Everpure NYSE: PThe data storage and management company formerly known as Pure Storage, has seen the biggest ups and downs so far in 2026. Shares were down as much as 18% at the start of the year, before recently rising as much as 26%.
Everpure Today
Everpure
- 52 week interval
- $50.20
▼
$100.59
- The P/E ratio
- 100.88
- Target Value
- $96.32
However, those gains quickly evaporated after the tech company's latest earnings report. Despite the beat and the promotion, shares of Everpure fell 14.8% in one day after the earnings.
Since then, the stock has continued to slide, putting Everpure shares very close to where they started the year.
The negative reaction shows part of the high bar being set for many AI-driven stocks. However, concerns are widespread about the sustainability of Everpure's strong financial performance.
However, at the end of the day, the factors that cause these concerns are out of the company's control. Meanwhile, Everpure continues to do well.
Everpure Beats Big, Posts Fastest Growth From 2022
For its fiscal year Q1 2027 (FY2027), Everpure reported revenue of $1.05 billion, surpassing the $1 billion mark for the second quarter in a row. (Note that Everpure's financial reporting period is before the calendar year period.) This resulted in revenue growth of more than 35% year-over-year (YOY), good for the company's highest growth rate in four years. This figure strongly exceeded expectations by around $998 million.
Earnings per share (EPS) came in at 47 cents, up 62% YOY and ahead of the consensus forecast of 40 cents. Notably, adjusted operating margin saw an increase of 450 basis points, rising to 15.1%. Storage product revenue growth was particularly strong, up 55% YOY. During that period, annual recurring revenue from software subscriptions reached $2.04 billion, growing a healthy 19% YOY. Remaining operating commitments grew faster than total revenue by 41% YOY to $3.8 billion—indicating the acceleration of demand.
After these strong results, Everpure significantly raised its guidance for the full year. It now generates average sales growth of 21.5%, up 300 points from previous estimates. Adjusted guidance for operating income growth rose 650 points to an average of 32.5%. However, disagreements arise among investors due to one of the main aspects of these results, which have both positive and negative implications.
Investors Run Afraid of Storage Supply Uncertainty
Everpure sells NAND Flash-based storage systems and overlay software services. Currently, the company is benefiting from a revenue perspective due to the shortage of the storage segment which is increasing prices dramatically. The shortage is so significant that Everpure notes that price increases and customer attrition contributed to nearly a third of its revenue growth last quarter. Pulling in means customers placing orders earlier than they would otherwise have to until the next price increase. However, the company's gross margins are also improving as it chooses not to raise its prices as quickly as its NAND suppliers. The company notes that it is working on the end of its product range to ease the pressure on customers. With this, the product margin decreased by 180 basis points in one quarter to 65.5%.
However, the biggest concern is whether customers will be able to withdraw spending if prices rise sharply in the NAND market. In addition, entering today can reduce demand tomorrow as customers have already received the products they need. At the same time, Everpure would have grown revenue by more than 20% without price increases and drag-downs. The company says this growth rate alone is a clear sign that it is gaining market share. This shows that in a changing environment, customers prefer to work with it over competitors. Notably, a growth rate of more than 20% would still be higher than the average quarterly growth rate of 14% over the past four years.
Overall, the storage shortage increases the uncertainty in Everpure's outlook, but the company's results point to a strong execution between these conditions.
Analysts Continue to Support Everpure, Projecting Strong Outperform
Everpure Stock Forecast Today
$96.32
changed +43.45%.Buy Medium
Based on 20 Analyst Ratings
| Current Price | $67.14 |
|---|---|
| High Forecast | $120.00 |
| Average prediction | $96.32 |
| Low Prognosis | $70.00 |
Everpure Stock Forecast Details
Despite the market's negative reaction to the Everpure report, analysts were generally more bullish on the stock afterward. MarketBeat tracked more than a few bullish price targets, including a strong move from Guggenheim. The company raised its target by nearly 10% to $115, making it one of the most bullish analysts followed by MarketBeat.
The MarketBeat consensus price for Everpure is now near $96, representing an upside of more than 40%. The target estimate was revised after the report to be slightly lower, near $93. This divergence comes as several targets that have not seen revisions in some time remain above or near $100, suggesting consensus above the revised average. Still, analysts are mostly showing strong support for the stock.
On balance, Everpure's outlook is indeed difficult to predict given the growing uncertainty in the AI end markets. Still, with the company showing strength amid this uncertainty and strong analyst support, there's still plenty of room for optimism going forward.
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