Commvault Announces First Quarter Fiscal 2026 Financial Results

Commvault [Nasdaq: CVLT] commenced fiscal year 2026 with robust momentum, reporting notable growth across key financial metrics for the first quarter ended June 30, 2025. The company’s total revenues reached $282 million, representing a significant 26% increase compared to the same quarter last year. This performance was underpinned by expanding demand for its data protection and cyber resilience solutions, reinforcing Commvault's strategic position in an increasingly digital-first global environment.

“Commvault delivered a strong start to the fiscal year, fueled by customer growth, disciplined execution, and rising demand for our industry-leading cyber resilience platform,” said Sanjay Mirchandani, President and CEO, Commvault. “With a best-in-class partner ecosystem and continuous innovation that we believe sets us apart, we are well-positioned to continue to take share in fiscal 2026 and beyond.”

Accelerated Recurring Revenue Growth Validates Subscription Strategy

Annual Recurring Revenue (ARR) climbed to $996 million, up 24% year over year, or 21% in constant currency terms based on March 31, 2025 spot rates. This continued acceleration reflects the growing reliance of enterprises on Commvault’s subscription offerings, which now form the backbone of its business model. Subscription revenues surged to $182 million in the quarter, a remarkable 46% year-over-year increase. This includes $109 million in term-based license revenue, up 36%, and $72 million in SaaS revenue, which posted a striking 66% year-over-year growth. Subscription ARR stood at $844 million, up 33% compared to the previous year, or 30% on a constant currency basis, emphasizing the strength and stickiness of Commvault’s as-a-service solutions.

Healthy Operating Performance Supports Scalable Business Model

Operationally, Commvault reported income from operations (EBIT) of $25 million, resulting in an operating margin of 8.9%. On a non-GAAP basis, EBIT came in at $58 million, yielding a healthy 20.7% margin, which highlights the company’s disciplined cost management and operating leverage as revenue scales. Operating cash flow for the quarter totalled $32 million, while free cash flow stood at $30 million, demonstrating consistent cash generation and financial stability.

Recognition and Innovation Underscore Market Leadership

Commvault’s leadership in the data protection space was once again reaffirmed as the company was named a Leader in the Gartner® Magic Quadrant™ for Backup and Data Protection Platforms for the 14th consecutive time. This continued recognition underscores the trust enterprises place in Commvault’s ability to innovate and deliver value at scale.

Pioneering Post-Quantum Readiness to Counter Emerging Threats

The company also unveiled enhancements to its post-quantum cryptography capabilities, furthering its commitment to future-proof data protection. These advancements are designed to safeguard long-term, sensitive information against the potential threats posed by quantum computing, positioning Commvault at the forefront of next-generation cyber resilience.

Strategic Alliances Expand Cybersecurity Ecosystem

Commvault’s progress in the first quarter was further bolstered by deepened strategic collaborations with leading global partners such as CrowdStrike, Deloitte, Hewlett Packard Enterprise (HPE), and Kyndryl. These alliances are aimed at enriching incident response strategies and strengthening the cyber resilience of enterprises around the world. By expanding its partner ecosystem, Commvault continues to drive customer value through tightly integrated solutions.

GovRAMP Authorization Expands Public Sector Opportunity

Adding to its momentum in regulated industries, Commvault Cloud received GovRAMP Authorized status at the state level for its cyber resilience SaaS offerings. This milestone complements its unique FedRAMP High authorization at the federal level, solidifying Commvault’s role as a trusted data security partner for government agencies across jurisdictions.

Forward Guidance Reflects Confidence Amid Macroeconomic Uncertainty

Looking ahead to the second quarter of fiscal 2026, Commvault projects total revenue in the range of $272 million to $274 million, reflecting a seasonally adjusted outlook amidst macroeconomic uncertainties. Subscription revenue is anticipated to be between $174 million and $176 million. On the profitability front, the company expects non-GAAP gross margins to remain strong, in the range of 81% to 82%, while maintaining a non-GAAP EBIT margin of approximately 20%. This guidance illustrates Commvault’s continued confidence in its business fundamentals and its ability to execute with operational rigor.