Commvault Announces First Quarter Fiscal 2027 Financial Results
Subscription revenue 1 climbs +16% year over year to a record $267 million
Subscription annualized recurring revenue (ARR) 1, 2 reaches $1,054 million, up +22% year over year
Free cash flow 3 increased +71% year over year to $51 million
TINTON FALLS, N.J., July 28, 2026 /PRNewswire/ -- Commvault (Nasdaq: CVLT) today 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 -
Recent Business Highlights -
Financial Outlook for Second Quarter and Full Year Fiscal 2027 4 -
We are providing the following guidance for the second quarter of fiscal year 2027:
We are providing the following updated guidance for the full fiscal year 2027:
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.
Conference Call Information
Commvault will host a conference call today, July 28, 2026 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss quarterly results. The live webcast and call dial-in numbers can be accessed by registering under the "News & Events" section of Commvault's website at ir.commvault.com under the "Investor Events" heading. An archived webcast of this conference call will also be available following the call.
About Commvault
Commvault (Nasdaq: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.
Safe Harbor Statement
This press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as those related to our restructuring plans, competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.
Overview
($ in thousands)
Q1'26
Q2'26
Q3'26
Q4'26
Q1'27
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Subscription:
Term-based license
$ 109,282
36 %
$ 92,647
10 %
$ 118,950
22 %
$ 114,445
6 %
$ 110,420
1 %
Term-based support
47,582
20 %
49,686
19 %
50,962
18 %
53,933
21 %
56,057
18 %
SaaS
72,445
66 %
80,018
61 %
87,379
44 %
93,139
43 %
100,550
39 %
Total subscription
229,309
40 %
222,351
26 %
257,291
28 %
261,517
20 %
267,027
16 %
Perpetual license
7,335
(47) %
12,073
15 %
13,675
(17) %
10,129
(32) %
8,695
19 %
Perpetual support
31,439
(14) %
30,543
(15) %
29,309
(14) %
26,972
(15) %
25,475
(19) %
Other services
13,895
31 %
11,221
2 %
13,557
25 %
13,074
26 %
12,934
(7) %
Total revenues
$ 281,978
26 %
$ 276,188
18 %
$ 313,832
19 %
$ 311,692
13 %
$ 314,131
11 %
Constant Currency - Revenue
($ in thousands)
The constant currency impact is calculated using the average foreign exchange rates from the prior year period and applying these rates to foreign-denominated revenues in the current corresponding period. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Q1'26
Revenue as
Reported
(GAAP)
Q1'27
Revenue as
Reported
(GAAP)
Constant
Currency
Impact
% Change Y/Y
(GAAP)
% Change Y/Y
Constant
Currency
Subscription:
Term-based license
$ 109,282
$ 110,420
$ (659)
1 %
— %
Term-based support
47,582
56,057
(603)
18 %
17 %
SaaS
72,445
100,550
(1,166)
39 %
37 %
Total subscription
229,309
267,027
(2,428)
16 %
15 %
Perpetual license
7,335
8,695
150
19 %
21 %
Perpetual support
31,439
25,475
(243)
(19) %
(20) %
Other services
13,895
12,934
114
(7) %
(6) %
Total
$ 281,978
$ 314,131
$ (2,407)
11 %
11 %
Disaggregation of Revenues
($ in thousands)
Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, the Middle East, Africa, Australia, India and Southeast Asia.
Q1'26
Q2'26
Q3'26
Q4'26
Q1'27
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Americas
$ 170,928
23 %
$ 168,125
16 %
$ 178,852
15 %
$ 184,977
9 %
$ 186,779
9 %
International
111,050
29 %
108,063
22 %
134,980
26 %
126,715
20 %
127,352
15 %
Total revenues
$ 281,978
26 %
$ 276,188
18 %
$ 313,832
19 %
$ 311,692
13 %
$ 314,131
11 %
Subscription ARR and SaaS ARR 1,2
($ in thousands)
Q1'26
Q2'26
Q3'26
Q4'26
Q1'27
Subscription ARR
867,306
918,130
966,260
1,014,729
1,054,311
SaaS ARR
306,874
335,669
363,732
400,157
424,337
Additional Financial Information
Commvault Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
2026
2025
Revenues:
Subscription:
Term-based license
$ 110,420
$ 109,282
Term-based support
56,057
47,582
Software-as-a-service
100,550
72,445
Total subscription
267,027
229,309
Perpetual license
8,695
7,335
Perpetual support
25,475
31,439
Other services
12,934
13,895
Total revenues
314,131
281,978
Cost of revenues:
Term-based license
4,243
2,242
Software-as-a-service
29,652
25,972
Perpetual license
171
245
Customer support
14,699
14,207
Other services
8,844
8,111
Total cost of revenues
57,609
50,777
Gross margin
256,522
231,201
Operating expenses:
Sales and marketing
139,795
122,479
Research and development
39,542
40,062
General and administrative
46,751
41,270
Depreciation and amortization
2,319
2,607
Restructuring
2,396
237
Change in contingent consideration
—
(545)
Total operating expenses
230,803
206,110
Income from operations
25,719
25,091
Interest income
7,687
2,009
Interest expense
(1,473)
(278)
Other income, net
269
61
Income before income taxes
32,202
26,883
Income tax expense
11,063
3,387
Net income
$ 21,139
$ 23,496
Net income per common share:
Basic
$ 0.51
$ 0.53
Diluted
$ 0.50
$ 0.52
Weighted average common shares outstanding:
Basic
41,345
44,326
Diluted
41,869
45,283
Commvault Systems, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30,
March 31,
2026
2026
ASSETS
Current assets:
Cash and cash equivalents
$ 929,837
$ 899,987
Trade accounts receivable, net
271,568
330,483
Other current assets
65,520
56,040
Total current assets
1,266,925
1,286,510
Deferred tax assets, net
150,360
