Commvault Raises Fiscal 2027 Subscription Revenue Outlook

The Tip Desk · November 8, 2026 · 3 min read

Subscription revenue reached $269 million, up 21%, and the company lifted full-year subscription revenue guidance to as much as $1,133 million.

Commvault Systems (CVLT), the enterprise data-protection software company, reported subscription revenue of $269 million for the fiscal second quarter ended September 30, 2026, up 21% from a year earlier, after 16% growth in the prior quarter.

Total revenue was $312 million, up 13% year over year. Subscription annualized recurring revenue reached $1,104 million, up 20% year over year. Constant-currency subscription ARR was $1,107 million, with net new subscription ARR of $51 million on a constant-currency basis using March 31, 2026 spot rates, up from $41 million in the first quarter.

SaaS revenue was $106 million, up 33% year over year, slower than 39% growth in the prior quarter. Term-based license revenue was $105 million, up 13%. Term-based support was $57 million, up 15%.

Perpetual license revenue fell 40% year over year to $7.2 million after a 19% increase in the prior quarter. Perpetual support declined 23% to $23.5 million. Other services were $13.2 million, up 18%.

Americas revenue was $194 million, up 15% year over year, after 9% growth in the prior quarter. International revenue was $118 million, up 9%.

GAAP income from operations was $30 million, a 9.7% operating margin, after $26 million and an 8.2% margin in the first quarter. Non-GAAP EBIT was $68 million, a 21.9% margin, after $71 million and a 22.8% margin. GAAP diluted earnings were $0.69 a share, after $0.33 a year earlier. Non-GAAP diluted earnings were $1.38 a share.

Operating cash flow was $75 million and free cash flow was $71 million, after $52 million and $51 million in the first quarter. Cash and cash equivalents were $897 million as of September 30. During the six months ended September 30, the company repurchased about 906,000 shares for $119 million. Subscription net dollar retention was 113%. Weighted-average diluted shares were about 42 million.

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

Full-year fiscal 2027 subscription revenue guidance was raised to $1,127 million to $1,133 million from $1,119 million to $1,129 million. Subscription ARR guidance midpoint moved to $1,210 million from $1,205 million, with an $8 million adjustment on a revised annual outlook and a $3 million year-to-date currency impact. Non-GAAP EBIT margin is expected at 21.0% to 21.5%. Free cash flow guidance was raised to $255 million to $265 million from $250 million to $260 million. The company dropped prior full-year guidance that share repurchases would be approximately 60% of free cash flow. Diluted shares outstanding are expected to be approximately 42 million.

Beginning in fiscal 2027, subscription revenue was reclassified to include term-based support, and Total ARR including perpetual-license maintenance is no longer disclosed.

President and CEO Sanjay Mirchandani said enterprises are turning to Commvault to stay resilient as they navigate more data, identities and complexity, and that the company believes the quarter’s results reflect that momentum.