Highlights

  • Second quarter fiscal 2027 subscription revenue was $269 million, up 21% year over year, with SaaS revenue of $106 million.
  • Subscription ARR was $1,104 million, up 20% year over year, and operating cash flow was $75 million for the quarter.
  • Full year fiscal 2027 guidance: subscription revenue of $1,127 million to $1,133 million and subscription ARR of $1,205 million to $1,215 million.
  • Cash and cash equivalents were $897 million at September 30, 2026, and approximately 906,000 shares were repurchased for $119 million.

Commvault Systems, Inc. (NASDAQ: CVLT) shares were trading at USD 171.99 on October 27, 2026, up 2.54%, with a relative volume at time of 2.18. The data protection and cyber resilience software company introduced Commvault Active Directory Pre Recover, expanded its FedRAMP High Authorized Cyber Resilience Services to managed services providers, and reported second quarter fiscal 2027 results with updated full year guidance on October 27.

Commvault is incorporated in Delaware and has its principal executive offices at 1 Commvault Way in Tinton Falls, New Jersey. The company describes itself as delivering continuous recovery for the AI era, returning critical data, applications, identities and AI systems to a clean, trusted state. Its recovery solutions span cloud-native and hybrid environments. Subscription revenue includes term-based license, term-based support and software-as-a-service (SaaS), and the company also reports perpetual license, perpetual support and other services. Regions are Americas and International.

Second Quarter Fiscal 2027 Results

Results cover the fiscal second quarter ended September 30, 2026 and are unaudited. Total revenues were $312,389 thousand, compared with $276,188 thousand in the prior-year quarter. Subscription revenue was $268,512 thousand, compared with $222,351 thousand. Term-based license revenue was $105,002 thousand, term-based support was $57,307 thousand and SaaS revenue was $106,203 thousand. Perpetual license revenue was $7,205 thousand, down 40%, and perpetual support revenue was $23,482 thousand, down 23%.

Income from operations was $30,377 thousand, an operating margin of 9.7%, compared with $12,491 thousand a year earlier. Non-GAAP income from operations was $68,348 thousand, an operating margin of 21.9%. Net income was $29,111 thousand, or $0.69 per diluted share, compared with $14,730 thousand, or $0.33 per diluted share. Non-GAAP diluted earnings per share was $1.38, compared with $0.91.

For the six months ended September 30, 2026, net income was $50,250 thousand, or $1.19 per diluted share, including restructuring charges of $2,720 thousand.

Recurring Revenue, Cash Flow and Capital

Subscription ARR was $1,103,909 thousand at the end of the quarter, and SaaS ARR was $454,406 thousand. On a constant currency basis, subscription ARR was $1,107 million, with net new subscription ARR of $51 million for the quarter. Subscription net dollar retention rate was 113%. Commvault said it no longer discloses Total ARR.

Net cash provided by operating activities was $74,798 thousand, compared with $76,769 thousand a year earlier. Non-GAAP free cash flow was $70,866 thousand, compared with $73,582 thousand. Cash and cash equivalents totaled $897,250 thousand at September 30, 2026, compared with $899,987 thousand at March 31, 2026. Convertible notes, net, were $882,989 thousand, and total stockholders' equity was $12,534 thousand.

During the six months ended September 30, 2026, Commvault repurchased approximately 906,000 shares of common stock for $119 million. Weighted average diluted shares outstanding were approximately 42 million. On the call, management said it is on track to return at least 60% of annual free cash flow to shareholders.

Business Developments and Outlook

Commvault said Active Directory Pre Recover is designed to reduce clean recovery of Active Directory from hours to minutes. It also said it integrated Threat Scan with Google Threat Intelligence to help organizations identify clean recovery points faster.

For the third quarter of fiscal 2027, the company expects subscription revenue of between $293 million and $297 million and a non-GAAP EBIT margin of between 20.5% and 21.0%.

For full year fiscal 2027, it provided updated guidance of subscription revenue between $1,127 million and $1,133 million, subscription ARR between $1,205 million and $1,215 million, a non-GAAP EBIT margin between 21.0% and 21.5%, and free cash flow between $255 million and $265 million. Diluted shares outstanding are expected to be approximately 42 million. The subscription ARR midpoint of $1,210 million compares with $1,205 million in guidance as of June 30, 2026. The company noted that its guidance contemplates current macroeconomic conditions and that actual results may differ materially from anticipated results.