153,766
Property and equipment, net
9,677
9,750
Operating lease assets
33,985
34,920
Deferred commissions cost
110,465
103,892
Intangible assets, net
18,459
19,715
Goodwill
209,132
209,322
Other assets
91,418
68,430
Total assets
$ 1,890,421
$ 1,886,305
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 156
$ 651
Accrued liabilities
138,979
165,583
Current portion of operating lease liabilities
7,148
6,963
Deferred revenue
473,744
484,973
Total current liabilities
620,027
658,170
Convertible notes, net
881,926
880,863
Deferred revenue, less current portion
291,151
293,725
Deferred tax liabilities
1,306
1,565
Long-term operating lease liabilities
28,581
29,675
Other liabilities
15,379
14,813
Total stockholders' equity
52,051
7,494
Total liabilities and stockholders' equity
$ 1,890,421
$ 1,886,305
Commvault Systems, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
June 30,
2026
2025
Cash flows from operating activities
Net income
$ 21,139
$ 23,496
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
2,319
2,607
Amortization of debt issuance costs
1,164
85
Amortization of deferred commissions costs
14,582
10,989
Noncash stock-based compensation
35,290
30,180
Noncash operating lease expense
1,916
1,636
Noncash change in fair value of contingent consideration
—
(545)
Noncash adjustment on headquarters sale leaseback
—
495
Deferred income taxes
2,962
3,908
Other
(182)
(61)
Changes in operating assets and liabilities:
Trade accounts receivable, net
58,714
3,748
Other current assets and Other assets
(23,190)
2,378
Deferred commissions cost
(21,299)
(15,072)
Accounts payable
(506)
(320)
Accrued liabilities
(26,281)
(47,260)
Operating lease liabilities
(1,889)
(1,908)
Deferred revenue
(12,308)
17,440
Other liabilities
(761)
(115)
Net cash provided by operating activities
51,670
31,681
Cash flows from investing activities
Purchase of property and equipment
(569)
(1,879)
Purchase of investments
(7,895)
(6,144)
Proceeds from sale of headquarters, net
—
34,849
Net cash provided by (used in) investing activities
(8,464)
26,826
Cash flows from financing activities
Repurchase of common stock
(10,131)
(15,050)
Payment of debt issuance costs
—
(1,846)
Other
(75)
(12)
Net cash used in financing activities
(10,206)
(16,908)
Effects of exchange rate — changes in cash
(3,150)
19,532
Net increase in cash and cash equivalents
29,850
61,131
Cash and cash equivalents at beginning of period
899,987
302,103
Cash and cash equivalents at end of period
$ 929,837
$ 363,234
Supplemental disclosures of noncash activities
Operating lease liabilities arising from obtaining right-of-use assets
$ 932
$ 20,252
Commvault Systems, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
2026
2025
Non-GAAP financial measures and reconciliation:
GAAP income from operations
$ 25,719
$ 25,091
Noncash stock-based compensation 6
34,725
30,105
FICA and payroll tax expense related to stock-based compensation 7
877
1,799
Restructuring 8
2,396
237
Amortization of intangible assets 9
1,256
1,071
Change in contingent consideration 10
—
(545)
Adjustment on headquarters sale leaseback 11
—
495
Non-recurring strategic pricing initiative costs 12
6,500
—
Non-GAAP income from operations
$ 71,473
$ 58,253
GAAP net income
$ 21,139
$ 23,496
Noncash stock-based compensation 6
34,725
30,105
FICA and payroll tax expense related to stock-based compensation 7
877
1,799
Restructuring 8
2,396
237
Amortization of intangible assets 9
1,256
1,071
Change in contingent consideration 10
—
(545)
Adjustment on headquarters sale leaseback 11
—
495
Non-recurring strategic pricing initiative costs 12
6,500
—
Non-GAAP provision for income taxes adjustment 13
(7,646)
(11,024)
Non-GAAP net income
$ 59,247
$ 45,634
GAAP diluted earnings per share
$ 0.50
$ 0.52
Noncash stock-based compensation 6
0.83
0.66
FICA and payroll tax expense related to stock-based compensation 7
0.02
0.04
Restructuring 8
0.06
0.01
Amortization of intangible assets 9
0.03
0.02
Change in contingent consideration 10
—
(0.01)
Adjustment on headquarters sale leaseback 11
—
0.01
Non-recurring strategic pricing initiative costs 12
0.16
—
Non-GAAP provision for income taxes adjustment 13
(0.18)
(0.24)
Non-GAAP diluted earnings per share
$ 1.42
$ 1.01
GAAP diluted weighted average shares outstanding
41,869
45,283
Three Months Ended
June 30,
2026
2025
Non-GAAP free cash flow reconciliation:
GAAP cash provided by operating activities
$ 51,670
$ 31,681
Purchase of property and equipment
(569)
(1,879)
Non-GAAP free cash flow
$ 51,101
$ 29,802
Key Performance Indicators
We monitor subscription annualized recurring revenue ("Subscription ARR"), SaaS ARR and subscription net dollar retention rate ("Subscription NRR") to help evaluate the state of our business. We believe these metrics are material to investors to understand the growth and performance of our business, as they help normalize certain variable factors and provide a consistent view of our recurring revenue profile. Subscription ARR and SaaS ARR exclude non-recurring elements and reflect the annualized value of active contracts, while subscription NRR measures net expansion within our existing subscription customer base. Together, we believe these metrics offer meaningful insight into the health and trajectory of our recurring revenue streams. Total ARR, which also included the annualized maintenance contract on perpetual licenses, is no longer disclosed.
