Commvault Systems (CVLT) Q2 2026 earnings summary

Executive summary

• Achieved $1.043 billion in total ARR for Q2 FY26, surpassing the $1 billion target two quarters early, with 22% year-over-year growth.

• SaaS ARR grew 56% year-over-year to $336 million, with SaaS now 32% of total ARR and a net dollar retention rate of 125%.

• Total revenue for Q2 FY26 increased 18% year-over-year to $276 million, driven by strong subscription and SaaS growth.

• Free cash flow for Q2 FY26 was $74 million, up 37% year-over-year; cash and equivalents totaled $1.06 billion, boosted by $900 million convertible notes.

• Acquired Satori Cyber to enhance AI and data security capabilities; integration underway.

Financial highlights

• Subscription ARR rose 30% year-over-year to $894 million, now 86% of total ARR.

• Subscription revenue reached $173 million, up 29% year-over-year; SaaS revenue grew 61% to $80 million.

• Non-GAAP gross margin for Q2 FY26 was 80.5%; non-GAAP EBIT margin was 18.6%.

• Repurchased $131 million in stock during the quarter; share count remains flat at ~45 million.

• Cash and cash equivalents at $1.06 billion as of September 30, 2025.

Outlook and guidance

• Q3 FY26 revenue expected at $298–$300 million; subscription revenue $195–$197 million; non-GAAP gross margin 80–81%; non-GAAP EBIT margin 18–19%.

• FY26 total ARR guidance raised to $1.161–$1.165 billion (18–19% growth); subscription ARR to grow 24–25%.

• FY26 free cash flow outlook raised to $225–$230 million.

• Management expects continued growth in subscription and SaaS revenues, with a focus on recurring revenue streams.

• No formal forward-looking financial guidance was provided in one disclosure.