Everpure (fmr Pure Storage) (P)

All-flash enterprise storage (Pure Storage) — high-performance flash for AI workloads

AI exposure 20% — derived from reported segment revenue, not asserted.

Where it sits

Physical Infrastructure → Storage & Server Systems · figures rebased to Q2 FY2027, reported 2026-08-26

All-flash storage arrays (FlashArray/FlashBlade), including the hyperscaler DirectFlash programme, are 57.9% of revenue on the Q2 FY2027 10-Q — the largest business, which is what Storage & Server Systems holds. The rest is tagged separately: Data & Infrastructure Software at 42.1%.

Also tagged: secondary in Software Stack → Data & Infrastructure Software.

Reported segments

• Product — 57.9% of revenue
• Subscription Services — 42.1% of revenue

Everpure, formerly Pure Storage ($1,185.9M Q2 FY2027, +38% YoY). The weights were held for a quarter because the split existed only in a press release; the 10-Q filed 2026-09-04 supplies it, and it moved the other way from the narrative: Product 57.9% ($686.8M, +54%) = primary B2 Storage & Server Systems, against Subscription Services 42.1% ($499.1M, +20%) — a year earlier it was 51.8/48.2. Product carries a 65.3% gross margin against subscription's 72.7%, so total gross margin fell to 68.4% from 70.2%. Subscription ARR $2.134B (+20%), RPO $4.1B (+44%), international $497.5M (41.9%, +75.2%).…

How the 20% is built

• Product — 57.9% of revenue × 24% AI-driven (estimate). Raised from 20%. All-flash arrays serve AI data pipelines alongside conventional enterprise storage, and the DirectFlash hyperscaler programmes are AI-specific — product revenue grew 54% against subscription at 20%, which is where that demand is landing. Held well below half because the filings attribute no revenue to…
• Subscription Services — 42.1% of revenue × 14% AI-driven (estimate). Storage-as-a-service on the same installed base, weighted to conventional enterprise workloads — and growing 20%, roughly a third of the product rate, which is what says the AI pull is on the hardware side

Investment read

Moat. All-flash architecture plus the Evergreen subscription model and, now, two top-five hyperscaler design wins on DirectFlash — the second announced August 10. The 10-Q sharpens what that rests on: product revenue $686.8M growing 54% against subscription at 20%, so the differentiated hardware is what customers are buying faster, over a recurring base of $2.134B of subscription ARR and $4.1B of remaining performance obligations.

Bottleneck / pricing power. Real differentiation, and the cost squeeze is now measurable rather than argued. Everpure buys raw NAND and has contract manufacturers build its DirectFlash modules, and the balance sheet carries $903.7M of components bought and passed to those manufacturers against $250.0M at fiscal year-end. Gross margin fell to 68.4% from 70.2%, product to 65.3% and subscription to 72.7%, with the CFO citing historic industry price increases. Evergreen terms and the design wins give it something to price against; the bill of materials gives the supplier the upper hand.

Role in the AI stack. The high-performance all-flash storage layer for AI.

Connected companies

• Microsoft (MSFT) — P supplies: Azure Native Pure Storage Cloud - jointly managed block storage service on Azure (GA 2025)
• NVIDIA (NVDA) — P supplies: DGX-certified all-flash storage for AI training data pipelines
• Amazon (AMZN) — P supplies: AWS partnership (Cloud Block Store on AWS marketplace); no evidence AWS deploys Pure arrays internally
• NetApp (NTAP) — P competes with: Enterprise all-flash + data management (NetApp vs Pure/Everpure)
• Dell Technologies (DELL) — P competes with: All-flash enterprise storage vs Dell storage
• Meta Platforms (META) — P supplies: all-flash storage (DirectFlash) design win for Meta AI
• Alphabet (GOOGL) — P supplies: hyperscale flash proven via Meta design win; no evidence of a Google deal
• CoreWeave (CRWV) — P supplies: all-flash storage for CRWV AI data centers
• Hitachi (HTHIY) — P competes with: Named as a core rival in P's value chain: competes in enterprise flash storage and data management
• Snowflake (SNOW) — P supplies: Named as a customer in P's value chain: uses Pure Storage infrastructure for high-performance data warehousing

Others in Storage & Server Systems

• Seagate Technology (STX)
• Western Digital (WDC)
• NetApp (NTAP)
• Dell Technologies (DELL)
• Hewlett Packard Enterprise (HPE)
• Super Micro Computer (SMCI)

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