Operatin mln

g Cash

Flow

Q2 $4.90

Operatin mln

g Income

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 ( PSTG ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)