Pure Storage Posts First $1B Quarter with 25% Product Growth and 21.3% Margin
Pure Storage delivered Q4 product revenue of $618 million (+25% YoY) and subscription revenue of $440 million (+14%), generating record $226 million operating profit with a 21.3% margin. Full-year revenue was $3.7 billion (+16%), and fiscal 2027 guidance targets $4.3–4.4 billion revenue with $780–820 million operating profit.
1. Q4 Financial Performance
Pure Storage reported Q4 product revenue of $618 million (+25% YoY) and subscription revenue of $440 million (+14%), marking its first-ever $1 billion revenue quarter and driving an operating profit of $226 million (21.3% margin). The company ended fiscal 2026 with over 14,500 customers after adding 335 in Q4 and growing $5 million-plus deals by 80%.
2. Fiscal 2027 Outlook
Management guided fiscal 2027 revenue between $4.3 billion and $4.4 billion, with operating profit forecast at $780–820 million. Hyperscaler revenue is expected to be weighted to the second half of the year, with gross margins on hyperscale deals projected at 75–85%, accretive to overall company margins.
3. Cost Pressures and Pricing Actions
Rising AI-driven shortages in NAND, memory, CPUs and GPUs led Pure Storage to implement average price increases of about 20% on February 9, creating near-term product gross margin pressure. The company expects Q1 product margins at the low end of its typical 65–70% range until pricing and component costs realign.
4. Strategic Initiatives and Acquisition
Pure Storage is rebranding to Everpure and acquiring 1touch to enhance data discovery, governance and AI-scale capabilities. Early traction for its FlashBlade//EXA platform includes the first EXA customer win, and Fortune 500 penetration stands at 64%, underscoring strong enterprise demand.