Pure Storage (PSTG) shares plummeted 12.06% in after-hours trading on Wednesday, despite reporting better-than-expected fourth quarter fiscal 2025 earnings results. The data storage company's stock took a hit despite beating analyst estimates for both earnings per share and revenue.

For the fourth quarter, Pure Storage reported adjusted earnings of $0.45 per share, surpassing the consensus estimate of $0.41. The company's revenue for the quarter came in at $879.842 million, exceeding the analyst consensus of $868.929 million. While the results were strong, they seemingly failed to meet elevated market expectations.

Compared to the same period last year, Pure Storage's fourth quarter earnings per share declined by 10%, while revenue increased by 11.4%. The company's earnings report highlighted its ongoing transformation, but investors may have been anticipating even stronger performance.