Use of Non-GAAP Financial Measures
We have provided in this press release the following non-GAAP financial measures: non-GAAP income from operations (EBIT), non-GAAP EBIT margin, non-GAAP net income, non-GAAP diluted earnings per share, and non-GAAP free cash flow. This financial information has not been prepared in accordance with GAAP. Commvault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. Commvault believes that the use of these non-GAAP financial measures, when used as a supplement to GAAP financial measures, provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Commvault's industry, many of which present similar non-GAAP financial measures to the investment community. Commvault has also provided its revenues on a constant currency basis. We analyze revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.
All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are included in this press release.
Non-GAAP EBIT and non-GAAP EBIT margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional Federal Insurance Contribution Act (FICA) and related payroll tax expense incurred by Commvault when employees vest in restricted stock awards. Commvault has also excluded restructuring costs, noncash amortization of intangible assets, the change in the estimated fair value of contingent consideration, adjustments from the sale and leaseback of headquarters, and non-recurring strategic pricing initiative costs from its non-GAAP results. These adjustments are further discussed in the reconciliation of GAAP to non-GAAP financial measures. Commvault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare Commvault's core operating results over multiple periods. When evaluating the performance of Commvault's operating results and developing short- and long-term plans, Commvault does not consider such expenses.
Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on vesting of restricted stock awards allow investors to make meaningful comparisons between Commvault's operating results and those of other companies.
There are a number of limitations related to the use of non-GAAP EBIT and non-GAAP EBIT margin. The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in Commvault's operating results. In addition, noncash stock-based compensation is an important part of Commvault's employees' compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ in thousands):
Three Months Ended
June 30,
2026
2025
Cost of revenues
$ 1,403
$ 1,249
Sales and marketing
14,168
12,586
Research and development
8,284
7,070
General and administrative
10,870
9,200
Stock-based compensation expense
$ 34,725
$ 30,105
The table above excludes stock-based compensation expense related to the Company's restructuring activities described below in Note 8.
The components that Commvault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures. Due to the limitations related to the use of non-GAAP measures, Commvault's management assists investors by providing a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Commvault's management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.
Non-GAAP net income and non-GAAP diluted earnings per share (EPS). In addition to the adjustments discussed in non-GAAP EBIT, non-GAAP net income and non-GAAP diluted EPS incorporates a non-GAAP effective tax rate of 24%.
Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rates in recent fiscal years were not meaningful percentages due to the dollar amount of GAAP pre-tax income. For the same reason as the GAAP tax rates, the estimated cash tax rates in recent fiscal years are not meaningful percentages. Commvault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income. Over time, Commvault believes its GAAP and cash tax rates will align.
Commvault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for Commvault management and its investors for the same basic reasons that Commvault uses non-GAAP EBIT and non-GAAP EBIT margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP net income and non-GAAP diluted EPS.
Non-GAAP free cash flow. Commvault defines this non-GAAP financial measure as net cash provided by operating activities less purchases of property and equipment. Commvault considers non-GAAP free cash flow a useful metric for Commvault management and its investors in evaluating Commvault's ability to generate cash from its business operations. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP free cash flow.
Forward-looking non-GAAP measures. In this press release, Commvault presents non-GAAP EBIT margin and free cash flow on a forward-looking basis. The most directly comparable GAAP measures are not accessible on a forward-looking basis without unreasonable efforts, because certain items that impact these GAAP measures, cannot be reasonably predicted or quantified. The probable significance of these items may be material, and as a result, the corresponding GAAP measures and a quantitative reconciliation to those GAAP measures are not available on a forward-looking basis.
Notes
SOURCE COMMVAULT