Commvault Systems (CVLT) Q4 2026 earnings summary

Executive summary

• Achieved strong Q4 and FY 2026 results, meeting or exceeding guidance, with accelerating SaaS growth and record free cash flow of $132M in Q4 and $237M for the year.

• Subscription ARR rose 27% to $989M, driven by SaaS ARR up 42% to $400M; total ARR reached $1.12B, up 21% year-over-year.

• Multi-product adoption and identity resilience offerings were key growth drivers, with 48% of SaaS customers using more than one product.

• Leadership transitions and strategic partnerships, including integrations with Microsoft Security, CrowdStrike, and others, focused on durable growth and AI-driven opportunities.

Financial highlights

• Q4 total revenue increased 13% year-over-year to $312M; full year revenue was $1,184M, up 19%.

• Q4 subscription revenue grew 20% to $208M; SaaS revenue surged 43% to $93M.

• Q4 consolidated gross margin expanded 30 bps sequentially to 81.8%; non-GAAP EBIT was $66M (21.3% margin).

• Free cash flow for FY 2026: $237M, up 16% year-over-year.

• Stock repurchases totaled $446M for FY 2026, representing over 4M shares.

Outlook and guidance

• FY 2027 subscription ARR expected to grow 18–19% to $1.20–$1.21B, with SaaS ARR projected to exceed $500M.

• Subscription revenue guidance: $1.115–$1.125B (approx. 15% growth); total revenue: $1.30–$1.31B.

• Non-GAAP EBIT margin expected at 20.5%; free cash flow guidance of $250–$260M, weighted to the second half.

• Q1 FY27 subscription revenue expected between $263M–$265M; non-GAAP EBIT margin ~19%.

• 60% of annual free cash flow to be allocated to share repurchases.