Commvault: Fiscal 2Q27 Financial Results

Summary:

Subscription revenue climbs +21% YoY to $269 million
Subscription annualized recurring revenue (ARR) reaches $1,104 million, up +20% YoY
Operating cash flow of $75 million, with free cash flow of $71 million

Commvault Systems Inc. announced its financial results for the fiscal second quarter ended September 30, 2026.“With AI accelerating both innovation and risk in the enterprise, resilience continues to be a business imperative,” said Sanjay Mirchandani, president and CEO, Commvault. “Enterprises globally are increasingly turning to Commvault to stay resilient as they navigate more data, more identities, and greater complexity. We believe our strong Q2 results reflect that momentum, driving durable growth and shareholder value.”

Second Quarter Fiscal 2027 Highlights

Subscription revenue was $269 million, up 21% YoY, inclusive of:
Subscription ARR grew to $1,104 million, up 20% YoY
◦ Constant currency subscription ARR was $1,107 million, with fiscal Q2 net new subscription ARR of $51 million on a constant currency basis using March 31, 2026 spot rates
Income from operations (EBIT) was $30 million, an operating margin of 9.7%
3 was $68 million, an operating margin of 21.9%
Operating cash flow was $75 million, with free cash flow of $71 million

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Recent Business Highlights

Commvault introduced Commvault Active Directory Pre Recover, a new Identity Resilience innovation designed to reduce clean recovery of Active Directory from hours to minutes
Commvault expanded its FedRAMP High Authorized Cyber Resilience Services to managed services providers for protection and recovery of sensitive government data while supporting evolving federal cybersecurity requirements
Commvault integrated Threat Scan with Google Threat Intelligence to help organizations identify clean recovery points faster and accelerate recovery following cyberattacks

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

Subscription revenue is expected to be between $293 million and $297 million
Non-GAAP EBIT margin is expected to be between 20.5% and 21.0%

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

Subscription revenue is expected to be between $1,127 million and $1,133 million
Subscription ARR is expected to be between $1,205 million and $1,215 million
Non-GAAP EBIT margin is expected to be between 21.0% and 21.5%
Free cash flow is expected to be between $255 million and $265 million
Diluted shares outstanding are expected to be approximately 42 million

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