The following is a summary of the Pure Storage, Inc. (PSTG) Q3 2025 Earnings Call Transcript:
Financial Performance:
Pure Storage reported Q3 FY 2025 revenue of $831 million, a 9% year-over-year growth.
Operating profit was strong at $167 million.
Subscription services annual recurring revenue (ARR) rose 22% to $1.57 billion.Total Remaining Performance Obligations (RPO) grew 16% year-over-year to $2.4 billion.
Business Progress:
Pure Storage won a landmark hyperscaler design contract, setting up for large scale deployments in calendar 2026.
Announced a collaboration with Kioxia to enhance NAND flash technology applications in hyperscale storage.
Certified for the NVIDIA DGX SuperPOD architecture and entered a strategic partnership with CoreWeave.
Introduced the Pure Storage GenAI Pod for deploying generative AI projects.
Released Pure Fusion for transforming enterprise data storage into a cloud model.
Opportunities:
The hyperscaler design win indicates a significant opportunity for revenue growth and expanded market presence, particularly with double-digit Exabyte deployments anticipated in calendar 2026.
Expansion in enterprise data storage through the launch of Pure Fusion and other innovative storage solutions positions Pure Storage to penetrate deeper into AI-driven and cloud-based storage solutions.
Risks:
The transition of some Evergreen//One high-velocity opportunities back to traditional sales reflects a temporary shift due to increased pressure on customer OpEx budgets, potentially impacting expected growth in subscription services.
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