1411 ET - Morgan Stanley at first found Pure Storage's 3Q call confusing. Analyst Erik Woodring says in a note that in scripted remarks the CEO messaged "significant" investments in sales & marketing and R&D continuing into FY27, while the CFO messaged operating income growth and margin expansion. A follow-up call gave some clarity, Woodring says, with management stating that while mix shift into more hyperscale revenue should be accretive to product gross margins, there will still be ongoing investments to capture more hyperscale share. But Woodring says he's still looking for answers on the unit economics of Pure Storage's hyperscale business and the expectations for operating margin growth in FY27 when management is messaging continued opex intensity into next year. Pure Storage plummets 27%. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

December 03, 2025 14:12 ET (19:12 GMT)

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