Commvault Reports 18% Revenue Growth to $276.2 Million in Q2 Fiscal 2026

Commvault Systems, Inc. reported significant financial performance for the second quarter of fiscal 2026, ending September 30, 2025, with total revenues reaching $276.2 million, an increase of 18% compared to $233.3 million in the same period last year. The growth was primarily driven by a 29% rise in subscription revenues, which totaled $172.7 million, bolstered by a 61% increase in Software-as-a-Service (SaaS) revenue, which amounted to $80.0 million. The company also reported a net income of $14.7 million, or $0.33 per diluted share, down from $15.6 million, or $0.35 per diluted share, in the prior year.

In the first half of fiscal 2026, Commvault's total revenues increased by 22% to $558.2 million, compared to $458.0 million in the same period of the previous year. Subscription revenues for the six months rose 37% to $354.4 million, with SaaS revenue alone growing 63% to $152.5 million. The company attributed this growth to both new customer acquisitions and expansion within its existing customer base. However, perpetual license revenue saw a decline of 20%, reflecting a strategic shift towards subscription-based offerings.

Strategically, Commvault completed the acquisition of Satori Cyber, Ltd., a data and AI security company, for approximately $28.3 million in cash, aimed at enhancing its product portfolio. The company also issued $900 million in convertible senior notes, which will mature in 2030, to fund various initiatives, including share repurchases and the acquisition of capped call transactions to mitigate potential dilution from the notes. As of September 30, 2025, Commvault's cash and cash equivalents stood at $1.06 billion, a significant increase from $302.1 million at the end of the previous fiscal year.

Operationally, Commvault reported a total of 44,051 shares outstanding as of September 30, 2025, with a total stockholders' equity of $210.5 million, down from $325.1 million at the end of the previous fiscal year. The company’s Annualized Recurring Revenue (ARR) reached $1.04 billion, reflecting a 22% increase year-over-year, with Subscription ARR growing by 30% to $893.7 million. The SaaS ARR also saw a notable increase of 56%, reaching $335.7 million, indicating strong customer adoption of cloud-based solutions.

Looking ahead, Commvault remains focused on expanding its subscription offerings and enhancing customer engagement through its SaaS platform. The company anticipates continued growth in its recurring revenue streams, driven by both new customer acquisitions and existing customer expansions. However, it also acknowledges potential risks associated with market conditions and the integration of acquired businesses, which could impact future performance.