A data-storage company whose platform unifies block, file, and object storage across FlashArray, FlashBlade, and Everpure Cloud products, serving large enterprises and cloud providers. Founded in 2009 by John Colgrove and John Hayes as OS76 (named after osmium, the densest element, to nod to dense storage), it became Pure Storage and later rebranded to Everpure in 2026, blending "Pure" with its Evergreen architecture of non-disruptive upgrades.
Q1 FY2027 revenue rose 35% to $1.05B as product revenue grew 55% on FlashArray, FlashBlade and hyperscaler royalties.
Product rose 55% this quarter, the fastest growth in the reported record. Total revenue rose 35% to $1,052.9M and was 68.7%, with the increase driven by FlashArray and FlashBlade demand, price increases, and hyperscaler royalties, while fell 77% sequentially to $19.9M. The business is growing on product demand but cash flow and margins face pressure from compensation and component costs.
Key takeaways
Product rose 55% to $576.5M, fueled by higher demand for FlashArray and FlashBlade solutions across all geographies, price increases, and hyperscaler royalties, driving total revenue up 35% to $1,052.9M.
Product improved to 65% from 62% a year earlier due to price increases and a favorable mix shift toward higher-performance solutions, while total gross margin was 68.7%, down 0.2 points .
Subscription services rose 17% to $476.4M on Evergreen consumption and renewals, and grew 19% to $2.04B with total reaching $3.8B, up 41% .
Section summaries
Management's Discussion and Analysis
Total revenue grew 35% YoY to $1.05B, driven by 55% product revenue growth from FlashArray/FlashBlade demand and hyperscaler royalties.
⌄
Product surged 55% to $576.5M, fueled by higher demand for FlashArray and FlashBlade solutions across all geographies, price increases, and hyperscaler royalties.
Subscription services rose 17% to $476.4M, driven by growth in Evergreen consumption and subscription-based offerings and renewals.
decreased 36.5% to $180.2M from $283.9M a year earlier, primarily from higher payments for employee compensation and purchases.
The company acquired 1touch in May 2026, adding data security posture management and data intelligence capabilities to the Everpure Platform.
was $19.9M, down 77.1% sequentially from $87.2M in Q4 FY2026, with at $0.07 versus $0.29 in the prior quarter.
What changed
Q1 FY2027 product : management expected a sequential decline from the 67% FY2026 level on higher component costs, but it improved to 65% from 62% a year earlier on price increases and mix shift, above the expected direction.
Evergreen//One TCV sales: prior filings noted hyperscaler royalties rather than TCV drove the FY2026 margin recovery; this quarter product growth was again led by hyperscaler royalties and FlashArray/FlashBlade demand, not a reported TCV rebound.
Total : rose to $3.8B from the $3.7B FY2026 total, with 41% growth continuing the upward trajectory into FY2027 .
growth: decelerated to 18% in Q2 FY2026 and was not reported in Q3; this quarter it was 19% to $2.04B, a slight pickup from the 18% trough.
Risk factors updated to name tariffs and inflation explicitly as depressing customer demand, and added that the company may use FX derivatives if exposure grows; prior 10-K flagged macro and supply chain without naming tariffs.
What to watch
Q2 FY2027 product , which the company expects to face continued downward pressure from component costs through fiscal 2027 after the 65% Q1 level.
Next quarter's after the 36.5% decline to $180.2M from higher compensation and payments.
Evergreen//One TCV sales progress after hyperscaler royalties — not TCV — drove the recent product margin improvement.
Total conversion from the $3.8B Q1 total into FY2027 .
Product improved to 65% from 62% due to price increases and a favorable mix shift toward higher-performance solutions.
grew 19% to $2.04B, and total reached $3.8B, up 41% YoY.
decreased to $180.2M from $283.9M, primarily due to higher payments for employee compensation and purchases.
The company completed the acquisition of 1touch in May 2026, adding data security posture management and data intelligence capabilities to the Everpure Platform.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate and foreign-exchange risks are disclosed with sensitivity figures; no commodity or equity risk is noted.
⌄
Cash, equivalents, and marketable securities total $1.5B, invested mainly in government, corporate, and asset-backed instruments for capital preservation and liquidity.
A hypothetical 100-basis-point rate increase would reduce the of marketable securities by approximately $7.6M.
is primarily USD-denominated; a small portion of opex is incurred in GBP, EUR, CZK, and INR.
The company does not currently use derivatives or hedges for FX, but may do so if exposure becomes more significant.
A 10% adverse move in all non-USD currencies would negatively impact pre-tax income by approximately $11.0M.
From time to time, we are involved in various legal proceedings arising from the normal course of business, and an unfavorable resolution of any of these matters could materially affect our future results of operations, cash flows or financial position. We are not presently part…
⌄
From time to time, we are involved in various legal proceedings arising from the normal course of business, and an unfavorable resolution of any of these matters could materially affect our future results of operations, cash flows or financial position. We are not presently party to any legal proceedings that, in the opinion of management, would have a material adverse effect on our business.
Macroeconomic pressures, supply chain constraints, and hyperscaler investment risks dominate, alongside margin volatility and evolving competitive and regulatory threats.
⌄
Uncertain macroeconomic and geopolitical conditions, including tariffs and inflation, are depressing customer demand and could further harm operating results and cash flows.
Supply chain risks are acute: reliance on limited and single-source suppliers, component cost increases, and potential inability to secure sufficient flash memory could delay , reduce margins, or lose sales.
Significant resources are being devoted to developing flash storage for hyperscalers, but there is no assurance of meaningful , margin, or cash flow, and purchase commitments pose risk if demand falls.
are difficult to predict due to component cost volatility, customer and product mix shifts, and competitive pricing, with continued downward pressure expected through fiscal 2027.
The transition to subscription offerings like Evergreen//One creates complexity and may unfavorably impact near-term product and total growth comparisons.
Intense competition from established vendors and cloud providers, long and unpredictable sales cycles, and the need to continuously innovate the Everpure Platform threaten market share and financial performance.