All‑flash storage vendor Everpure posted accelerated quarterly growth. Despite rising flash costs, customers accepted higher pricing and adopted its AI and data‑intelligence offerings.
Its fiscal 2027 Q2 (ended August 2) revenue reached $1.2 billion, up 38% YoY and comfortably exceeding the $1.1 billion high‑end guidance.
CEO Charlie Giancarlo stated Q2 delivered strong results, beating guidance and core metrics with broad‑based growth across regions, products and segments. It marked eight consecutive quarters of accelerating revenue growth. Expansions in Data Intelligence, AI and hyperscale‑focused products position the firm for sustained long‑term gains.
Evergreen//One’s TCV hit a billion‑dollar run‑rate for FY27, signalling market‑share gains outpacing headline revenue growth. Management believes this elevated growth pace can persist.
Financial summary
‑ Gross margin: 68.4 % vs prior quarter 68.7 %
‑ Operating cash flow: ‑$136 million (prior quarter $180 million)
‑ Free cash flow: ‑$238 million (prior quarter $112 million)
‑ Cash, restricted cash & investments: $1 billion vs $1.5 billion last quarter and year‑ago
CFO Tarek Robbiai attributed Q2 momentum to pricing shifts, product‑mix change and capacity expansion, offsetting lower system unit volumes. Large enterprise customers accepted higher costs for Everpure solutions; buyers are purchasing fewer units at higher price‑points with higher‑performance, larger‑capacity configurations across the portfolio.
William Blair analyst Jason Ader noted two major uncertainties have eased: supply‑chain risks have abated with secured component inventory, and full‑quarter data confirms demand remains robust despite substantial price hikes.
International revenue grew faster than US domestic sales: US revenue hit $688 million (+19% YoY), international $498 million (+75% YoY), accounting for 42% of total revenue, a company‑record share. International expansion remains a key strategic priority.
Deals over $5 million rose 59% YoY, while $20‑million‑plus deals jumped 385% YoY. Giancarlo said price hikes explain only part of the acceleration; outperformance versus legacy competitors reflects advances in product lines and architecture. Gartner’s 2026 Enterprise Storage Magic Quadrant again ranked Everpure highest on execution and furthest on vision.
The Evergreen//One subscription offering helps offset DRAM and NAND cost inflation. By honouring existing commitments and absorbing margin pressure amid component‑cost surges, Everpure strengthened customer and channel ties. Excluding Evergreen//One‑related dilution, underlying growth exceeds 40% YoY, outpacing peers.
Operating and free cash flow turned negative, driven by large strategic purchases of NAND and key components to lock‑in supply and counter ongoing cost inflation for its fast‑growing core business. Robbiai expects operating cash flow to normalize within two quarters. Everpure reports an industry‑leading NPS of 84.
Management remains bullish on continued expansion. Based on current demand and win‑rates, strong sales and market‑share gains should extend into next year. Hyperscale‑product revenue is set for sharp Q3 growth and further gains in Q4 and beyond. Major hyperscaler commitments for DirectFlash stretch to 2028, covering tens of exabytes and far exceeding this year’s projections.
Next‑quarter revenue guidance stands at $1.33 billion ±$5 million, with 38% YoY growth at the high‑end. Everpure raised full‑year FY27 revenue and operating‑income guidance to $5.05 billion ±$20 million, up from $4.46 billion ±$5 million, representing over $500 million incremental revenue at the mid‑point.
Beijing Qianxing Jietong Technology Co., Ltd.
Sandy Yang/Global Strategy Director
WhatsApp / WeChat: +86 13426366826
Email: yangyd@qianxingdata.com
Website: www.qianxingdata.com/www.storagesserver.com
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