Latest news with #PSTG
Yahoo
5 days ago
- Business
- Yahoo
PSTG Q1 Earnings Call: Subscription Growth, New Product Launches, and CFO Transition Shape Outlook
Data storage solutions provider Pure Storage (NYSE:PSTG) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 12.3% year on year to $778.5 million. Its non-GAAP EPS of $0.29 per share was 17.1% above analysts' consensus estimates. Is now the time to buy PSTG? Find out in our full research report (it's free). Revenue: $778.5 million (12.3% year-on-year growth) Adjusted EPS: $0.29 vs analyst estimates of $0.25 (17.1% beat) Adjusted Operating Income: $82.74 million vs analyst estimates of $81.56 million (10.6% margin, 1.5% beat) Revenue Guidance for Q2 CY2025 is $845 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: -4%, up from -6% in the same quarter last year Annual Recurring Revenue: $1.71 billion at quarter end, up 18.4% year on year Billings: $810.7 million at quarter end, up 15.7% year on year Market Capitalization: $18.04 billion Pure Storage's first quarter performance was driven by increased adoption of its subscription-based storage offerings and expansion across both traditional and modern workloads. Management attributed growth to the strong uptake of solutions such as Evergreen//One and the launch of new platforms like Fusion 2.0 and FlashBlade//EXA. CEO Charlie Giancarlo emphasized how broad AI-related demand and modernization initiatives were central to the company's momentum, citing customer interest in unified data management and real-time information access. He explained that customers are seeking ways to reduce complexity and enhance reliability, particularly as they migrate away from legacy systems and adopt modern virtualization strategies. Looking forward, Pure Storage's guidance is shaped by ongoing investment in high-performance storage for AI workloads, expansion of its service-based offerings, and continued collaboration with hyperscale cloud providers. Management acknowledged that macroeconomic uncertainty and tariff-related risks could impact visibility in the second half of the year. CFO Kevan Krysler stressed that the company's pricing predictability and ability to absorb tariff costs through operational efficiencies position it to maintain customer subscription rates. Giancarlo added, 'We remain confident in our ability to outpace the competition,' as the company focuses on growing market share and executing its hyperscale strategy. Management credited the quarter's results to new product launches, deeper customer engagement in AI workloads, and the continued shift toward subscription revenue. The departure of CFO Kevan Krysler was also highlighted as a notable leadership transition. AI-driven customer wins: Pure Storage saw a significant increase in customer activity related to artificial intelligence (AI), notably supporting both public and private GPU-driven machine learning workloads. The company's unified platform was cited as a differentiator for handling diverse AI use cases, including inference and data retrieval tasks, without requiring multiple products. Fusion 2.0 and FlashBlade//EXA rollout: The launch of Fusion 2.0, which enables software-defined data management across an enterprise, and the introduction of FlashBlade//EXA for high-performance computing and AI, were central to the quarter. Management noted strong early customer engagement with Fusion 2.0 and positioned FlashBlade//EXA as targeting large-scale, high-demand environments like GPU clusters. Expansion of subscription services: Evergreen//One, Pure Storage's storage-as-a-service model, showed strong growth in total contract value sales and recurring revenue. The company highlighted customer demand for predictable pricing and robust service level agreements, especially as tariff uncertainties grew more prominent. Hyperscale and cloud partnerships: Pure Storage advanced its collaboration with Meta, progressing through production validation for large-scale deployments. The company also announced a new partnership with SK Hynix to optimize flash storage for energy-efficient hyperscale data centers, reinforcing its position in the evolving cloud infrastructure market. Leadership transition: CFO Kevan Krysler's planned departure, after five years with the company, was announced. Management emphasized succession planning and Krysler's contributions to the evolution of Pure's subscription business and overall financial strategy. Pure Storage's outlook is anchored by increased adoption of AI-driven storage, growth in subscription services, and continued expansion in the hyperscale segment. AI and high-performance computing demand: Management expects continued growth from organizations building large-scale GPU clusters and deploying AI models, driving demand for platforms like FlashBlade//EXA and unified data clouds. Subscription and service model resilience: The company's Evergreen//One offering is positioned as a buffer against macroeconomic and tariff uncertainties, with management reiterating that customer rates will remain stable even if supply chain costs rise. This model is expected to support recurring revenue stability. Hyperscale customer ramp: Pure Storage's work with Meta and other hyperscalers is anticipated to contribute meaningfully in the second half of the year, though management noted the long validation cycles and dependency on broader data center design timelines as sources of uncertainty. As we monitor Pure Storage's progress in coming quarters, our team will track (1) the pace of AI and hyperscale revenue contributions, especially from Meta and new cloud partnerships, (2) sustained growth in subscription and service-based offerings amid potential tariff pressures, and (3) customer adoption rates for recently launched platforms like Fusion 2.0 and FlashBlade//EXA. Execution on these fronts will signal whether Pure delivers on strategic priorities despite evolving macro conditions. Pure Storage currently trades at a forward P/E ratio of 30.3×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Pure Storage Inc (PSTG) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue Growth: 12% increase in Q1 revenue. Operating Profit: $83 million with an operating margin of 10.6%. Storage-as-a-Service TCV Sales: Increased 70% to $95 million. Subscription Services Revenue: $406 million, up 17%. Annual Recurring Revenue (ARR): Grew 18% to $1.7 billion. Total Remaining Performance Obligations (RPO): Increased 17% to $2.7 billion. US Revenue: $531 million, a 9% increase. International Revenue: $248 million, a 21% increase year over year. Gross Margin: Improved to 70.9%, with subscription services margin at 77.2%. Product Margin: Rose 1.1 points sequentially to 64%. Operating Cash Flow: $284 million. Capital Investments: $72 million. Share Repurchases: $120 million returned through 2.5 million share repurchases. Q2 Revenue Guidance: Expected to be $845 million, a 10.6% year-over-year increase. Q2 Operating Profit Guidance: Expected to be $125 million with an operating margin of 14.8%. Warning! GuruFocus has detected 3 Warning Sign with PSTG. