Technology

Everpure Announces Second Quarter Fiscal 2027 Financial Results

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Total revenue growth of 38% year-over-year

Product revenue growth of 54% year-over-year

 Significantly increased FY27 revenue and operating profit guidance

SANTA CLARA, Calif., Aug. 26, 2026 /PRNewswire/ — Everpure (NYSE: P), the company revolutionizing storage and data management, today announced financial results for its second quarter fiscal year 2027 ended August 2, 2026.

“Q2 marks eight straight quarters of accelerating revenue growth for Everpure, and confirmed our position as the most innovative and vital company in our industry,” said Charles Giancarlo, Chairman and CEO of Everpure. “Our expansion into Data Intelligence, and our increasing momentum in AI and hyperscale products, ensures we are well-positioned to capture enduring long-term growth.”

Second Quarter Financial Highlights

Revenue $1.2 billion, up 38% year-over-yearProduct revenue $687 million, up 54% year-over-yearSubscription services revenue $499 million, up 20% year-over-yearSubscription annual recurring revenue (ARR) $2.1 billion, up 20% year-over-yearRemaining performance obligations (RPO) $4.1 billion, up 44% year-over-yearGAAP gross margin 68.4%; non-GAAP gross margin 69.9%GAAP operating income $63 million; non-GAAP operating income $230 millionGAAP operating margin 5.3%; non-GAAP operating margin 19.4%Operating cash flow $(136) million; free cash flow $(238) millionTotal cash, cash equivalents, and marketable securities $1.0 billionReturned approximately $69 million to stockholders through share repurchases of 0.9 million shares.

“Q2 was another outstanding quarter for Everpure, where we delivered record revenue and operating profit, exceeding the high-end of our guidance,” said Everpure CFO Tarek Robbiati. “Demand remains strong across our solutions portfolio despite historic industry price increases in the first half of FY’27. We are raising guidance significantly for the second half of the year to reflect our confidence in continued revenue momentum.”

Second Quarter Company Highlights

Second Top-Five Hyperscale Win

Announced on August 10 a landmark design win with a second top-five hyperscaler, leveraging Everpure’s advanced DirectFlash® architecture to drastically lower operational costs and reclaim vital power and rack space for hyperscale workloads.

Advancing Enterprise Data & AI Infrastructure

Unveiled the Data Primacy architecture at //Accelerate 2026, Everpure Data Intelligence for automated data discovery and governance.Announced general availability of Everpure Data Stream to automate data pipelines from ingestion to inference and accelerate data preparation.Evolved Pure1 AI Copilot from a conversational assistant into an active operator that analyzes performance anomalies, provides step-by-step root-cause analysis, and guides teams to resolution.

Expanding Hybrid Cloud & Virtualization

Introduced Portworx for Edge on Red Hat OpenShift and expanded Portworx by Everpure to bring native Kubernetes data management, including storage, data protection, and disaster recovery, directly into the Red Hat OpenShift console.Announced general availability of Everpure Cloud Azure Native for Azure Virtual Machines, extending the fully managed enterprise block storage service across public cloud environments.

Driving Strategic Ecosystem Partnerships

Achieved general availability of Everpure FlashBlade integration into Cisco Intersight, delivering native onboarding, complete inventory visibility, and unified health dashboards.Announced the Everpure OpenSharing Connector, enabling Databricks to query Iceberg and Delta tables directly on Everpure object storage without data replication or egress fees.

Industry Recognition & Impact

Named a Leader in the 2026 Gartner® Magic Quadrant™ for Enterprise Storage Platforms, positioned highest in execution and furthest in vision for the second consecutive year.Named to the PEOPLE® Companies That Care by Great Place to Work® and PEOPLE® magazine.Named Virtualization Transformation Partner of the Year in the 2026 Red Hat Ecosystem Innovation Awards and recognized as a Leader in The Forrester Wave™: Object Storage Solutions, Q2 2026.CEO Charles Giancarlo was recognized on CRN’s The 25 Most Influential Executives Of 2026 list.

