Pure Storage Gears Up to Report Q1 Earnings: Here's What to Expect

Pure Storage, Inc. PSTG is scheduled to report first-quarter fiscal 2026 results on May 28.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at 25 cents, indicating a decline of 21.9% from the year-ago reported quarter. The consensus estimate for total revenues is pegged at $771.2 million, implying 11.2% year-over-year growth.

PSTG delivered a trailing four-quarter earnings surprise of 21.17%, on average, beating estimates on each occasion. In the last reported quarter, the company pulled off an earnings surprise of 7.14%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Pure Storage, Inc. Price and Consensus

Pure Storage, Inc. price-consensus-chart | Pure Storage, Inc. Quote

For the first quarter, Pure Storage anticipates revenues to be $770 million, implying an increase of 11% from the year-ago level. The non-GAAP operating income is expected to be $80 million. The non-GAAP operating margin is projected to be 10.4%.

Factors at Play for PSTG’s Q1 Earnings

PSTG’s fiscal first-quarter performance is likely to have gained from rising adoption of its FlashArray//XL, and the FlashArray//E portfolio, along with strong Evergreen subscriptions renewals.

In the last reported quarter, Subscription services revenues (43.8%) of $385.1 million rose 17%. We expect Subscription services revenues to be $358.5 million, up 3.6% year over year in the fiscal first quarter.

The launch of key offerings like the second-generation Pure Fusion and enhancements to the Portworx platform is likely to have driven adoption among enterprises transitioning to cloud-native and artificial intelligence/ machine learning (AI/ML) workloads, supporting overall growth.

Pure Storage expects product gross margins to stabilize in the mid-60s for fiscal 2026, in line with its 65-70% long term target, driven by solid demand for the E family and FlashArray C, along with expected QLC flash price moderation, key for competing with disk-based solutions.

Stiff competition and uncertain macro environment and tariff troubles remain concerns. PSTG expects geopolitical uncertainty to weigh on the macro environment at least through the current year. It considers IT spending environment to be similar as fiscal 2025.

Recent Updates

On April 21, 2025, Pure Storage partnered with Varonis Systems, a top-tier data security company. The partnership aims to empower organizations with robust capabilities to protect sensitive data, detect potential threats and maintain compliance with evolving regulations around data protection and AI governance.

On March 18, 2025, Pure Storage incorporated the NVIDIA AI Data Platform reference design into its FlashBlade platform, reinforcing its dedication to providing validated, enterprise-level, scalable and AI-ready solutions that align with NVIDIA’s high standards.

On March 11, 2025, Pure Storage unveiled FlashBlade//EXA, the industry's most advanced data storage platform, designed to meet the rigorous demands of AI and High-Performance Computing (HPC). It is set for launch in the summer of 2025, delivering transformational storage for AI and HPC environments.

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 0.00% 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 to Consider

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Ulta Beauty, Inc. ULTA is set to report first-quarter 2025 earnings on May 29, after market close. It has an Earnings ESP of +0.32% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ulta Beauty’s earnings is pegged at $5.76 per share, indicating a year-over-year decline of 11%. The consensus estimate for its sales is pegged at $2.79 billion, indicating year-over-year growth of 2.2%.

Dell Technologies Inc. DELL has an Earnings ESP of +1.46% and a Zacks Rank #3 at present. DELL is scheduled to report first-quarter fiscal 2026 earnings on May 29.

The Zacks Consensus Estimate for first-quarter 2026 revenues and earnings are pegged at $23.1 billion and $1.71 per share, indicating a growth of 3.9% and 34.7%, respectively. DELL’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 5.13%.

Burlington Stores, Inc. BURL is set to report its first-quarter fiscal 2025 results on May 29, before the market opens. It has an Earnings ESP of +3.45% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for BURL’s earnings is pegged at $1.42 per share, indicating no growth. The consensus estimate for its sales is pegged at $2.53 billion, indicating year-over-year growth of 7.3%.

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

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