Commvault Systems (CVLT) Q2 2027 earnings summary

Executive summary

• Subscription ARR reached $1,103.9M, up 20% YoY; SaaS ARR was $454.4M, up 35%, and subscription revenue was $268.5M, up 21%.

• Q2 revenue grew 13% to $312.4M; non-GAAP EBIT was $68.3M at a 21.9% margin, and non-GAAP free cash flow was $70.9M.

Financial highlights

• Subscription revenue was 86% of total revenue, versus 81% a year earlier.

• GAAP net income was $29.1M versus $14.7M; diluted EPS was $0.69 versus $0.33.

• H1 revenue increased 12% to $626.5M, while operating cash flow was $126.5M versus $108.5M.

• Q2 net new subscription ARR was $51.0M on a constant-currency basis.

Outlook and guidance

• Q3 FY27 subscription revenue guidance is $293M–$297M, up 15% YoY at midpoint; non-GAAP EBIT margin guidance is 20.5%–21.0%.

• FY27 subscription ARR guidance is $1.205B–$1.215B, with a $1.210B midpoint reflecting an $8M organic increase and $3M currency headwind versus prior guidance.

• FY27 subscription revenue guidance is $1.127B–$1.133B; total revenue is $1.30B–$1.31B, and non-GAAP EBIT margin is 21.0%–21.5%.

• FY27 free cash flow guidance is $255M–$265M; diluted shares are expected to be ~42M.

• SaaS ARR is expected to exceed $500M; SaaS is expected to contribute at least 60% of annual net new ARR.