Third Quarter and FY27 Guidance

Q3FY27

Revenue

$1.325B to $1.335B

Revenue YoY Growth Rate

37% to 38%

Non-GAAP Operating Income

$265M to $275M

Non-GAAP Operating Income YoY Growth Rate

35% to 40%

FY27

Prior Guidance

New Guidance

Revenue

$4.41B to $4.51B

$5.03B to $5.07B

Revenue YoY Growth Rate

20% to 23%

37% to 38%

Non-GAAP Operating Income

$820M to $860M

$940M to $960M

Non-GAAP Operating Income YoY Growth Rate

29% to 36%

48% to 51%

These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Everpure has not reconciled its guidance for non-GAAP operating income and related year-over-year growth rate to their most directly comparable GAAP measures because certain items that impact these measures are not within Everpure’s control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.

Conference Call Information
Everpure will host a teleconference to discuss the second quarter fiscal 2027 results at 2:00 pm PT today, August 26, 2026. A live audio broadcast of the conference call will be available on the Everpure Investor Relations website. Everpure will also post its earnings presentation and prepared remarks to this website concurrent with this release.

A replay will be available following the call on the Everpure Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482.

Additionally, Everpure is scheduled to participate at the following investor conferences:

Save the Date: Everpure Financial Analyst Meeting
Please save the date for Everpure’s Financial Analyst Meeting on Wednesday, September 23, 2026. Members of the executive leadership team will provide an update on the company’s long-term strategy, path to growth, and long-term financial framework.

A live webcast and presentation materials will be available on the company’s Investor Relations website. Additional event details, including registration information, will be provided closer to the event.

About Everpure
Everpure (NYSE: P) allows organizations to take control of their data with an industry-leading, ever-evolving storage and data management platform. We help companies unleash the power of their data by ensuring it is secure, accessible, intelligent, and ready to perform in the AI era. We make data management effortless while simultaneously scaling performance and significantly reducing energy consumption. With one of the highest Net Promoter Scores for over a decade, Everpure is the choice of the world’s most innovative organizations. For more information, visit www.everpuredata.com.

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Everpure, the Everpure P Logo, Portworx, Pure Storage and the marks in the Everpure Trademark List are trademarks or registered trademarks of Everpure, Inc. or its licensed subsidiaries in the U.S. and/or other countries. The Trademark List can be found at Everpuredata.com/trademarks. Other names may be trademarks of their respective owners.

Investors and others should note that we announce material business and financial information through our investor relations website at www.investors.everpuredata.com, SEC filings, public conference calls and webcasts, and press releases, including earnings press releases. We also announce business and financial information through our newsroom website (https://www.everpuredata.com/company/newsroom.html), blog (http://blog.everpuredata.com), LinkedIn (linkedin.com/company/everpure-data), X (x.com/EverpureData), Facebook (@purestorage), Instagram (@purestorage) and YouTube (@everpure-data). It is possible that the information we post on these channels could be deemed to be material information. Therefore, we encourage investors to follow these channels, in addition to our SEC filings, public conference calls and webcasts, and press releases.

Forward Looking Statements
This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to our future period financial and business results, our ability to manage potential disruptions to our supply chain, our ability to procure a sufficient supply of flash and other components, the impact of recent increases in component costs, the anticipated effects of our recent acquisition of 1touch, our opportunity relating to hyperscale and AI environments, our ability to meet hyperscalers’ performance, price and other requirements, our ability to expand with our current hyperscale customers and land new hyperscale customers, our ability to meet the needs of hyperscalers for the entire spectrum of their online storage use cases, the timing and magnitude of large orders, including sales to hyperscalers and large enterprises, the timing and amount of hyperscale customer revenue, demand for our products and subscription services, including Evergreen//One, our sales pipeline, the relative sales mix between our subscription and consumption offerings and traditional capital expenditure sales, our technology and product strategy, specifically ongoing development and customer adoption of new products and the Enterprise Data Cloud architecture (including Pure Fusion™), priorities around sustainability and energy saving benefits to our customers of using our products, our ability to expand market share, the impact of inflation, currency fluctuations, tariffs, or other adverse economic conditions, our expectations regarding our product and technology differentiation, new investments and partnerships, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.

Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website at investor.everpuredata.com and on the SEC website at www.sec.gov. Additional information is also set forth in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026. All information provided in this release and in the attachments is as of August 26, 2026, and Everpure undertakes no duty to update this information unless required by law.

Key Performance Metrics
Subscription ARR is a key business metric that refers to the annualized recurring contract value of all active, non-cancelable customer subscription agreements with subscription terms of any length at the end of the quarter, plus on-demand billings for the quarter multiplied by four.

Total Contract Value (TCV) Sales, or bookings, of Everpure’s Evergreen//One and similar consumption- and subscription-based offerings is an operating metric, representing the value of orders received during the period.

Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Everpure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, and free cash flow.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense, payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of acquired intangible assets and gains from mark-to-market adjustments on strategic investments that may not be indicative of our ongoing core business operating results. Everpure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures” and “Reconciliation from net cash provided by (used in) operating activities to free cash flow,” included at the end of this release.

EVERPURE, INC.

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

 

At the End of

Second Quarter of
Fiscal 2027

Fiscal 2026

Assets

Current assets:

Cash and cash equivalents

$         385,694

$          854,873

Marketable securities

622,197

692,446

Accounts receivable, net of allowance of $204 and $203

1,027,665

944,844

Inventory

106,300

75,935

Deferred commissions, current

150,472

139,379

Prepaid expenses and other current assets

1,025,645

356,015

Total current assets

3,317,973

3,063,492

Property and equipment, net

687,950

587,022

Operating lease right-of-use-assets

196,341

185,975

Deferred commissions, non-current

296,422

280,190

Intangible assets, net

23,338

7,346

Goodwill

466,313

365,075

Restricted cash

8,214

7,687

Other assets, non-current

223,858

177,472

Total assets

$       5,220,409

$       4,674,259

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$          329,848

$          153,312

Accrued compensation and benefits

300,060

347,205

Accrued expenses and other liabilities

192,577

184,338

Operating lease liabilities, current

50,273

44,080

Deferred revenue, current

1,323,750

1,181,055

Total current liabilities

2,196,508

1,909,990

Operating lease liabilities, non-current

175,034

172,063

Deferred revenue, non-current

1,197,521

1,046,442

Other liabilities, non-current

110,508

100,096

Total liabilities

3,679,571

3,228,591

Stockholders’ equity:

Common stock and additional paid-in capital

2,627,994

2,624,790

Accumulated other comprehensive income (loss)

(4,552)

1,709

Accumulated deficit

(1,082,604)

(1,180,831)

Total stockholders’ equity

1,540,838

1,445,668

Total liabilities and stockholders’ equity

$       5,220,409

$       4,674,259

 

EVERPURE, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data, unaudited)

 

Second Quarter of Fiscal

First Two Quarters of Fiscal

2027

2026

2027

2026

Revenue:

Product

$   686,773

$   446,303

$ 1,263,317

$   818,447

Subscription services

499,125

414,699

975,477

821,040

Total revenue

1,185,898

861,002

2,238,794

1,639,487

Cost of revenue:

Product (1)

238,223

150,296

442,767

291,346

Subscription services (1)

136,287

106,370

261,307

207,652

Total cost of revenue

374,510

256,666

704,074

498,998

Gross profit

811,388

604,336

1,534,720

1,140,489

Operating expenses:

Research and development (1)

293,749

242,026

552,841

463,766

Sales and marketing (1)

346,077

285,890

693,933

564,402

General and administrative (1)

108,407

71,549

204,852

138,621

Total operating expenses

748,233

599,465

1,451,626

1,166,789

Income (loss) from operations

63,155

4,871

83,094

(26,300)

