Pure Storage’s (NYSE:PSTG) Q4 CY2025 Sales Top Estimates

Pure Storage’s (NYSE:PSTG) Q4 CY2025 Sales Top Estimates

Adam Hejl

Thu, February 26, 2026 at 6:17 AM GMT+9 6 min read

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•                                       StockStory Top Pick 
  

  PSTG

  +8.62%

Data storage solutions provider Pure Storage (NYSE:PSTG) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 20.4% year on year to $1.06 billion. On top of that, next quarter’s revenue guidance ($1 billion at the midpoint) was surprisingly good and 8.1% above what analysts were expecting. Its non-GAAP profit of $0.69 per share was 7% above analysts’ consensus estimates.

Is now the time to buy Pure Storage? Find out in our full research report.

Pure Storage (PSTG) Q4 CY2025 Highlights:

**Revenue:** $1.06 billion vs analyst estimates of $1.03 billion (20.4% year-on-year growth, 2.5% beat)

**Adjusted EPS:** $0.69 vs analyst estimates of $0.64 (7% beat)

**Revenue Guidance for Q1 CY2026** is $1 billion at the midpoint, above analyst estimates of $925.1 million

**Operating Margin:** 8.2%, up from 4.8% in the same quarter last year

**Free Cash Flow Margin:** 19%, up from 17.3% in the same quarter last year

**Market Capitalization:** $22.36 billion

“Everpure delivered an outstanding fourth quarter, achieving our first billion-dollar revenue quarter and capping off a strong fiscal year,” said Charles Giancarlo, Chairman and CEO of Everpure.

Company Overview

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $3.66 billion in revenue over the past 12 months, Pure Storage is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.

As you can see below, Pure Storage grew its sales at an incredible 16.8% compounded annual growth rate over the last five years. This is a great starting point for our analysis because it shows Pure Storage’s demand was higher than many business services companies.

Pure Storage Quarterly Revenue

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Pure Storage’s annualized revenue growth of 13.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

Pure Storage Year-On-Year Revenue Growth

This quarter, Pure Storage reported robust year-on-year revenue growth of 20.4%, and its $1.06 billion of revenue topped Wall Street estimates by 2.5%. Company management is currently guiding for a 28.5% year-on-year increase in sales next quarter.

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Looking further ahead, sell-side analysts expect revenue to grow 16.4% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will catalyze better top-line performance.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Pure Storage was profitable over the last five years but held back by its large cost base. Its average operating margin of 1.6% was weak for a business services business.

On the plus side, Pure Storage’s operating margin rose by 7.6 percentage points over the last five years, as its sales growth gave it immense operating leverage.

Pure Storage Trailing 12-Month Operating Margin (GAAP)

This quarter, Pure Storage generated an operating margin profit margin of 8.2%, up 3.4 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Pure Storage’s EPS grew at an astounding 61.7% compounded annual growth rate over the last five years, higher than its 16.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Pure Storage Trailing 12-Month EPS (Non-GAAP)

We can take a deeper look into Pure Storage’s earnings to better understand the drivers of its performance. As we mentioned earlier, Pure Storage’s operating margin expanded by 7.6 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Pure Storage, its two-year annual EPS growth of 18.4% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.

In Q4, Pure Storage reported adjusted EPS of $0.69, up from $0.45 in the same quarter last year. This print beat analysts’ estimates by 7%. Over the next 12 months, Wall Street expects Pure Storage’s full-year EPS of $1.99 to grow 12.4%.

Key Takeaways from Pure Storage’s Q4 Results

We were impressed by Pure Storage’s optimistic revenue guidance for next quarter, which blew past analysts’ expectations. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 4.1% to $76.87 immediately after reporting.

Indeed, Pure Storage had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

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