Everpure Q2 operating profit jumps 77% to $230 million on storage-as-a-service growth
The enterprise storage provider reported a 38 percent revenue increase and a $1 billion contract run rate for its as-a-service division, signaling strong market share gains despite rising semiconductor costs.
Everpure reported a 38 percent year-over-year revenue increase for its second quarter of fiscal 2027, alongside a 77 percent surge in operating profit to $230 million. The enterprise storage company exceeded its guidance range across all key metrics, driven by broad-based demand across geographies, products, and business segments.
This performance highlights a structural shift in how corporations manage data infrastructure amid escalating semiconductor costs. While customers face higher prices for traditional hardware capacity, Everpure is capturing outsized market share through its consumption-based Evergreen//One storage-as-a-service model.
Total contract value for the Evergreen//One service has accelerated to a $1 billion annual run rate for fiscal 2027. Chief Executive Officer Charles Giancarlo noted that adjusting for this service’s acceleration, which dilutes near-term reported revenue, the company’s underlying growth exceeds 40 percent year-over-year.
The shift toward flexible infrastructure is resonating with large-scale operators seeking to control capital expenditures. A senior executive at a global managed service provider stated, "We chose Evergreen//One because it gives us predictable, consumption-based economics, and lets us expand capacity and performance as customers' demands change."
Everpure attributes this momentum to its unified software foundation, Purity, which supports non-disruptive upgrades across block, file, and object storage. The architecture allows clients to avoid disruptive hardware refreshes, significantly lowering total cost of ownership over the system lifecycle.
Beyond core storage, the company is expanding its market opportunity in artificial intelligence, data management, and modern applications. Management highlighted that its recent 1touch acquisition is already helping clients contextualize their data to make it ready for advanced AI workloads.
The company also emphasized its commitment to honoring existing customer commitments despite component cost escalations. By operating at the lower end of its product gross margin range, Everpure aims to solidify long-term relationships with both enterprise clients and channel partners.
These operational developments are backed by third-party validation, as Gartner positioned the company highest in execution and furthest in vision in the 2026 Magic Quadrant for Enterprise Storage Platforms. Leadership expressed confidence that this elevated growth trajectory will remain sustainable well into the next fiscal year.
