Analyst(s): Krista Case
Publication Date: April 30, 2025
Commvault’s Q4 FY 2025 earnings report highlights strong momentum across its subscription and SaaS offerings, underpinned by growing demand for cyber resilience and multi-cloud recovery. The company’s evolving product portfolio and expanding partner ecosystem continue to support its leadership in enterprise data protection and recovery.
What is Covered in this Article:
- Commvault’s Q4 FY 2025 financial results
- Solid SaaS ARR growth and subscription-driven momentum
- Strategic product highlights, including Active Directory, Cloud Rewind, and Clumio Backtrack
- Partner ecosystem gains and enterprise traction in regulated industries
- FY 2026 guidance and positioning within a $24 billion total addressable market
The News: Commvault’s (NASDAQ: CVLT) Q4 FY 2025 revenue rose 23% year-on-year (YoY) to $275 million, exceeding consensus estimates of $262 million. Subscription revenue jumped 45% YoY to $173 million (+6.6% above consensus estimates), while total annual recurring revenue (ARR) increased 21% YoY to $930 million. SaaS ARR grew 68% YoY to $281 million, and subscription ARR rose 31% YoY to $780 million, now comprising 84% of total ARR. Non-GAAP operating income reached $59 million (+31% YoY) with a non-GAAP operating margin of 21.5%, up 130 basis points YoY. Non-GAAP net income grew to $46 million (+31% YoY), with adjusted EPS at $1.03 (+30% YoY), ahead of the $0.93 consensus.
“As we head into FY 2026, we believe the opportunity before us is compelling, and as we grow and expand our portfolio with the higher-growth adjacent markets like data security and cloud security, we are attracting new buyers and significantly increasing our total addressable market. We now estimate this opportunity to be approximately $24 billion,” said Sanjay Mirchandani, President and CEO of Commvault. “While we continue to monitor the macro-environment, our business remains strong, our team is executing, and we are winning new customers.”
Commvault Q4 FY 2025: SaaS Momentum and Subscription Gains Drive Growth
Analyst Take: Commvault closed FY 2025 on a high note, delivering a strong Q4 FY 2025 beat across revenue, earnings, and key ARR metrics. The company’s ongoing transformation into a cloud-based, cyber resilience platform is accelerating, with subscription momentum, SaaS traction, and strategic product expansions all reinforcing its differentiated positioning. As enterprises face mounting data threats and seek unified recovery across hybrid environments, Commvault’s platform-led strategy, bolstered by ecosystem integration and intelligent automation, is paying off. While competitive intensity is rising, Commvault is building durable advantages through product stickiness, market coverage, and margin discipline, backing its ambitious FY 2026 outlook.
Ecosystem Momentum and Execution Strengthen Enterprise Penetration
Commvault’s Q4 FY 2025 results reflect strong enterprise traction powered by its partner ecosystem and focused sales execution. Commvault reported success in collaborating with partners such as Hitachi, Pure, HPE, and Kyndryl to expand its enterprise reach. These partnerships helped customers across the US, UK, and EU meet regulatory mandates such as the EU’s Digital Operational Resilience Act (DORA), Australia’s Security of Critical Infrastructure Act (SOCI), and Australian Prudential Regulation Authority (APRA) standards. At the same time, the company closed over a dozen $1 million-plus multi-year deals, saw a 38% YoY rise in term software transactions over $100K, and added 700 new subscription customers. Marketplace transactions via AWS and Azure grew 50% sequentially and 250% YoY, while sales productivity improved in double digits. These combined gains highlight Commvault’s growing relevance in complex enterprise environments and its ability to scale through direct execution and ecosystem leverage.
SaaS Momentum Reinforces Platform Stickiness and Expansion
Commvault’s SaaS ARR rose 68% YoY to $281 million in Q4 FY 2025, with SaaS contributing 30% of the total ARR. The company maintained a SaaS net dollar retention rate of 127%, highlighting its land-and-expand success and customer loyalty. Notably, 25% of net new ARR came from newer SaaS offerings like Active Directory, Cleanroom, Air Gap Protect, and Threat Scan. The management team emphasized that the absolute number of multi-product SaaS customers is materially rising, with current cross-sell adoption at ~30% – an area identified as a key growth lever for FY 2026. This traction validates Commvault’s cyber resilience vision as enterprises adopt SaaS-delivered data protection across diverse workloads and environments.
Strategic Offerings Target Business Continuity Across Cloud and AI Workloads
Commvault continues to differentiate through innovations aimed at addressing evolving cyber threats, particularly identity-based attacks, and meeting customers’ most critical cyber-resilience requirements, such as rapid recovery across complex cloud environments. Three flagship offerings – Active Directory forest-level recovery, Cloud Rewind, and Clumio Backtrack – are pivotal to this. Active Directory recovery was one of the fastest-growing SaaS modules in Q4 FY 2025, helping enterprises address identity-layer breaches that account for nine out of 10 cyberattacks. Cloud Rewind supports full-stack cloud app recovery post-attack, and Clumio Backtrack enables petabyte-scale Amazon S3 restoration up to 10x faster than legacy solutions. These modules are now critical to enabling rapid, scalable recovery for large, AI-anchored data environments. One such deployment with Atlassian cut backup/restore costs by over 50% while handling billions of Amazon S3 objects across geographies. These offerings reinforce Commvault’s positioning as a recovery-first platform built for scale, speed, and security across complex, AI-intensive cloud environments.
FY 2026 Guidance and Final Thoughts
Commvault issued FY 2026 outlook, guiding total revenue to $1.13–1.14 billion (above consensus estimate of $1.11 billion) and subscription revenue to $727–732 million (estimate: $707.5 billion). Subscription ARR is expected to grow 22–23% YoY, up from 31% in FY 2025. Non-GAAP operating margin is projected at ~21%, and free cash flow is forecasted at $210–215 million.
Commvault enters FY 2026 with strong execution momentum, expanding product adoption, and growing traction across regulated and cloud-first enterprises. With a targeted focus on cyber resilience and a $24 billion total addressable market, the company is well-positioned to deepen customer penetration and drive long-term growth. Continued investment in SaaS innovation and ecosystem scale will be key to sustaining its leadership amid rising competitive intensity.
See the complete press release on Commvault’s Q4 FY 2025 financial results on the Commvault website.
Disclosure: The Futurum Group 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 The Futurum Group as a whole.
Other insights from The Futurum Group:
Commvault Q3 FY 2025: Subscription & Cloud Gains Fuel Strong ARR Growth
Cyber Resilience Boosted: Commvault & CrowdStrike
Commvault Streamlines Active Directory Recovery
Author Information
Krista Case brings over 15 years of experience providing research and advisory services and creating thought leadership content. Her vantage point spans technology and vendor portfolio developments; customer buying behavior trends; and vendor ecosystems, go-to-market positioning, and business models. Her work has appeared in major publications including eWeek, TechTarget and The Register.
