Financial Data and Key Metrics Changes - Q1 revenue grew 12% year-over-year, reaching $830 million, with operating profit of $83 million and an operating margin of 10.6% [23][26] - Subscription services revenue increased 17% to $406 million, representing over half of total revenue, while annual recurring revenue (ARR) grew 18% to $1.7 billion [25][26] - Total remaining performance obligations (RPO) grew 17% to $2.7 billion, indicating strong renewals and new commitments [25][26] - Total gross margin improved to 70.9%, with subscription services margin at 77.2% [26][27] Business Line Data and Key Metrics Changes - Storage as a Service (SaaS) solutions saw a 70% increase in total contract value (TCV) sales, reaching $95 million, driven by large Evergreen One deals [23][25] - Product margin rose 1.1 points sequentially to 64%, with expectations for mid-60s product gross margin for the year [27] Market Data and Key Metrics Changes - U.S. revenue grew 9% to $531 million, while international revenue increased 21% to $248 million year-over-year [26] - The company added 235 new customers, achieving a penetration rate of 62% within the Fortune 500 [26] Company Strategy and Development Direction - The company is focused on modernizing IT infrastructure and breaking down data silos, with a strong emphasis on AI and high-performance computing solutions [10][15] - A major partnership with Nutanix was announced to integrate their cloud platform with Pure Storage, aimed at enhancing virtualization solutions [12][15] - The company is expanding its cloud block store integration into a fully managed service available through Azure VMware service [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while maintaining strong performance [18][30] - The company anticipates continued growth in the second half of the year, with a revenue forecast of $845 million for Q2, representing a 10.6% year-over-year increase [30] Other Important Information - The CFO, Kevan Krysler, will be leaving the company after more than five years, with a smooth transition planned [20][21] - The company has a strong balance sheet with $1.6 billion in cash and investments, and Q1 operating cash flow was $284 million [28] Q&A Session Summary Question: Update on hyperscale opportunity with Meta - Management indicated that the evaluation and testing process with Meta is on track, with expectations for significant progress in the second half of the year [39][40] Question: Size of the newly announced AXA offering - The opportunity is seen as niche but substantial, targeting markets like government and large-scale GPU clusters, with expected margins at or above company standards [45][46] Question: Changes in buyer behavior during macro uncertainty - Management noted no significant changes in customer sentiment or purchasing behavior in Q1, with broad-based strength across traditional sales and Evergreen One [51][54] Question: Clarification on subscription margins amid tariff costs - Management stated that they can absorb any potential tariff costs without significantly impacting subscription gross margins [94] Question: Revenue contribution from Meta's one to two exabytes - Some de minimis revenue contribution has been contemplated in the annual guide, expected to be recognized in the second half [72][73] Question: Time to close larger deals - Management reported that larger deals are tracking as expected, with solid momentum in both larger and higher velocity transactions [78]

