8-K: Everpure Exceeds Q4, FY26 Revenue, Guides Strong FY27

Everpure announced record fiscal fourth quarter and full year 2026 financial results, surpassing $1 billion in Q4 revenue and providing strong guidance for fiscal year 2027.

Summary

• Fiscal fourth quarter 2026 revenue reached $1.1 billion, marking a 20% increase year-over-year and the company's first billion-dollar revenue quarter.
• Full-year 2026 revenue surpassed $3.7 billion, representing 16% growth year-over-year.
• Subscription services revenue for Q4 was $440 million (up 14% YoY) and $1.7 billion for the full year (up 15% YoY).
• Subscription Annual Recurring Revenue (ARR) grew 16% year-over-year to $1.9 billion in Q4.
• Remaining Performance Obligations (RPO) increased over 40% year-over-year to $3.7 billion.
• Non-GAAP operating income for Q4 was $226 million (21.3% margin) and $635 million for the full year (17.3% margin).
• Generated $201 million in free cash flow in Q4 and $616 million for the full year.
• Total cash, cash equivalents, and marketable securities stood at $1.5 billion.
• Returned $127 million in Q4 and $343 million for FY26 to stockholders through share repurchases.
• Introduced the Enterprise Data Cloud (EDC) architecture, expanded EDC into Azure Native, and delivered AI Copilot with Model Context Protocol (MCP) servers.
• Announced a definitive agreement to acquire 1touch to extend EDC into advanced data management, including data discovery and classification.
• Debuted FlashBlade//EXA for AI and high-performance computing, and introduced next-gen FlashArray//XL and FlashArray//ST products.
• Provided Q1 FY27 revenue guidance of $990 million to $1.01 billion (27-30% YoY growth) and non-GAAP operating income of $125 million to $135 million (51-63% YoY growth).
• Provided full-year FY27 revenue guidance of $4.3 billion to $4.4 billion (17-20% YoY growth) and non-GAAP operating income of $780 million to $820 million (23-29% YoY growth).

Sentiment

Score: 9

Explanation: StockSavvy.ai views this as a very strong report, highlighted by record revenue, robust growth in subscription services and RPO, strategic product innovations in AI and cloud, and positive future guidance, despite some GAAP/non-GAAP differences.

Positives

• Achieved a record $1.1 billion in Q4 revenue, marking the first time the company surpassed the billion-dollar quarterly revenue milestone.
• Delivered strong full-year 2026 revenue growth of 16% year-over-year, reaching $3.7 billion.
• Demonstrated robust future revenue visibility with Remaining Performance Obligations (RPO) growing over 40% year-over-year to $3.7 billion.
• Generated significant non-GAAP operating income, with a Q4 margin of 21.3% and a full-year margin of 17.3%.
• Produced strong free cash flow of $201 million in Q4 and $616 million for the full year, indicating healthy operational efficiency.
• Maintained a solid financial position with $1.5 billion in total cash, cash equivalents, and marketable securities.
• Returned substantial capital to stockholders, repurchasing $343 million worth of shares in FY26.
• Launched strategic innovations including the Enterprise Data Cloud (EDC), Everpure Cloud Azure Native, and AI Copilot with Model Context Protocol (MCP) servers, positioning for growth in the AI era.
• Announced the acquisition of 1touch, which will enhance data discovery, classification, and enrichment capabilities.
• Achieved an audited Net Promoter Score (NPS) of 84, reflecting high customer satisfaction and loyalty.
• Received significant industry recognition, including being named a Leader in two 2025 Gartner Magic Quadrants for Enterprise Storage Platforms and Infrastructure Platform Consumption Services.
• Provided strong financial guidance for both Q1 FY27 and full-year FY27, projecting continued double-digit revenue and operating income growth.

Negatives

• GAAP operating margin for the full year 2026 was 3.1%, significantly lower than the non-GAAP operating margin of 17.3%, indicating substantial non-cash expenses, primarily stock-based compensation, impacting reported profitability.
• Management noted proactively navigating 'global imbalances in the supply chain,' suggesting ongoing challenges in component procurement, though confidence in delivery was expressed.

Risks

• Potential disruptions to the supply chain and the ability to procure a sufficient supply of flash and other components.
• Impact of recent increases in component costs on profitability.
• Uncertainties regarding the anticipated effects and timing of the pending acquisition of 1touch.
• Challenges in meeting hyperscalers' performance, price, and other requirements.
• Ability to expand relationships with current hyperscale customers and acquire new ones.
• Capacity to meet the diverse online storage use cases required by hyperscalers.
• Variability in the timing and magnitude of large orders, including those from hyperscalers and large enterprises.
• Uncertainty in the structure, timing, and amount of revenue derived from hyperscaler licensing and support services.
• Fluctuations in demand for products and subscription services, including Evergreen//One.
• Changes in the relative sales mix between subscription/consumption offerings and traditional capital expenditure sales.
• Risks associated with the ongoing development and customer adoption of new products and the Enterprise Data Cloud architecture.
• Ability to maintain performance and expand market share amidst current macroeconomic conditions.
• Impact of inflation, currency fluctuations, tariffs, or other adverse economic conditions.

