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what it is
Everpure sells high-speed data storage systems and software so big companies can keep data fast, organized, and less painful to manage.
how it gets paid
Last year Everpure made $3.2B in revenue. FlashArray hardware was the main engine at $1.76B, or 55% of sales.
why it's growing
Revenue grew 11.9% last year. The 70.6% gross margin mattered most because it says Everpure still has strong pricing even as it chases growth.
what just happened
Everpure beat on earnings, with EPS at $0.69 versus the $0.60 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
31.6x trailing p/e — you're paying up for this one
13.0% return on capital — nothing to write home about
xvary composite: 56/100 — below average
What they do
Everpure sells high-speed data storage systems and software so big companies can keep data fast, organized, and less painful to manage.
Everpure has more than 10,000 customers, and those customers do not swap storage platforms like they swap coffee brands. Purity software and Pure1 support tie the hardware together, which creates switching costs (hard to leave) — so what: once your data lives there, moving it is expensive and annoying. That helps the company keep a 70.6% gross margin, which is fat for a hardware-adjacent business.
How they make money
$3.2B
annual revenue · their business grew +11.9% last year
FlashArray hardware
$1.76B
+10.0%
Purity software
$0.64B
+12.0%
Pure1 cloud management and support
$0.48B
+14.0%
Professional services and other
$0.32B
+8.0%
The products that matter
enterprise storage and software
storage platform
$2.6B revenue
it's the main business at $2.6B in annual revenue, and the margin profile is strong at 20.7%. what matters now is whether growth stays near 4.2% or re-accelerates after the 1touch deal.
core engine
data intelligence expansion
1touch acquisition
$1.1B deal
management is spending $1.1B to add data discovery and semantic context. in human-speak: they are trying to make stored data more useful for ai workloads, not just cheaper to park.
the bet
Key numbers
$3.2B
annual revenue
That is the current sales base from EDGAR, and 11.0% projected growth would add about $352 million in annual revenue.
70.6%
gross margin
Gross margin → money left after building the product → so what: Everpure has pricing power before overhead shows up and starts eating lunch.
2.7%
operating margin
Operating margin → profit after running the business → so what: the company sells a rich product but keeps very little after expenses.
$3.40
fy2027 eps
At $62.87, that implies about 18.5 times fiscal 2027 earnings, which is cheaper than the 31.6 times trailing multiple.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- net profit margin 20.0% — keeps 20 cents of every dollar in revenue
- return on equity 13% — $0.13 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in PSTG 3 years ago → it's now worth $26,450.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Everpure beat on earnings, with EPS at $0.69 versus the $0.60 estimate.
Revenue reached $2.6B in the latest quarter, up 170% vs. prior year, while gross margin held at 70.6%. That is the kind of combo investors pay up for: more sales and still-rich product economics.
$2.6B
revenue
$0.69
eps
70.6%
gross margin
the number that mattered
The 70.6% gross margin mattered most because it says Everpure still has strong pricing even as it chases growth.
-
pure storage has changed its name to everpure.
-
the company believes this change represents the next step in its mission to enable customers to better manage and utilize their data in the ai era.
-
everpure’s ticker symbol will remain unchanged.the business has also announced that it has entered into a definitive agreement to acquire 1touch, a data intelligence startup. this acquisition will extend everpure’s data management capabilities by adding data discovery and semantic context to the everpure platform. by integrating storage with 1touch’s ability to discover, classify, contextualize, and enrich data, everpure will ensure that enterprise data is inherently ai-ready.
-
this will allow organizations to transform raw data into actionable insights.the transaction is subject to customary closing conditions and is expected to close in the second quarter of fiscal 2026.
-
everpure’s top line is performing well.
source: company earnings report, 2026
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What could go wrong
the top threat is the 1touch acquisition failing to revive growth.
med
growth stays stuck near 4.2%
the market will forgive a lot when revenue is compounding fast. it gets less generous when a stock at 31.6x earnings starts looking mature before investors expected.
if growth does not improve after a $1.1B acquisition, the premium multiple becomes the problem.
med
cloud and storage competition pressures margins
a 20.7% net margin on $2.6B in revenue is strong. it also gives competitors a visible target. if pricing tightens or customers shift architecture faster than expected, margin quality can fade.
this is the risk to the good-business part of the thesis, not just the high-multiple part.
med
execution risk around 1touch integration
management says the deal adds data discovery and semantic context. that's the strategy. whether customers adopt it fast enough to matter is the part the press release cannot answer.
the company is spending $1.1B for a better growth narrative. that narrative now has to show up in revenue.
all of this sits on top of a stock with 20/100 price stability and 35/100 earnings predictability. you are not being paid for certainty here.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
whether 1touch closes and gets integrated on time
the deal is expected to close in q2 fiscal 2026. if timing slips, the whole re-acceleration story slips with it.
trend
revenue growth versus the current 4.2% crawl
this is the simplest scoreboard on the page. if growth stays low, the valuation argument gets harder, not easier.
metric
net margin around 20.7%
profitability is doing real work for the thesis. if margins crack while growth is still soft, you lose both pillars at once.
calendar
the next earnings print against $2.40 fy2026 eps expectations
the street is looking for a step up from $1.99 to $2.40. that is the bar management now has to clear.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts do not see a strong short-term edge here.
risk profile
average
stability score 3 means this sits near the market middle on business risk, even if the stock itself is choppy.
chart momentum
average
technical score 3 says the chart is not sending a clean signal. welcome to a stock between narratives.
earnings predictability
35 / 100
earnings are harder to model than the average software name. if you own it, expect some wobble around estimates.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 313 buyers vs. 272 sellers in 4q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$50
$130
$63
current price
$90
target midpoint · +43% from current · 3-5yr high: $125 (+100% · 19% ann'l return)
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