Commvault shares surge 5% as first quarter results exceed expectations

Published 29/07/2025, 13:08
 Commvault shares surge 5% as first quarter results exceed expectations

TINTON FALLS, N.J. - On Tuesday, Commvault Systems (NASDAQ:CVLT) reported first-quarter fiscal 2026 results that surpassed analyst expectations, driven by strong subscription revenue growth.

The company’s shares jumped 5.23% in pre-market trading following the earnings release.

The company posted adjusted earnings of $1.01 per share for the quarter ended June 30, beating analyst estimates of $0.97. Revenue climbed 26% YoY to $282 million, significantly above the consensus forecast of $267.84 million. Subscription revenue, which includes term-based licenses and Software-as-a-Service (SaaS), surged 46% YoY to $181.7 million, with SaaS revenue alone jumping 66% to $72.4 million.

"Commvault delivered a strong start to the fiscal year, fueled by customer growth, disciplined execution, and rising demand for our industry-leading cyber resilience platform," said Sanjay Mirchandani, President and CEO of Commvault. "With a best-in-class partner ecosystem and continuous innovation that we believe sets us apart, we are well-positioned to continue to take share in fiscal 2026 and beyond."

The company’s annualized recurring revenue (ARR) grew 24% YoY to $996 million, approaching the $1 billion milestone. Subscription ARR increased 33% to $844 million.

Looking ahead, Commvault provided second-quarter revenue guidance of $272-274 million, slightly above analyst expectations of $271 million. For the full fiscal year 2026, the company projects total revenue between $1.161-1.165 billion, with total ARR expected to grow 18% YoY and subscription ARR anticipated to increase 24%.

The strong performance reflects Commvault’s continued success in transitioning to a subscription-based business model and expanding its cyber resilience offerings amid growing demand for data protection solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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