Pure Storage Q2 Earnings and Revenue Beat Estimates

Pure Storage PSTG reported better-than-expected earnings and revenue for the second quarter of fiscal 2023.

The company reported a non-GAAP EPS of $1.08, surpassing the Zacks Consensus Estimate of $0.95.

Revenue increased 27% year-over-year to $672 million, beating the Zacks Consensus Estimate of $659 million.

The strong uptake of the FlashBlade portfolio, including FlashBlade and EvergreenOne subscription sales, acted as a catalyst amid macroeconomic weakness.

Shares of the company were up in premarket trading on August 24.

Pure Storage Q2 Earnings and Revenue Beat Estimates

Pure Storage (PSTG) reported better-than-expected fiscal second-quarter results, driven by strong uptake of its FlashBlade portfolio, including FlashBlade and Evergreen//One subscriptions.

Total revenue increased 34% year-over-year to $689.8 million, surpassing the Zacks Consensus Estimate of $675 million. Product revenue rose 37% to $417.6 million, while subscription services revenue increased 29% to $272.2 million.

Non-GAAP earnings per share (EPS) came in at $1.05, beating the Zacks Consensus Estimate of $0.99. It also increased 41% from the prior-year quarter.

Pure Storage’s strong results come amid macroeconomic weakness. Following the announcement, the company’s shares gained 4% in premarket trading.

For fiscal 2023, the company reiterated its revenue guidance, expecting it to grow in the mid-to-high single-digit range year-over-year on a non-GAAP basis. Non-GAAP operating margin is expected to be 21%.

Pure Storage currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader technology space are Badger Meter (BMI), Salesforce (CRM) and Adobe (ADBE).