Everpure, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 2 December 2025: press release. Guidance figures: 4 raised, 4 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue grew 16% year-over-year: Total revenue was $964.5 million, up 16% from $831.1 million a year earlier. Source
• Record operating profit described by management: Non-GAAP operating income was $196.2 million, a 20.3% margin, against $167.3 million a year earlier. GAAP operating income was $53.9 million, versus $59.7 million. Source
• Full-year revenue and profit ranges raised: Full-year revenue and non-GAAP operating income ranges were raised, and Q4 FY26 ranges were given for the first time. Source
• Operating expenses rose sharply: Total operating expenses were $643.5 million, versus $523.2 million a year earlier, with research and development and sales and marketing the largest lines. Source
• Remaining performance obligations up 24%: Remaining performance obligations were $2.9 billion, up 24% year-over-year. Source
• Free cash flow of $52.6 million: Operating cash flow was $116.0 million and free cash flow $52.6 million, against $35.2 million of free cash flow a year earlier. Source
• Buybacks of about $53 million: Repurchased 0.6 million shares for about $53 million, against $182.0 million a year earlier. Tax withholding on vesting of equity awards was $85.8 million. Source
• Incremental R&D and sales investment: Management said it will keep making significant incremental investment in research and development and sales and marketing to pursue profitable growth beyond FY26. Source

“Pure Storage delivered another strong quarter as global customers increasingly choose Pure to solve their toughest data management challenges,”

Charles Giancarlo, Pure Storage CEO and Chairman

Guidance

What changed from last quarter

• Guidance raised: Full-year FY26 revenue and non-GAAP operating income ranges were raised. Source
• New guidance: Q4 FY26 revenue, growth and non-GAAP operating income ranges were given for the first time. Source
• New: Patrick Finn was named Chief Revenue Officer, responsible for global sales and channels, effective immediately.
• Ended: Dan FitzSimons handed over the chief revenue officer role and remains at the company in an advisory capacity.

Quarter results and guidance

• Revenue grew 16% year-over-year: Total revenue was $964.5 million, up 16% from $831.1 million a year earlier. Source
• Record operating profit described by management: Non-GAAP operating income was $196.2 million, a 20.3% margin, against $167.3 million a year earlier. GAAP operating income was $53.9 million, versus $59.7 million. Source
• Full-year revenue and profit ranges raised: Full-year revenue and non-GAAP operating income ranges were raised, and Q4 FY26 ranges were given for the first time. Source
• Diluted EPS on GAAP and non-GAAP bases: GAAP diluted EPS was $0.16 versus $0.19 a year earlier; non-GAAP diluted EPS was $0.58 versus $0.50. Source

Product and subscription revenue

• Subscription services grew 14%: Subscription services revenue was $429.7 million, up 14% year-over-year, out of the $964.5 million total. Source
• Product revenue rose from prior year: Product revenue was $534,760 thousand in the quarter, up from $454,735 thousand a year earlier. Source
• Nine-month revenue reached $2.60 billion: Revenue for the first three quarters of fiscal 2026 was $2.60 billion, against $2.29 billion in the same period of fiscal 2025. Source

“In the third quarter, we generated strong revenue and record operating profit, exceeding the high end of our guidance,”

Tarek Robbiati, Pure Storage CFO

Products and partner offerings

• Azure block service launched with Microsoft: Pure Storage Cloud Azure Native was introduced, described as the industry's first fully managed, enterprise-grade block volume as a service. Source
• FlashArray family refreshed: The FlashArray family was updated with FlashArray//XL190 R5, FlashArray//X R5 and FlashArray//C R5 models. Source
• Pure1 AI Copilot extended to Portworx: A Portworx version of Pure1 AI Copilot was added, described as the first AI-powered platform engineering assistant for Portworx customers. Source
• Cyber resilience and security partnerships: Pure Protect Recovery Zones and cyber resilience as a service were introduced with Veeam, with detection tools added from CrowdStrike and Superna. Source
• Gartner Leader placement for storage: Named a Leader in the 2025 Gartner Magic Quadrant for Enterprise Storage Platforms, positioned highest in execution and furthest in vision. Source

