Data protection and cyber resilience solutions provider Commvault has reported robust financial results for the first quarter of fiscal year 2026, which ended on June 30. The company’s performance was driven by notable customer growth, disciplined operational execution, and increasing demand for its industry-leading cyber resilience platform.
For the quarter, Commvault recorded total revenues of $282 million, representing a 26% increase year-over-year (YoY). Total Annual Recurring Revenue (ARR) climbed to $996 million, up 24% YoY, or 21% on a constant currency basis. Subscription revenue reached $182 million, up 46% YoY, including $109 million from term-based license revenue (up 36%) and $72 million from Software-as-a-Service (SaaS) revenue (up 66%). Subscription ARR stood at $844 million, a 33% YoY increase, or 30% on a constant currency basis. The company reported income from operations (EBIT) of $25 million, reflecting an operating margin of 8.9%, while Non-GAAP EBIT came in at $58 million with an operating margin of 20.7%. Operating cash flow totalled $32 million, with free cash flow at $30 million.
Looking ahead, the company has issued guidance for the second quarter of fiscal 2026, projecting total revenues between $272 million and $274 million, subscription revenue between $174 million and $176 million, a Non-GAAP gross margin in the range of 81% to 82%, and a Non-GAAP EBIT margin of approximately 20%.
For the full fiscal year 2026, the company expects total revenues between $1.161 billion and $1.165 billion, with total ARR forecasted to grow 18% YoY. Subscription revenue is projected to be between $753 million and $757 million, and subscription ARR is expected to rise 24%. The company anticipates maintaining a Non-GAAP gross margin of 81% to 82% and a Non-GAAP EBIT margin of approximately 20.5%, with free cash flow estimated between $210 million and $215 million.
President and CEO Sanjay Mirchandani attributed the success to the company’s best-in-class partner ecosystem and continuous innovation, which he believes will enable the company to continue gaining market share through fiscal 2026 and beyond.
