Pure Storage Reports $778.5 Million Revenue in Q1 Fiscal 2026, Net Loss Improves

Pure Storage, Inc. reported a total revenue of $778.5 million for the first quarter of fiscal 2026, marking a 12% increase from $693.5 million in the same period of the previous fiscal year. The company's product revenue rose by 7% to $372.1 million, while subscription services revenue saw a more significant increase of 17%, reaching $406.3 million. Despite this growth, Pure Storage recorded a net loss of $14.0 million, a notable improvement from the $35.0 million loss reported in the first quarter of fiscal 2025. The loss per share attributable to common stockholders decreased from $(0.11) to $(0.04) year-over-year.

In terms of operational metrics, the company experienced a 21% increase in revenue from international markets, which contributed to a total of $247.8 million, while U.S. revenue grew by 9% to $530.7 million. The company’s Subscription Annual Recurring Revenue (ARR) reached $1.71 billion, reflecting an 18% year-over-year growth, although this was a decline from the previous year's growth rate of 25%. Total remaining performance obligations (RPO) stood at $2.7 billion, indicating a 17% increase compared to the prior year, driven by strong renewals of subscription services.

Strategically, Pure Storage launched the FlashBlade//EXA in March 2025, aimed at enhancing its AI portfolio and catering to high-performance computing environments. Additionally, a partnership with Nutanix was announced in May 2025 to provide integrated solutions for managing virtual workloads. The company also underwent a workforce realignment plan, reducing its headcount by nearly 250 employees to better align resources with its business strategy.

On the financial front, Pure Storage's cash, cash equivalents, and marketable securities totaled $1.6 billion at the end of the first quarter of fiscal 2026. The company reported net cash provided by operating activities of $283.9 million, an increase from $221.5 million in the previous year. However, net cash used in investing activities rose significantly to $111.8 million, primarily due to capital expenditures related to equipment and infrastructure. The company also repurchased approximately 2.5 million shares of its common stock for $119.9 million during the quarter, leaving $151.6 million available for future repurchases.

Looking ahead, Pure Storage anticipates continued growth in its subscription services as more customers opt for consumption-based models. The company plans to invest in marketing, sales, and research and development to support its strategic initiatives, including expanding its international presence and enhancing its product offerings. Despite the positive revenue trajectory, the company acknowledges potential challenges, including macroeconomic conditions and competition in the data storage market.