Commvault Reports Impressive Financial Growth for Fiscal Q3 2026
Commvault Reports Impressive Financial Growth for Fiscal Q3 2026
Commvault, a prominent name in the enterprise data protection and recovery sector, recently shared its financial performance for the third quarter of fiscal 2026, which concluded on December 31, 2025. The report highlights substantial milestones in revenue and subscription growth, affirming Commvault's position in the ever-evolving cloud and data landscape.
Revenue Surge and Highlights
Commvault has achieved a remarkable total revenue of $314 million, marking a 19% increase compared to the previous year. This robust growth is a testament to the company's commitment to delivering top-notch data solutions that resonate with an expanding customer base. Notably, the annualized recurring revenue (ARR) soared to $1,085 million, reflecting a 22% rise year-over-year.
Sanjay Mirchandani, Commvault's President and CEO, commented on the company’s performance, stating, "Commvault delivered another quarter of healthy growth and profitability driven by record customer engagement and adoption." This surge in revenue is further indicative of a significant uptick in customer reliance on Commvault’s services to navigate modern data challenges, particularly in an era where AI-enabled security and data resilience are critical.
Subscription Revenue Breakdown
In a more detailed look, the subscription revenue for Commvault reached $206 million, reflecting a 30% increase from the prior year. This strength is rooted in the substantial growth of its Software-as-a-Service (SaaS) offerings, which generated $87 million in revenue, up an impressive 44% year-over-year. Additionally, term-based license revenue also saw gains, increasing by 22% to reach $119 million.
The subscription ARR, which is crucial for assessing the recurring revenue model, grew to $941 million, showcasing a 28% increase. This growth further highlights the effectiveness of Commvault’s strategy to pivot towards subscription-based services that offer predictable revenue streams and ongoing customer engagement.
Operational Performance and Cash Flow
Commvault reported an operating income of $20 million, yielding an operating margin of 6.3%. Notably, when adjusted for non-GAAP measures, the EBIT reached $61 million, equating to a more robust operating margin of 19.6%. Moreover, the operating cash flow amounted to $4 million, with a free cash flow of $2 million. The cash flow was influenced by temporary factors linked to working capital cycles. Commvault's proactive management of cash flow illustrates its ability to balance investment in growth while maintaining a healthy liquidity position.
Business Innovations and Partnerships
In line with its growth trajectory, Commvault introduced innovative solutions and strategic partnerships. Recently, the company launched the Commvault Cloud Unity Platform, designed to enhance data security and cyber recovery capabilities across various environments. A significant collaboration with Delinea was also announced, which aims to expand Commvault's data security offerings by integrating credential management solutions.
The company’s accolades further emphasize its prominence in the industry, as Commvault was awarded the Global Storage Partner of the Year at the 2025 Geographical and Global AWS Partner Awards. Furthermore, another partnership with Pinecone has been established, focusing on safeguarding vector database workloads that support enterprise AI applications, reinforcing Commvault's commitment to integrating AI into its service offerings.
Looking Ahead
As Commvault enters the fourth quarter of fiscal 2026, it maintains a positive outlook. Guidance suggests that total revenues are expected to range between $305 million and $308 million, while subscription revenues should land between $203 million and $207 million. With the company predicting that its ARR will continue to grow at approximately 18% year-over-year, Commvault appears well-positioned to sustain its momentum through continued innovation and responsiveness to market demands.
For investors and stakeholders, Commvault’s impressive financial results present an optimistic view of the company’s future. The combination of a solid financial foundation, innovative product offerings, and enhanced customer engagement bodes well for ongoing success in the fast-paced world of enterprise data management and security.
Topics General Business）
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