Commvault: Fiscal 1Q27 Financial Results

Summary:

Total Revenue climbs 11% YoY to a record $314 million
Annualized recurring revenue (ARR) reaches $1,054 million, up 22% YoY

Commvault Systems Inc. announced its financial results for the fiscal first quarter ended June 30, 2026.“Our results reflect what we’re hearing from customers every day – they are embracing our AI-enabled platform to protect data, govern access, and make clean, trusted recoveries,” said Sanjay Mirchandani, president and CEO, Commvault. “With strong growth and record profitability, Commvault is well positioned to continue taking share in an AI-first world.”

Notes are contained at the end of this press release

First Quarter Fiscal 2027 Highlights

Subscription revenue¹ was $267 million, up 16% YoY, inclusive of:

◦ SaaS revenue crossed $100 million, up 39% YoY
Subscription ARR^1,2 grew to $1,054 million, up 22% YoY
Income from operations (EBIT) was $26 million, an operating margin of 8.2%
Non-GAAP EBIT³ was $71 million, an operating margin of 22.8%
Operating cash flow was $52 million, with free cash flow³ of $51 million, up 71% YoY

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Recent Business Highlights

Commvault and Microsoft announced a multi-year strategic partnership to offer Commvault’s AI and cyber resilience solutions as a native ISV service on Microsoft Azure, underscoring the importance of AI and resilience for enterprises
Commvault was named a Leader in the Gartner Magic Quadrant for Backup and Data Protection Platforms
Commvault was named a Leader in the Coldago Map 2025 for Modern Data Protection

Financial Outlook for Second Quarter and Full Year Fiscal 2027⁴We are providing the following guidance for the second quarter of fiscal year 2027:

Subscription revenue¹ is expected to be between $264 million and $268 million
Non-GAAP EBIT margin³ is expected to be approximately 20%

We are providing the following updated guidance for the full fiscal year 2027:

Subscription revenue¹ is expected to be between $1,119 million and $1,129 million
Subscription ARR^1,2 is expected to be between $1,200 million and $1,210 million
Non-GAAP EBIT margin³ is expected to be approximately 21%
Free cash flow³ is expected to be between $250 million and $260 million
Share repurchases are expected to be approximately 60% of free cash flow³
Diluted shares outstanding are expected to be approximately 42 million

The above guidance metrics contemplate current macroeconomic conditions. 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.

Notes

Beginning in fiscal 2027, Customer support revenue has been further disaggregated between support associated with term-based software license arrangements (“Term-based support”) and support associated with perpetual software license arrangements (“Perpetual support”). Subscription revenue has also been reclassified to include Term-based support revenue, in addition to Term-based license and SaaS revenues. Prior period amounts have been reclassified to conform to the current-period presentation. These reclassifications have no impact on total revenues, net income, or the underlying revenue recognition for these arrangements

In addition, Subscription ARR² has been reclassified to include enterprise support, further aligning Subscription ARR with Subscription revenue. Prior to fiscal 2027, enterprise support was included only in Total ARR. Prior period amounts have been reclassified to conform to the current period presentation. Total ARR, which also included the annualized maintenance contract on perpetual licenses, is no longer disclosed

Subscription ARR represents the annualized value of all active contracts as of the end of a reporting period attributable to term-based licenses, maintenance and support services associated with term license arrangements, SaaS subscriptions, and consumption-based arrangements, calculated by dividing the total active contract value by the number of days in the contract term and multiplying the result by 365. For consumption-based arrangements on a pay as you go model without a fixed commitment, the applicable ARR is calculated by annualizing the revenue contractually expected to be received in a given month based on actual monthly usage from a prior month. SaaS ARR includes only the cloud-hosted portion of subscription ARR and is calculated using the same methodology.These metrics should be viewed independently of GAAP revenue, deferred revenue and unbilled revenue and are not intended to be combined with or to replace those items

These metrics are not a forecast of future revenues. Management believes that reviewing these metrics, in addition to GAAP results, helps investors and financial analysts understand the value of Commvault’s recurring revenue streams presented on an annualized basis. There is no direct GAAP comparative to ARR

A reconciliation of GAAP to non-GAAP results has been provided in the reconciliation of GAAP to non- GAAP financial measures included in this press release. An explanation of these measures is also included under the heading “Use of Non-GAAP Financial Measures.”

Commvault does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See “Forward-looking non-GAAP measures” for additional explanation