Pure Storage Inc (NYSE:PSTG) saw its stock soar more than 17% after the data storage company reported third-quarter earnings that surpassed analyst expectations and provided upbeat guidance for the current quarter and full year.

The company reported adjusted earnings per share of $0.50 for the third quarter, beating the analyst estimate of $0.41 by $0.09. Revenue came in at $831.1 million, exceeding the consensus estimate of $815 million and representing a 9% increase YoY.

Pure Storage's subscription services revenue grew 22% YoY to $376.4 million, while subscription annual recurring revenue (ARR) also rose 22% to $1.6 billion. The company's remaining performance obligations (RPO) increased 16% YoY to $2.4 billion.

Looking ahead, Pure Storage forecast fourth-quarter revenue of $867 million, above the consensus estimate of $856.9 million. For the full fiscal year 2025, the company expects revenue of $3.15 billion, topping analyst projections of $3.13 billion.

"Our third quarter results exceeded our expectations on revenue and operating income, demonstrating the sustaining strength of our business models," said Kevan Krysler, Pure Storage CFO.

The company highlighted a significant design win with a top-four hyperscaler for its DirectFlash technology, which CEO Charles Giancarlo called "the vanguard for Pure Flash technology to become the standard for all hyperscaler online storage."

Pure Storage also expanded its AI capabilities, including certification of its FlashBlade//S500 with NVIDIA (NASDAQ:NVDA) DGX SuperPOD and a strategic partnership with CoreWeave to serve AI customers.

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