Everpure's Breakout: Second Hyperscaler Win and Pricing Power Fuel 38% Revenue Surge

Q2 FY27 results show accelerating growth, a massive guidance raise, and a strategic shift toward data primacy.

P · Earnings Call · 2026-08-26

Breakout Quarter

Everpure, Inc. (ticker: P) delivered a spectacular Q2 FY27, with revenue up 38% year-over-year to $1.1B and operating profit surging 77% to $230M. The company blew past its own guidance on both metrics, marking the third consecutive quarter above the Rule of 40. Management raised full-year revenue guidance by over $500M to $5.03–5.07B (38% y/y at midpoint), a 75% increase in growth rate from prior guidance.

We believe that we have entered into breakout territory in our core enterprise market because of the steady progress we have made in building out our product line and architecture.
Charles Giancarlo, Chief Executive Officer · 2026-08-26

This confidence is a stark departure from the cautious tone just 90 days ago, when CEO Charlie Giancarlo said on the Q1 call, “it is just I think it is more a matter of not knowing what the second half of the year has in store for us despite the fact that we are seeing very good demand at the moment.” — Charles H. Giancarlo, Chief Executive Officer · 2026-05-27 What changed? Two key uncertainties—supply chain and demand resilience under unprecedented price hikes—have been resolved. As Giancarlo explained: “Two things went away, the concern about our ability to source components to be able to deliver. And the second was the understanding of what our customers and market participants would do under the scenario of far higher prices.” — Charles Giancarlo, Chief Executive Officer · 2026-08-26

What Changed

The most consequential development is the second top-5 hyperscaler design win and supply agreement, announced August 10. While revenue impact is de minimis in FY27, it represents a major validation of DirectFlash technology at massive scale. The company expects meaningful ramp in FY28 with tens of exabytes of committed orders extending into calendar 2028. This bolsters the thesis that Everpure is opening a new, highly lucrative market. Simultaneously, the pricing environment has become a tailwind. NAND and other component costs have risen 5–10x on the spot market, and Everpure has implemented price increases—though deliberately not dollar-for-dollar. CFO Tarek Robbiati was explicit: “Our goal is not to maximize gross margin in percentage terms. Our goal is to seize the opportunity to accelerate the growth and continue to gain market share.” — Tarek Robbiati, Chief Financial Officer · 2026-08-26 This strategy is paying off: product revenue grew 54% y/y, and Evergreen//One TCV hit a $1B+ annualized run rate, up 121% y/y. Deal sizes above $20M grew 385%. Guidance was raised substantially because, per Giancarlo, "we now have 2 quarters of visibility towards the end of fiscal year '27" and demand signals remain strong. The company is operating at pricing levels not seen in 10 years, yet customers—especially large enterprises—are absorbing the increases to secure mission-critical capacity.

Why It Matters

Beyond the immediate financials, Everpure is positioning itself as the architect of a new computing paradigm: data primacy. At its June Accelerate conference, the company introduced the concept of data primacy—the idea that enterprises must rationalize and structure their data into sources of truth and systems of record to be AI-ready. The 1touch acquisition enables Data Intelligence, which allows customers to discover semantics and context across distributed data sets. Interest is "off the charts," per management, and this is a fresh, company-unique theme not seen in prior quarters. International revenue also surged 75% y/y to $498M, representing 42% of total revenue—the highest share ever. This diversification reduces dependence on the U.S. and taps into global AI spending. The second hyperscaler win further cements Everpure's relevance beyond traditional enterprise storage. Fundamentally, the company is executing at a high level. Revenue growth of 38% marked the fifth consecutive quarter of accelerating growth. Operating margin expanded to 19.4%, and management expects full-year operating profit to grow 50%. Gross margin remained healthy at 69.9%, with product gross margin at 66.2%—at the low end of the long-term range, as intentional. The balance sheet remains strong with over $1B in cash and investments, despite strategic component purchases that temporarily pressured cash flow.

Risks & Context

The primary risk is sustainability: component prices could continue to climb, and demand elasticity could catch up. Management acknowledges the environment is dynamic and only guides on two quarters of visibility. The hyperscaler business, while promising, is lumpy and concentrated among a few customers. On the tape, the stock is up 46% over the past 90 days yet sits 16% below its mid-August peak—reflecting both the strong report and profit-taking. That said, the confluence of a second hyperscaler win, Data Intelligence traction, and a 75% jump in international revenue suggests the company is on the cusp of a structural expansion, not just a cyclical bounce. The component cost headwind, once a risk, is now being turned into a competitive weapon—one that Everpure wields with deliberate discipline. As investors, we are watching a company that is not just riding the AI wave but redefining the storage landscape.