Everpure P, formerly known as Pure Storage, delivered impressive revenue growth in the second quarter of fiscal 2027, supported by strong demand for its enterprise storage solutions. Total revenues climbed 38% year over year to $1.19 billion, reflecting robust product sales and expanding subscription services. The performance highlights increasing adoption of the company's storage technologies amid growing enterprise data requirements.
P's Product Revenue Growth Drives Strong Performance
Everpure's product revenues surged 54% year over year to $687 million in the fiscal second quarter, compared with $446 million in the prior-year period. The improvement reflected stronger demand for its FlashArray and FlashBlade solutions, particularly among large enterprise customers.
Higher selling prices and a favorable shift toward advanced storage configurations also contributed to growth. Increasing demand for efficient data infrastructure, supported by artificial intelligence (AI) workloads and enterprise modernization initiatives, could sustain product sales momentum.
Subscription Revenues Strengthen P's Growth Outlook
Subscription services revenues increased 20% year over year to $499 million, compared with $415 million in the year-ago quarter. The improvement reflected broader adoption of subscription-based storage offerings and continued customer renewals.
The company's subscription annual recurring revenue increased 20% to approximately $2.13 billion. This expanding recurring revenue base improves business visibility and complements strong product sales, providing additional support for long-term growth.
Can Everpure Sustain Its Revenue Momentum?
Everpure's second-quarter performance reflects strong demand across its storage portfolio. Expanding AI infrastructure investments, enterprise modernization and growing subscription adoption could support continued revenue growth.
However, rising component costs, supply-chain uncertainties and intense competition remain important concerns. Sustaining strong product demand while protecting profitability will be critical to maintaining the company's growth trajectory.
How Do Other Data Storage Players Compare?
NetApp (NTAP) and Dell Technologies (DELL) are two U.S.-listed companies benefiting from rising enterprise storage demand. NetApp reported 47% year-over-year growth in all-flash array revenues to $1.3 billion in the first quarter of fiscal 2027. NetApp's expanding cloud offerings and AI infrastructure capabilities strengthen its competitive positioning.
Dell Technologies reported a 26% increase in storage revenues to $4.9 billion in the second quarter of fiscal 2027. Dell Technologies benefits from enterprise infrastructure investments and demand for integrated storage solutions. Both NetApp and Dell Technologies face competition as enterprises increasingly prioritize scalable, efficient and AI-ready data management infrastructure.
P’s Price Performance, Valuation & Estimates
The stock has gained 88% over the past three months against the industry’s 10% decline.
From a valuation standpoint, P trades at a forward price-to-sales ratio of 7.30X, well above the industry average of 2.35X. It carries a Value Score of F.
The Zacks Consensus Estimate for P’s 2026 earnings has increased over the past 60 days.
P currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
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 Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
NetApp, Inc. (NTAP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).