Commvault: Fiscal 3Q26 Financial Results

Summary:

• Total Revenue climbs +19% YoY to a record $314 million
• Annualized recurring revenue (ARR) reaches $1,085 million, up +22% YoY
• Sets high for new customers added in fiscal 2026

Commvault Systems Inc. announced its financial results for the fiscal third quarter ended December 31, 2025.“Commvault delivered another quarter of healthy growth and profitability driven by record customer engagement and adoption,” said Sanjay Mirchandani, president and CEO, Commvault. “Customers and partners are turning to Commvault because they require an AI-enabled platform that addresses rapidly evolving identity and emerging threats, supports compliance, and brings resilience to hybrid and multi-cloud environments.”

Notes are contained at the end of this press release

Third Quarter Fiscal 2026 Highlights

• Total revenues were $314 million, up 19% YoY
• Total ARR grew to $1,085 million, up 22% YoY, or 17% on a constant currency basis using March 31, 2025 spot rates
• Subscription revenue was $206 million, up 30% YoY, inclusive of term-based license revenue of $119 million, up 22% YoY, and SaaS revenue of $87 million, up 44% YoY
• Subscription ARR grew to $941 million, up 28% YoY, or 24% on a constant currency basis using March 31, 2025 spot rates
• Income from operations (EBIT) was $20 million, an operating margin of 6.3%
• Non-GAAP EBIT was $61 million, an operating margin of 19.6%
• Operating cash flow was $4 million, with free cash flow of $2 million, impacted by the timing of certain working capital items

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Recent Business Highlights

• Commvault released the Commvault Cloud Unity Platform, unifying data security, cyber recovery and identity resilience across cloud, hybrid and on-premise environments
• Commvault and Delinea announced a new partnership that expands Commvault’s unified data security, identity resilience, and cyber recovery offerings within the Commvault Cloud platform, enabling customers to manage credentials and limit privilege misuse
• Commvault received a 2025 Geography and Global AWS Partner Award, being named the Global Storage Partner of the Year
• Commvault announced a partnership with Pinecone, enabling customers to protect and recover vector database workloads that support enterprise AI applications

Financial Outlook for Fourth Quarter and Full Year Fiscal 2026

We are providing the following guidance for the fourth quarter of fiscal year 2026, based on current macroeconomic conditions:

• Total revenues are expected to be between $305 million and $308 million
• Subscription revenue is expected to be between $203 million and $207 million
• Non-GAAP gross margin is expected to be approximately 81%
• Non-GAAP EBIT margin is expected to be approximately 19%

We are providing the following updated guidance for the full fiscal year 2026, based on current macroeconomic conditions:

• Total revenues are expected to be between $1,177 million and $1,180 million
• Total ARR is expected to grow approximately 18% year over year
• Subscription revenue is expected to be between $764 million and $768 million
• Subscription ARR is expected to grow approximately 24% year over year
• Non-GAAP gross margin is expected to be between 81% and 81.5%
• Non-GAAP EBIT margin is expected to be between 19% and 20%
• Free cash flow is expected to be between $215 million and $220 million, reflecting one-time payments associated with the cost optimization program (restructuring plan) initiated in the third quarter

The above statements are based on the incorporation of actual third quarter results and current targets. These statements are forward-looking and made pursuant to the safe harbor provisions discussed in detail below. We do not undertake any obligation to update these forward-looking statements. Actual results may differ materially from anticipated results.