Financial Data and Key Metrics Changes - Q1 revenue grew by 12%, reaching $830 million, with an operating profit of $83 million and an operating margin of 10.6% [23][28] - Subscription services revenue in Q1 reached $406 million, up 17%, representing over half of total revenue [25] - Annual recurring revenue (ARR) grew 18% to $1.7 billion, while total remaining performance obligations (RPO) grew 17% to $2.7 billion [25][26] - Total gross margin improved to 70.9%, with subscription services margin at 77.2% [26][27] Business Line Data and Key Metrics Changes - TCV sales for Storage as a Service solutions jumped 70% to $95 million, driven by large Evergreen One deals [23] - Product margin rose by 1.1 points sequentially to 64%, with expectations for mid-60s product gross margin for the year [27] Market Data and Key Metrics Changes - U.S. revenue was $531 million, growing 9%, while international revenue was $248 million, growing 21% year over year [26] - The company added 235 new customers, achieving a penetration rate of 62% of the Fortune 500 [26] Company Strategy and Development Direction - The introduction of Fusion 2.0 has been well received, with nearly 100 customers using or testing it [8] - The company is focusing on modernizing IT infrastructure and breaking down data silos, with a strong emphasis on AI and high-performance computing [10][15] - A major agreement with Nutanix was announced to integrate their cloud platform with Pure Storage, enhancing virtualization solutions [12] Management's Comments on Operating Environment and Future Outlook - The near-term view for the year remains largely unchanged despite increased uncertainty in the macro environment [18] - The company expects to deliver 1 to 2 exabytes of solutions to Meta in the second half of the year, with production validation testing on schedule [16][39] - Management remains confident in the ability to outpace competition and grow market share [19][30] Other Important Information - CFO Kevan Krysler will be leaving the company, with a transition plan in place [20] - The company returned $120 million to shareholders through share repurchases and paid $61 million in employee award withholding taxes [29] Q&A Session Summary Question: Update on hyperscale opportunity with Meta - Management indicated that the evaluation and testing process with Meta is on track, with expectations for significant progress in the second half of the year [39][40] Question: Size of the newly announced AXA offering - The opportunity is seen as niche but substantial, targeting government and large-scale GPU clusters, with margins expected to be at or above company standards [45][46] Question: Changes in buyer behavior during macro uncertainty - Management noted no significant changes in customer sentiment or purchasing behavior in Q1, with broad-based strength across sales [51][54] Question: Clarification on subscription margins amid tariff costs - Management expressed confidence in managing tariff costs without significantly impacting subscription gross margins [93] Question: Revenue contribution from Meta's 1 to 2 exabytes - Some de minimis revenue contribution has been contemplated in the annual guide, primarily through a licensing fee model [72] Question: Time to close larger deals - Management reported that larger deals are tracking as expected, with solid momentum continuing into Q1 [78] Question: Comparison of project timelines with Meta and others - The lengthy timeline is attributed to the design cycles of hyperscalers, which include multiple components beyond storage [84][86]

Financial Data and Key Metrics Changes - Q1 revenue grew 12% year-over-year, reaching $830 million, with an operating profit of $83 million and an operating margin of 10.6% [22][24] - Subscription services revenue increased 17% to $406 million, representing over half of total revenue, while annual recurring revenue (ARR) grew 18% to $1.7 billion [23][24] - Total remaining performance obligations (RPO) grew 17% to $2.7 billion, indicating strong renewals and new commitments [23][24] - Total gross margin improved to 70.9%, with subscription services margin at 77.2% [24][25] Business Line Data and Key Metrics Changes - Storage as a Service (SaaS) solutions saw a 70% increase in total contract value (TCV) sales, reaching $95 million, driven by large Evergreen One deals [22][23] - Product margin rose 1.1 points sequentially to 64%, with expectations for mid-60s product gross margin for the year [25][26] Market Data and Key Metrics Changes - U.S. revenue grew 9% to $531 million, while international revenue increased 21% to $248 million year-over-year [24] - The company added 235 new customers, achieving a penetration rate of 62% within the Fortune 500 [24] Company Strategy and Development Direction - The company is focused on modernizing IT infrastructure and breaking down data silos, with a strong emphasis on AI and high-performance computing solutions [7][9] - Strategic partnerships with companies like Nutanix and SK Hynix are aimed at enhancing virtualization and flash storage capabilities [10][15] - The company is committed to maintaining pricing predictability for customers amid tariff-related changes, leveraging its Evergreen model [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while maintaining strong performance [16][28] - The company anticipates continued growth in the second quarter, projecting revenue of $845 million, a 10.6% year-over-year increase [28] Other Important Information - Kevin Chrysler, the CFO, will be leaving the company, with a transition plan in place to ensure continuity [19][20] - The company reported a strong balance sheet with $1.6 billion in cash and investments, and operating cash flow of $284 million [26] Q&A Session Summary Question: Update on hyperscale opportunity with Meta - Management indicated that the evaluation process with Meta is on track, with expectations to deliver one to two exabytes in the second half of the year [36][38] Question: Size of the newly announced AXA offering - The company views the AXA offering as targeting niche markets, with expectations for margins to be at or above standard company margins [42][43] Question: Changes in buyer behavior during macro uncertainty - Management noted no significant changes in customer sentiment or purchasing behavior in Q1, with broad-based strength across sales [50][52] Question: Revenue contribution from Meta's project - Some de minimis revenue contribution from the Meta project has been included in the annual guidance, primarily through a licensing fee model [69][70] Question: Clarification on subscription margins amid tariff costs - Management expressed confidence that subscription gross margins would not be significantly impacted by potential tariff costs due to operational efficiencies [90][91] Question: Investment expectations for future hyperscaler wins - The company expects to see leverage in design and investment requirements as more hyperscalers are added, reducing costs for future projects [93][94] Question: Revenue linearity throughout the quarter - Management reported typical revenue linearity throughout the quarter, with strong performance sustained [97][98]

