Commvault Reports Record Revenue Growth

By Chris Stiles • Tuesday, January 27 15:06 • Permanent Link

Commvault (NASDAQ: CVLT) has reported its financial results for the fiscal third quarter ended December 31, 2025, showcasing a robust performance and record-breaking achievements. The company's total revenue escalated by 19% year over year to reach a new high of $314 million. Additionally, the Annualized Recurring Revenue (ARR) surged by 22% year over year, reaching an impressive $1,085 million.

The subscription revenue also demonstrated remarkable growth, hitting $206 million, which is a substantial 30% increase over the previous year. This figure includes term-based license revenue of $119 million, marking a 22% increase, and SaaS revenue of $87 million, which soared by 44% year over year.

Commvault's income from operations (EBIT) stood at $20 million, reflecting an operating margin of 6.3%. On a non-GAAP basis, the EBIT was reported at $61 million, with an operating margin of 19.6%, showcasing the company's strong profitability.

The company's operating cash flow for the quarter was $4 million, with free cash flow of $2 million, impacted by the timing of certain working capital items.

The business also achieved several significant milestones during the period, including the release of the Commvault Cloud Unity platform, a new partnership with Delinea, and being named the global storage partner of the year by AWS.

Looking ahead, Commvault provided guidance for the fourth quarter and full fiscal year 2026. The company expects total revenues for the full year to be between $1,177 million and $1,180 million, with total ARR expected to grow approximately 18% year over year. Additionally, subscription revenue is projected to be between $764 million and $768 million, with subscription ARR expected to grow approximately 24% year over year.

The non-GAAP gross margin is anticipated to be between 81% and 81.5%, with the non-GAAP EBIT margin expected to range from 19% to 20%. The company also provided a projection for free cash flow, which is expected to be between $215 million and $220 million.

Commvault's strong financial performance and the positive outlook for the future reflect its ability to deliver value to its customers and capitalize on opportunities in the evolving data management landscape. As a result of these announcements, the company's shares have moved -2.41% on the market, and are now trading at a price of $122.17. Check out the company's full 8-K submission here.

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