Everpure reported a strong finish to fiscal 2026, highlighted by its first $1 billion revenue quarter in Q4 and full-year revenue of $3.7 billion. Executives said results were driven by broad-based strength across the business, with particular momentum in enterprise demand and improving traction for newer offerings tied to AI-scale workloads.
Quarterly and full-year results
In the fourth quarter, Everpure posted revenue of more than $1 billion, which management said represented 20% year-over-year growth. CFO Tarek Robbiati said Q4 operating profit reached a record $226 million, implying an operating margin of 21.3%.
- Total revenue: $3.7 billion, up 16% year-over-year
- Operating profit: $635 million, implying a 17.3% operating margin
- Free cash flow: $616 million, for a 16.8% free cash flow margin
On the revenue mix, Q4 product revenue was $618 million, up 25% year-over-year, while subscription revenue was $440 million, up 14% year-over-year. Subscription revenue represented 42% of Q4 revenue. For fiscal 2026, product revenue was $1.97 billion (up 16%) and subscription revenue was $1.69 billion (up 15%).
Robbiati also highlighted strength in large transactions, saying deals over $5 million grew 80% year-over-year in Q4. The company added more than 1,100 customers in fiscal 2026, including 335 in Q4, ending the year with more than 14,500 customers. Everpure said its penetration of the Fortune 500 stood at 64%.
Margins, component costs, and pricing actions
Everpure pointed to rising component costs across the industry—particularly NAND, memory, CPUs, and GPUs—driven by AI infrastructure build-outs that have outpaced supply. CEO Charlie Giancarlo said the environment could lead to “unpredictable component shortages,” extended lead times, and potential shipment delays.
In Q4, total gross margin was 71.4%, supported by a subscription services margin of 77%. Product gross margin was 67.3%, up more than 400 basis points year-over-year due to favorable product mix. Robbiati noted that sequentially, product gross margin in Q4 declined versus Q3, citing lower hyperscale shipments and Portworx license shipments, as well as mix and a modest impact from increasing component costs.
Giancarlo said Everpure raised prices on February 9, reflecting what he described as a “dramatic and rapid rise” in component pricing. In Q&A, he said the average price increase was about 20%, with variation by product line due to differing component content.
Management expects product gross margins in Q1 to be at the lower end of the company’s typical 65%–70% range (excluding hyperscaler gross margins), with a recovery expected as pricing and costs re-synchronize. Giancarlo said the speed of cost changes over the last several months “breaks the synchronization” between proposals—often locked in with roughly 90-day pricing windows—and the company’s ability to fulfill orders at current costs. He added that “visibility is just nonexistent” given how rapidly prices have been changing.
Enterprise momentum, Enterprise Data Cloud, and AI-related products
Giancarlo said enterprise strength was a key driver in Q4 and described a strategy focused on modernizing and simplifying data infrastructure for enterprise and hyperscale customers amid AI demand, power constraints, and operational complexity. He said the company’s Enterprise Data Cloud architecture has resonated with customers, noting that more than 600 customers have adopted Fusion since its introduction a year ago.
Executives also discussed early traction for FlashBlade//EXA, which the company positions for AI-scale and high-performance computing workloads. Giancarlo said Everpure secured its first EXA customer in Q4 and was in advanced-stage discussions with “dozens more.” CTO and Chief Technology and Growth Officer Rob Lee described the initial EXA win as coming from a GPU cloud customer that conducted performance testing, shifted away from an alternate vendor, and placed an order quickly, followed by additional orders after deployment.
Giancarlo also cited customer satisfaction metrics, saying Everpure achieved an audited Net Promoter Score of 84 for calendar 2025 and has maintained a score above 80 for more than a decade.
Hyperscale update and business model changes
Management said its hyperscale business exceeded expectations in fiscal 2026 and is expected to grow in fiscal 2027, with revenue weighted to the second half. Robbiati emphasized that hyperscale revenue is governed by the timing of customers’ data center build-outs and “is not linear,” with the majority expected in Q3 and Q4 of fiscal 2027.
Robbiati also outlined a standardized hyperscaler business model: Everpure will procure some components needed for hyperscale solutions, but hyperscalers will continue to procure NAND through their own supply chains. Under this structure, Everpure expects hyperscaler gross margins to range between 75% and 85%, which management said would be accretive to product gross margins and overall company gross margins.
In Q&A, Giancarlo said engagement with hyperscalers has increased in both breadth and activity, but he noted the company would not announce additional hyperscale wins until finalized. He also confirmed prior commentary around “low double-digit” exabytes in the fiscal year, adding it would likely be “more than what we expected” when discussed previously.
Acquisition of 1touch and rebranding
Everpure also discussed a definitive agreement to acquire 1touch, which management described as a provider of technology for data discovery, classification, governance, cyber resilience, data sovereignty, and adding context to data to help prepare it for AI. Giancarlo said the deal is intended to accelerate the company’s ability to help customers “unlock the strategic value” of their data and support enterprise-scale AI deployment.
Robbiati said 1touch is a fast-growing company that is investing heavily and is not yet profitable. He said Everpure expects the acquisition to be 1.5% dilutive to operating profit in fiscal 2027 and to become accretive to operating profit within 24 months on a post-synergy basis.
Executives tied the deal to the company’s rebranding and name change, saying the new name, Everpure, reflects an evolution from operational storage toward broader “data intelligence” and data management capabilities. They emphasized the company is “not shifting away from storage,” but adding data management on top.
Guidance for fiscal 2027
For the first quarter of fiscal 2027, Everpure guided for revenue of $990 million to $1.01 billion and operating profit of $125 million to $135 million. For the full fiscal year 2027, the company guided for revenue of $4.3 billion to $4.4 billion and operating profit of $780 million to $820 million.
In Q&A, Giancarlo said Q4 results and Q1 guidance were “all demand-based,” noting that the company took no pricing action in Q4 and that many Q1 shipments will be based on earlier proposals at prior pricing, with the new pricing expected to show up more in Q2.
Robbiati said Everpure expects 47% of fiscal 2027 revenue to be generated in the first half, reflecting a stronger start to the year following what he described as a very strong finish in fiscal 2026.
About Pure Storage (NYSE:PSTG)
Pure Storage, Inc (NYSE: PSTG) is a technology company that designs and sells data storage hardware and software for enterprise and cloud environments. The company is best known for its all-flash storage arrays that are engineered to deliver high performance, low latency and simplified management compared with traditional disk-based systems. Its product portfolio includes purpose-built arrays and software aimed at transactional databases, virtualized infrastructures, analytics and large-scale file/object workloads.
Key product and software offerings include the FlashArray family for block storage and FlashBlade for file and object workloads, together with Purity, the company’s storage operating environment.
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