Commvault Systems, Inc. announced its financial results for the second fiscal quarter ended September 30, 2026, reporting a 21% year-over-year increase in subscription revenue to $269 million. This growth was driven by a 33% increase in Software-as-a-Service (SaaS) revenue, which reached $106 million. The company also reported that subscription annualized recurring revenue (ARR) climbed 20% year over year to $1.104 billion. On a constant currency basis, subscription ARR was $1.107 billion, with net new subscription ARR of $51 million.
For the quarter, income from operations (EBIT) was $30 million, representing an operating margin of 9.7%. Non-GAAP EBIT was $68 million, with an operating margin of 21.9%. The company generated $75 million in operating cash flow and $71 million in free cash flow during the period.
Regarding business developments, Commvault introduced Commvault Active Directory Pre Recover, a new Identity Resilience innovation designed to reduce clean recovery times from hours to minutes. The company also expanded its FedRAMP High Authorized Cyber Resilience Services to managed services providers and integrated Threat Scan with Google Threat Intelligence to help organizations identify clean recovery points faster.
Commvault provided updated guidance for the third quarter and full fiscal year 2027. For the third quarter, subscription revenue is expected to be between $293 million and $297 million, with a non-GAAP EBIT margin of between 20.5% and 21.0%. For the full year, subscription revenue is expected to be between $1.127 billion and $1.133 billion, with subscription ARR projected to be between $1.205 billion and $1.215 million. The company also expects free cash flow to be between $255 million and $265 million.
