Pure Storage reported a solid QQ4 2025 quarter, topping revenue and earnings guidance with sustained demand for its data platform strategy. Q4 revenue of $879.8 million rose 15% year over year, contributing to FY25 revenue of $3.2 billion, up 12% for the year. The company delivered operating profit of $42.5 million in Q4 and an annual operating profit of $559 million, with an annual free cash flow of $526 million (FCF margin 16.6%). Despite a temporary press on product gross margins from the E family due to NAND pricing, management signaled a path to margin normalization as NAND pricing moderates and E family adoption broadens.
Key strategic milestones dominated the year: a hyperscaler design win underpinning a multi-year deployment plan, the GA release of Fusion v.2 converting Pure arrays into an enterprise data cloud, and a continued expansion of Evergreen One as-a-service offerings. Subscriptions and ARR rose meaningfully (subscription revenue up 17% in Q4; ARR up 21% to $1.7B), while RPO reached $2.6B, with subscription-only RPO up 15% YoY. Management underscored AI-driven opportunities across training and inference/in-context use cases, and highlighted customer momentum in Portworx migrations to Kubernetes/OpenShift, as well as large enterprise deals enabled by Fusion v.2.
Looking ahead, Pure reaffirmed FY26 guidance: approximately 11% revenue growth to just over $3.5 billion, with an operating margin near 17% and Q1 FY26 revenue around $770 million (YoY +11%). Management also noted that their hyperscale opportunity is embedded in the 12-month forecast horizon and that Evergreen One growth is expected to resume, though specific quarterly figures were not provided. The company remains focused on accelerating density gains in DirectFlash, advancing NAND/NAND supplier qualification, and expanding its hyperscaler ecosystem while monitoring macro headwinds and tariff dynamics.