Everpure (P) investor relations material

Executive summary

• Q2 FY27 revenue grew 38% year-over-year to $1.2B, with operating profit up 77% to $230M, both exceeding guidance and marking the third consecutive quarter above the Rule of 40.

• Growth was broad-based across all geographies, products, and business segments, with strong sales momentum and continued expansion into AI, data management, and virtualization.

• Secured a second top-five hyperscaler design win and supply agreement, validating technology leadership and expanding long-term growth opportunities.

• Evergreen//One storage-as-a-service TCV accelerated to a $1B+ annualized run rate, up 121% year-over-year to $277M.

• Launched new AI and data management solutions, including DataStream and Data Intelligence, and recognized as a leader in Gartner's 2026 Magic Quadrant for Enterprise Storage Platforms.

Financial highlights

• Product revenue rose 54% year-over-year to $687M; subscription services revenue increased 20% to $499M, representing 42% of total revenue.

• Annual recurring revenue (ARR) exceeded $2B, up 20% year-over-year; remaining performance obligations (RPO) grew 44% to over $4B.

• Operating profit grew 77% to $230M, with a non-GAAP operating margin of 19.4%.

• Free cash flow was negative $238M due to strategic component purchases; normalization expected with FY27 guidance of $600M–$800M.

• Total gross margin: 69.9%; product gross margin: 66.2%; subscription services margin: 74.9%.

Outlook and guidance

• FY27 revenue guidance raised to $5.03B–$5.07B, up 38% year-over-year at midpoint, a $500M increase from prior guidance.

• FY27 operating profit guidance raised to $940M–$960M, up 50% year-over-year at midpoint.

• Q3 revenue expected at $1.325B–$1.335B, with operating profit of $265M–$275M, both up 38% year-over-year.

• Significant hyperscale product revenue expected in Q3 and Q4.

• Free cash flow for FY27 projected at $600M–$800M.