Pure Storage's Q2 Earnings Coming Up: Is a Beat in the Offing?

Pure Storage, Inc. (PSTG) is scheduled to report second-quarter fiscal 2026 results for the quarter ended Aug. 3, 2025, after market close on Aug. 27.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at 39 cents, indicating a decline of 11.4% from the year-ago reported quarter. The consensus estimate for total revenues is pegged at $845.8 million, implying 10.7% year-over-year growth.

For the fiscal second quarter, Pure Storage expects revenues to be $845 million, suggesting an increase of 10.6% from the year-ago level. The non-GAAP operating income is expected to be $125 million. The non-GAAP operating margin is projected to be 14.8%.

PSTG delivered a trailing four-quarter earnings surprise of 13.8%, on average, beating estimates on each occasion. In the last reported quarter, the company pulled off an earnings surprise of 16%.

Factors at Play

Increased top-line momentum, rising demand for AI and virtualization storage and strong progress in hyperscale partnerships amid macro volatility are likely to have aided PSTG’s performance in the fiscal second quarter. The company continues to witness strong demand for its data-storage portfolio, especially the //E family and rapid growth in Storage-as-a-Service solutions.

Subscription momentum is a major driving force for PSTG. In the last reported quarter, Subscription services revenues (52.2%) of $406.3 million rose 17%. We expect Subscription services revenues to be $398.3 million, up 10.3% year over year, for the fiscal second quarter. Its Evergreen//One portfolio is driving strong customer adoption and growth, with large and high-velocity deals fueling momentum. The company expects continued expansion of Storage-as-a-Service, supported by stable subscription pricing and efficient cost management.

Pure Storage is advancing enterprise storage with innovations for AI, containerization and HPC. Portworx Enterprise 3.3 enhances its Kubernetes-native leadership by adding VM workload support, unifying container and VM management. Partnerships with Nutanix optimize hybrid cloud deployments, while deeper integration with NVIDIA boosts AI infrastructure.

Pure Storage, Inc. Price and EPS Surprise

Pure Storage, Inc. price-eps-surprise | Pure Storage, Inc. Quote

Moreover, hyperscale collaboration with Meta is progressing smoothly, with validation testing on schedule and solution certification across performance tiers. The company remains on track to deliver 1–2 exabytes in the second half of the year.

However, management expects heightened macroeconomic uncertainty, noting that these challenges are expected to persist into the second half of the year. Evolving tariff landscape, stiff competition and mounting losses pose additional headwinds.

Recent Highlights

In June 2025, Pure Storage’s all-flash technology was leveraged by TierPoint to launch a cutting-edge Imaging Storage-as-a-Service solution designed specifically for the healthcare sector. The offering is designed to tackle the growing challenges associated with medical imaging data, ranging from rising storage costs and performance limitations to stringent security requirements.

It launched the Enterprise Data Cloud (EDC), setting a new benchmark for simplified data and storage management. As AI drives data growth and evolving business needs, EDC helps organizations shift focus from infrastructure to data usage—reducing risks, costs and inefficiencies caused by traditional, fragmented storage systems.

What Our Model Says About PSTG

Our proven model predicts an earnings beat for PSTG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.

PSTG has an Earnings ESP of +2.27% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With Favorable Combination

Here are a few other companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

BuildABear Workshop (BBW) currently has an Earnings ESP of +11.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for revenues and earnings is pegged at $114.7 million and 67 cents per share, respectively. BuildABear Workshop is slated to report second-quarter 2025 results on Aug. 28.

Abercrombie & Fitch (ANF) has an Earnings ESP of +2.62% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for revenues and earnings is pegged at $1.2 billion and $2.27 per share, respectively. Abercrombie & Fitch is slated to report second-quarter fiscal 2026 results on Aug. 27.

Bath & Body Works (BBWI) currently has an Earnings ESP of +3.26% and a Zacks Rank #3.

The Zacks Consensus Estimate for revenues and earnings is pegged at $1.55 billion and 37 cents per share, respectively. Bath & Body Works is scheduled to report second-quarter fiscal 2026 results on Aug. 28.

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This article originally published on Zacks Investment Research (zacks.com).

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