Pure Storage Inc. (NYSE:PSTG) shares are trading higher on Thursday after the company posted stronger-than-expected second-quarter results and raised its guidance.
PSTG is approaching key resistance levels. Find out why here.
What To Know: The storage solutions provider reported earnings of 43 cents per share, topping analyst estimates of 39 cents. Revenue came in at $861 million, ahead of expectations of $846.8 million and up from $763.8 million in the same quarter last year.
The company highlighted growth in its subscription services business, which generated $414.7 million in revenue, a 15% increase year-over-year. Subscription annual recurring revenue rose 18% to $1.8 billion, while remaining performance obligations climbed 22% to $2.8 billion. Non-GAAP gross margin stood at 72.1%, and operating income reached $130 million.
Looking ahead, Pure Storage expects third-quarter revenue between $950 million and $960 million, above consensus estimates of $913.2 million. It also raised its full-year fiscal 2026 revenue outlook to a range of $3.6 billion to $3.63 billion, compared with the prior estimate of $3.52 billion.
The combination of an earnings beat, solid subscription growth, and stronger forward guidance drove PSTG shares sharply higher as investors reacted to the company's improved outlook.
PSTG Price Action: Pure Storage shares closed Thursday up 32.34% at $80.54 at publication, according to Benzinga Pro.
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