Everpure CEO: ‘Our Market-Share-Gain Momentum Is Even Greater Than Our Revenue Growth Implies’

‘We have seen our revenue growth accelerate, consistently and steadily, over the last eight quarters, and we now believe that this higher growth rate will be sustainable for some time,’ says Everpure Chairman and CEO Charles Giancarlo.

All-flash storage and data management technology developer Everpure Wednesday said it saw growth not only despite component shortages and rising prices but in part because of them.

Charles Giancarlo, chairman and CEO of Everpure, formerly known as Pure Storage, Wednesday told financial analysts on the company’s second fiscal quarter 2027 quarterly financial conference call that total contract value for its Evergreen//One storage subscription service has accelerated to a billion-dollar run rate for fiscal 2027.

“[This] indicates that our market-share-gain momentum is even greater than our revenue growth implies,” Giancarlo said. “We have seen our revenue growth accelerate, consistently and steadily, over the last eight quarters, and we now believe that this higher growth rate will be sustainable for some time. Based on current demand signals and win rates, we believe we will see sales and market-share strength continue into next year.”

[Related: Pure Storage Brings Cyber Resilience, AI Front And Center]

Giancarlo said only a part of Everpure’s growth acceleration can be attributed to price increases.

“Our growth is far beyond that of our legacy competitors,” he said. “We believe that we have entered into breakout territory in our core enterprise market because of the steady progress we have made in building out our product line and architecture.”

Giancarlo said there are several reasons for Everpure’s confidence in its long-term growth.

The first, he said, is the fact that the company has spent the last decade expanding beyond its original FlashArray product to serve every storage segment with a single, unified software foundation called Purity.

“Purity unifies block, file and object, it drives DirectFlash, and allows our customers to benefit from products that never grow old, with its unique Evergreen capability that promises nondisruptive upgrades forever,” he said.

Everpure has also invested in turning its storage technology into an as-a-service offering with Evergreen//One and brought it to the cloud with Everpure Cloud Storage.

“We alone allow our customers to operate our systems as their own global Enterprise Data Cloud with Everpure Fusion,” he said. “And now we are enabling our customers to contextualize their data to make it AI-ready with data intelligence from our 1Touch acquisition.”

Giancarlo also said the current pricing environment directly advantages Everpure as the rapid increase in semiconductor demand and cost continues to affect the industry in multiple and complex ways.

“This quarter we saw the predicted effect of increasing prices on both sales and demand,” he said. “Customers transacting now are paying more for less capacity, while others are increasingly adopting our as-a-service model.”

In addition to the growth in Everpure’s Evergreen//One subscription business, the company continues to grow its hardware business, Giancarlo said.

“Everpure’s advantages in flash technology, lower operational labor costs, and leadership in our Storage-as-a-Service offerings are providing us with outsized market- share gains in this high-cost environment,” he said. “And our decision to honor our past and existing commitments, share the burden with our customers, and operate at the lower end of our product gross margin range while component costs escalate, has solidified our relationships with both customers and channel partners.”

Beyond Everpure’s core portfolio, the company is opening up major new avenues for growth and expanding its market opportunity, Giancarlo said. These include:

“We continue to operate in a very dynamic macro environment and a tight supply market,” he said. “Yet demand for our products is strong even amid substantial price increases across the industry. This is yet another of many reasons why we feel fully confident in our growth, our strategy and our future.”

Customers In Line With Giancarlo’s Thinking

Just as Giancarlo said Everpure is growing as customers change how they look at data, so is the Everpure business of Evotek, Ned Engelke, CTO of the San Diego-based solution provider.

“We’ve seen our business with Everpure grow significantly year over year, and for us, it’s primarily because we’re seeing a lot of people rethink their data/storage strategy,” Engelke told CRN. “When I go talk to enterprises today, one of the things I lead with is, ‘Hey, what are your biggest problems?’ And they usually say something like, ‘My storage is too expensive and too slow.’ And so we go and we explore that, and it’s because they haven’t thought about the data that they’ve stored. They haven’t thought about why. They haven’t thought about the location, so they may have a very inefficient approach, and it’s too slow for the exact same reasons.”

That has been exacerbated by two things, Engelke said. The first is figuring out where to run a new workload service including new software or agents on whatever infrastructure they have, and the second is the challenges around hardware availability that cause customers to look at rearchitecting everything, he said.

“When we get through these discussions, a lot of times our customers are asking us to build them something for on-prem and not start from scratch, but really diligently rearchitect it, make it efficient, and go forward,” he said. “Our vendors that are able to produce a good outcome with performance and depth and a tiering strategy are doing well with us. And that includes Everpure.”

Everpure By The Numbers

For its second fiscal quarter 2027, Everpure reported total revenue of $1.19 billion, up 38.2 percent over the $861 million the company reported for its second fiscal quarter 2026.

This included product revenue of $686.8 million, up from $446.3 million, and subscription services revenue of $499.1 million, up from $414.7 million.

Total revenue beat analyst expectations by $100 million, according to Seeking Alpha.

Product revenue was a key driver, with only minimal contribution from hyperscaler revenue in the quarter, said Everpure CFO Tarek Robbiati. Subscription services revenue grew 20 percent to $499 million and accounted for 42 percent of total company revenue. Storage-as-a-Service also showed significant acceleration, as total contract value for the portfolio, including Evergreen//One, increased 121 percent year over year to $277 million. Annual recurring revenue rose 20 percent to more than $2 billion, Robbiati said.

Everpure also reported GAAP net income of $74.1 million, or 21 cents per share, up significantly from last year’s $47.1 million, or 14 cents per share. On a non-GAAP basis, the company reported net income of $240.7, million or 70 cents per share, up from last year’s $144.5 million, or 43 cents per share.

Non-GAAP earnings beat analyst expectations by 12 cents per share, according to Seeking Alpha.

Robbiati said pricing actions in the second fiscal quarter largely offset higher component costs, but Everpure plans to operate at the low end of its product gross margin range to support revenue growth, market-share gains and customer relationships.

Looking ahead, Everpure raised its outlook substantially.

For its third fiscal quarter 2027, the company expects revenue of $1.325 billion to $1.335 billion, up about 38 percent year over year at the midpoint, and operating profit of $265 million to $275 million, also up about 38 percent.

For full fiscal year 2027, Everpure forecast revenue of $5.030 billion to $5.070 billion, representing 38 percent growth at the midpoint and more than $500 million above its prior guidance. It also expects fiscal-year operating profit of $940 million to $960 million, up about 50 percent at the midpoint and $110 million above prior guidance.