Pure Storage (NYSE:PSTG) experienced a surge in its stock price, climbing over 22% in pre-market today, following third-quarter earnings that exceeded expectations and the release of positive guidance for the fourth quarter and full fiscal year.

The company reported adjusted earnings per share of $0.50, surpassing analyst estimates by $0.09. Revenue for the quarter reached $831.1 million, beating the consensus forecast of $815 million and reflecting a 9% increase compared to the same period last year.

Subscription services emerged as a key growth driver, with revenue climbing 22% year-over-year to $376.4 million. Subscription annual recurring revenue (ARR) also rose 22%, reaching $1.6 billion, while remaining performance obligations (RPO) increased 16% year-over-year to $2.4 billion.

For the fourth quarter, Pure Storage projected revenue of $867 million, outpacing the Street consensus estimate of $856.9 million. The company also raised its full-year fiscal 2025 revenue forecast to $3.15 billion, exceeding analyst expectations of $3.13 billion.