Financial Performance - Total revenue reached $778.5 million, a 12% year-over-year growth[9] - Subscription Annual Recurring Revenue (ARR) hit $1.71 billion, reflecting an 18% year-over-year increase[9, 38] - Storage as a Service offerings generated $95 million in Total Contract Value (TCV) sales, marking a substantial 70% year-over-year growth[9, 11] - The company's Non-GAAP operating margin stood at 10.6%[9, 38] - Operating cash flow was $283.9 million[38] - Remaining Performance Obligations (RPO) grew by 17% year-over-year[9, 54] Customer Base and Satisfaction - The company serves over 13,500 global customers[9] - Customer satisfaction, measured by Net Promoter Score (NPS), is at 81, the highest in the industry[9] - 62% of Fortune 500 companies are customers[9, 36] Product Innovation and Partnerships - Launched FlashBlade//EXA, a high-performance storage platform for AI and high-performance computing[12] - Announced integration with Nutanix Cloud Platform for scalable virtualized environments[13] - Announced collaboration with SK Hynix to deliver energy-efficient flash storage for hyperscale environments[13] Guidance - The company projects Q2FY26 revenue of $845 million, representing a 10.6% year-over-year growth, and a Non-GAAP operating margin of 14.8%[56] - For FY26, the company anticipates revenue of $3.515 billion, an 11% year-over-year growth, and a Non-GAAP operating margin of 17.0%[58]

Exhibit 99.1 Pure Storage Announces First Quarter Fiscal 2026 Financial Results Q1 total revenue growth of 12% year-over-year Storage as a Service offerings TCV sales growth of 70% SANTA CLARA, Calif. — May 28, 2025 — Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technologies and services, announced financial results for its first quarter fiscal year 2026 ended May 4, 2025. "Pure continues to demonstrate the superiority of our technology and strategy th ...

Core Insights - Pure Storage reported a total revenue growth of 12% year-over-year for Q1 FY26, reaching $778.5 million [1][8] - The company's Storage as a Service offerings saw a significant TCV sales growth of 70% [1] - Subscription services revenue increased by 17% year-over-year, totaling $406.3 million, with an annual recurring revenue (ARR) of $1.7 billion, up 18% [8] Financial Highlights - Q1 FY26 non-GAAP operating income was $82.7 million, with a non-GAAP operating margin of 10.6% [8] - The company provided guidance for Q2 FY26 revenue at $845 million, reflecting a year-over-year growth rate of 10.6% [5] - For FY26, Pure Storage anticipates total revenue of $3.515 billion, representing an 11% year-over-year growth [5] Leadership Update - Kevan Krysler, the CFO, announced his departure after over five years, contributing to the growth of the business to over $3 billion in revenue [3][4] Cash Flow and Shareholder Returns - Operating cash flow for Q1 FY26 was $283.9 million, with free cash flow of $211.6 million [8][29] - The company returned approximately $120 million to shareholders through share repurchases of 2.5 million shares [8] Key Performance Metrics - Remaining performance obligations (RPO) increased by 17% year-over-year, totaling $2.7 billion [8] - GAAP gross margin was reported at 68.9%, while non-GAAP gross margin stood at 70.9% [8]

