All-flash storage provider Everpure reported Wednesday that its second fiscal quarter 2027 revenue climbed 38.2 percent year over year to $1.19 billion, beating analyst expectations by $100 million. The company, formerly known as Pure Storage, told financial analysts that rising semiconductor prices and component shortages aren't just obstacles—they're fueling customer wins. Chairman and CEO Charles Giancarlo said the firm has reached a billion-dollar run rate for its Evergreen//One storage subscription service and believes revenue acceleration over the past eight quarters will continue for some time.

Product revenue surged to $686.8 million from $446.3 million a year earlier, while subscription services revenue grew 20 percent to $499.1 million and now accounts for 42 percent of total company revenue. Storage-as-a-Service showed particularly sharp growth, with total contract value for the portfolio including Evergreen//One jumping 121 percent year over year to $277 million. Annual recurring revenue rose 20 percent to more than $2 billion. GAAP net income reached $74.1 million, or 21 cents per share, up from $47.1 million the prior year, while non-GAAP net income hit $240.7 million, or 70 cents per share, beating analyst expectations by 12 cents.

Giancarlo said Everpure has entered "breakout territory" in its core enterprise market, with only a portion of growth coming from price increases. According to the CEO, the current pricing environment directly advantages Everpure as customers paying more for less capacity increasingly adopt the company's as-a-service model. The report notes that Everpure's decision to honor past commitments, share the burden with customers, and operate at the lower end of its product gross margin range while component costs climb has strengthened relationships with both customers and channel partners. Ned Engelke, CTO of San Diego-based solution provider Evotek, told the publication his firm's Everpure business has grown significantly year over year as enterprises rethink data storage strategies amid complaints that storage is too expensive and too slow.

The company attributes its momentum to a decade of expansion beyond its original FlashArray product into a unified software foundation called Purity that covers block, file, and object storage. Everpure has also invested in converting storage technology into as-a-service offerings with Evergreen//One and cloud delivery through Everpure Cloud Storage, alongside its Enterprise Data Cloud strategy now enabled for over 2,000 of 15,000 customers. The firm recently introduced Data Primacy, which Giancarlo called the future of IT architectures in the AI era, and released Everpure Data Stream built on Nvidia's AI Data Platform. CFO Tarek Robbiati said pricing actions in the quarter largely offset higher component costs, but the company plans to operate at the low end of its product gross margin range to support revenue growth and market-share gains.

Looking ahead, Everpure raised its outlook substantially, forecasting third fiscal quarter 2027 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. For full fiscal year 2027, the company expects 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, with operating profit of $940 million to $960 million, up about 50 percent at the midpoint and $110 million above earlier projections. Giancarlo said demand remains strong despite substantial price increases across the industry, citing current demand signals and win rates as evidence that sales and market-share strength will continue into next year. The gamble Everpure is taking—accepting thinner margins to lock in customers during a supply crunch—could reshape competitive dynamics if rivals prioritize short-term profitability over relationship building. Whether subscription momentum can sustain that trade-off will likely determine how much market share the company captures once component costs normalize.