Future Outlook

For Q1 FY27, Everpure expects revenue between $990 million and $1.01 billion, representing 27% to 30% year-over-year growth, and non-GAAP operating income between $125 million and $135 million, indicating 51% to 63% year-over-year growth. For the full fiscal year 2027, the company projects revenue of $4.3 billion to $4.4 billion, a 17% to 20% year-over-year increase, with non-GAAP operating income anticipated to be between $780 million and $820 million, reflecting 23% to 29% year-over-year growth.

Management Comments

• "Everpure delivered an outstanding fourth quarter, achieving our first billion-dollar revenue quarter and capping off a strong fiscal year. These results prove our impact in modernizing data storage. Our new name 'Everpure' represents the next step in our mission—enabling our customers to better manage and utilize their global data in the AI era." Charles Giancarlo, Chairman and CEO.
• "In the fourth quarter, we generated record revenue and operating profit, exceeding the high end of our guidance. We are entering FY27 with strong momentum as demand for our Everpure solutions across the Enterprise and Hyperscaler sectors remains robust. We are proactively navigating the global imbalances in the supply chain and are confident in our ability to deliver on our priorities this year." Tarek Robbiati, CFO.

Industry Context

StockSavvy.ai notes Everpure's strong performance and strategic focus on AI and hyperscale data management align with broader industry trends emphasizing data-driven insights and cloud-native architectures. The introduction of Enterprise Data Cloud (EDC) and AI Copilot positions Everpure to capitalize on the growing demand for intelligent data solutions, particularly as AI adoption accelerates across enterprises and public clouds. The acquisition of 1touch further strengthens its competitive stance in data discovery and classification, crucial for effective data governance in complex hybrid environments.

Comparison to Industry Standards

• Everpure's audited Net Promoter Score (NPS) of 84 is exceptionally high, significantly above the average for the technology sector, which typically ranges from 30-50, indicating superior customer satisfaction compared to many industry peers.
• Being named a Leader in the 2025 Gartner Magic Quadrant for Enterprise Storage Platforms and Infrastructure Platform Consumption Services, positioned highest in execution and furthest in vision, places Everpure among top-tier competitors like Dell EMC, NetApp, and HPE, demonstrating strong market recognition and product innovation.
• The partnership with SK hynix to deliver advanced QLC flash storage tailored to hyperscale data centers suggests a strategic move to compete with specialized providers in the high-volume, cost-sensitive hyperscale market, potentially challenging established players in that segment.

Corporate Governance

Stakeholder Impact

• Shareholders: Positive impact due to strong financial performance, robust growth, significant share repurchases, and optimistic future guidance. The strategic focus on AI and cloud data management, along with the rebranding, could enhance long-term shareholder value.
• Customers: Positive impact from new product introductions (Enterprise Data Cloud, AI Copilot, FlashBlade//EXA), expanded cloud offerings (Azure Native), and the acquisition of 1touch, which promise enhanced data management, performance, and intelligence. The high Net Promoter Score (84) indicates strong customer satisfaction.
• Employees: The company was recognized as one of Fortune's 'Best Workplaces in Technology 2025' and 'Best Workplaces in the Bay Area 2025,' suggesting a positive work environment. However, the full-year 2026 financial statements include 'expenses for severance and termination benefits related to workforce realignment,' indicating some past employee impact.
• Suppliers: The mention of 'global imbalances in the supply chain' and the need to 'procure a sufficient supply of flash and other components' suggests ongoing engagement and potential pressure on suppliers to meet demand.
• Creditors: Strong cash flow generation and a healthy cash position of $1.5 billion indicate robust financial health, which is favorable for creditors.

Next Steps

• Everpure will host a teleconference on February 25, 2026, at 2:00 p.m. PT to discuss the fiscal fourth quarter and full year 2026 results.
• CEO Charlie Giancarlo will participate in the Bernstein 4th Annual TMT Forum on February 26, 2026.
• CTO and Growth Officer Rob Lee will participate in the Susquehanna 15th Annual Technology Virtual Conference on February 27, 2026.
• CFO Tarek Robbiati will participate in the Morgan Stanley Technology, Media & Telecom Conference on March 2, 2026.
• The company will begin trading as Everpure on the NYSE as of March 5, 2026, with the ticker symbol PSTG remaining unchanged.
• Integration of 1touch acquisition to extend Enterprise Data Cloud capabilities into advanced data management.
• Continued development and customer adoption of new products and the Enterprise Data Cloud architecture.

Key Dates

Recommendation

The company delivered exceptional Q4 and full-year 2026 results, exceeding expectations and demonstrating robust growth across key metrics, particularly in subscription services and remaining performance obligations. Strategic initiatives in AI and cloud data management, coupled with a significant acquisition and strong future guidance, position Everpure for continued market leadership and value creation. The high Net Promoter Score further underscores customer loyalty and product strength, making it a compelling investment.

Keywords

Data storage, Data management, AI, Artificial intelligence, Cloud computing, Enterprise Data Cloud, Subscription services, FlashArray, FlashBlade, RPO, ARR, Financial results, SEC filing, Corporate governance, Risk management, Strategic business analysis, Everpure, PSTG