Pure Storage shares fall as guidance disappoints

Published 26/02/2025, 22:26
Pure Storage shares fall as guidance disappoints

SANTA CLARA, Calif. - Pure Storage (NYSE:PSTG) reported fourth-quarter earnings that beat analyst expectations, but shares tumbled 9.9% in after-hours trading as the company’s full-year guidance fell short of estimates.

The data storage technology provider posted adjusted earnings per share of $0.45, surpassing the analyst consensus of $0.41. Revenue for the quarter came in at $879.8 million, up 11% year-over-year (YoY) and above the $868.53 million analysts had projected.

For the full fiscal year 2025, Pure Storage’s revenue grew 12% YoY to $3.2 billion, crossing the $3 billion mark for the first time. However, the company’s outlook for fiscal 2026 disappointed investors. Pure Storage forecast full-year revenue of $3.515 billion, slightly below the $3.52 billion consensus estimate.

"Pure Storage delivered solid fourth quarter and full year results as we fundamentally transform data storage and management for enterprises and hyperscalers," said CEO Charles Giancarlo in a statement.

The company’s subscription services revenue showed strong growth, increasing 17% YoY to $385.1 million in the fourth quarter and 22% YoY to $1.5 billion for the full year.

Pure Storage’s CFO Kevan Krysler noted, "It was a pivotal year marked by industry-leading innovation, setting the stage for sustainable long-term growth."

For the first quarter of fiscal 2026, the company expects revenue of $770 million, slightly above the analyst consensus of $768.29 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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