stockrowWhat it does
Everpure provides storage hardware, software and services that help organizations store, access and manage data. Formerly known as Pure Storage, it serves enterprises, smaller organizations, cloud providers and managed service providers. It was founded in 2009, is headquartered in Mountain View and is led by Chief Executive Officer Charles Giancarlo.
Its platform brings together data stored in customers’ own facilities, public and hybrid clouds, and edge locations. Customers can manage that storage through a common software environment rather than treating every system as a separate infrastructure project. The platform also includes tools for automation, data protection and governance.
Everpure’s hardware uses flash memory, rather than relying on traditional spinning disks. FlashArray serves databases, applications and virtual machines, while FlashBlade handles unstructured data, including files used for analytics, backup and AI. Its Purity software works across its flash systems, and DirectFlash modules integrate the hardware with that software.
Customers can purchase equipment or consume storage as a service. Under Evergreen//One, Everpure supplies the infrastructure and takes responsibility for contracted storage outcomes, including upgrades and expansions. Its Portworx software helps customers manage storage and protect data for container-based applications. Everpure Cloud services extend its storage software into public cloud environments.
How it makes money
Everpure earns product revenue from integrated storage hardware and embedded software, Portworx term licenses and royalties associated with hyperscaler shipments. Subscription services revenue includes storage-as-a-service offerings, support and maintenance, cloud subscriptions and professional services such as installation.
In FY2026, product revenue was $2.0 billion and subscription services revenue was $1.7 billion. In Q2 FY2027, product revenue was $687 million and subscription services revenue was $499 million.
Product revenue is generally recognized when control of hardware transfers to the customer. Portworx term-license revenue is recognized when activation keys become available at the start of the license term. Hyperscaler royalties are recognized as supply-chain partners ship the relevant third-party hardware. The timing and size of orders and shipments can therefore affect product revenue from quarter to quarter.
Subscription revenue is generally recognized over the service period or according to consumption, including minimum usage commitments and usage above those commitments. Evergreen//One customers select capacity and performance needs while Everpure supplies and maintains the infrastructure needed to meet its service agreements. Evergreen//Flex combines customer ownership of hardware with a flexible subscription. Everpure also earns recurring revenue from support and maintenance renewals.
In Q2 FY2027, total contract value for the storage-as-a-service portfolio, including Evergreen//One, increased 121% year over year to $277 million. Total contract value measures signed business, rather than revenue recognized in the quarter. Everpure’s subscription annualized recurring revenue likewise measures active contracts and on-demand billings; it is not a forecast of future revenue.
| Product or service | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Product | $2.0 billion | 53.8% | 16.0% |
| Subscription services | $1.7 billion | 46.2% | 15.1% |
Customers and how it sells
Everpure sells to organizations across industries, from large enterprises and hyperscalers to smaller customers with limited IT resources. Its customers also include managed service providers that use its products to deliver storage services to their own customers. At the end of fiscal 2026, Everpure had over 14,500 customers and was in approximately 64% of Fortune 500 companies.
The company uses its own sales force alongside channel partners, which sell and market its offerings with Everpure’s sales team. In some geographies it uses a two-tier distribution model. Products are typically shipped directly to customers, and channel partners generally do not hold inventory.
In FY2026, United States revenue was $2.5 billion, or 67.3% of revenue. Rest-of-the-world revenue was $1.2 billion, or 32.7%. In Q2 FY2027, international revenue represented 42% of total revenue.
Everpure began shipments for a major hyperscaler in fiscal 2026. It subsequently signed a design win and supply agreement with a second top-five hyperscaler and expects that agreement to begin generating significant revenue in FY28 and beyond.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| United States | $2.5 billion | 67.3% | 11.7% |
| Rest of the world | $1.2 billion | 32.7% | 24.7% |
Suppliers and costs
Contract manufacturers make, assemble, test and package Everpure’s products to its specifications. Everpure provides rolling forecasts and works with them on delivery requirements, manufacturing and quality control. Product costs include payments to those manufacturers for components, as well as supply-chain personnel, freight, inventory adjustments and overhead.
Subscription service costs include staff, replacement parts, depreciation of infrastructure used to deliver services and software-related amortization. Employee compensation is also a significant component of research and development, sales and marketing, and administrative expenses.
Flash memory and other components are important inputs. Everpure made strategic component purchases for its core business to support demand and secure supply. It does not procure NAND for its hyperscaler business: those customers procure it through their own supply chains.
