$P Earnings Breakdown.. NAND?!

Gaetano · Gaetano · May 28, 2026 at 01:35 · ⏱ 3 min read  | Read on Substack ↗
Summary
Everpure's strong Q1 earnings (revenue +35%, ARR $2B, raised guidance) were overshadowed by product gross margin compression to 65.5% due to rapid NAND price increases. The author holds shares and views the long-term thesis as intact, but the near-term stock setup is complicated by supply chain chaos and gradual margin recovery.
  • •Revenue grew 35% year over year; product revenue grew 55%.
  • •ARR crossed $2 billion and RPO grew 41%.
  • •Product gross margin fell to 65.5% from 67.3% sequentially and from 72.9% in Q3.
  • •NAND pricing spikes are squeezing margins; management expects a gradual recovery in H2.
  • •Quote validity windows shortened from 90 days to 30 days due to rapid component price changes.
  • •CEO Charlie stated this is the most extreme supply chain situation in his 40-year career.
Read time 3 min
Length 3,864 chars
Category finance
Trade Ideas
Gaetano Substack author, Gaetano
Author believes long-term thesis strengthened despite near-term margin pressure from NAND cost spikes; revenue and guidance raised.
P HIGH
Gaetano Substack author, Gaetano
The article highlights that NAND is a major input cost for Everpure and that NAND pricing is surging due to AI-driven demand, with capacity sold out through 2027. Micron (MU) is a leading NAND supplie
The article highlights that NAND is a major input cost for Everpure and that NAND pricing is surging due to AI-driven demand, with capacity sold out through 2027. Micron (MU) is a leading NAND supplier and benefits directly from higher pricing power and tight supply. Risk: NAND pricing could normalize faster than expected if demand softens or capacity additions catch up.
MU
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This newsletter, published May 28, 2026, features Gaetano discussing P, MU. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Gaetano  · Tickers: P, MU