Pure Storage (NYSE: PSTG) plummeted 10.63% in post-market trading on Tuesday after reporting mixed third-quarter fiscal 2026 results. The data storage company's revenue rose 16% year-over-year to $964.5 million, surpassing estimates, while adjusted EPS of $0.58 met expectations.

Despite the positive top-line performance, investors reacted negatively to a 15% year-over-year decline in net income ($54 million vs. $63.64 million) and a 23% surge in operating expenses ($643.5 million). The company also raised its full-year revenue guidance to $3.63 billion-$3.64 billion, slightly above consensus.

Analysts suggest the stock's plunge reflects concerns over profitability pressures and whether Pure Storage can sustain growth amid rising costs, overshadowing the revenue beat and guidance lift.