Pure Storage, operating as Everpure, reported Q2 fiscal 2027 revenue of $1.186 billion, a 38% increase from the prior-year period and $86 million above the implied forecast of $1.1 billion. Operating profit rose 77% to $230 million, while the operating margin expanded to 19.4%. The company’s stock rose 5.92% in regular trading to close at $108.90.
Product revenue increased 54% year-over-year to $687 million, while subscription services revenue grew 20% to $499 million, representing 42% of total sales. International revenue, comprising sales outside the U.S., surged 75% to $498 million and accounted for a record 42% of total revenue. U.S. revenue grew 19% to $688 million. Annual recurring revenue exceeded $2 billion, up 20% year-over-year, while remaining performance obligations rose 44% to over $4 billion.
Gross margin totaled 69.9%, with product gross margin at 66.2% and subscription services margin at 74.9%. Free cash flow was negative $238 million for the quarter. Evergreen//One, the company’s storage-as-a-service offering, reached an annualized run rate exceeding $1 billion in total contract value for fiscal 2027.
Management raised fiscal 2027 revenue guidance to a range of $5.0 billion to $5.7 billion, with the midpoint more than $500 million above prior guidance. Operating profit guidance was increased to $940 million to $960 million. For the current quarter, revenue is expected between $1.325 billion and $1.335 billion, with operating profit forecast at $265 million to $275 million.
CEO Charlie Giancarlo described the quarter as "another outstanding and remarkable quarter," noting 38% revenue growth and more than 30% growth sustained since Q4. CFO Tarek Robbiati emphasized the company’s focus on driving top-line growth and market share gains, operating at the low end of the 65%–70% product gross margin target range.
Large deals above $5 million increased 59%, while deals exceeding $20 million rose 385%. The company secured a design win and supply agreement with a second top-five hyperscaler, expected to generate significant revenue from fiscal 2028 onward. Alternatives to VMware solutions reached a run rate exceeding $100 million annually.
The quiet period for the third quarter fiscal 2027 begins at the close of business on October 16, 2026.
