Commvault Systems Inc. reported fiscal 2026 fourth‑quarter revenue of $312 million, a 13% year‑over‑year increase, and earnings per share of $1.28, beating the consensus estimate of $1.09 by $0.19 (17.4%). Free cash flow reached a record $132 million, up from $76 million in Q4 FY2025. The company’s full‑year revenue totaled $1.184 billion, up 19% from $995.6 million in FY2025, while net income was $70.7 million and diluted EPS was $1.58.
The quarter’s subscription revenue was $206 million, growing 20% YoY, and SaaS revenue was $87 million, up 43% YoY. These recurring‑revenue streams accounted for a large portion of the top‑line growth and helped offset the higher cost base associated with the accelerating SaaS mix. Full‑year subscription and SaaS revenue grew 30% and 52% respectively, underscoring the company’s successful shift to a subscription‑based model.
GAAP gross margin for Q4 was 81.4%, slightly below the 81.5% figure cited in the original article, while the non‑GAAP gross margin was 81.8%. Full‑year GAAP gross margin was 81.2% and non‑GAAP gross margin was 81.6%. The margins remained healthy, reflecting effective pricing power and operational leverage even as the company invests in new product capabilities.
Management reiterated its fiscal 2027 guidance, maintaining a revenue outlook of $1.30 billion to $1.31 billion and a non‑GAAP EBIT margin of approximately 20.5%. The guidance signals confidence in continued demand for the company’s cyber‑resilience platform and the scalability of its subscription business.
"Our results reinforce that we are delivering durable growth fueled through industry‑leading innovation and our rapidly expanding SaaS business," said CEO Sanjay Mirchandani. "Our focus on expanding our SaaS offerings and enhancing data security capabilities positions us well for future growth." The company highlighted AI‑driven data growth as a tailwind, while noting the shift away from perpetual licenses as a headwind that it is mitigating through its recurring‑revenue strategy.
Investors reacted positively, citing the earnings beat and strong subscription growth as key drivers of the favorable market response.
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