Everpure Has the Data Footprint. Now It Has to Win the Intelligence Layer

Key Highlights

• Everpure reported Q2 FY27 revenue of $1.19 billion, up 38%, and raised full-year revenue guidance to $5.03 billion to $5.07 billion.
• Product revenue grew 54% despite lower system unit volumes as customers purchased more capacity, higher-performance configurations, and larger deployments.
• Hyperscale contributed minimally to Q2, making strength in Everpure's core enterprise business the more important signal behind the quarter's performance.
• Evergreen//One TCV bookings increased 121% as Everpure used its consumption model to moderate the effect of higher component costs for customers.
• Strength in the core business expands the customer and data footprint from which Everpure can grow Enterprise Data Cloud and Data Intelligence.

The News

Everpure reported second quarter fiscal 2027 revenue of $1.19 billion, an increase of 38% year over year, with product revenue growing 54% to $687 million and subscription services revenue growing 20% to $499 million. The company raised FY27 revenue guidance from $4.41 billion-$4.51 billion to $5.03 billion-$5.07 billion and raised non-GAAP operating income guidance to $940 million-$960 million.

Eight days after the quarter closed, Everpure announced a second top-five hyperscaler design win based on its DirectFlash architecture, adding to its existing relationship with Meta. The second customer has not been disclosed. Management expects the new program to contribute de minimis revenue in FY27 before becoming a larger contributor in FY28. For more details, see the official Everpure earnings announcement.

Analyst Take

Much of the attention this earnings cycle has centered on Everpure's hyperscale wins. Q2 itself was driven primarily by the core enterprise business. Customers bought fewer systems at higher prices while purchasing more capacity and moving toward higher-performance configurations. Deals above $5 million increased 59% year over year, while deals above $20 million increased 385%. Product revenue increased 54% despite the reduction in system unit volumes. The $590 million increase in full-year revenue guidance reinforces that core-business strength. The newly announced hyperscaler contributes de minimis revenue in FY27, so it cannot explain the magnitude of the raise. Pricing, capacity growth, larger enterprise deals, and the existing hyperscale program carry the current-year growth.

NAND inflation makes Q2 a useful test of whether architectural efficiency translates into economic advantage. Everpure combined DirectFlash efficiency, supply commitments, configuration control, and pricing to manage higher component costs while continuing to pursue enterprise share. Non-GAAP product gross margin declined 180 basis points to 66.2%, while total non-GAAP gross margin declined 220 basis points to 69.9%. Management said pricing had largely caught up with component costs by quarter end and continued to operate within its long-term product-margin range.

Evergreen//One extends the same economics into the consumption model. Because Everpure controls the configurations supporting the service, the company says it has been able to limit price increases relative to conventional product purchases. TCV bookings increased 121% to $277 million, while Evergreen//One reached an annualized TCV run rate above $1 billion. Consumption can therefore transfer part of the component-pricing and capacity-planning exposure to Everpure.

Product increased to 58% of revenue from 52% a year ago just as Everpure is putting more strategic emphasis on Data Intelligence. Revenue mix shows what Everpure is monetizing today. Its architecture, acquisition activity, and go-to-market direction show where the company is building additional value around that core business. Stronger infrastructure economics give Everpure a better foundation for that expansion.

HyperFRAME Research Lens data reinforces why Everpure is building higher in the data stack. The State of Enterprise Infrastructure & Operations (1H 2026) found that only 14% of organizations report having an AI-ready data architecture. The State of the Enterprise AI Stack (1H 2026) found that 78% consider AI strategically important, while 37% have established a structured process for evaluation and deployment. The gap puts more pressure on enterprise systems to improve how data is discovered, governed, contextualized, and made available to AI. In our view, Data Intelligence is Everpure's attempt to turn its proximity to enterprise data into a broader data platform role.

What Was Announced

Everpure's broader strategy is organized around three connected layers: the Unified Data Plane, Intelligent Control Plane, and Everpure Data Intelligence. Q2 largely demonstrates the strength of the Unified Data Plane, where DirectFlash economics, larger enterprise deployments, capacity growth, and hyperscale demand are visible today. Pure1 and Fusion extend management across that footprint through the Intelligent Control Plane. Everpure can use existing infrastructure relationships, including its Evergreen//One base, to distribute new management, automation, and policy capabilities.

Data Intelligence sits above those layers and is Everpure's emerging center of gravity. The company is adding discovery, context, and governance capabilities intended to make enterprise information more useful to AI systems. Everpure used $125 million during the quarter to acquire 1touch, reinforcing the importance of this layer through capital allocation as well as product strategy.

Data Stream and OpenSharing extend the model beyond workloads running directly on Everpure infrastructure. OpenSharing allows Databricks to query Iceberg and Delta tables held on Everpure object storage without replicating the underlying data, while Data Stream addresses movement from ingestion toward inference. Both help keep the Everpure-managed data layer relevant when analytics and AI execution occur elsewhere.

What the Numbers Mean

Four Q2 measures help connect Everpure's current business with the platform it is building. Product revenue grew 54%, while product increased to 58% of total revenue from 52% a year ago. Evergreen//One TCV bookings grew 121% to $277 million, while the offering reached an annualized TCV run rate above $1 billion. RPO increased 44% to $4.1 billion, indicating deeper contracted customer relationships as Everpure expands the capabilities it can deliver through them.

The synergies between the established core and the data intelligence business work in both directions. A larger infrastructure footprint gives Data Intelligence more opportunity to reach enterprise information. Better context and governance can make the underlying Everpure data estate more useful for AI and other data-intensive workloads.

Everpure can therefore direct more attention higher in the stack while the core continues to supply the economics, customer relationships, and data footprint that make the expansion possible. Data Intelligence can increase the value of those relationships and give customers more reasons to keep data under Everpure management.

Looking Ahead

Everpure now operates with a mature storage business supporting a broader Enterprise Data Cloud strategy. Q2 strengthened that foundation: RPO grew 44% to $4.1 billion, while Evergreen//One TCV bookings increased 121%. Data Intelligence builds on those customer relationships by adding context and governance for enterprise information used by AI.

Everpure starts from a credible position close to the underlying data, but proximity alone does not establish authority over enterprise context. Business meaning and policy also reside in applications, analytics platforms, and other enterprise systems. Everpure must show that customers see value in extending an infrastructure relationship into data intelligence.

We expect more of Everpure's sales and marketing emphasis to move toward Data Intelligence as a new center of gravity. The core storage business already has an established market position and can continue to grow through capacity expansion, Evergreen adoption, and hyperscale demand. Data Intelligence requires more market development: clear use cases, access to data and AI decision-makers, and customer proof that Everpure can add context and governance to information used by AI.