Pure Storage (PSTG 0.22%), a provider of flash storage solutions, released its fourth-quarter results on Feb. 26, 2025. The company's revenue of $879.8 million exceeded both management’s guidance and analyst expectations. Despite the robust revenue performance, the non-GAAP earnings per share (EPS) was $0.45, missing the expected $0.41, and showing a year-over-year decline from $0.50. Overall, the quarter highlighted strong revenue growth, especially in subscription services.
| Metric | Q4 2025 | Q4 Estimate | Q4 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.45 | $0.41 | $0.50 | -10.0% |
| Revenue | $879.8M | $868M | $789.8M | +11.4% |
| Subscription Services Revenue | $385.1M | N/A | $328.9M | +17.0% |
| Non-GAAP Operating Margin | 17.4% | N/A | 20.0% | -2.6 pp |
| Free Cash Flow | $151.9M | N/A | $200.9M | -24.3% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in 2024-12-03 earnings report.
Company Overview
Pure Storage plays a pivotal role in modernizing data storage by transitioning from traditional disks to state-of-the-art flash storage solutions. It serves high-performance applications, especially those leveraging artificial intelligence, cloud services, and data-intense workloads.
NYSE: PSTG
Key Data Points
Recent strategies include an extensive focus on subscription and as-a-service models, addressing customer demand for flexible, scalable solutions. This aligns with its efforts toward enhancing sustainability and integrating its products into hybrid cloud infrastructures.
Quarter Highlights
In Q4 2025, Pure Storage reported $879.8 million in revenue, surpassing management’s expected $867 million by 1.5%. Full-year revenue also reached $3.2 billion, meeting the fiscal year growth guidance of 11.5% from management.
As for operational efficiency, the non-GAAP operating margin in Q4 stood at 17.4%, above management’s expectations of 15.6%. However, free cash flow fell to $151.9 million, a notable decline from $200.9 million last year.
Pure Storage continues to excel in its subscription and as-a-service models. The segment grew its revenue to $385.1 million this quarter, marking a 17% year-on-year increase.
On the product and innovation fronts, Pure Storage made significant strides with offerings like Pure Fusion™ and expansions into the hyperscale market through partnerships with leaders such as Kioxia.
Despite these advancements, challenges remain in maintaining growth momentum, as indicated by slowing revenue growth rates of 9% in prior quarters.
Looking Ahead
Pure Storage anticipates FY 2026 revenue to reach $3.515 billion with 11% year-over-year growth, maintaining a similar growth pattern. The company projects a 17% non-GAAP operating margin, consistent with fiscal past performance. Q1 FY 26 expectations include $770 million in revenue, marking an 11% increase from prior quarters.
