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Nov 03, 2024

Pure Storage Q3 2025 Earnings Report

Pure Storage's Q3 2025 financial results were announced, marked by revenue growth and a significant hyperscaler design win.

Key Takeaways

Pure Storage reported a 9% year-over-year increase in revenue, reaching $831.1 million, and a 22% increase in subscription services revenue. The company also secured an industry-first design win from a top-four hyperscaler. They exceeded expectations on revenue and operating income.

Revenue increased by 9% year-over-year to $831.1 million.

Subscription services revenue grew by 22% year-over-year to $376.4 million.

Subscription ARR increased by 22% year-over-year to $1.6 billion.

GAAP operating income was $59.7 million, while non-GAAP operating income was $167.3 million.

Total Revenue
$831M
Previous year: $763M
+8.9%
EPS
$0.5
Previous year: $0.5
+0.0%
Gross Profit
$583M
Previous year: $553M
+5.5%
Cash and Equivalents
$895M
Previous year: $529M
+69.0%
Free Cash Flow
$35.2M
Previous year: $113M
-68.9%
Total Assets
$3.85B
Previous year: $3.36B
+14.9%

Pure Storage

Pure Storage

Pure Storage Revenue by Segment

Forward Guidance

Pure Storage provided revenue and non-GAAP operating income guidance for Q4FY25 and full year FY25.

Positive Outlook

  • Q4FY25 Revenue: $867 million
  • Q4FY25 Revenue YoY Growth Rate: 9.7%
  • Q4FY25 Non-GAAP Operating Income: $135 million
  • Q4FY25 Non-GAAP Operating Margin: 15.6%
  • FY25 Revenue: $3.15 billion

Challenges Ahead

  • FY25 Revenue YoY Growth Rate: 11.5%
  • FY25 Non-GAAP Operating Income: $540 million
  • FY25 Non-GAAP Operating Margin: 17%
  • Guidance is forward-looking and actual results may differ materially.
  • Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure’s control and/or cannot be reasonably predicted.

Revenue & Expenses

Visualization of income flow from segment revenue to net income