Everpure grew first quarter revenue 35 percent to $1.05 billion and raised its full year guidance, and the growth came through hardware rather than the subscription business the company has spent years positioning as its future.
Product revenue reached $577 million, up 55 percent year over year. Subscription services revenue reached $476 million, up 17 percent. That is the mix story in two lines: the faster-growing half of this quarter ships in a box. Subscription annual recurring revenue closed at $2 billion, up 19 percent, less than half the growth rate of the product line beside it.
Remaining performance obligations tell a friendlier story at $3.8 billion, up 41 percent, since RPO captures contracted revenue not yet recognised. The gap between that 41 percent and ARR's 19 percent is where the company's argument about future mix lives.
The quarter ended 3 May 2026 and covers the period in which the company formally transitioned its corporate brand from Pure Storage to Everpure.
CFO Tarek Robbiati went at the cost side directly. "We are executing extremely well in a challenging supply chain environment—carrying our strong momentum into FY27, fueled by robust, broad-based demand for our Everpure solutions." Challenging supply chain environment is the polite form. The release's own risk language is blunter, listing the company's ability to procure a sufficient supply of flash and other components and the impact of recent increases in component costs. An all-flash vendor buying NAND into a rising market has one obvious lever, and it is not gross margin, which came in at 68.7 percent GAAP and 70.1 percent non-GAAP.
Now the line worth pausing on. GAAP operating income was $19.9 million, a 1.9 percent margin. Non-GAAP operating income was $158.8 million, a 15.1 percent margin. The company discloses the bridge between them as $138.8 million of adjustments, and its own cash flow statement puts stock-based compensation for the quarter at $122.1 million. By my arithmetic that single item accounts for about 88 percent of the gap between the two margins.
Set against the prior year, though, the GAAP line genuinely moved. Everpure reported an operating loss of $31.2 million a year earlier, a negative 4.0 percent margin, so the swing to a positive GAAP operating result is real and not a presentation choice.
Guidance went up on both measures. Full year revenue guidance moved from $4.3 billion to $4.4 billion, up to a new range of $4.41 billion to $4.51 billion, and non-GAAP operating income guidance from $780 million to $820 million, up to $820 million to $860 million. Second quarter revenue is guided to $1.095 billion to $1.105 billion. The company states it has not reconciled its non-GAAP operating income guidance to the comparable GAAP measure, so the raised profit number has no GAAP counterpart to check it against.
Chairman and CEO Charles Giancarlo tied the year ahead to the acquisition closed during the quarter, saying "As we expand our Enterprise Data Cloud vision with the integration of 1touch, we are uniquely positioned to help enterprises eliminate infrastructure friction and activate their data for the AI era." Uniquely positioned is doing the usual work. What 1touch actually adds, per the release, is data security posture management, data discovery, classification and semantic context, which is metadata tooling rather than storage.
Bootnote: the ticker is now a single letter. Everpure trades as NYSE: P, having been Pure Storage under PSTG, and the SEC still files its documents under the pstg- prefix, which is how the earnings exhibit arrived as pstg-ex991q1fy2027xpressre.htm.
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