Everpure, Inc.
P · NYSE
Next quarter
Expected to report Dec 1, 2026 — estimated from last year’s reporting date.
Consensus is $0.27 EPS for Oct 2026 across 8 estimates, ranging $0.20 to $0.34.
P Jul 2026
- 21.05%
- -8.87%
- $0.19
- $0.23
- —
- $1.19B
Reported results
- $1.19B
- $63.16M
- $74.15M
- $0.21
Highlights
- Revenue acceleration Total revenue reached $1.186 billion, up 38% year over year and approximately 13% from $1.05 billion in the prior quarter.
- Earnings beat Reported EPS was $0.23 versus consensus of $0.19, a 21.05% surprise; GAAP diluted EPS was $0.21 versus $0.14 a year earlier and $0.07 in the prior quarter.
- Product momentum Product revenue rose 54% year over year to $687 million, substantially outpacing subscription services revenue, which increased 20% to $499 million.
- Recurring indicators Subscription ARR increased 20% year over year to $2.1 billion, while remaining performance obligations rose 44% to $4.1 billion.
- Operating leverage GAAP operating income increased to $63 million from $4.9 million a year earlier and $19.9 million in the prior quarter; non-GAAP operating income reached $230 million, or a 19.4% margin.
- Guidance reset FY27 revenue guidance rose from $4.41 billion-$4.51 billion to $5.03 billion-$5.07 billion, while non-GAAP operating income guidance increased from $820 million-$860 million to $940 million-$960 million.
- Cash conversion Operating cash flow was negative $136 million and free cash flow was negative $238 million, reflecting a $577 million increase in prepaid expenses and other assets, alongside $101 million of capital expenditures.
- Hyperscale expansion Everpure announced a design win with a second top-five hyperscaler, using its DirectFlash architecture for AI and hyperscale workloads.
Analysis
Everpure's quarter was defined by another sharp acceleration in demand and a large increase to its full-year outlook. Revenue of $1.186 billion rose 38% year over year from $861 million and approximately 13% from the supplied prior-quarter revenue of $1.05 billion. Reported EPS of $0.23 exceeded the $0.19 consensus estimate, while GAAP diluted EPS was $0.21 versus $0.14 a year ago and $0.07 in the prior quarter. GAAP operating income improved to $63 million from $4.9 million year over year and $19.9 million sequentially; non-GAAP operating income was $230 million, up from $130 million a year ago.
The mix was especially strong in products, where revenue grew 54% to $687 million, while subscription services grew 20% to $499 million. ARR reached $2.1 billion and RPO $4.1 billion, supporting management's confidence in sustained momentum across AI, data intelligence and hyperscale products. The main counterpoint was cash generation: operating cash flow and free cash flow were negative $136 million and $238 million, respectively, driven largely by working-capital investment in prepaid assets, receivables and inventory. Management nevertheless raised FY27 revenue guidance by roughly $560 million at the midpoint and lifted non-GAAP operating income guidance by $110 million at the midpoint.
Revenue and mix
Growth broadened but remained led by product demand. Product revenue increased 54% year over year to $687 million, compared with 20% growth in subscription services revenue to $499 million. Total revenue of $1.186 billion was up from $861 million a year earlier and $1.05 billion in the supplied prior quarter.
- Subscription base Subscription ARR rose 20% year over year to $2.1 billion, providing a recurring-revenue foundation beneath the faster-growing product business.
- Contract visibility Remaining performance obligations increased 44% year over year to $4.1 billion, ahead of ARR growth and consistent with stronger contracted demand.
- Gross margin GAAP gross margin was 68.4%, down from 70.2% a year ago, while non-GAAP gross margin was 69.9% versus 72.1%. Management said demand remained strong despite historic industry price increases in the first half of FY27.
Operating leverage
The revenue increase translated into a substantial improvement in profitability. GAAP operating income was $63 million, compared with $4.9 million a year earlier and $19.9 million in the prior quarter. Non-GAAP operating income was $230 million, producing a 19.4% margin versus $130 million and a 15.1% margin a year ago.
- Bottom line Net income was $74.1 million, up from $47.1 million a year earlier and $24.1 million in the prior quarter.
- Adjusted earnings The supplied reported EPS was $0.23 against a $0.19 consensus estimate. GAAP diluted EPS was $0.21, compared with $0.14 a year ago and $0.07 in the prior quarter.
- Expense investment Research and development increased to $293.7 million from $242.0 million, sales and marketing to $346.1 million from $285.9 million, and general and administrative expense to $108.4 million from $71.5 million.
FY27 guidance reset
The company materially raised its full-year targets, signaling that the first-half growth rate is carrying into the second half. FY27 revenue guidance moved to $5.03 billion-$5.07 billion from $4.41 billion-$4.51 billion previously, lifting the midpoint by approximately $560 million and changing the expected growth rate to 37%-38% from 20%-23%.
- Profit outlook Non-GAAP operating income guidance increased to $940 million-$960 million from $820 million-$860 million, a midpoint increase of $110 million; expected growth rose to 48%-51% from 29%-36%.
- Near-term target Q3 revenue guidance is $1.325 billion-$1.335 billion, representing 37%-38% year-over-year growth, with non-GAAP operating income of $265 million-$275 million.
- Management rationale The higher outlook reflects continued revenue momentum and strong demand across the solutions portfolio despite industry-wide component price increases.
AI and hyperscale
Everpure used the quarter to reinforce its positioning in AI infrastructure and data management. It announced a design win with a second top-five hyperscaler, using its DirectFlash architecture to reduce operating costs and reclaim power and rack space. The company also introduced its Data Primacy architecture and made Data Stream generally available for automated data pipelines from ingestion to inference.
- Data intelligence Everpure expanded its platform with automated data discovery and governance, while evolving Pure1 AI Copilot into an active operator that analyzes anomalies, performs root-cause analysis and guides remediation.
- Cloud and Kubernetes Portworx for Edge became available on Red Hat OpenShift, and Everpure Cloud Azure Native extended managed enterprise block storage to Azure Virtual Machines.
- Ecosystem reach FlashBlade integration with Cisco Intersight reached general availability, and the OpenSharing Connector enables Databricks to query Iceberg and Delta tables on Everpure object storage without replication or egress fees.
Cash flow and capital
Cash generation was the weakest part of the print despite the improvement in accounting earnings. Operating cash flow was negative $136 million versus positive $212 million a year earlier, and free cash flow was negative $238 million versus positive $150 million. The largest operating outflow was a $577 million increase in prepaid expenses and other assets; accounts receivable used $137 million and inventory $34 million.
- Investment level Purchases of property and equipment were $101 million, up from $62 million a year earlier, including $12.5 million of capitalized internal-use software costs.
- Liquidity Cash, cash equivalents and marketable securities totaled approximately $1.0 billion at quarter end.
- Shareholder returns Everpure repurchased 0.9 million shares for approximately $69 million during the quarter.
