Pure Storage Inc (NYSE:PSTG) stock plunges 26.17% (As on December 3, 11:20:40 AM UTC-4, Source: Google Finance) after the company raised its full-year guidance today, but its stock fell hard in late trading after it failed to beat the market’s expectations in its latest quarterly earnings results. Pure Storage delivered a net profit of $54.8 million during the quarter, down slightly from the $63.6 million profit it posted in the year-ago period. The company said it saw growth in both of its main business segments during the quarter. Its product revenue soared from $454.7 million one year earlier to $534.8 million at the end of the quarter, while subscription revenue came to $429.7 million, up from just $376.3 million in the year-ago period. Subscription annual recurring revenue (ARR) $1.8 billion, up 17% year-over-year. Remaining performance obligations (RPO) $2.9 billion, up 24% year-over-year. The company generated operating cash flow $116.0 million and free cash flow $52.6 million. Total cash, cash equivalents, and marketable securities $1.5 billion

Moreover, the company has expanded the Enterprise Data Cloud into the public cloud with the introduction of Pure Storage Cloud Azure Native, developed jointly with Microsoft – the industry’s first fully managed, enterprise-grade block volume as a service. The company has continued the evolution of the FlashArray family with FlashArray//XL190 R5, FlashArray//X R5, and FlashArray//C R5. PSTG has expanded Pure1 AI Copilot with Portworx Pure1 AI Copilot, the first AI-powered platform engineering assistant for Portworx customers and announced integration of Pure1 AI Copilot with Model Context Protocol (MCP) servers.

PSTG in the third quarter of FY25 has reported the adjusted earnings per share of 58 cents, which matches the analysts’ estimates for the adjusted earnings per share of 58 cents. The company had reported the adjusted revenue growth of 16 percent to $964.5 million in the third quarter of FY25, beating the analysts’ estimates for revenue of $955.9 million.

The company followed its results by raising its full-year revenue guidance. It said it’s now looking for fiscal 2026 sales of between $3.63 billion and $3.64 billion, up from an earlier range of between $3.6 billion and $3.63 billion. That means its guidance now exceeds Wall Street’s target of $3.62 billion in annual sales. For the current quarter, Pure Storage sees revenue coming to between $1.02 billion and $1.04 billion. The midpoint of that range also exceeds the Street’s target, with analysts looking for $1.02 billion.