Everpure reported operating cash flow of negative $136 million and free cash flow of negative $238 million in Q2 FY2027. It attributed the operating cash outflow primarily to strategic component purchases and expects operating cash flow to normalize over the following two quarters.
- Revenue$3.7B
- Cost of revenue−$1.1B
- Research and development−$963.3M
- Selling, general and administrative−$1.5B
- Operating income$114.8M
Competitive position
Everpure competes in data storage against established vendors including Dell EMC, NetApp, Hitachi Vantara, HP Enterprise and IBM. It also competes with cloud providers, hyperconverged-product vendors and specialized companies. Competitors can use bundled offerings, established customer relationships and broad distribution to reach buyers.
Customers compare storage providers on features, performance, reliability, security, price, interoperability and support. Everpure combines Purity software with DirectFlash hardware and offers upgrades intended to avoid wholesale system replacement. Its subscription model also commits it to service outcomes rather than tying customers to a particular hardware configuration.
Our reading: The integrated hardware and software are a meaningful source of differentiation because they allow Everpure to design its flash modules and operating environment together. The evidence does not establish that competitors cannot develop alternatives.
Our reading: Evergreen subscriptions and non-disruptive upgrades can support customer relationships, although customers can still weigh service pricing against buying equipment. Everpure’s patent portfolio provides another layer of protection, but larger competitors have more mature intellectual property portfolios and greater resources.
Our reading: The company’s sales partners and technology alliances extend its reach, but established rivals also have broad distribution and customer relationships.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Dell EMC | Enterprise data storage systems | High |
| NetApp | Enterprise data storage systems | High |
| Hitachi Vantara | Enterprise data storage systems | High |
| HP Enterprise | Enterprise data storage systems | High |
| IBM | Enterprise data storage systems | High |
Growth opportunities
Everpure is pursuing growth by replacing disk storage with flash, expanding storage-as-a-service subscriptions and supporting cloud-native applications. It is also developing data management capabilities for customers whose information is spread across their own facilities, cloud environments and software services.
Its AI portfolio includes FlashBlade//EXA for large-scale AI and high-performance computing workloads. Everpure Data Stream, built on NVIDIA’s AI data platform, became generally available and recorded its first sales in Q2 FY2027. Everpure also uses capabilities from its 1touch acquisition to help customers discover and contextualize data.
Hyperscalers are another growth avenue. Shipments for the first major hyperscaler began in fiscal 2026, and Everpure expects a meaningful ramp from its second top-five hyperscaler agreement beginning in fiscal 2028. The company expects hyperscale product revenue to rise in the second half of fiscal 2027.
In Q2 FY2027, revenue increased 38% year over year. Everpure increased its full-year outlook and expects FY2027 revenue growth of 38% at the midpoint of its guidance. It expects subscription services revenue to grow as customers choose storage as a service and existing Evergreen customers renew and expand their offerings.
- $2.2BFY2022
- $2.8BFY2023
- $2.8BFY2024
- $3.2BFY2025
- $3.7BFY2026
- $5.0BFY2027 guidance
Structural risks
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Component supply and pricing: Everpure faces potential shortages or delays in obtaining flash and other components, price volatility, supplier consolidation and suppliers failing to meet production or quality requirements. Higher component costs can affect gross margins.
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Competition and product development: Rivals may have greater financial resources, larger budgets, broader distribution and more established relationships. If Everpure fails to introduce new or enhanced offerings successfully, its ability to attract and retain customers could be harmed.
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Margins and product mix: Gross margins vary with component costs, pricing, customer mix and product mix. Hyperscaler mix and sales of lower-product-margin solutions are among the factors that can affect margins.
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Order timing and inventory: Large orders, shipment timing, cancellations and changing demand forecasts can affect results. Inventory purchases and purchase obligations can also leave Everpure exposed if demand or product requirements change.
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Security and operations: Compromises or failures affecting Everpure’s systems, software, services, products or data could interrupt operations, harm its reputation, lead to customer losses or create legal and financial liabilities.
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Cash and service commitments: Everpure supplies and upgrades infrastructure for service customers. Its capital requirements depend in part on Evergreen//One growth, strategic inventory purchases and investments to support hyperscaler operations.
Bottom line
Our reading
Our reading: Everpure combines product sales and hyperscaler royalties with a service business that earns revenue over time while requiring infrastructure investment and ongoing delivery. Its integrated software and flash hardware support that model, but also leave it exposed to component availability and cost. [item1; item7; call_qa]
Our reading: Hyperscaler agreements and subscriptions create routes to growth, while shipment timing, large orders and the cost of supporting service commitments can make results uneven. [item7; call_prepared]