Pure Storage (NYSE: PSTG) tumbled 11.25% in pre-market trading Wednesday, extending its post-earnings sell-off as investors digested mixed fiscal Q3 results. The data storage company had already dropped over 10% post-market Tuesday after reporting declining net income despite a revenue beat.

The company posted Q3 revenue of $964.5 million (up 16% YoY, above estimates) but net income fell 15% to $54 million amid a 23% surge in operating expenses ($643.5 million). While Pure Storage raised its fiscal 2026 revenue guidance to $3.63-$3.64 billion, the profitability squeeze appears to have overshadowed growth metrics.

Analysts at JP Morgan cut their price target to $105 from $110, reflecting concerns over margin pressures. The stock’s sharp decline suggests traders are questioning Pure Storage’s ability to balance growth with cost discipline in a competitive data storage market.