Everpure (PSTG) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic evolution and market positioning

• Name change to Everpure reflects a shift toward data contextualization and AI readiness, emphasizing data as a core asset and not just storage.

• Acquisition of 1touch.io supports the move into data cataloging and contextualization, leveraging both legacy strengths and new Evergreen upgrade models.

• Focus is shifting from commercial to enterprise segments, with 80% year-over-year growth in enterprise deals over $5 million.

• Growth strategy targets higher-value enterprise customers rather than expanding the customer base, with 14,500 customers globally.

• Hyperscaler segment is expected to accelerate, with strong confidence in growth for fiscal 2027 and beyond.

Financial performance and outlook

• Fiscal year 2026 ended with 20% top-line growth and 21.3% operating margin, achieving Rule of 40 in a quarter.

• Fiscal 2027 guidance includes 18.5% revenue growth and 26% operating income growth, both accelerating from the prior year.

• Q1 2027 guidance reflects 28% growth, with some pull-forward from late FY26 orders, but demand remains steady.

• Free cash flow is expected to track closely with operating profit margin, with CapEx estimated at 7–9% year-over-year.

• Capital allocation priorities remain unchanged, with a continued buyback program offsetting dilution.

Product innovation and competitive differentiation

• FlashBlade//EXA, launched in June 2025, targets high-performance, parallel processing for Neoclouds and large enterprises, with first major customer win achieved within 6–7 months.

• EXA outperforms competitors by 2x in third-party benchmarks and offers ease of deployment; further feature enhancements are on the roadmap for FY27.

• Product gross margins (excluding hyperscaler and Portworx) are expected to range from 65–70%, with pricing, product mix, and cost management as key levers.

• High NPS score of 84 and 60-day quote validity differentiate customer experience and operational reliability.