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Pure Storage Reports Third Quarter Earnings
Pure Storage (NYSE: PSTG) reported its Q3 2026 earnings on Wednesday, revealing a 16% year-over-year revenue increase to $964.5 million and adjusted earnings per diluted share rising from $0.50 to $0.58. Despite exceeding revenue and operating income guidance, the stock experienced a significant 26% drop during trading, attributed to its high valuation of 233 times trailing earnings.
The company’s careful outlook indicated stronger projections for the full year; however, the growth rate for recurring sales lagged behind total revenues, leading to analyst downgrades and adjustments in price targets. This sell-off reversed prior gains from a bullish earnings report, sparked by investor concerns over longer-term growth visibility.
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