Quantum Doubles EPS Estimate on Surging Hyperscale Tape Demand
As seen on the 24/7 Wall St. homepage on November 9, 2026.
Hyperscale tape demand rose more than 2.6 times year over year, pushing Quantum to a record backlog of nearly $100 million and a second straight quarter of non-GAAP profitability. Management guided fiscal Q3 revenue to about $91 million, which would extend the streak to five consecutive quarters of sequential growth.
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Quantum reported fiscal Q2 2027 revenue of $89.6 million, exceeding expectations against the $82.3 million consensus and representing a 42.9% jump year over year. The non-GAAP EPS of $0.25 was exactly double the $0.125 analyst estimate, marking the company's second consecutive quarter of non-GAAP profitability after a string of losses stretching back through fiscal 2025 and into early 2026.
The engine behind the revenue surge was product sales, which climbed from $35.4 million a year ago to $62.6 million this quarter, driven by hyperscale tape demand that grew more than 2.6 times year over year. CEO Hugues Meyrath attributed that acceleration to customers turning to tape storage to manage AI-driven infrastructure strain, calling tape the company's most consistent growth driver.
Two landmark orders punctuated the quarter. Quantum secured what management described as one of the most significant purchase orders in company history, a major hyperscale deployment of its Scalar i7 Raptor following a multi-year evaluation. The company also closed the largest ActiveScale Cold Storage order in its history, nearly doubling the number of core transactions above $500,000.
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Gross margin expanded 340 basis points year over year to 41.0%, and the company swung to a GAAP operating income of $6.78 million from an operating loss of $8.16 million in the prior-year period. However, a $51.6 million non-cash charge tied to the change in fair value of warrant liabilities pushed the GAAP net loss to $44.85 million, a figure investors should weigh separately from the underlying operating performance.
The quarter ended with a record backlog of nearly $100 million, providing visibility into the near term. Management guided fiscal Q3 2027 revenue to approximately $91 million, which would extend a streak of sequential revenue growth to five consecutive quarters, with non-GAAP EPS guidance of $0.20 and adjusted EBITDA of $9.1 million. Supply constraints on shipment timing remain a risk, though Meyrath noted that the company's ability to secure disk drives has improved.
Mentioned: QMCO