Everpure, Inc. P used its second-quarter fiscal 2027 earnings call to argue that faster growth can persist despite elevated component costs and customer pricing. Chairman and CEO Charles Giancarlo tied the outlook to resilient enterprise demand, market share gains and accelerating Evergreen//One adoption.
That confidence drove a sharp fiscal 2027 guidance increase, while Q&A centered on pricing, supply visibility and the timing of hyperscale revenues.
Everpure Raises FY27 Expectations
Responding to an Evercore ISI analyst, CEO Giancarlo said that two uncertainties eased during the fiscal second quarter — component availability and customer response to much higher prices. With those risks better understood and two quarters of visibility, Everpure reset its annual outlook.
The fiscal 2027 revenue guidance rose to $5.03-$5.07 billion from $4.41-$4.51 billion, while the non-GAAP operating income guidance increased to $940-$960 million from $820-$860 million. The fiscal third quarter calls for $1.33-$1.34 billion in revenues and $265-$275 million in non-GAAP operating income.
The non-GAAP EPS of $0.70 surpassed the Zacks Consensus Estimate for earnings of $0.59. Meanwhile, the company’s revenues of $1.19 billion beat the consensus estimate of $1.09 billion.
P Uses Pricing to Pursue Share Gains
CFO Tarek Robbiati said that fiscal second-quarter product growth reflected pricing, mix and higher capacity per system, offset by lower system unit volumes. He said that fiscal first-quarter purchase pull-forward did not recur in the second quarter.
Robbiati added that Everpure is deliberately operating near the low end of its 65-70% long-term product gross margin range to support share gains. The fiscal second-quarter product gross margin was 66.2%, while the total gross margin was 69.9%.
The pricing environment also strengthened Evergreen//One. Robbiati said that Storage-as-a-Service TCV rose 121% year over year to $277 million, while Evergreen//One reached an annualized fiscal 2027 TCV run rate above $1 billion.
Everpure Broadens AI & Data Story
Giancarlo positioned data management as a larger part of Everpure's AI strategy. He said that customer interest in Data Intelligence has been very strong as enterprises seek to discover, contextualize and govern fragmented data for AI use.
Giancarlo added that more than 2,000 of Everpure's 15,000 customers are enabled for its Enterprise Data Cloud capability, which gives customers centralized policy control across storage fleets.
He also highlighted early Data Stream sales and continued demand for FlashBlade//S and FlashBlade//EXA in enterprise and large-scale AI environments.
P Adds Second Hyperscale Win
Giancarlo said that Everpure signed a design win and supply agreement with a second top-five hyperscaler. The new agreement should contribute only de minimis revenues in fiscal 2027, with a meaningful ramp beginning in fiscal 2028.
VP, CTO and chief growth officer Robert Lee told a Morgan Stanley analyst that DirectFlash is initially replacing SSD-based infrastructure, with benefits centered on density, reliability, power efficiency and operational simplicity.
CTO Lee told a Raymond James analyst that the second deployment is substantially similar to the first in core design and packaging. CFO Robbiati still expects significant hyperscale product revenues in the fiscal third quarter and the fourth quarter from existing commitments.
Everpure Defends Cash Use & Supply Strategy
CFO Robbiati attributed negative $136 million of operating cash flow largely to strategic purchases of NAND and other components intended to support core demand. The free cash flow was negative $238 million.
He said that Everpure has sufficient supply coverage for the foreseeable future and that pricing has roughly caught up with raw-material costs. The operating cash flow is expected to normalize over the next two quarters.
CFO Robbiati maintained the fiscal 2027 free cash flow guidance of $600-$800 million. The fiscal second-quarter capital expenditure was $101 million, supporting hyperscale scaling and Evergreen//One growth.
P Focuses on Execution
Giancarlo said that growth momentum and share gains are stronger than in recent years, but he reiterated that Everpure generally has only about two quarters of reliable forecasting visibility.
The call paired a materially higher near-term outlook with a disciplined focus on margins, supply and execution. Everpure plans its next strategic update at the Sept. 23 Financial Analyst Meeting.
Here’s What Zacks Signals Say About P
P currently carries a Zacks Rank #3 (Hold), with a Growth Score of B, a Momentum Score of A and a VGM Score of B. Its Value Score of F is the weaker part of the Style Score profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Style Scores put A above B and favor A or B readings, while the strongest combinations pair those scores with Zacks Rank #1 or #2 (Buy) stocks. The Zacks Rank #3 can change as earnings estimates are revised after the newly reported results.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Everpure, Inc. (P): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
