Pure Storage's Mixed Q3: Growth & Margin Concerns

Pure Storages Q3 results show robust revenue growth, with a 16% increase year-over-year, and a surge in annual recurring revenue to $1.84 billion. Despite beating analyst expectations, the stock price dropped due to a decline in operating margins from 7.2% to 5.6%. The company attributes the inventory increase to supply chain strategies and expects operating profit to grow year over year, despite slower margin expansion. Investors and analysts will closely watch new enterprise and hyperscaler deployments, and their impact on gross margins.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.