Pure Storage (NYSE:PSTG) Stock Plunges After Mixed Q3 Results Despite Raised Guidance

Pure Storage Inc - Class A (NYSE:PSTG) reported financial results for its fiscal third quarter that presented a mixed picture, leading to a sharp negative reaction in after-hours trading. The data storage specialist delivered strong top-line growth but fell short on a key profitability metric, resulting in a disconnect between the headline numbers and investor sentiment.

Quarterly Results Versus Expectations

The company's performance for the quarter ended November 2, 2025, showed clear strengths and a notable weakness when held against Wall Street's forecasts.

• Revenue: Pure Storage reported revenue of $964.5 million, representing a solid 16% increase year-over-year. However, this figure came in slightly below the analyst consensus estimate of approximately $975.3 million.
• Earnings Per Share: The company posted non-GAAP earnings per share (EPS) of $0.58. This matched the precise consensus estimate from analysts, which was $0.58. It is important to note that other data sources indicated a slightly higher estimate of $0.5948, which would constitute a narrow miss.

Market Reaction and Guidance

Despite the double-digit revenue growth and EPS that met or was very close to expectations, the market's immediate response was decisively negative. In after-hours trading following the announcement, the stock declined by over 10%. This sell-off suggests investors were focusing on the revenue miss and potentially seeking even stronger outperformance given the company's growth profile.

A likely contributor to limiting further downside was the company's forward guidance. Pure Storage provided an outlook for the next quarter that exceeded analyst expectations. The company's revenue guidance midpoint of $1.03 billion is approximately 0.7% above the current consensus estimate. Furthermore, management raised its full-year forecasts for both revenue and operating profit, indicating sustained confidence in its business trajectory despite the quarterly revenue shortfall.

Press Release Highlights

The core announcement emphasized the company's continued growth momentum and improving profitability. Key elements from the press release include:

• A reaffirmation of Pure Storage's position as a provider of advanced data storage technologies and services.
• The highlight of 16% year-over-year total revenue growth for the fiscal third quarter.
• The upward revision of the company's full-year financial guidance for both revenue and operating profit, signaling management's belief that current business trends remain positive.

Looking Ahead

The focus now shifts to the fourth quarter and the company's ability to execute on its raised outlook. The guidance beat provides a tangible near-term target that, if achieved, could help rebuild investor confidence. Analysts will be watching closely to see if the Q3 revenue miss was an isolated event or the beginning of a trend, especially in the context of broader enterprise IT spending.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, review the full data on the Pure Storage earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.