Commvault Q1 FY27: Subscription Revenue Reaches $267M, SaaS Tops $100M, and Full-Year ARR Outlook Moves Higher

summarizeSummary

Commvault's Q1 FY27 results topped expectations, with subscription revenue up 16% to $267M and SaaS revenue up 39% to $100M. Full-year Subscription ARR guidance was raised to $1.20–$1.21B, and free cash flow is projected at $250–$260M.

check_boxKey Events · Earnings and Guidance · CVLT

• Record Subscription Revenue

  Driven by a 39% surge in SaaS revenue to $100 million, total subscription revenue reached $267 million, a 16% increase year-over-year.

• ARR Surpasses $1 Billion

  Subscription ARR grew 22% to $1,054 million, and the full-year outlook was raised to $1,200–$1,210 million.

• Free Cash Flow Surge

  Free cash flow jumped 71% to $51 million; the full-year forecast calls for $250–$260 million, with roughly 60% allocated to buybacks.

• Non-GAAP Profitability Expands

  Non-GAAP EBIT margin widened to 22.8% ($71 million) from 20.7% a year ago, despite absorbing a $6.5 million non-recurring strategic pricing charge.

auto_awesomeAnalysis · CVLT · Technology

A strong start to fiscal 2027 saw subscription revenue climb 16% to a record $267 million, while SaaS revenue surged 39% to cross the $100 million threshold for the first time. Subscription ARR hit $1.05 billion, up 22% year-over-year, prompting management to raise the full-year ARR target to $1.20–$1.21 billion. Free cash flow jumped 71% to $51 million, and roughly 60% of that is expected to flow back to shareholders through buybacks. The results underscore growing momentum from the Microsoft partnership and the pivot toward AI-driven cyber resilience, even as a $6.5 million non-recurring strategic pricing charge pressured GAAP margins. With a $6.2 billion market cap and shares near $140, the beat-and-raise quarter confirms the subscription transition is accelerating profitably.