Everpure — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Total revenue reached $1.2 billion, representing a 38% year-over-year increase.
• Product revenue was $687 million, up 54% year-over-year.
• Subscription services revenue was $499 million, up 20% year-over-year.
• Subscription annual recurring revenue (ARR) totaled $2.1 billion, up 20% year-over-year.
• Remaining performance obligations (RPO) stood at $4.1 billion, up 44% year-over-year.
• GAAP gross margin was 68.4%; non-GAAP gross margin was 69.9%.
• GAAP operating income was $63 million; non-GAAP operating income was $230 million.
• GAAP operating margin was 5.3%; non-GAAP operating margin was 19.4%.
• Operating cash flow was $(136) million; free cash flow was $(238) million.
• Total cash, cash equivalents, and marketable securities were $1.0 billion.
• Net income for the quarter was $74.1 million ($0.21 diluted per share), compared to $47.1 million ($0.14 diluted per share) in the prior year period.

Guidance and Future Outlook

• Q3 FY27 revenue guidance is $1.325 billion to $1.335 billion, with year-over-year growth of 37% to 38%.
• Q3 FY27 non-GAAP operating income guidance is $265 million to $275 million, with year-over-year growth of 35% to 40%.
• FY27 total revenue guidance was raised to $5.03 billion to $5.07 billion (previously $4.41 billion to $4.51 billion), reflecting 37% to 38% year-over-year growth (previously 20% to 23%).
• FY27 non-GAAP operating income guidance was raised to $940 million to $960 million (previously $820 million to $860 million), reflecting 48% to 51% year-over-year growth (previously 29% to 36%).
• Management cited strong demand across the solutions portfolio despite historic industry price increases in the first half of FY27.

Business Segments and Product Lines

• Secured a landmark design win with a second top-five hyperscaler leveraging DirectFlash® architecture to reduce operational costs and reclaim power and rack space.
• Unveiled Data Primacy architecture and Everpure Data Intelligence for automated data discovery and governance at //Accelerate 2026.
• Announced general availability of Everpure Data Stream to automate data pipelines from ingestion to inference.
• Evolved Pure1 AI Copilot into an active operator capable of analyzing performance anomalies and providing root-cause analysis.
• Introduced Portworx for Edge on Red Hat OpenShift and expanded Portworx by Everpure to include native Kubernetes data management within the Red Hat OpenShift console.
• Announced general availability of Everpure Cloud Azure Native for Azure Virtual Machines.
• Achieved general availability of Everpure FlashBlade integration into Cisco Intersight.
• Announced the Everpure OpenSharing Connector enabling Databricks to query Iceberg and Delta tables directly on Everpure object storage.

Market and Competitive Landscape

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

Risks and Challenges

• The press release notes historic industry price increases in the first half of FY27 as a factor in the market environment.
• Forward-looking statements highlight risks including supply chain disruptions, component procurement (specifically flash), and the impact of component cost increases.
• Potential risks include inflation, currency fluctuations, tariffs, adverse economic conditions, and the ability to meet hyperscaler performance and price requirements.
• Actual results may differ from guidance due to factors such as the timing and magnitude of large orders, sales mix between subscription and consumption offerings, and customer adoption of new products.

Management Commentary and Tone

• CEO Charles Giancarlo stated Q2 marked eight straight quarters of accelerating revenue growth and confirmed Everpure's position as the most innovative and vital company in the industry.
• CFO Tarek Robbiati described Q2 as an "outstanding quarter" delivering record revenue and operating profit, exceeding the high-end of prior guidance.
• Management expressed confidence in continued revenue momentum, citing strong demand and the company's expansion into Data Intelligence and AI/hyperscale products.

Other Key Points

• Returned approximately $69 million to stockholders through share repurchases of 0.9 million shares during the quarter.
• Completed an acquisition costing $125.3 million in the second quarter.
• Scheduled to host a Financial Analyst Meeting on September 23, 2026, to discuss long-term strategy and financial framework.
• Conference call and webcast for Q2 FY27 results were held on August 26, 2026.