Pure Storage Inc. (PSTG) posted a reasonably solid third quarter on Tuesday, but the market didn't seem to care much. The data storage company hit earnings estimates right on the nose and even managed to beat on revenue, yet shares got absolutely hammered anyway.

The numbers themselves weren't bad at all. Pure Storage reported quarterly earnings of 58 cents per share, which met the consensus estimate exactly, according to market data. Quarterly revenue came in at $964.45 million, topping the analyst estimate of $956.14 million. That's the kind of beat-and-meet combination that usually keeps investors happy.

CEO Charles Giancarlo put a positive spin on things, naturally. "Pure Storage delivered another strong quarter as global customers increasingly choose Pure to solve their toughest data management challenges," he said. He went on to explain the company's AI pitch: "Competitive advantage in the AI era demands data accessibility. Pure's Enterprise Data Cloud breaks data free from application silos, allowing enterprises to harness the power of AI, automation and analytics."

The company even raised its fiscal 2026 revenue guidance to between $3.63 billion and $3.64 billion, versus the $3.62 billion estimate. Again, that's typically good news.

But here's where things got ugly. Pure Storage shares fell 26.3% to trade at $69.76 on Wednesday. That's a brutal selloff for what looked like a decent quarter on paper.

In response to the earnings announcement and subsequent price action, several analysts updated their views on the stock, though they're clearly not seeing eye to eye on where it goes from here.

UBS analyst David Vogt maintained Pure Storage with a Sell rating and raised the price target from $55 to $60. JP Morgan analyst Samik Chatterjee kept his Overweight rating but lowered the price target from $110 to $105. Meanwhile, Wedbush analyst Matt Bryson maintained an Outperform rating and actually raised the price target from $90 to $100.

So you've got one analyst who thinks it's a sell at $60, another who sees it reaching $105, and a third targeting $100. That's quite the spread in opinions for a company that just delivered in-line results and raised guidance.