Pure Storage Inc - Class A

Pure Storage kicked off fiscal 2026 with a clean beat on both the top and bottom lines, posting Q1 revenue of $778.49 million, up 12.3% year over year and ahead of the $770.35 million consensus estimate, while non-GAAP diluted EPS of $0.29 cleared the $0.25 analyst forecast by 17.03%. The primary engine behind the results was accelerating momentum in subscription services, where revenue climbed 17% year over year to $406.34 million and subscription ARR reached $1.70 billion, up 18%, signaling that the company's shift toward recurring, consumption-based revenue is gaining durable traction. Storage as a Service TCV sales surged 70%, underscoring particularly strong demand for flexible delivery models. Free cash flow also impressed, rising to $211.59 million from $172.68 million a year ago. Looking ahead, Pure guided Q2 revenue to $845 million, implying 10.6% growth, and set full-year FY26 revenue guidance at $3.52 billion, with management acknowledging tariffs and macroeconomic uncertainty as risks to the outlook.