Key Takeaways

Shares of Pure Storage ( PSTG ) soared more than 20% Wednesday, a day after the data storage provider beat profit and sales estimates and raised its guidance on higher subscription revenue.

Pure Storage reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of $0.50, with revenue advancing 9% year-over-year to $831.1 million. Analysts surveyed by Visible Alpha had been looking for $0.42 and $814.9 million, respectively.

Subscription services revenue increased 22% to $376.3 million, and subscription annual recurring revenue (ARR) also was up 22% to $1.6 billion.

CFO Says Demonstrated 'Sustaining Strength of Our Business Models'

Chief Financial Officer (CFO) Kevan Krysler said the quarter "exceeded our expectations on revenue and operating income, demonstrating the sustaining strength of our business models."

The company now sees full-year revenue of $3.15 billion, up from the previous outlook of $3.10 billion.

Pure Storage shares have risen 80% this year.

Read the original article on Investopedia