Commvault Systems (CVLT) Q4 2026 earnings summary

Executive summary

• Achieved strong Q4 and FY 2026 results, with performance at or above guidance and record free cash flow of $132M in Q4 and $237M for the year.

• Subscription ARR grew 27% year-over-year to $989M, led by SaaS ARR up 42% to $400M.

• Total revenue for Q4 was $312M, up 13% year-over-year; FY 2026 revenue was $1,184M, up 19%.

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

• Leadership transition executed smoothly, with new CFO and President roles filled by experienced internal leaders.

Financial highlights

• Q4 total revenue increased 13% year-over-year to $312M; subscription revenue up 20% to $208M.

• SaaS revenue grew 43% to $93M in Q4; term software license revenue up 6%.

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

• FY 2026 total ARR was $1.12B, up 21% year-over-year; subscription ARR was $989M, representing 88% of total ARR.

• Q4 and FY 2026 free cash flow: $132M and $237M, up 16% year-over-year.

Outlook and guidance

• FY 2027 subscription ARR expected to grow 18%-19% to $1.20B-$1.21B; SaaS ARR to exceed $500M.

• Subscription revenue guidance: $1.115B-$1.125B (15% YoY growth midpoint); total revenue: $1.30B-$1.31B.

• Non-GAAP EBIT margin expected at 20.5%; free cash flow $250M-$260M, weighted to H2.

• Q1 FY 2027: subscription revenue $263M-$265M, total revenue ~$310M, EBIT margin ~19%.