Pure Storage, Inc. Q4 FY2026 earnings call

Charlie mentioned Q4 was an outstanding quarter with broad-based strength, enterprise business executing strategy with Fusion having over 600 customers, FlashBlade EXA securing first customer and having advanced discussions with dozens more, hyperscale business growing beyond expectations in FY26 and expected growth in FY27, acquisition of OneTouch to accelerate data value release, and brand name change reflecting transformation. Tarek added FY26 Q4 revenue over $1 billion with 20% y-o-y growth and record operating profit, product and subscription revenue details, gross margin info, RPO growth, international business expansion, headcount and balance sheet details, and FY27 revenue and operating profit guidance.

Q4 revenue surpassed $1 billion for the first time, representing 20% year-over-year growth and full-year revenue of $3.7 billion in FY26. Q4 product revenue was $618 million, growing 25% year-over-year, and FY26 product revenue was $1.97 billion, up 16% year-over-year. Q4 subscription revenue was $440 million, growing 14% year-over-year, and FY26 subscription revenue was $1.69 billion, up 15% year-over-year. International revenue in Q4 increased 48% year-over-year, representing 36% of total revenue.

Q1 revenue expected in range of $990 million to $1.01 billion, ~28% y-o-y growth at midpoint; operating profit expected in range of $125 million to $135 million, ~57% y-o-y growth at midpoint. FY27 revenue expected in range of $4.3 to $4.4 billion, 18.8% y-o-y growth at midpoint; operating profit expected in range of $780 million to $820 million, ~26% y-o-y growth at midpoint. Hyperscale revenue in FY27 mostly recognized in Q3 and Q4, gross margin of hyperscale revenues 75% - 85%.

Macroeconomic uncertainty persists, component demand outstrips supply leading to shortages, extended lead times, potential shipment delays, component cost increase prompting price adjustments, product gross margin in Q1 at lower end of typical range but expected to recover全年.

Questions and answers include discussions on Q1 growth drivers, hyperscale opportunities, product gross margin, price increase, customer behavior, acquisition of OneTouch, etc., such as Armit Daryanani's question on Q1 growth drivers and Charlie's response, Aaron Rakers' question on hyperscale opportunities and response, etc.