Everpure Lifts Fiscal 2027 Revenue Outlook to $5.07 Billion
The storage and data-management company posted $1.2 billion of second-quarter revenue, up 38% from a year earlier.
Everpure (P) raised its fiscal 2027 revenue outlook to $5.03 billion to $5.07 billion after a quarter in which year-over-year growth accelerated to 38%, the fastest pace in eight consecutive quarters, the company said.
The storage and data-management company reported second-quarter fiscal 2027 revenue of $1.2 billion for the period ended August 2, 2026, compared with $1.1 billion a year earlier. In the immediately preceding quarter, year-over-year revenue growth had been 35%. Chairman and Chief Executive Charles Giancarlo said the latest result marked eight straight quarters of accelerating revenue growth.
Product revenue was $687 million, up 54% from a year earlier, a slightly slower clip than the 55% year-over-year increase in the first quarter of fiscal 2027. Subscription services revenue was $499 million, up 20%, faster than the 17% year-over-year rise in the prior quarter. Subscription annual recurring revenue stood at $2.1 billion, up 20% from a year earlier. Remaining performance obligations were $4.1 billion, up 44% year over year.
GAAP operating income was $63 million, or a 5.3% operating margin, versus $20 million and a 1.9% margin in the first quarter. Non-GAAP operating income was $230 million, or a 19.4% margin, versus $159 million and 15.1%. GAAP net income was $74 million, or $0.21 a share diluted, compared with $47 million, or $0.14 a share diluted, a year earlier.
GAAP gross margin was 68.4% and non-GAAP gross margin 69.9%, down from 68.7% and 70.1% in the prior quarter. Chief Financial Officer Tarek Robbiati said demand remained strong across the solutions portfolio despite historic industry price increases in the first half of fiscal 2027, and that the company was raising guidance significantly for the second half of the year to reflect confidence in continued revenue momentum.
Cash generation reversed. Operating cash flow was $(136) million and free cash flow $(238) million, versus operating cash flow of $180 million and free cash flow of $112 million in the first quarter. Total cash, cash equivalents, and marketable securities were $1.0 billion, versus $1.5 billion. The company returned approximately $69 million to stockholders through repurchases of 0.9 million shares, versus about $84 million and 1.3 million shares in the prior quarter.
On August 10, the company announced a design win with a second top-five hyperscaler, leveraging its DirectFlash architecture. It also unveiled the Data Primacy architecture and Everpure Data Stream, and evolved Pure1 AI Copilot into an active operator.
For the third quarter of fiscal 2027, Everpure guided revenue of $1.325 billion to $1.335 billion, or 37% to 38% year-over-year growth, and non-GAAP operating income of $265 million to $275 million, or 35% to 40% year-over-year growth.
The full-year lift was larger. Prior fiscal 2027 guidance had been revenue of $4.41 billion to $4.51 billion, or 20% to 23% year-over-year growth, and non-GAAP operating income of $820 million to $860 million, or 29% to 36% growth. The new ranges imply 37% to 38% revenue growth and 48% to 51% non-GAAP operating-income growth.
Giancarlo said expansion into Data Intelligence and momentum in AI and hyperscale products position the company to capture long-term growth. Everpure is scheduled to host a financial analyst meeting on September 23, 2026.