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pure Storage Inc (NYSE:PSTG) delivered double-digit revenue growth of 12% in Q1, with strong operating profit and margin performance. The introduction of Fusion 2.0 has been well-received, with nearly 100 customers using or testing the software to manage their data infrastructure. The launch of FlashBlade//EXA positions Pure Storage Inc (NYSE:PSTG) as a leader in high-performance storage for AI and high-performance computing environments. Strong growth in Storage-as-a-Service solutions, with Q1 TCV sales jumping 70% to $95 million, driven by large Evergreen//One deals. Partnerships with major companies like Nutanix and Microsoft enhance Pure Storage Inc (NYSE:PSTG)'s virtualization solutions, providing modern, scalable environments for high-demand workloads. The macroeconomic environment remains uncertain, with potential impacts from tariffs and economic conditions in the second half of the year. The departure of CFO Kevan Krysler introduces potential transitional challenges as the company searches for a new financial leader. Despite strong performance, there is less visibility and predictability for the second half of the fiscal year due to market dynamics. The hyperscale collaboration with Meta is progressing slowly, with a long design cycle impacting the timeline for potential revenue recognition. Subscription margins could face pressure if higher tariff costs materialize, although the company plans to absorb these costs efficiently. Q: Can you provide an update on the hyperscale opportunity with Meta and how it is evolving from pilot to production? A: Charles Giancarlo, CEO: The process with Meta is progressing as expected, aligning with their 1.5 to 2-year design cycle for their next-generation data center. We are on track to deliver the anticipated 1 to 2 exabytes in the second half of the year. Discussions with other hyperscalers are also progressing steadily, though it's hard to predict when they will result in a fully validated design win. Q: How should we think about the opportunity and financial implications of the newly announced FlashBlade//EXA offering? A: Charles Giancarlo, CEO: FlashBlade//EXA targets niche markets like government sovereign clouds and large-scale GPU clusters. While not as large as the entire enterprise market, it can still be substantial. The margins are expected to be at or above our standard company margins. Rob Lee, CTO, added that EXA builds on the success of FlashBlade//S, targeting the next level of scale in AI environments. Q: Are you seeing any changes in buyer behavior due to macroeconomic uncertainties, such as a shift towards less expensive options or increased adoption of Evergreen//One? A: Charles Giancarlo, CEO: We haven't observed significant changes in customer sentiment or substantial pull-ins in Q1. While the second half of the year is less predictable due to tariffs and economic conditions, the first half has not shown significant shifts. Kevan Krysler, CFO, noted that Evergreen//One could benefit over time as it absorbs tariff costs without increasing subscription rates. Q: How does the revenue recognition work for the 1 to 2 exabytes from Meta in the second half? A: Kevan Krysler, CFO: There will be some de minimis revenue contribution from Meta in the second half, which has been considered in our annual guidance. The revenue model will likely be a licensing fee, not reflecting the full gross value. Q: Can you clarify the impact of potential higher tariff costs on subscription margins? A: Kevan Krysler, CFO: We are efficient in leveraging technology and managing tariffs due to our agile manufacturing and supply chain. We do not foresee a significant burden on our subscription gross margins from potential tariff costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
San Francisco Chronicle
6 days ago
- Business
- San Francisco Chronicle
Pure Storage: Fiscal Q1 Earnings Snapshot
SANTA CLARA, Calif. (AP) — SANTA CLARA, Calif. (AP) — Pure Storage Inc. (PSTG) on Wednesday reported a loss of $14 million in its fiscal first quarter. The Santa Clara, California-based company said it had a loss of 4 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, were 29 cents per share. The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 25 cents per share. The data storage company posted revenue of $778.5 million in the period, also surpassing Street forecasts. Nine analysts surveyed by Zacks expected $771.2 million. For the current quarter ending in July, Pure Storage said it expects revenue in the range of $845 million. The company expects full-year revenue of $3.51 billion. _____
Yahoo
6 days ago
- Business
- Yahoo
Pure Storage: Fiscal Q1 Earnings Snapshot
SANTA CLARA, Calif. (AP) — SANTA CLARA, Calif. (AP) — Pure Storage Inc. (PSTG) on Wednesday reported a loss of $14 million in its fiscal first quarter. The Santa Clara, California-based company said it had a loss of 4 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, were 29 cents per share. The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 25 cents per share. The data storage company posted revenue of $778.5 million in the period, also surpassing Street forecasts. Nine analysts surveyed by Zacks expected $771.2 million. For the current quarter ending in July, Pure Storage said it expects revenue in the range of $845 million. The company expects full-year revenue of $3.51 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on PSTG at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
6 days ago
- Business
- Washington Post
Pure Storage: Fiscal Q1 Earnings Snapshot
SANTA CLARA, Calif. — SANTA CLARA, Calif. — Pure Storage Inc. (PSTG) on Wednesday reported a loss of $14 million in its fiscal first quarter. The Santa Clara, California-based company said it had a loss of 4 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, were 29 cents per share.
