Pure Storage's Q3 Earnings on Deck: What Investors Should Focus on?

Pure Storage, Inc. PSTG is scheduled to report third-quarter fiscal 2026 results for the quarter ended Nov. 2, 2025, after market close on Dec. 2.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at 59 cents, indicating a rise of 18% from the year-ago reported quarter. The consensus estimate for total revenues is pegged at $958.1 million, implying 15.3% year-over-year growth.

PSTG delivered a trailing four-quarter earnings surprise of 12.4%, on average, beating estimates on each occasion.

Key Themes to Watch

Widespread growth across its portfolio, fueled by robust enterprise demand and rising traction in key software and services like Evergreen//One, Cloud Block Store and Portworx, is likely to have aided PSTG’s performance in the fiscal third quarter. Initial collaborations with hyperscalers aiming to transition from HDD- and SSD-based setups to the company’s DirectFlash technology are expected to have buoyed its growth trajectory. The co-engineering partnership with Meta remains on schedule, with the first volume rollout underway and initial revenue from the project already recognized.

The company has opted to offer a range for financial guidance instead of the single target figures used in previous quarters. This adjustment reflects common practice among growth companies and gives PSTG more room to invest in emerging opportunities and strategic transformation projects. For the fiscal third quarter, Pure Storage expects revenues in the $950-$960 million band, implying an increase of 15% at the midpoint from the year-ago level. The non-GAAP operating income is expected to be $185-$195 million, with around 14% growth at the midpoint, while we estimate this metric to be $480.2 million.

Subscription momentum is a key driver. In the last reported quarter, subscription services revenues (48.2%) amounted to $414.7 million, increasing 14.8%. We expect these revenues to reach $452.3 million, a 20.2% year-over-year increase, for the quarter under review. Evergreen//One continues to provide reliable value by shielding customers from uncertainties related to capacity planning, performance, pricing and tariffs. Storage-as-a-Service TCV is growing, supported by a strong rate of smaller, quick-moving deals under $5 million. This momentum reflects rising demand and promising growth prospects for Evergreen//One and other subscription offerings.

Pure Storage’s success is further supported by durable advantages, including the unified Purity OS, the Evergreen modernization model, DirectFlash performance and its cloud operating framework, which includes Evergreen//One and Pure Fusion. The launch of the Enterprise Data Cloud (EDC), a new architecture for unified data and storage management, is promising.

Pure Storage, Inc. Price and EPS Surprise

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

Powered by Fusion v2 and Purity, EDC replaces siloed, stack-specific storage with an automated, enterprise-wide data service. It provides policy-based performance, resilience, security and access, along with data cataloging for provenance and lineage. This approach enhances governance, scalability and agility while reducing costs, minimizing risks and enabling IT teams to focus on strategic work.

However, management remains wary of growing fluctuations in the broader economy, driven by ongoing tariff volatility. Fierce competition in the flash-based storage market and mounting losses remain added concerns.

Recent Business Highlights

In October 2025, Pure Storage and Cisco launched a new FlashStack Cisco Validated Design (CVD), expanding their AI POD offerings within the Cisco Secure AI Factory with NVIDIA. The solution combines compute, storage, networking and software into a unified platform to help enterprises scale AI projects from pilot to production.

In September 2025, Pure Storage introduced new advancements to its platform along with expanded partner integrations, aimed at dramatically enhancing cyber resilience. This unified and connected approach equips organizations with stronger defenses to detect threats early, guard against disruptive attacks and recover with assurance.

What Our Model Says About PSTG

Our proven model does not predict 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 not the case here.

PSTG has an Earnings ESP of -0.85% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

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

Ulta Beauty, Inc. ULTA has an Earnings ESP of +1.84% and a Zacks Rank of 2 at present. The consensus estimate for Ulta Beauty’s third-quarter fiscal 2025 earnings is pegged at $4.51 per share, implying a decline of 12.2% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.  

For Ulta Beauty’s quarterly revenues, the consensus mark is pegged at $2.7 billion, which indicates an increase of 7.3% from the year-ago quarter. ULTA is slated to release quarterly figures on Dec. 4, 2025.

American Eagle Outfitters, Inc. AEO has an Earnings ESP of +1.55% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for revenues is pegged at $1.32 billion, implying 2.33% growth from the year-ago quarter. The consensus estimate for American Eagle earnings is pegged at 43 cents per share, implying a 10.4% decline from the year-ago quarter. AEO is slated to release quarterly figures on Dec. 2, 2025.

Micron Technology MU is slated to report first-quarter fiscal 2026 results on Dec. 17. It has an Earnings ESP of +2.46% and sports a Zacks Rank #1 at present. The Zacks Consensus Estimate for revenues is pegged at $12.5 billion, implying 44% growth from the year-ago quarter. The consensus estimate for MU’s earnings is pegged at $3.77 per share, implying a 110.6% surge from the year-ago quarter.

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

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