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Everpure topped Q1 FY27 estimates as revenues jumped 35% on AI and enterprise demand.
P raised FY27 guidance as AI deployments and subscription ARR growth gained momentum.
Everpure added 275 customers as storage-as-a-service sales climbed 73% year over year.
Everpure (P - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 47 cents per share, which surpassed the Zacks Consensus Estimate by 17.5%. The company had posted non-GAAP EPS of 29 cents in the prior-year quarter.
Quarterly revenues of $1.1 billion surpassed the consensus mark by 4.47%. Revenues increased 35% year over year, driven by strong enterprise demand, accelerating AI infrastructure deployments and higher adoption of subscription offerings.
Subscription annual recurring revenue (ARR) rose 19% year over year to more than $2 billion.
Product revenues increased 55% year over year to $577 million, accounting for approximately 55% of total revenues. Management attributed the strong performance to broad-based momentum across enterprise and commercial customers, higher competitive win rates and growing adoption of Everpure’s storage platform.
Large deals exceeding $5 million increased at a high double-digit rate compared with the prior-year quarter. The company added 275 new customers during the quarter, while its penetration within the Fortune 500 expanded to 64%. Commercial business momentum also remained strong, with 223 new logos added.
Everpure Strengthens Position in AI Infrastructure
Everpure continued gaining traction in AI-focused deployments during the quarter. FlashBlade//EXA secured additional wins tied to AI and machine-learning workloads, including GPU-accelerated trading applications in the financial services market.
Management noted that the company is increasingly displacing competing AI storage products in enterprise and neo-cloud environments. Everpure also highlighted growing engagement with hyperscalers and large cloud providers as it invests in system qualification programs and prepares for a stronger hyperscale revenue contribution in the second half of fiscal 2027.
The company also completed the acquisition of 1touch during the quarter. The deal expands Everpure’s data management capabilities through advanced data discovery, classification and semantic-context technologies aimed at AI-ready enterprise environments.
P Expands Subscription and ARR Momentum
Subscription services revenues rose 17% year over year to $476 million and represented 45% of total revenues. The growth reflected continued traction in Evergreen//One and related storage-as-a-service offerings.
Total contract value sales for storage-as-a-service offerings climbed 73% year over year to $165 million. Management stated that customers increasingly favor Evergreen//One because of its lower upfront costs, predictable pricing structure and long-term operational flexibility amid rising component costs across the industry.
Remaining performance obligations increased 41% year over year to $3.8 billion.
Everpure Margins Reflect Cost Pressures
Non-GAAP gross margin came in at 70.1% compared with 70.9% in the prior quarter. Product gross margin was 65.5%, down sequentially as component costs continued to rise across the supply-chain environment.
Management stated that pricing actions partially offset higher commodity costs, though Everpure intentionally operated near the lower end of its long-term product gross margin range to support customers during the ongoing supply crunch.
Subscription gross margin was 75.6%. Non-GAAP operating income increased more than 90% year over year to $159 million, while non-GAAP operating margin expanded to 15.1% from 10.6% in the year-ago quarter.
P Generates Solid Cash Flow, Raises FY27 View
Everpure exited the quarter with $1.5 billion in cash, cash equivalents and marketable securities. Operating cash flow totaled $180 million, while free cash flow came in at $112 million.
During the quarter, the company repurchased 1.3 million shares for approximately $84 million. Everpure still has roughly $245 million remaining under its existing share repurchase authorization.
For the second quarter of fiscal 2027, management expects revenues between $1.095 billion and $1.105 billion, indicating year-over-year growth of 27-28%. Non-GAAP operating income is projected between $195 million and $205 million.
Everpure also raised its fiscal 2027 outlook. The company now expects revenues between $4.41 billion and $4.51 billion compared with the prior guidance of $4.3-$4.4 billion. Non-GAAP operating income is projected in the range of $820-$860 million, up from the earlier expectation of $780-$820 million. Management said the improved guidance reflects ongoing enterprise demand strength, growing AI-related opportunities and increasing traction across hyperscale and subscription offerings.
Western Digital Corporation (WDC - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $2.72 per share, which surpassed the Zacks Consensus Estimate of $2.41. The bottom line expanded 97% year over year and 28% sequentially, exceeding the high end of management’s guidance of $2.30 (+/- 15 cents). Western Digital reported revenues of $3.34 billion, marking an 11% sequential increase and a remarkable 45% year-over-year jump. The top line beat the consensus estimate by 3% and exceeded management’s expectations of $3.2 billion (+/- $100 million).
Teradata Corporation (TDC - Free Report) delivered solid first-quarter 2026 results, with non-GAAP earnings of 88 cents per share, beating the Zacks Consensus Estimate by 14.29%. The metric rose 33.3% year over year. Revenues of $444 million surpassed the consensus mark by 4.13% and increased 6.2% from the year-ago quarter. Public cloud ARR climbed 13% year over year and 12% in constant currency to $686 million, highlighting continued traction for the company’s cloud offerings.
Seagate Technology Holdings plc (STX - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $4.10 per share, beating the Zacks Consensus Estimate of $3.5 and exceeding the high end of management’s guidance of $3.4 (+/- 20 cents). The bottom line expanded 115% year over year and 32% sequentially on the back of STX’s strong execution of its strategic objectives and effective use of the technology roadmap to support growing demand. Non-GAAP revenues of $3.11 billion exceeded the Zacks Consensus Estimate by 5.7%. Revenues also surpassed the high end of guidance, increasing 44% year over year.
