A month has gone by since the last earnings report for Everpure (PSTG Quick QuotePSTG - Free Report) . Shares have lost about 6% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Everpure due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Everpure, Inc. before we dive into how investors and analysts have reacted as of late.

Everpure Q4 Earnings Beat Estimates

Everpure reported fourth-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 69 cents, which beat the Zacks Consensus Estimate of 65 cents. The company reported non-GAAP EPS of 45 cents in the prior-year quarter.

Quarterly revenues expanded 20% year over year to $1.1 billion, beating the Zacks Consensus Estimate by 2.5%. This marks the first billion-dollar quarter in company history. For the full fiscal year, revenue totaled $3.7 billion, up 16% year over year. The growth reflects strong demand across enterprise customers, modernizing legacy storage, hyperscalers scaling AI workloads and hybrid and multi-cloud environments. Its Enterprise Data Cloud (EDC) architecture is gaining strong traction, with more than 600 customers adopting Fusion in its first year.

Everpure has strengthened its hyperscale positioning by partnering with SK hynix to deliver advanced QLC flash storage optimized for large data centers. The partnership positions Everpure well for large-scale deployments. Recently, it announced a definitive agreement to acquire 1touch, extending its EDC into data discovery, classification, contextualization and enrichment. This deepens the company’s move into data governance, a critical layer for AI compliance and enterprise security. The deal is expected to close in the second quarter of fiscal 2027, subject to customary conditions, with terms undisclosed.

Despite strong momentum, management remains wary of global supply chain imbalances, AI infrastructure spending cycles, competition from hyperscaler-native storage offerings and pricing pressure in large enterprise deals. However, the strong gross margins suggest pricing power remains intact.

Quarter in Detail

Product revenues (contributing 58.4% to total revenues) amounted to $618 million, up 25% on a year-over-year basis. The product revenue category now also includes royalties from hyperscale shipments and part of Portworx software revenue when sold as term licenses.

Subscription services revenues (41.6%) of $440 million rose 14%.

Subscription annual recurring revenues (ARR) amounted to nearly $1.9 billion, up 16% on a year-over-year basis. High-velocity deals under $5 million lifted Storage-as-a-Service TCV 28% year over year to $179 million.

Total revenues in the United States and International were $674 million and $385 million, up 9% and 48%, respectively. International revenue made up 36% of the total, underscoring global expansion as a key strategic focus.

Margin Highlights

The non-GAAP gross margin came in at 71.4% compared with 69.2% in the prior-year quarter.

Favorable product mix expanded product gross margin to 67.3%, up more than 400 bps year over year. Product gross margin declined sequentially on lumpy hyperscaler and Portworx shipments, mix shifts and modest component cost inflation, with pricing actions taken in early February 2026. The non-GAAP subscription gross margin was 77% compared with 77.2% a year ago.

It reported a non-GAAP operating income of $226 million compared with $153 million in the year-ago quarter, boosted by strong revenue and solid gross margins.

Non-GAAP operating margin reached 21.3%, up from 17.4%, demonstrating that scale and recurring revenue are improving profitability leverage.

Balance Sheet & Cash Flow

It exited the fiscal fourth quarter, which ended on Feb. 1, with cash and cash equivalents and marketable securities of $1.5 billion, the same as of Nov. 2, 2025.

Cash flow from operations amounted to $268 million in the fiscal fourth quarter compared with $208.5 million reported in the prior-year quarter. Free cash flow was $201.5 million compared with $152.4 million in the year-ago quarter.

In the fiscal fourth quarter, the company returned $127 million to shareholders by buying back 1.7 million shares. In fiscal 2026, it returned $343 million to shareholders by repurchasing 5.6 million shares. It has $329 million left from its existing $400 million share repurchase plan. For fiscal 2026, 56% of free cash flow was used for buybacks.

The remaining performance obligations (RPO) at the end of the fiscal fourth quarter totaled $3.7 billion, up 40% year over year, on the back of sizable deals and continued strength in Evergreen//Forever and Evergreen//One. RPO, which includes its Storage-as-a-Service offerings and Evergreen subscriptions across the install base, grew 34%.

Upbeat Guidance

For first-quarter fiscal 2027, it expects revenues of $990 million to $1.01 billion, up about 28% year over year at the midpoint.

The non-GAAP operating income is expected to be $125-$135 million, with around 57% year-over-year growth at the midpoint.

It has entered fiscal 2027 with strong momentum and expects 47% of revenue in the first half, up 2 points year over year.

At the midpoint, revenue expectations of $4.3–$4.4 billion suggests 18.8% year-over-year growth, with operating profit of $780–$820 million expected to rise about 26%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in fresh estimates.

The consensus estimate has shifted -47.48% due to these changes.

VGM Scores

Currently, Everpure has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Everpure has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.