Commvault Reports 26% Revenue Growth and Increased Net Income in Q1 Fiscal 2026

Commvault Systems, Inc. reported a significant increase in financial performance for the first quarter of fiscal 2026, ending June 30, 2025. The company achieved total revenues of $281.98 million, a 26% increase from $224.67 million in the same period last year. This growth was primarily driven by a 46% rise in subscription revenues, which totaled $181.73 million, compared to $124.08 million in the prior year. Notably, term-based license revenue surged by 36% to $109.28 million, while Software-as-a-Service (SaaS) revenue increased by 66% to $72.45 million. However, perpetual license revenue saw a decline of 47%, falling to $7.34 million.

The company's net income also rose, reaching $23.50 million, or $0.52 per diluted share, compared to $18.53 million, or $0.41 per diluted share, in the previous year. This represents a 27% increase in net income year-over-year. The gross margin remained stable at approximately 82%, with total operating expenses increasing to $206.11 million from $166.46 million, largely due to higher sales and marketing costs, which rose by 28% to $122.48 million.

Strategically, Commvault has been focusing on enhancing its product offerings and expanding its market presence. The company completed the sale of its corporate headquarters for $36 million, which allowed it to enter a leaseback arrangement, optimizing its operational costs. Additionally, Commvault announced plans to acquire Satori Cyber, Ltd., a data and AI security company, for approximately $24 million, furthering its commitment to advancing cyber resilience solutions.

Operationally, Commvault reported a total of 44,509 common shares outstanding as of June 30, 2025, reflecting an increase from 43,769 shares a year earlier. The company also noted a significant rise in its Annualized Recurring Revenue (ARR), which reached $996.2 million, a 24% increase from $802.7 million in the previous year. Subscription ARR specifically grew by 33% to $843.9 million, indicating strong customer adoption and retention rates. The SaaS Net Dollar Retention Rate stood at 125%, demonstrating effective customer engagement and expansion within existing accounts.

Looking ahead, Commvault remains optimistic about its growth trajectory, emphasizing its focus on subscription-based revenue models and continued investment in research and development. The company anticipates that its strategic initiatives, including the recent acquisition and ongoing product enhancements, will position it well to capitalize on the increasing demand for data protection and recovery solutions in a landscape marked by rising cyber threats.