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].