Everpure Q2 Earnings Call Highlights

Key Points

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• Everpure exceeded expectations and raised its outlook: Fiscal Q2 revenue rose 38% year over year, operating profit increased 77% to $230 million, and fiscal 2027 revenue guidance was raised to $5.0 billion-$5.7 billion.

• Subscription and storage-as-a-service growth remained strong: Subscription revenue increased 20% to $499 million, annual recurring revenue surpassed $2 billion, and Evergreen//One storage-as-a-service contract value grew 121% year over year.

• AI and hyperscale opportunities expanded: Everpure announced a design win with a second top-five hyperscaler, although meaningful revenue is expected mainly from fiscal 2028; the company also cited growing adoption of its AI data and virtualization offerings.

Everpure (NYSE:P) reported second-quarter fiscal 2027 results that exceeded its guidance, with revenue rising 38% year over year and operating profit increasing 77% to $230 million. Chief Executive Officer Charlie Giancarlo said growth was broad-based across geographies, products and business segments, while the company raised its full-year outlook on continued demand strength and improved visibility into supply availability.

Giancarlo said the company’s revenue growth has accelerated over the past eight quarters and that management believes the higher growth rate can be sustained “for some time.” He attributed the momentum to the expansion of Everpure’s product portfolio, its unified Purity software platform, its DirectFlash technology, and the growth of its Evergreen//One storage-as-a-service offering.

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“We have entered into breakout territory in our core enterprise market,” Giancarlo said, citing the company’s product architecture, go-to-market expansion and broader brand recognition across enterprise, mid-market and government customers.

Revenue, Profit and Subscription Growth

Product revenue increased 54% year over year to $687 million in the quarter. Subscription services revenue rose 20% to $499 million and represented 42% of total company revenue. Annual recurring revenue increased 20% to more than $2 billion, while remaining performance obligations increased 44% to more than $4 billion.

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Chief Financial Officer Tarek Robbiati said the results marked the company’s third consecutive quarter above the Rule of 40, a measure combining revenue growth and profitability. Total gross margin was 69.9%, including product gross margin of 66.2% and subscription-services margin of 74.9%.

Management said demand remained resilient despite higher component costs and price increases. Robbiati said the quarter’s growth reflected pricing, a shift toward higher-performance…