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Everpure Q1 Earnings Beat on Strong AI-Led Storage Demand, Sales Jump Y/Y
Key Takeaways
Everpure (P - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 47 cents per share, which surpassed the Zacks Consensus Estimate by 17.5%. The company had posted non-GAAP EPS of 29 cents in the prior-year quarter.
Quarterly revenues of $1.1 billion surpassed the consensus mark by 4.47%. Revenues increased 35% year over year, driven by strong enterprise demand, accelerating AI infrastructure deployments and higher adoption of subscription offerings.
Subscription annual recurring revenue (ARR) rose 19% year over year to more than $2 billion.
Everpure, Inc. Price, Consensus and EPS Surprise
Everpure, Inc. price-consensus-eps-surprise-chart | Everpure, Inc. Quote
P's Product Revenues Climb on Broad Demand
Product revenues increased 55% year over year to $577 million, accounting for approximately 55% of total revenues. Management attributed the strong performance to broad-based momentum across enterprise and commercial customers, higher competitive win rates and growing adoption of Everpure’s storage platform.
Large deals exceeding $5 million increased at a high double-digit rate compared with the prior-year quarter. The company added 275 new customers during the quarter, while its penetration within the Fortune 500 expanded to 64%. Commercial business momentum also remained strong, with 223 new logos added.
Everpure Strengthens Position in AI Infrastructure
Everpure continued gaining traction in AI-focused deployments during the quarter. FlashBlade//EXA secured additional wins tied to AI and machine-learning workloads, including GPU-accelerated trading applications in the financial services market.
Management noted that the company is increasingly displacing competing AI storage products in enterprise and neo-cloud environments. Everpure also highlighted growing engagement with hyperscalers and large cloud providers as it invests in system qualification programs and prepares for a stronger hyperscale revenue contribution in the second half of fiscal 2027.
The company also completed the acquisition of 1touch during the quarter. The deal expands Everpure’s data management capabilities through advanced data discovery, classification and semantic-context technologies aimed at AI-ready enterprise environments.
P Expands Subscription and ARR Momentum
Subscription services revenues rose 17% year over year to $476 million and represented 45% of total revenues. The growth reflected continued traction in Evergreen//One and related storage-as-a-service offerings.
Total contract value sales for storage-as-a-service offerings climbed 73% year over year to $165 million. Management stated that customers increasingly favor Evergreen//One because of its lower upfront costs, predictable pricing structure and long-term operational flexibility amid rising component costs across the industry.
Remaining performance obligations increased 41% year over year to $3.8 billion.
Everpure Margins Reflect Cost Pressures
Non-GAAP gross margin came in at 70.1% compared with 70.9% in the prior quarter. Product gross margin was 65.5%, down sequentially as component costs continued to rise across the supply-chain environment.
Management stated that pricing actions partially offset higher commodity costs, though Everpure intentionally operated near the lower end of its long-term product gross margin range to support customers during the ongoing supply crunch.
Subscription gross margin was 75.6%. Non-GAAP operating income increased more than 90% year over year to $159 million, while non-GAAP operating margin expanded to 15.1% from 10.6% in the year-ago quarter.
P Generates Solid Cash Flow, Raises FY27 View
Everpure exited the quarter with $1.5 billion in cash, cash equivalents and marketable securities. Operating cash flow totaled $180 million, while free cash flow came in at $112 million.
During the quarter, the company repurchased 1.3 million shares for approximately $84 million. Everpure still has roughly $245 million remaining under its existing share repurchase authorization.
For the second quarter of fiscal 2027, management expects revenues between $1.095 billion and $1.105 billion, indicating year-over-year growth of 27-28%. Non-GAAP operating income is projected between $195 million and $205 million.
Everpure also raised its fiscal 2027 outlook. The company now expects revenues between $4.41 billion and $4.51 billion compared with the prior guidance of $4.3-$4.4 billion. Non-GAAP operating income is projected in the range of $820-$860 million, up from the earlier expectation of $780-$820 million. Management said the improved guidance reflects ongoing enterprise demand strength, growing AI-related opportunities and increasing traction across hyperscale and subscription offerings.
P’s Zacks Rank
Everpure currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
Western Digital Corporation (WDC - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $2.72 per share, which surpassed the Zacks Consensus Estimate of $2.41. The bottom line expanded 97% year over year and 28% sequentially, exceeding the high end of management’s guidance of $2.30 (+/- 15 cents). Western Digital reported revenues of $3.34 billion, marking an 11% sequential increase and a remarkable 45% year-over-year jump. The top line beat the consensus estimate by 3% and exceeded management’s expectations of $3.2 billion (+/- $100 million).
Teradata Corporation (TDC - Free Report) delivered solid first-quarter 2026 results, with non-GAAP earnings of 88 cents per share, beating the Zacks Consensus Estimate by 14.29%. The metric rose 33.3% year over year. Revenues of $444 million surpassed the consensus mark by 4.13% and increased 6.2% from the year-ago quarter. Public cloud ARR climbed 13% year over year and 12% in constant currency to $686 million, highlighting continued traction for the company’s cloud offerings.
Seagate Technology Holdings plc (STX - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $4.10 per share, beating the Zacks Consensus Estimate of $3.5 and exceeding the high end of management’s guidance of $3.4 (+/- 20 cents). The bottom line expanded 115% year over year and 32% sequentially on the back of STX’s strong execution of its strategic objectives and effective use of the technology roadmap to support growing demand. Non-GAAP revenues of $3.11 billion exceeded the Zacks Consensus Estimate by 5.7%. Revenues also surpassed the high end of guidance, increasing 44% year over year.