Everpure, Formerly Pure Storage, Hits First $1B Quarter Despite Memory Constraints

‘Strong component demand driven by tech titan AI buildouts has outstripped supply across the industry, dramatically increasing NAND, memory, and CPU pricing. We expect that the industry, including Everpure, will see unpredictable component shortages, which could lead to extended lead times and potential shipment delays,’ says Everpure CEO Charles Giancarlo.

The storage industry will continue to face uncertainty for the foreseeable future because of component pricing, Everpure CEO Charles Giancarlo told analysts Wednesday during his company’s fourth fiscal quarter 2026 financial conference call.

Everpure, known as Pure Storage until a company rebranding this week, expects macroeconomic uncertainty to persist through the coming year, Giancarlo said.

“Strong component demand driven by tech titan AI buildouts has outstripped supply across the industry, dramatically increasing NAND, memory, and CPU pricing,” he said. “We expect that the industry, including Everpure, will see unpredictable component shortages, which could lead to extended lead times and potential shipment delays. As we have identified in previous calls, we have a highly distributed and resilient supply chain and have weathered past supply chain disruptions well.”

Supply chain constraints act as both a tailwind and a headwind in Everpure’s hyperscale discussions, Giancarlo said.

“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,” he said.

Everpure on Feb. 9 raised prices on its product line to reflect what Giancarlo termed the “dramatic” and rapid rise in component prices.

“I believe we were the last in our industry to raise prices, and I also believe that our increase was the lowest in the industry, to protect our customers,” he said. “Based on the extraordinary rapid rise in component costs, we expect product gross margins in Q1 to be at the lower end of our typical range of 65 [percent] to 70 percent, but we also expect them to recover through the fiscal year.”

Everpure has built a diversified supply chain with contingency plans to reduce disruption risks even in the face of industry-wide shortages, Giancarlo said.

“Our long-standing and direct component supplier relationships and in-house hardware design provides us additional flexibility in addressing supply chain disruption,” he said. “Our Evergreen model provides transparent pricing that protects customer economics. In addition, with our continuous improvements in performance and capabilities entitled in Evergreen, existing customers will benefit from our new data reduction software. This recent release of Purity Enhanced Data Reduction offsets our higher pricing by providing a cost per effective terabyte that is lower than our previous prices on some workloads.”

Fiscal fourth quarter 2026 was a good one for Everpure, which broke the $1-billion revenue mark for the first time to give the company a full-year revenue of $3.7 billion and strong momentum going into its fiscal 2027, Giancarlo said.

“Revenue in Q4 was driven by broad-based strength across our business, particularly in enterprise,” he said. “We are executing a clear strategy to modernize and simplify data infrastructure for our enterprise and hyperscale customers, amid rising AI demand, power constraints, and increasing operational complexity. Our Enterprise Data Cloud architecture continues to strongly resonate with customers, with over 600 customers adopting Fusion since its introduction a year ago.”

Enterprise Data Cloud is Everpure’s software-defined operating model for unifying, governing, and managing data across hybrid and multi-cloud environments. Pure Fusion is Everpure’s data storage automation and orchestration platform.

Everpure has reached a point where it can support the full spectrum of its customers’ data storage needs, all through a single software operating environment combined with its DirectFlash flash storage technology and its Evergreen architecture, Giancarlo said.

“This set of capabilities has been developed because Everpure alone has invested in data storage and management as high technology rather than as a commodity,” he said. “We now invest more R&D in data storage and management than any other competitor. Our continuing investment in innovation is increasingly focused on enabling our customers to better control and make use of their data for AI and analytics.”

To better help customers automate their data storage and better manage their global enterprise data, the company this week unveiled a definitive agreement to acquire 1touch to help accelerate its ability to help customers unlock the strategic value of their data and make it ready for AI, Giancarlo said.

“1touch’s technology delivers discovery, classification, governance, cyber resilience, data sovereignty, and context, to prepare data for AI, and serve as a critical foundation for the Enterprise Data Cloud and enterprise-scale AI deployment,” he said.

Everpure is entering fiscal 2027 with strong momentum, and expects continued growth across all core products and sectors including commercial, enterprise, government and hyperscaler, and across all its systems, software, and services, Giancarlo said.

“We are at a very exciting time in the story of our company, Everpure,” he said. “We can now compete for all of our customers’ storage infrastructure. We provide the world’s most consistent, comprehensive, and reliable data storage environment. Our Enterprise Data Cloud architecture will allow customers to more efficiently manage their global data. And we are now creating the technologies that will allow our customers to more easily prepare their data for their AI future. Our focus on investing in data storage and management as high technology is driving the accelerated growth that we see today.”

Everpure By The Numbers

For its fourth fiscal quarter 2026, Everpure reported revenue of $1.06 billion, up 20 percent over the $879.8 million the company reported for its fourth fiscal quarter 2025.

This included product revenue of $618.5 million, up from $494.8 million, and subscription revenue of $440.4 million, up from $385.1 million.

Total revenue beat analyst expectations by $30 million, according to Seeking Alpha.

Everpure also reported GAAP net revenue of $100.3 million or 29 cents per share, more than doubling last year’s $42.4 million or 12 cents per share. On a non-GAAP basis, the company reported net income of $238.9 million or 69 cents per share, up from last year’s $153.2 million or 45 cents per share.

Non-GAAP earnings beat analyst expectations by 5 cents per share, according to Seeking Alpha.

For its full fiscal 2025, Everpure reported revenue of $3.66 billion, up from last year’s $3.17 billion.

That included product revenue of $1.97 billion, up from $1.70 billion, and subscription revenue of $1.69 billion, up from $1.47 billion.

On a GAAP basis, Everpure reported net income of $188.2 billion or 55 cents per share, up from last year’s $106.7 billion or 31 cents per share.

Looking forward, Everpure expects first fiscal quarter 2027 revenue of $990 million to $1.01 billion, up 27 percent to 30 percent over the $778.5 million the company reported for its first fiscal quarter 2026. For all of fiscal 2027, the company expects revenue of $4.30 billion to $4.40 billion.