Pure Storage reported fiscal second-quarter results that exceeded expectations, driven by strong demand for its Evergreen//One subscription model and international expansion. Revenue for the quarter reached $1.19 billion, up 38% from $861 million in the same period last year, surpassing the company’s guidance range of $1.095 billion to $1.105 billion by approximately $85 million.
Non-GAAP operating income rose 77% year-over-year to $230 million, beating the prior guidance range of $195 million to $205 million by roughly $25 million. The company’s non-GAAP operating margin expanded to 19.4%, a 430-basis-point improvement from 15.1% in Q2 FY26. Total non-GAAP gross margin stood at 69.9%, with product revenue gross margin at 66.2% and subscription services gross margin at 74.9%.
Product revenue totaled $687 million, a 54% increase year-over-year and representing 58% of total revenue, while subscription services revenue rose 20% to $499 million, accounting for 42% of the total. International revenue, excluding the U.S., grew 75% to $498 million, setting a record at 42% of overall revenue. U.S. revenue increased 19% to $688 million. Annual recurring revenue (ARR) reached $2.13 billion, up 20% year-over-year, while remaining performance obligations climbed 44% to $4.09 billion.
Deals above $5 million grew 59% year-over-year, and deals exceeding $20 million surged 385%. Evergreen//One total contract value (TCV) for the quarter was $277 million, a 121% increase year-over-year, with the annualized run rate exceeding $1 billion for FY27. The company serves over 14,500 organizations, including 64% of the Fortune 500 and 44% of the Global 2000.
Pure Storage raised its full-year FY27 revenue guidance to $5.03 billion to $5.07 billion, up from the prior range of $4.41 billion to $4.51 billion, implying 37% to 38% year-over-year growth. Non-GAAP operating income guidance was lifted to $940 million to $960 million, from $820 million to $860 million previously, reflecting 48% to 51% growth. For Q3 FY27, the company expects revenue of $1.325 billion to $1.335 billion and non-GAAP operating income of $265 million to $275 million.
CFO Tarek Robbiati emphasized a focus on top-line growth and market share gains over margin maximization, noting the company intends to operate at the low end of its 65%-70% product revenue gross margin range. The shares rose 5.92% to $108.90 in regular trading and were up 1.93% to $111.00 in after-hours trading, near a 52-week high of $119.10.
