Pure Storage Q3 Gross Margin Jumps to 74.1%, Guides $1.02–1.04B Q4 Revenue
Pure Storage’s non-GAAP Q3 gross margin rose to 74.1% from 71.9% year-over-year, driven by higher-performance FlashArray sales and increased hyperscaler term-license shipments, boosting product margin to 72.9%. For Q4 FY26, Pure Storage projects revenue of $1.02–1.04 billion (17.1% growth) and $220–230 million in non-GAAP operating income.
1. Q3 Margin Performance
Pure Storage reported a non-GAAP gross margin of 74.1% in Q3 FY26, up from 71.9% a year earlier. Product gross margin climbed to 72.9% from 67.4%, while subscription gross margin stood at 75.5% compared with 77.4% in the prior-year quarter. The company’s non-GAAP operating margin edged up to 20.3% from 20.1%.
2. Drivers of Margin Expansion
The margin improvement was underpinned by increased sales of high-performance FlashArrays, growth in Portworx term-license revenue and higher hyperscaler shipments. These shifts improved total revenue per deployment and enhanced cost absorption across manufacturing and R&D.
3. Q4 Fiscal 2026 Guidance
For the fourth quarter, Pure Storage forecasts revenue between $1.02 billion and $1.04 billion, representing 17.1% year-over-year growth at the midpoint. Non-GAAP operating income is expected to range from $220 million to $230 million, implying roughly 47% growth over the prior-year period.