Commvault revenue rises 26% to USD $282 million in first quarter
Commvault has reported its financial results for the first quarter of fiscal 2026, noting an increase in total revenue and annualised recurring revenue.
Financial performance
The company posted record total revenue of USD $282 million for the quarter ending 30 June 2025, representing a 26% increase compared with the same period in the previous year. Annualised recurring revenue (ARR) rose to USD $996 million, up 24% year-on-year.
On a constant currency basis using 31 March 2025 spot rates, ARR increased by 21%.
Subscription revenue for the quarter reached USD $182 million, a 46% year-over-year increase. This figure includes term-based license revenue of USD $109 million, up 36%, and SaaS revenue of USD $72 million, up 66% over the same period in the prior fiscal year.
Subscription ARR stood at USD $844 million, marking a 33% rise year-on-year, or a 30% increase on a constant currency basis.
Income from operations (EBIT) for the quarter was USD $25 million, with an operating margin of 8.9%. On a non-GAAP basis, EBIT was USD $58 million, reflecting an operating margin of 20.7%. Operating cash flow was reported at USD $32 million, and free cash flow stood at USD $30 million.
Executive perspective
"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."
Operational highlights
For the 14th consecutive time, Commvault has been named a Leader in the Gartner Magic Quadrant for Backup and Data Protection Platforms.
In the first quarter, the company enhanced partnerships with organisations such as CrowdStrike, Deloitte, HPE, and Kyndryl, with the aim of strengthening incident response capabilities and cyber resilience for customers.
The company also expanded its post quantum computing capabilities, focusing on supporting customers to protect highly sensitive, long-term data against evolving cyber threats.
Commvault Cloud achieved GovRAMP Authorised status at the state level for its cyber resilience SaaS solutions, in addition to its existing FedRAMP High authorisation at the federal level.
Guidance for the coming periods
Commvault has provided financial guidance for the second quarter of fiscal 2026, accounting for current macroeconomic conditions. The company expects total revenues to be between USD $272 million and USD $274 million.
Subscription revenue is forecast to range from USD $174 million to USD $176 million. Non-GAAP gross margin is anticipated to be between 81% and 82%, with a non-GAAP EBIT margin of approximately 20%.
For the full fiscal year 2026, Commvault projects total revenues between USD $1,161 million and USD $1,165 million. Total ARR is forecast to grow 18% year-over-year, while subscription revenue is expected to be between USD $753 million and USD $757 million.
Subscription ARR is predicted to grow 24% year-over-year. Non-GAAP gross margin is expected to remain between 81% and 82%, while non-GAAP EBIT margin is forecast at approximately 20.5%. Free cash flow for the full year is anticipated to be between USD $210 million and USD $215 million.
These forecasts are based on actual first quarter results, current targets, and the pending acquisition of Satori Cyber, which is expected to close in the second quarter of fiscal 2026.
The company noted that these statements are forward looking and subject to adjustments should conditions change. "Actual results may differ materially from anticipated results," the company stated. "We do not undertake any obligation to update these forward-looking statements."