Core Viewpoint - B of A Securities analyst Wamsi Mohan has revised full-year estimates for Pure Storage, Inc. (PSTG) ahead of its earnings release, forecasting first quarter fiscal 2026 revenue of $772 million and EPS of 26 cents, slightly above Street expectations [1] Group 1: Revenue and Earnings Forecast - The first quarter is typically the company's weakest seasonally, with an average sequential revenue decline of 16% since 2016 [2] - Mohan anticipates a more moderate 12% quarter-over-quarter decline, reflecting continued momentum from FlashBlade/E adoption [3] - The second quarter revenue is estimated at $835 million, slightly below the Street estimate of $839 million [4] Group 2: Operating Margin Insights - The forecasted operating margin for the first fiscal quarter is 10.7%, higher than the Street's estimate of 10.6% and the company's guidance of 10.4% [4] - The primary driver for the stronger-than-expected operating margin is robust subscription margins [4] - The analyst expects PSTG to reiterate its full-year operating margin guidance of 17% [5] Group 3: Market Conditions and Competition - A pause in enterprise IT spending is expected in the second and third quarters of 2025 due to macro uncertainty, impacting IT hardware, especially storage [6] - Increased competition from Dell Technologies' new products and aggressive pricing is anticipated to limit upside in the storage industry [6] Group 4: Long-term EPS Revisions - EPS for FY27 has been revised to $2.07 from $2.06, and FY28 to $2.46 from $2.49 [6] Group 5: Risks and Price Forecast - Upside risks include a faster recovery in the commercial segment, lower flash costs, quicker supply chain recovery, and unexpected market share gains [7] - Downside risks involve an extended economic slowdown, rising costs, intense competition, enterprise migration to the public cloud, and execution challenges [8] - The analyst maintains a Neutral rating with a price forecast of $73, citing that product growth has yet to re-accelerate and competitive pressures present margin risks [9]

Core Viewpoint - Pure Storage, Inc. (PSTG) is expected to report a decline in earnings for the first quarter of fiscal 2026, while total revenues are projected to grow year-over-year [1][2]. Financial Performance - The Zacks Consensus Estimate for earnings in the upcoming quarter is 25 cents, reflecting a 21.9% decrease from the same quarter last year [1]. - Total revenues are estimated at $771.2 million, indicating an 11.2% year-over-year growth [1]. - For the first quarter, Pure Storage anticipates revenues of $770 million, which represents an 11% increase from the previous year [2]. Revenue Breakdown - Subscription services revenues accounted for 43.8% of total revenues in the last reported quarter, amounting to $385.1 million, which was a 17% increase [3]. - For the fiscal first quarter, Subscription services revenues are expected to be $358.5 million, up 3.6% year-over-year [3]. Product and Market Developments - The adoption of FlashArray//XL and FlashArray//E, along with strong Evergreen subscription renewals, is likely to contribute positively to PSTG's performance [3]. - Recent product launches, including the second-generation Pure Fusion and enhancements to the Portworx platform, are expected to drive enterprise adoption, particularly for cloud-native and AI/ML workloads [4]. Margin Expectations - Pure Storage expects product gross margins to stabilize in the mid-60s for fiscal 2026, aligning with its long-term target of 65-70% [5]. Competitive Landscape - The company faces stiff competition and an uncertain macroeconomic environment, with geopolitical uncertainties expected to impact the market throughout the year [6]. Strategic Partnerships - On April 21, 2025, Pure Storage partnered with Varonis Systems to enhance data protection capabilities for organizations [7]. - The incorporation of the NVIDIA AI Data Platform reference design into its FlashBlade platform reinforces Pure Storage's commitment to scalable AI-ready solutions [8]. - The upcoming launch of FlashBlade//EXA, designed for AI and High-Performance Computing (HPC), is set for summer 2025 [9].

Core Viewpoint - Pure Storage is witnessing an increase in demand for its products driven by the growing effectiveness of artificial intelligence [1] Company Summary - The rise in demand for Pure Storage's products is attributed to advancements in artificial intelligence technology [1]

Core Insights - Pure Storage (PSTG) is expected to report quarterly earnings of $0.25 per share, reflecting a decline of 21.9% year-over-year, while revenues are forecasted to reach $771.15 million, an increase of 11.2% year-over-year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions to stock performance, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [2] Analyst Forecasts - Analysts estimate 'Revenue- Product' to be $370.97 million, indicating a 6.8% increase from the previous year [4] - 'Revenue- Subscription services' is projected to be $391.59 million, reflecting a 13.1% increase year-over-year [4] - 'Geographic Revenue- Rest of the world' is expected to reach $220.50 million, a significant increase of 36% from the year-ago quarter [5] - 'Non-GAAP Gross profit- Subscription services' is anticipated to be $297.86 million, up from $259.12 million in the same quarter last year [5] - 'Non-GAAP Gross profit- Product' is estimated at $241.54 million, down from $253.04 million in the previous year [6] Stock Performance - Pure Storage shares have increased by 24.2% over the past month, outperforming the Zacks S&P 500 composite, which rose by 10.7% [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7]