Pure Storage, Inc.
PSTGQ4 2025(PSTG Q3 FY2026)Estimated14% AI
AI Revenue %
14%
AI Fair Value
$1.5B
AI Revenue (Q)
$320.4M
Total Revenue (Q)
$2.3B
Source: SEC EDGAR 10-Q Filing
View 10-Q on SEC.govAnalysis
Significant revenue acceleration: $964M total (up from $831M Y/Y, +16%). Product revenue jumped to $535M (up from $455M Y/Y, +18%). Critical disclosure change: revenue description now explicitly includes 'Royalties from hyperscaler shipments of third party hardware that provide the customer a perpetual license to use our functional intellectual property (IP) are recognized when the revenue is earned based upon shipments.' This confirms Meta hyperscaler revenue is now flowing through as IP royalties on hardware shipments using Pure's DirectFlash/Purity software. The $80M Y/Y product revenue increase is partly attributable to hyperscaler royalties. Additionally, FlashBlade//EXA for GPU clouds, Pure Storage Cloud Azure Native launched, Pure1 AI Copilot with MCP integration, Portworx Pure1 AI Copilot. Inventory doubled to $82M from $42M Y/Y, suggesting major production ramp. Math: Estimated hyperscaler IP royalties ~$40-50M in Q3 + enterprise AI storage ~$80-90M = ~$130M of $964M = ~14%.
Analyzed by claude-opus-4-6
Quoted Figures
Royalties from hyperscaler shipments of third party hardware that provide the customer a perpetual license to use our functional intellectual property (IP) are recognized when the revenue is earned based upon shipments
10-Q, Q3 FY2026, Item 2 MD&A Components of Results of Operations
Product $534,760; Subscription services $429,693; Total revenue $964,453
10-Q, Q3 FY2026, Condensed Consolidated Statements of Operations
our ability to expand sales with our current hyperscale customer and achieve design wins with new hyperscale customers, the timing and magnitude of sales to hyperscale customers
10-Q, Q3 FY2026, Forward-Looking Statements
Inventory $82,421 (vs $42,810 at end of FY2025)
10-Q, Q3 FY2026, Condensed Consolidated Balance Sheets
AI Products Identified (Ring 1)
FlashBlade//EXA (GPU clouds and HPC)DirectFlash IP royalties (Meta hyperscaler)FlashBlade//S (next-gen)AIRI (AI-Ready Infrastructure)Evergreen//One for AIPure1 AI CopilotPure Storage Cloud Azure Native
AI-Enabled Items (Ring 2 — Not Counted)
These items use AI but are not counted in the AI revenue estimate because they primarily serve non-AI functions.
FlashArray (general enterprise storage)Portworx (container data services)Pure Fusion / Enterprise Data Cloud
Confidence Tier
EstimatedNo direct AI revenue disclosure — estimated from product mix