Pure Storage reported QQ2 2026 revenue of $861.0 million, with a robust gross margin of 70.2% and a near-breakeven operating profit of $4.9 million. Net income of $47.1 million and earnings per share of $0.14 reflect a mixed margin trajectory: strong gross profitability supported by a lean operating expense base, yet operating margins remain subdued due to sizeable selling, general and administrative (SG&A) and research and development (R&D) investments coupled with other income contributing to pretax profitability. EBITDA of $86.5 million and free cash flow of $150.1 million underscore durable cash-generation capability even as top-line growth softens versus prior year.
Cash position remains highly liquid with $1.54 billion in cash and short-term investments and a net cash position (net debt negative) of approximately $665 million. The balance sheet shows meaningful deferred revenue totaling roughly $1.9 billion (current and non-current), signaling strong subscription-based monetization and forward revenue visibility. Operating cash flow of $212.2 million during the quarter supports sustained capital-allocation flexibility, including modest capex and ongoing share activity. The result is a cash-generative, high-margins business that faces a flat-to-modestly down revenue base in the near term but is positioned to leverage AI-driven storage demand and cloud/enterprise transition themes over the medium term.