Other income (expense), net

9,006

45,700

22,937

77,355

Income before provision (benefit) for income taxes

72,161

50,571

106,031

51,055

Income tax provision (benefit)

(1,988)

3,453

7,804

17,932

Net income

$     74,149

$     47,118

$      98,227

$      33,123

Net income per share attributable to common stockholders, basic

$         0.22

$         0.14

$          0.30

$          0.10

Net income per share attributable to common stockholders, diluted

$         0.21

$         0.14

$          0.28

$          0.10

Weighted-average shares used in computing net income per share

attributable to common stockholders, basic

332,942

327,594

332,047

327,066

Weighted-average shares used in computing net income per share
attributable to common stockholders, diluted

345,587

337,734

344,811

337,306

 

(1) Includes stock-based compensation expense as follows:

Cost of revenue — product

$       5,336

$       4,149

$       9,468

$       7,415

Cost of revenue — subscription services

10,287

8,559

18,442

15,721

Research and development

80,010

60,354

140,341

109,596

Sales and marketing

33,461

26,527

62,624

48,611

General and administrative

30,721

17,804

51,004

32,325

Total stock-based compensation expense

$   159,815

$   117,393

$   281,879

$   213,668

 

EVERPURE, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

Second Quarter of Fiscal

First Two Quarters of Fiscal

2027

2026

2027

2026

Cash flows from operating activities

Net income

$      74,149

$      47,118

$      98,227

$      33,123

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization

41,579

35,927

81,777

69,697

Stock-based compensation expense

159,815

117,393

281,879

213,668

Unrealized gain on strategic investment

(27,966)

(30,401)

Other

(32)

3,887

4,349

7,027

Changes in operating assets and liabilities, net of effects of acquisition:

Accounts receivable, net

(137,350)

(119,161)

(79,318)

150,381

Inventory

(33,795)

(14,937)

(36,563)

(12,268)

Deferred commissions

(14,645)

(7,738)

(27,325)

(11,395)

Prepaid expenses and other assets

(577,229)

(13,961)

(694,305)

(33,401)

Operating lease right-of-use assets

11,007

11,561

21,581

19,958

Accounts payable

140,337

23,845

156,591

(3,146)

Accrued compensation and other liabilities

68,528

84,945

(33,541)

602

Operating lease liabilities

(11,999)

(12,275)

(22,683)

(23,513)

Deferred revenue

143,287

83,519

293,147

115,761

Net cash provided by (used in) operating activities

(136,348)

212,157

43,816

496,093

Cash flows from investing activities

Purchases of property and equipment (1)

(101,254)

(62,027)

(169,668)

(134,373)

Purchase of strategic investment

(1,000)

(1,000)

Acquisition

(125,308)

(125,308)

Purchases of marketable securities and other

(154,538)

(141,232)

(267,490)

(256,128)

Sales of marketable securities

124,321

252,780

193,481

270,987

Maturities of marketable securities

72,736

80,254

139,448

137,507

Net cash provided by (used in) investing activities

(185,043)

129,775

(230,537)

17,993

Cash flows from financing activities

Proceeds from exercise of stock options

8,523

8,099

15,169

13,458

Proceeds from issuance of common stock under employee stock purchase plan

30,001

27,240

Payments of financing costs for revolving credit facility

(2,080)

(2,080)

Principal payments on borrowings and finance lease obligations

(100,000)

(612)

(101,125)

Tax withholding on vesting of equity awards

(70,376)

(56,161)

(173,296)

(117,461)

Repurchases of common stock

(68,981)

(42,242)

(153,084)

(162,178)

Net cash used in financing activities

(130,834)

(192,384)

(281,822)

(342,146)

Net increase (decrease) in cash, cash equivalents and restricted cash

(452,225)

149,548

(468,543)

171,940

Cash, cash equivalents and restricted cash, beginning of period

848,661

760,142

864,979

737,750

Cash, cash equivalents and restricted cash, end of period

$    396,436

$    909,690

$    396,436

$    909,690

(1) Includes capitalized internal-use software costs of $12.5 million and $8.7 million for the second quarter of fiscal 2027 and 2026 and $22.8 million and $15.6 million for the first two quarters of fiscal 2027 and 2026.

