Commvault Systems Inc. (Nasdaq: CVLT) has announced impressive financial results for the third quarter of fiscal 2026, showcasing robust growth in revenues and significant advancements in customer engagement. The results were highlighted in a press release dated January 27, 2026, where President and CEO Sanjay Mirchandani emphasized the company’s commitment to providing an AI-enabled platform that meets the evolving needs of its customers, particularly in the realms of data security and resilience across hybrid and multi-cloud environments.

1. Financial Highlights

Revenue Growth

Commvault reported total revenues of $314 million, marking a 19% increase year-over-year. This growth was primarily driven by:

Annual Recurring Revenue (ARR), which grew to $1,085 million, a 22% increase year-over-year (or 17% on a constant currency basis).

Subscription revenue reached $206 million, up 30% year-over-year. This includes:

Term-based license revenue of $119 million, an increase of 22%.

SaaS revenue of $87 million, which saw a remarkable 44% growth.

Operating Performance

Commvault reported an income from operations (EBIT) of $20 million, equating to an operating margin of 6.3%. On a non-GAAP basis, EBIT was $61 million, resulting in a robust operating margin of 19.6%.

Despite the positive revenue trajectory, operating cash flow amounted to $4 million, with free cash flow at $2 million, impacted by the timing of working capital items.

2. Recent Business Developments

Commvault has made significant strides in enhancing its product offerings and partnerships:

The launch of the Commvault Cloud Unity Platform aims to unify data security, cyber recovery, and identity resilience across various environments.

A new partnership with Delinea expands its offerings in unified data security and identity resilience, allowing customers to better manage credentials and reduce privilege misuse.

The company was honored with the 2025 Geography and Global AWS Partner Award, being named the Global Storage Partner of the Year.

A collaboration with Pinecone was announced, enabling customers to protect and recover vector database workloads that support enterprise AI applications.

3. Outlook for Future Quarters

Looking ahead, Commvault provided guidance for the fourth quarter of fiscal year 2026, anticipating total revenues between $305 million and $308 million. Subscription revenue is expected to be in the range of $203 million to $207 million.

For the full fiscal year 2026, the outlook includes:

Total revenues projected between $1,177 million and $1,180 million.

ARR anticipated to grow approximately 18% year-over-year.

Subscription revenue expectations between $764 million and $768 million.

Free cash flow projected between $215 million and $220 million, which includes one-time payments related to a cost optimization program initiated during the quarter.

4. Key Financial Metrics

GAAP net income for the quarter was $18 million, translating to $0.40 per diluted share.

GAAP gross margin was recorded at 81.1%, while non-GAAP gross margin stood at 81.5%.

The company repurchased approximately 327,000 shares of common stock for $41 million during the quarter, and as of January 14, 2026, Commvault’s Board of Directors approved a recommitment of $250 million for its share repurchase program.

5. Conclusion

Commvault’s third-quarter results reflect a strong position in the data management and security sector, driven by innovative technology and strategic partnerships. As the company continues to navigate a rapidly changing landscape, its focus on AI-enabled solutions and customer engagement will be critical to sustaining its growth trajectory in the upcoming quarters. The results demonstrate a resilient business model poised for future success amidst evolving market demands.

Original press release