Operating costs and spending

• Operating expenses rose sharply: Total operating expenses were $643.5 million, versus $523.2 million a year earlier, with research and development and sales and marketing the largest lines. Source
• R&D spending increased: Research and development expense was $256.4 million, against $200.1 million in the prior-year third quarter. Source
• Stock-based compensation climbed: Stock-based compensation expense was $134.5 million in the quarter, versus $101.1 million a year earlier. Source
• General and administrative expense up: General and administrative expense was $93.3 million, against $67.3 million a year earlier. Source

“To sustain this momentum beyond FY26, we will continue to make significant incremental investments in both research and development and sales and marketing”

Tarek Robbiati, Pure Storage CFO

Gross margin by revenue line

• Total gross margin on GAAP and non-GAAP bases: GAAP gross margin was 72.3% and non-GAAP gross margin 74.1%, against 70.1% and 71.9% in the prior-year quarter. Source
• Product gross margin was 71.6%: Product gross margin was 71.6% on a GAAP basis and 72.9% non-GAAP, versus 65.9% GAAP a year earlier. Source
• Subscription services gross margin 73.2%: Subscription services gross margin was 73.2% on a GAAP basis and 75.5% non-GAAP, against 75.2% GAAP in the prior-year quarter. Source

Demand and recurring revenue

• Remaining performance obligations up 24%: Remaining performance obligations were $2.9 billion, up 24% year-over-year. Source
• Subscription ARR reached $1.8 billion: Subscription annual recurring revenue was $1.8 billion, up 17% year-over-year. Source
• Deferred revenue balances higher: Current deferred revenue was $1.03 billion at quarter end, against $953.8 million at the end of fiscal 2025. Source

Cash, buybacks and balance sheet

• Free cash flow of $52.6 million: Operating cash flow was $116.0 million and free cash flow $52.6 million, against $35.2 million of free cash flow a year earlier. Source
• Cash and marketable securities of $1.5 billion: Total cash, cash equivalents and marketable securities were $1.5 billion at quarter end. Source
• Buybacks of about $53 million: Repurchased 0.6 million shares for about $53 million, against $182.0 million a year earlier. Tax withholding on vesting of equity awards was $85.8 million. Source
• Inventory higher than fiscal 2025 year-end: Inventory was $82.4 million at quarter end, against $42.8 million at the end of fiscal 2025. Source
• Capital spending on property and equipment: Purchases of property and equipment were $63.4 million, including $10.4 million of capitalized internal-use software costs. Source
• Strategic investment sold for $52.5 million: Proceeds from the sale of a strategic investment were $52.5 million in the quarter. Source

Strategy and platform investment

• Incremental R&D and sales investment: Management said it will keep making significant incremental investment in research and development and sales and marketing to pursue profitable growth beyond FY26. Source
• Enterprise Data Cloud positioning: Management described the Enterprise Data Cloud as breaking data free from application silos to support AI, automation and analytics. Source
• Portworx and Pure Fusion integrated: Portworx and Pure Fusion were integrated, which management described as bridging traditional and modern applications. Source

Sales leadership change

• Patrick Finn named chief revenue officer: Finn was appointed CRO effective immediately, leading global sales and channels, succeeding Dan FitzSimons.
• Finn's prior sales leadership: Finn was previously vice president of Americas sales at Cloudflare, with earlier senior sales roles at Cisco, Pepsi-Cola and IBM.
• Finn expected to accelerate growth: Management said Finn's experience scaling business performance and customer loyalty will help accelerate the company's next phase of growth.

Coming up, as management said on 2 December 2025

• UBS conference with CTO Rob Lee: Pure is scheduled to appear at the UBS Global Technology & AI Conference on December 4, 2025, with CTO Rob Lee. Source
• Needham conference with John Colgrove: Pure is scheduled to appear at the 28th Annual Needham Growth Virtual Conference on January 15, 2026, with founder John Colgrove. Source

In management's words

“As I warmly welcome Pat to Pure, I would also like to express my deep gratitude to Dan”

Charles Giancarlo, CEO of Pure Storage

Figures management reported

Earlier plans management reported on

• Ahead: Management said third-quarter revenue and record operating profit exceeded the high end of guidance. Source
• Not stated: The company reaffirmed third-quarter and full-year FY26 guidance given in its second-quarter announcement.
• Not stated: Management said it will continue significant incremental investment in R&D and sales and marketing as part of its long-term strategy. Source

Other quarters

• Q2 FY2027 earnings call
• Q1 FY2027 earnings call
• Q4 FY2026 earnings call
• Q2 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.