 

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures

 

The following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited):

 

Second Quarter of Fiscal 2027

Second Quarter of Fiscal 2026

GAAP

results

GAAP

gross

margin (a)

Adjustment

Non-

GAAP

results

Non-

GAAP

gross

margin (b)

GAAP

results

GAAP

gross

margin (a)

Adjustment

Non-

GAAP

results

Non-

GAAP

gross

margin (b)

$     5,336

(c)

$    4,149

(c)

188

(d)

127

(d)

246

(e)

3,306

(e)

Gross profit —
product

$         448,550

65.3 %

$     5,770

$ 454,320

66.2 %

$         296,007

66.3 %

$    7,582

$         303,589

68.0 %

$   10,287

(c)

$    8,559

(c)

517

(d)

466

(d)

435

(e)

Gross profit —
subscription
services

$         362,838

72.7 %

$   11,239

$ 374,077

74.9 %

$         308,329

74.4 %

$    9,025

$         317,354

76.5 %

$   15,623

(c)

$  12,708

(c)

705

(d)

593

(d)

681

(e)

3,306

(e)

Total gross
profit

$         811,388

68.4 %

$   17,009

$ 828,397

69.9 %

$         604,336

70.2 %

$  16,607

$         620,943

72.1 %

(a) GAAP gross margin is defined as GAAP gross profit divided by revenue.

(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.

(c) To eliminate stock-based compensation expense.

(d) To eliminate payroll tax expense related to stock-based activities.

(e) To eliminate amortization expense of acquired intangible assets.

 

The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):

 

Second Quarter of Fiscal 2027

Second Quarter of Fiscal 2026

GAAP

results

GAAP

operating

margin (a)

Adjustment

Non-

GAAP

results

Non-

GAAP

operating

margin (b)

GAAP

results

GAAP

operating

margin (a)

Adjustment

Non-

GAAP

results

Non-

GAAP

operating

margin (b)

$ 159,815

(c)

$ 117,393

(c)

5,400

(d)

4,164

(d)

1,261

(e)

3,536

(e)

Operating
income

$  63,155

5.3 %

$ 166,476

$ 229,631

19.4 %

$   4,871

0.6 %

$ 125,093

$ 129,964

15.1 %

$ 159,815

(c)

$ 117,393

(c)

5,400

(d)

4,164

(d)

1,261

(e)

3,536

(e)

105

(f)

230

(f)

(27,966)

(g)

Net income

$  74,149

$ 166,581

$ 240,730

$  47,118

$   97,357

$ 144,475

Net income per
share — diluted

$    0.21

$    0.70

$    0.14

$    0.43

Weighted-
average
shares used in
per share
calculation —
diluted

345,587

345,587

337,734

337,734

(a) GAAP operating margin is defined as GAAP operating income divided by revenue.

(b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue.

(c) To eliminate stock-based compensation expense.

(d) To eliminate payroll tax expense related to stock-based activities.

(e) To eliminate amortization expense of acquired intangible assets.

(f) To eliminate amortization expense of debt issuance costs related to our debt.

(g) To eliminate unrealized gain from mark-to-market adjustment on strategic investment.

 

Reconciliation from net cash provided by (used in) operating activities to free cash flow (in thousands except percentages, unaudited):

 

Second Quarter of Fiscal

2027

2026

Net cash provided by (used in) operating activities

$         (136,348)

$          212,157

Less: purchases of property and equipment (1)

(101,254)

(62,027)

Free cash flow (non-GAAP)

$         (237,602)

$          150,130

(1) Includes capitalized internal-use software costs of $12.5 million and $8.7 million for the second quarter of fiscal 2027 and 2026.

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SOURCE Everpure

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