Everpure smashes expectations in Q2
The vendor has lifted its FY27 outlook by more than $500m following record quarterly turnover
US-based storage and datacentre vendor Everpure has reported record Q2 revenue, propelled by higher prices and strong enterprise demand.
Turnover jumped 38 per cent year-on-year to $1.2bn (£873.5m), from $861m in Q2 FY26.
Product revenue soared 54 per cent to $686.8m (Q2 FY26: $446.3m), while subscription services increased 20 per cent to $499.1m, compared with $414.7m at the same time the year prior.
Gross profit climbed around 34 per cent to $811.4m.
“Q2 was another outstanding and remarkable quarter, we exceeded our guidance range and all key company metrics,” said CEO Charles Giancarlo in prepared remarks.
“Growth was broad based across all geographies, products and business segments.”
The firm's results follow an already buoyant Q1, when turnover surged 35 per cent to $1.05bn.
Larger deals fuel momentum and hyperscale demand rises
Everpure said its core Q2 performance was driven by a combination of higher prices, product mix and capacity growth, partially offset by lower system unit volumes.
Customers bought fewer systems at higher prices during the quarter, while the vendor recorded a shift towards higher-performance configurations with greater capacity.
Deals worth more than $5m increased 59 per cent year-on-year, while those exceeding $20m skyrocketed 385 per cent.
Everpure said it is currently operating at pricing levels not seen in a decade, but demand has remained resilient, particularly among its largest enterprise customers.
Giancarlo also stressed that only part of the company’s acceleration could be attributed to price increases.
Storage-as-a-Service also recorded strong momentum, with total contract value (TCV) leaping 121 per cent year-on-year to $277m during Q2.
Annual recurring revenue increased 20 per cent to more than $2bn, while remaining performance obligations jumped 44 per cent to more than $4bn.
While hyperscale revenue contributed only minimally during Q2, Everpure expects the business to become a more significant contributor during the remainder of FY27.
The vendor expects the majority of its hyperscale revenue to be recognised during H2, with significant product revenue anticipated in both Q3 and Q4.
Earlier this month, Everpure also secured a design win and supply agreement with a second top-five hyperscaler.
The agreement is expected to make only a minimal contribution in FY27 before beginning a meaningful ramp in FY28.
Elsewhere, the vendor continued to expand its AI business, securing FlashBlade deployments with Samsung Electronics and a major global bank during the quarter.
Everpure's worldwide growth
Growth was particularly pronounced outside Everpure’s domestic market.
US revenue increased 19 per cent to $688m during Q2, while international turnover skyrocketed 75 per cent to $498m.
International operations accounted for 42 per cent of total earnings, their highest contribution to date, according to the vendor.
“Scaling our international presence remains a significant opportunity and a key strategic focus for the company,” noted CFO Tarek Robbiati in his prepared remarks.
Everpure raises FY27 forecast by more than $500m
Following its Q2 performance, Everpure upgraded its expectations for the remainder of the year.
The vendor now expects FY27 revenue between $5.03bn and $5.07bn.
Operating profit is projected between $940m and $960m.
For Q3, Everpure expects revenue between $1.325bn and $1.335bn.
Robbiati said in his prepared remarks that the vendor had previously held back from raising its H2 forecast because of uncertainty surrounding demand following significant industry-wide price increases and a tight supply environment.
He added that demand has remained strong despite market prices reaching levels not seen since 2017, while Everpure now has greater visibility over the final two quarters of FY27.
“With this new backdrop we are now in position to significantly increase our guidance for the second half of the year,” he said.