Everpure Q1 revenue up 35%, raises full-year guidance
Everpure reported a 35% year-over-year increase in Q1 FY27 revenue, with operating profit nearly doubling to $159 million. The company raised its full-year guidance, projecting a 22% revenue increase and 32% operating profit growth, driven by strong momentum in data storage and AI sectors.
*this image is generated using AI for illustrative purposes only.
Everpure reported a 35% year-over-year increase in Q1 FY27 revenue, with operating profit nearly doubling to $159 million. The company raised its full-year guidance, citing strong sales momentum and increased market share in data storage and management, alongside significant wins in AI and machine learning sectors.
Financial Performance
The company's strong performance was broad-based across core businesses and geographies. Product revenue grew 55% year-over-year to $577 million, while subscription services revenue increased 17% to $476 million. Total gross margin stood at 70.1%, with product gross margin at 65.5%.
| Metric | Q1 FY27 Value | Year-Over-Year Growth |
|---|---|---|
| Revenue | $1.05 billion | 35% |
| Operating Profit | $159 million | >90% |
| Product Revenue | $577 million | 55% |
| Subscription Services Revenue | $476 million | 17% |
| Annual Recurring Revenue (ARR) | >$2 billion | 19% |
| Remaining Performance Obligations (RPO) | $3.8 billion | 41% |
Strategic Developments
Everpure's acquisition of One Touch, which closed on May 7, aims to enhance data management capabilities. The company expects One Touch to be approximately $12 million dilutive to operating profit in fiscal year 27 but accretive within 24 months. Additionally, Evergreen One storage as a service sales grew 73% year-over-year to $165 million, driven by longer contracts and lower upfront costs.
Outlook
Management raised full-year guidance, anticipating revenue between $4.41 billion and $4.51 billion, a 22% year-over-year increase at the midpoint. Operating profit is expected to be in the range of $820 million to $860 million, representing a 32% year-over-year increase. For Q2, the company projects revenue of $1.095 billion to $1.105 billion and operating profit of $195 million to $205 million.
How will the integration of One Touch specifically impact Everpure's competitive positioning in the data management market over the next two years?
What risks does the company face if demand for AI and machine learning infrastructure fluctuates or slows down?
Can the 55% growth in product revenue be sustained as the company scales, or will growth normalize closer to subscription service levels?
19
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
