On August 26, 2026, Everpure, Inc. (NYSE:P) reported second-quarter fiscal 2027 results. Revenue grew 38% year-over-year to $1.2 billion, marking eight consecutive quarters of accelerating growth. Non-GAAP operating income was $230 million with a 19.4% margin, while GAAP operating income was $63 million with a 5.3% margin. Operating cash flow was negative $136 million, and free cash flow was negative $238 million. Management raised fiscal 2027 revenue guidance to $5.03 billion – $5.07 billion from $4.41 billion – $4.51 billion previously.
Everpure’s recent S&P 500 inclusion also marked an important step in its rise among large-cap investors. In our recent story, Illumina and Everpure to Join S&P 500 in September Rebalancing: What it Means for Investors, we examined the potential impact of the index addition on institutional exposure and investor attention.
Copyright: believeinme33 / 123RF Stock Photo
A New “Rule of 60” Framework and a Fiscal 2028 Outlook Well Above Consensus
Morgan Stanley analyst Erik Woodring raised his price target on Everpure, Inc. to $137 from $119 on September 24, 2026, keeping an Overweight rating and introducing a new “Rule of 60” baseline after the analyst day, now modeling 35% revenue growth and 43% EPS growth through 2029. Bank of America raised its target to $180 from $150, the highest in the group, keeping a Buy rating and calling its revised estimates conservative despite being roughly 10% above consensus on revenue and 40% above on operating income. Citi analyst Asiya Merchant raised her target to $160 from $130, keeping a Buy rating and describing Everpure as reaching an inflection point as its storage intellectual property expands into enterprise and hyperscaler data management.
The analyst day provided the numbers behind those upgrades.
CEO Charlie Giancarlo highlighted four growth vectors: core flash storage, Modern Data Software, Scale AI, and Hyperscale Solutions. The newer businesses are expected to reach roughly 20% of revenue by fiscal 2030. Management reaffirmed fiscal 2027 operating income guidance of $940 million – $960 million and introduced fiscal 2028 revenue guidance of $7.0 billion – $7.3 billion, implying growth of up to 45%, alongside operating income growth of up to 100%.
Component Costs Rose Six to Eight Times in Two Quarters, and Free Cash Flow Went Negative to Prove It
None of the seven analysts who raised targets focused on negative free cash flow, but the cause remains important.
In a CNBC interview on September 24, 2026, Giancarlo said flash storage component costs rose six to eight times within roughly two quarters industry-wide. Everpure, Inc. raised prices by about 150% on average, less than the increase in costs, to preserve customer relationships.
That helps explain why GAAP operating margin was only 5.3%. While Everpure highlighted a second top five hyperscaler design win on August 10, 2026, the newer growth vectors are still expected to account for only about 20% of revenue by fiscal 2030.
What The Smart Money Sees
Hedge fund ownership increased to 51 funds from 47 during the second quarter. Alyeska Investment Group increased its position by 890% to 1,343,702 shares worth $105.9 million, while Renaissance Technologies, the largest holder, trimmed by 3% to 3,655,134 shares worth $288.0 million and AQR Capital Management reduced its stake by 41% to 1,954,941 shares.
Short interest fell to 6.83 million shares as of September 15, 2026, from 8.81 million a month earlier. Everpure trades at 44.84 times forward earnings as of September 24, 2026.
Takeaway
Seven analysts responding to the same event with seven price target increases is a rare degree of consensus, and the fiscal 2028 guidance driving it, revenue growth of up to 45% and operating income growth of up to 100%, gives that consensus real numbers to point to.
What the unanimous reaction does not resolve is the quarter’s negative free cash flow and thin GAAP margin, both tied to the component cost spike Giancarlo described as industry-wide.
The next few quarters of margin performance will likely determine whether the new 44.84 times forward multiple holds.
READ NEXT: HPE’s AI Growth Hinges on Execution and Dell Technologies (DELL) Raises the Bar Again as AI Demand Fuels Another Strong Quarter
