Everpure tops $1B quarter as FY 26 revenue hits $3.7B

Everpure closed out FY 2026 with a blowout quarter, posting $1.06 billion in revenue – up 20 percent year-over-year and above the high end of its guidance – as GAAP profit jumped 136 percent to $100.3 million.

For the full year, revenue rose 16 percent to $3.7 billion, again beating guidance, while profit climbed 76.3 percent to $188.2 million.

CEO Charles Giancarlo said: "Our first billion-dollar revenue quarter capped off a strong performance for FY 26, with full year revenue of $3.7 billion. And we enter FY 27 with strong momentum."

Financial summary

• Gross margin: 69.9 percent vs 72.3 percent last quarter
• Operating cash flow: $268 million vs prior quarter's $116 million
• Free cash flow: $201 million vs prior quarter's $52.6 million
• Cash, restricted cash & investments: $1.55 billion vs year-ago $1.52 billion

CFO Tarek Robbiati attributed decreased product gross margin to "lower hyperscaler shipments and Portworx license shipments in Q4 relative to Q3." Subscription ARR rose 16 percent to $1.9 billion and remaining performance obligations (RPOs) jumped 40 percent to $3.7 billion. Robbiati said this was "driven by the execution of large deals and strength of our Evergreen//Forever and Evergreen//One offerings."

Customer count rose by 335, passing 14,500, and includes 64 percent of the Fortune 500 and 42 percent of the Global 2000. Deals over $5 million grew 80 percent year-over-year.

Revenues were driven by broad-based strength across the business, particularly in the enterprise market, helped by pull-in sales to mitigate flash component price rises and shortages. Its hyperscale business with a single customer (Meta) grew beyond expectations in the year, and Everpure had its first FlashBlade//EXA high-end system sale, with multiple units for a GPU cloud customer, and is in advanced sales stages with dozens more customers.

CTO Rob Lee spoke about this first customer, saying: "They had actually gone down the path of initially selecting an alternate vendor. They engaged with us, did a performance test, were frankly blown away with the performance and turned around and placed an order... within a couple of days. That subsequently led to follow-on orders as they were able to deploy that, get it into production quickly and really light up their end customer footprint."

Giancarlo said Everpure "can support the full spectrum of our customers' data storage needs. From high performance to low cost, from tens of terabytes to tens of exabytes, from AI to backup, and all protocols including block, file and object. We support all customer use cases including all databases, all virtualization, containers, file systems, object systems, and Kubernetes... We now invest more R&D in data storage and management than any other competitor."

Robbiati added: "In the fourth quarter, we generated record revenue and operating profit, exceeding the high end of our guidance. We are entering FY 27 with strong momentum as demand for our Everpure solutions across the Enterprise and Hyperscaler sectors remains robust. We are proactively navigating the global imbalances in the supply chain and are confident in our ability to deliver on our priorities this year."

Giancarlo noted the supply problem in the industry, saying: "Strong component demand driven by tech titan AI buildouts has outstripped supply across the industry, dramatically increasing NAND, memory and CPU pricing... Supply chain constraints are operating as both a tailwind and a headwind in our hyperscale discussions. A bit of a tailwind as hyperscalers are more eager to accelerate their testing and certification of new sources of supply, and as a headwind to every vendor's ability to source the necessary components"

Everpure expects to significantly accelerate hyperscaler shipments and revenues in fiscal 2027, mostly in the second half, and says this is reflected in its strong guidance. It did not mention any new hyperscaler customers, but Giancarlo did say: "We're seeing wider interest, broader engagement, and wider engagement... We are in engineering test environments in multiples of the hyperscalers now, and they're proceeding well." 

Next quarter's outlook is for revenues of $1 billion ± $20 million, a 28.5 percent year-over-year increase at the midpoint. The full-year outlook is for an 18.8 percent revenue rise to $4.35 billion.