Analyst(s): Futurum Research
Publication Date: October 31, 2025

Commvault’s Q2 FY 2026 quarter underscores platform-led cyber resilience demand across hybrid cloud, identity, and data security, with SaaS traction and customer expansion supporting ARR. Management continues to prioritize growth investments and cloud-bound data protection while maintaining disciplined margin guardrails.

What is Covered in this Article:

• Commvault’s Q2 FY 2026 financial results
• Identity and data security momentum
• Cloud-bound data and Clumio adoption
• SaaS scale, retention, and enterprise mix
• Guidance and Final Thoughts

The News: Commvault (NASDAQ: CVLT) reported Q2 FY 2026 results. Revenue was $276.2 million, up 18% year over year (YoY), versus consensus of $273.5 million. Subscription revenue was $172.7 million (+29% YoY), including software-as-a-service (SaaS) revenue of $80.0 million (+61% YoY) and term-based license revenue of $92.6 million (+10% YoY); perpetual license revenue was $12.1 million (+15% YoY), and customer support revenue was $80.2 million (+3% YoY). Non-GAAP operating income (EBIT) was $51.4 million (8% YoY) with an 18.6% margin (-190 bps YoY). Non-GAAP net income was $41.1 million (+9% YoY) and non-GAAP diluted earnings per share (EPS) were $0.91 (+10% YoY).

“Commvault delivered a strong quarter fueled by solid ARR and SaaS growth that accelerated a key milestone for the company – achieving $1 billion in total ARR – two quarters earlier than projected,” said Sanjay Mirchandani, President and CEO, Commvault.

Commvault Q2 FY 2026: ARR Tops $1 Billion; Revenue Beats Consensus

Analyst Take: Commvault’s Q2 FY 2026 shows durable demand for cyber resilience across hybrid cloud environments, with identity and data security offerings representing a growing share of net new ARR. The company crossed $1 billion in total ARR two quarters early, while SaaS ARR grew 56% YoY to $336 million and net dollar retention (NRR) held at 125%. Management’s decision to increase growth investment reflects confidence in the pipeline and share gains. The term duration shift tempered average deal size but was offset by volume (deals over $100,000 up 17%) and rising multi-product adoption among large SaaS customers.

Identity and Data Security Momentum

Identity and data security-focused offerings represented nearly 40% of net new ARR, signaling an expanding role for Commvault’s resilience stack in addressing ransomware and identity-centric threats. Active Directory and Entra ID recovery offerings are scaling quickly, with Active Directory usage more than tripling YoY, positioning it to become one of Commvault’s largest SaaS products within two years. Customers are also adopting capabilities such as Cleanroom Recovery, Cloud Rewind, Risk Analysis, and Threat Scan, which collectively grew double digits sequentially. A large bank in Asia-Pacific chose Commvault to restore identity operations and validate clean recovery points after a cyber event, while a U.S.-based healthcare services provider expanded with Active Directory Enterprise and Microsoft 365 backup. The BeyondTrust integration further strengthens privileged credential protection within the Commvault Cloud platform. This momentum suggests identity-first recovery will be a durable growth vector.

Cloud-Bound Data and Clumio Traction

Commvault now moves and protects approximately 8 exabytes of customer data into the cloud, growing more than 40% over five years as AI workloads drive cloud data proliferation. Clumio additions for AWS—including Backtrack for S3 and support for DynamoDB and Apache Iceberg—are designed to accelerate and de-risk cloud-native restores for AI/analytics data sets. In the quarter, Clumio ARR grew sequentially with wins at three Fortune 1000 and two Fortune 500 customers, and BBVA unified protection across three hyperscalers while unlocking an estimated 40% cost savings. These capabilities directly target the operational and compliance needs of regulated industries embracing cloud-native architectures. As cloud-bound data accelerates, Commvault’s differentiated restore speed, scale, and air-gapped designs remain a competitive lever. Cloud-native restore economics and operational simplicity will be key to sustaining adoption.

SaaS Scale, Retention, and Enterprise Mix

SaaS ARR reached $336 million (+56% YoY), with SaaS customers nearing 9,000 (+40% YoY) and NRR steady at 125%, indicating robust expansion within the base. Commvault closed several seven-figure SaaS transactions, and SaaS customers above $100,000 in ARR grew 55% YoY, outpacing the broader SaaS cohort and signaling healthy enterprise penetration. The shift to shorter-term durations in software reflects customer flexibility while evaluating cloud timing, but overall transaction volume and mix offset deal-size pressure. Multi-product adoption among large accounts remains a growth catalyst as identity, cleanroom, and air gap capabilities converge in a single platform. The acquisition of Satori Cyber adds monitoring and prompt protection for LLMs alongside structured data discovery/classification, widening the AI-era data security aperture. These signals point to resilient expansion dynamics in Commvault’s enterprise SaaS mix.

Guidance and Final Thoughts

For Q3 FY 2026, Commvault guides revenue to $298 million–$300 million and subscription revenue to $195 million–$197 million, with non-GAAP gross margin of 80%–81% and non-GAAP EBIT margin of 18%–19%. For FY 2026, the company reiterates total revenue of $1.161 billion–$1.165 billion, raises total ARR growth to 18%–19% (constant currency, cc; prior: 18%), and raises subscription ARR growth to 24%–25% (cc; prior: 24%). Full-year subscription revenue guidance remains unchanged at $753 million–$757 million; non-GAAP gross margin at 80.5%–81.5%; non-GAAP EBIT margin at 18.5%–19.5%; and free cash flow at $225 million–$230 million. Management’s zero-coupon $900 million convert, share repurchases of $131 million, and increased FCF outlook add balance sheet flexibility for continued investment and inorganic expansion. The competitive bar is rising, but the platform’s identity-first recovery, cloud-native restore, and AI-aware data controls remain aligned to enterprise resilience priorities.

See the full press release on Commvault’s Q2 FY 2026 financial results on the company website.

Declaration of generative AI and AI-assisted technologies in the writing process: This content has been generated with the support of artificial intelligence technologies. Due to the fast pace of content creation and the continuous evolution of data and information, The Futurum Group and its analysts strive to ensure the accuracy and factual integrity of the information presented. However, the opinions and interpretations expressed in this content reflect those of the individual author/analyst. The Futurum Group makes no guarantees regarding the completeness, accuracy, or reliability of any information contained herein. Readers are encouraged to verify facts independently and consult relevant sources for further clarification.

Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.

Other insights from Futurum:

Commvault Q1 FY 2026 Revenue Surges 26%, Outlook Raised

Data Protection Meets Data Control in Commvault’s Satori Play

Commvault Launches Cyber Recovery Range to Enable Real-World Recovery Practice

Author Information

Futurum Research

Futurum Research delivers forward-thinking insights on technology, business, and innovation. Content published under the Futurum Research byline incorporates both human and AI-generated information, always with editorial oversight and review from the expert Futurum Research team to ensure quality, accuracy, and relevance. All content, analysis, and opinion are based on sources and information deemed to be reliable at the time of publication.

The Futurum Group is not liable for any errors, omissions, biases, or inadequacies in the information contained herein or for any interpretations thereof. The reader is solely responsible for any decisions made or actions taken based on the information presented in this publication.