The 5 Most Interesting Analyst Questions From Pure Storage’s Q2 Earnings Call

September 03, 2025 at 01:31 AM EDT

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Pure Storage's second quarter was met with a notably positive market response, reflecting management’s execution on enterprise customer expansion and momentum in its core software and services portfolio. CEO Charlie Giancarlo credited the results to broad-based strength, highlighting increased adoption of solutions like Evergreen One, Cloud Block Store, and Portworx. The company’s recent wins with large enterprises, alongside traction from its new FlashArray and FlashBlade systems, played a pivotal role. Giancarlo emphasized that the “enterprise data cloud architecture” is transforming how organizations manage global data, enabling cost savings and improved operational agility.

Is now the time to buy PSTG? Find out in our full research report (it’s free).

Pure Storage (PSTG) Q2 CY2025 Highlights:

Revenue: $861 million vs analyst estimates of $846.3 million (12.7% year-on-year growth, 1.7% beat)
Adjusted EPS: $0.43 vs analyst estimates of $0.39 (10.9% beat)
Adjusted EBITDA: $165.9 million vs analyst estimates of $161 million (19.3% margin, 3% beat)
The company lifted its revenue guidance for the full year to $3.62 billion at the midpoint from $3.52 billion, a 2.8% increase
Operating Margin: 0.6%, down from 3.3% in the same quarter last year
Annual Recurring Revenue: $1.79 billion vs analyst estimates of $1.72 billion (18.1% year-on-year growth, 3.7% beat)
Billings: $944.5 million at quarter end, up 20.2% year on year
Market Capitalization: $25.32 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Pure Storage’s Q2 Earnings Call

Amit Daryanani (Evercore) asked about drivers behind the acceleration in second-half growth. CEO Charlie Giancarlo cited strong company momentum, improved macro conditions, and increased demand for the enterprise data cloud architecture.
Aaron Rakers (Wells Fargo) inquired about the evolution and margin profile of the Meta relationship. Giancarlo explained the Meta deal is proceeding on schedule and contributes nearly 100% margin as royalty or software revenue.
Howard Ma (Guggenheim Securities) questioned the extent to which Meta shipments boosted gross margin. CFO Tarek Robbiati clarified that product gross margin improvement was mostly due to revenue and product mix, with Meta’s impact not material this quarter.
Jason Ader (William Blair) sought details on the Nutanix partnership. Giancarlo noted high customer interest, with Pure Storage being the first external storage supported and general availability targeted by year-end.
Asiya Merchant (Citibank Group) asked about the outlook for product versus subscription revenue split and gross margins. Robbiati stated that both product and subscription revenue are expected to grow, but accurately forecasting their mix remains challenging.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be watching (1) the pace and scale of hyperscaler deployments, especially with Meta and initial wins with other cloud giants, (2) ongoing adoption and monetization of new hardware and software products like FlashBlade Exa and Fusion v2, and (3) the continued growth of recurring subscription revenue. Execution on these priorities will be critical for sustaining enterprise momentum and margin expansion.

Pure Storage currently trades at $77.20, up from $60.88 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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The 5 Most Interesting Analyst Questions From Pure Storage’s Q2 Earnings Call

Pure Storage (PSTG) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Pure Storage’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

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