Pure Storage (PSTG 1.86%) stock edged higher on Hump Day, thanks largely to an encouraging earnings report. After this was published, investors pushed the stock nearly 2% higher on the day, which was notable because the benchmark S&P 500 index essentially traded sideways.

Double beat on key fundamentals

Those numbers were unveiled before market open on Wednesday, revealing that the data storage company earned just under $880 million in revenue in the fourth quarter of its fiscal 2025. This meant a double-digit increase, as it was 11% higher than the tally collected in the same period of fiscal 2024. It was also on the back of a 17% improvement in crucial subscription services to $385 million.

On the bottom line, Pure Storage booked non-GAAP (adjusted) net income of slightly over $153 million, or $0.45 per share. This was down from the year-ago profit of $166 million.

Both headline figures topped the average analyst estimates. The consensus from the punditry was that the company would take in less than $869 million in revenue, and post adjusted net income of $0.41 per share.

In the earnings release, Pure Storage waxed enthusiastic about its cloud solution.

It quoted CEO Charles Giancarlo as saying, "We are enabling customers to modernize legacy storage architectures into enterprise data clouds with Fusion, our most revolutionary advancement this year, which unlocks the full potential of data, while significantly improving operations, data management, and economics for customers."

A well-placed company

In its earnings release, Pure Storage also proffered guidance for its current (first) quarter, and the entirety of fiscal 2026. For the latter it's expecting $3.51 billion in revenue, which would represent an 11% increase. It's also roughly in line with analyst projections. The non-GAAP operating margin should land at 17%.

Pure Storage is on the cutting edge of storage solutions, which should maintain its already-strong demand due to the heavy resource requirements of artificial intelligence (AI). As long as the company continues on its growth path, it'll likely remain a popular stock in its segment.