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New integration automates Commvault cyber recovery actions within Charlotte Agentic SOAR workflows, helping accelerate forensic investigations and incident response

, /PRNewswire/ -- Commvault (NASDAQ: CVLT), a leader in unified resilience at enterprise scale, today announced a new integration with CrowdStrike that makes Commvault cyber recovery actions available as native steps within Charlotte Agentic SOAR workflows. The integration enables joint customers to automate Commvault recovery actions as part of security workflows, helping accelerate response and forensic investigations while reducing manual coordination between security and recovery teams.

AI-driven automation is helping organizations detect, investigate, and respond to threats at machine speed, yet fragmented tools and workflows can slow security teams at critical moments. The new purpose-built connector enables security teams to incorporate Commvault cyber recovery actions directly into workflows orchestrated by Charlotte Agentic SOAR and rapidly accelerate investigation, response, and recovery. Key capabilities include:

Restrict access in Commvault to help prevent unauthorized changes during an active incident. Preserve clean recovery options by automatically suspending Commvault backup data aging policies to retain viable recovery points during active incidents. Accelerate forensic investigations by restoring potentially compromised assets into Commvault Cleanroom, enabling investigators to begin analysis without disrupting production systems. "Security and recovery teams need to move quickly and in coordination during an incident," said Vidya Shankaran, Field CTO, Commvault. "Our integration with CrowdStrike Charlotte Agentic SOAR makes Commvault cyber recovery actions available directly within security workflows, helping joint customers reduce manual handoffs and accelerate investigation and response. This strengthens cyber resilience and simplifies how security and recovery teams work together seamlessly."

Today's news is the latest in a series of integrations with CrowdStrike: Falcon Insight XDR brought CrowdStrike threat intelligence into Commvault Cloud; Falcon Next-Gen SIEM extended visibility; and the new Charlotte Agentic SOAR integration enables Commvault cyber recovery actions to be incorporated directly into automated security workflows.

Availability
The integration between Commvault and Charlotte Agentic SOAR is generally available for joint Commvault and CrowdStrike customers. The integration is also available through the CrowdStrike Marketplace. For more information, visit the Commvault and CrowdStrike joint partner page.

About Commvault
Commvault (NASDAQ: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.

SOURCE COMMVAULT

Broadened Azure resource coverage helps organizations recover more complete cloud-native and AI-driven applications following cyberattacks and outages

, /PRNewswire/ -- Commvault (NASDAQ: CVLT), a leader in unified resilience at enterprise scale, today announced advancements to Cloud Rewind, expanding Microsoft Azure resource coverage for configuration protection and recovery. Through this expansion, Commvault is helping organizations more rapidly restore cloud applications and the resources that support them.

Manually rebuilding environments is often slow, complex, and error-prone. According to Absolute Security's 2026 State of Enterprise Cyber Resilience report, 57% of enterprises said recovery from a cyberattack took more than 4.5 days on average.1

Cloud Rewind addresses this by continuously discovering cloud resources, mapping application dependencies, and orchestrating the recovery and rebuild of cloud applications, including the infrastructure, configurations, and dependencies they need to operate, from a single platform. This expansion broadens Azure protection by 3X – now covering 62% of enterprise-relevant Azure resource types available in the market. Organizations can also validate recovery readiness through application recovery simulations, including within isolated, air-gapped environments, before an incident occurs.

"In global logistics, every minute of downtime can disrupt supply chains and impact customer trust. Data is critical, but it needs the right cloud infrastructure to stay actionable," said Venkata Sudhakar Nagandla, SVP & Global Head-IT Infrastructure & Cloud, Allcargo Group Companies. "With Cloud Rewind, we don't just recover files — we restore our operational environment in hours, ensuring our customers experience continuity without compromise."

Additional enhancements include:

Deeper integration into Commvault backup and recovery: Protection Groups unite application data and cloud configuration into a single, air-gapped recovery experience, so teams can plan and execute recovery from one place instead of stitching together separate tools. More advanced policies for dynamic at-scale protection: Policy-based protection automatically enrolls discovered resources by tag, region, and type across multiple cloud environments, using a single workflow, so teams can protect resources at cloud scale instead of onboarding them one at a time. "Modern applications depend on interconnected cloud services, infrastructure, and configurations that must be recovered together," said Pranay Ahlawat, Chief Technology and AI Officer, Commvault. "Cloud Rewind helps organizations recover cloud applications through a unified experience in Commvault Cloud, increasing customers' confidence in their ability to recover following a cyberattack or outage."

"Many organizations discover their recovery plan is incomplete only after an incident has occurred," said Melinda Marks, Senior Research Director and Chief Analyst, Omdia. "As applications and their associated cloud resources become more complex, organizations need an effective way to rapidly recover, with restoration capabilities across configurations, dependencies, and multiple cloud platforms."

Availability and Pricing
Cloud Rewind, available today, is delivered as an add-on workload within Commvault Cloud for cloud application protection and app-centric recovery. Expanded Azure protection is targeted for availability in the coming months. Pricing is metered based on protected cloud resources.

About Commvault
Commvault (NASDAQ: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.

1 Absolute Security. (2026, January 8). Cyber Incidents and Attacks Disrupt Enterprise Business Operations for Two Weeks, Reveals First Comprehensive Global Cyber Resilience Survey [Press release]. https://www.absolute.com/press-releases/cyber-incidents-and-attacks-disrupt-enterprise-business-operations-for-two-weeks-reveals-first-comprehensive-global-cyber-resilience-survey 

SOURCE COMMVAULT

New threat-informed recovery capabilities help organizations identify clean recovery points quicker, reduce downtime after cyberattacks, and restore operations with confidence

, /PRNewswire/ -- Commvault (NASDAQ: CVLT), a leader in unified resilience at enterprise scale, today announced a new integration with Google Threat Intelligence, Google's comprehensive threat intelligence platform, that incorporates Google Threat Intelligence data and scanning capabilities into Commvault Threat Scan workflows. Through this collaboration, Commvault can help customers transform global threat intelligence into actionable recovery insights, enabling organizations to identify clean recovery points faster and accelerate recovery following cyberattacks.

When cyberattacks occur, organizations often face a critical challenge: determining which recovery points are safe to restore. While security teams may quickly identify indicators of compromise (IOCs), recovery teams still need to validate backup data before recovery can begin, delaying recovery efforts when every minute of downtime matters.

Google Threat Intelligence combines Mandiant frontline intelligence, VirusTotal's crowdsourced intelligence, and Google threat insights gained from protecting billions of users. Integrating Commvault Threat Scan workstreams with Google Threat Intelligence helps customers analyze protected workloads for malware, while also helping organizations identify threats and pinpoint which recovery points are compromised. Commvault Threat Scan customers will also receive actionable threat context from Google Threat Intelligence for threats found in their environment to help with further research and remediation.

As part of this release, Commvault is also introducing new scanning capabilities that collect file hashes inline during backup operations. File hashes, like individual fingerprints, provide a fast and easy way to quickly check recovery points against threat intelligence indicators so teams can identify clean files to be used for recovery.

Commvault's inline inspection capability allows customers to start with rapid threat intelligence validation and selectively perform deeper malware, encryption, and forensic analysis when additional inspection is required. This layered approach helps organizations accelerate recovery decisions while maintaining confidence in the integrity of restored data.

These new threat insights and scanning capabilities strengthen Commvault's Synthetic Recovery capability, which uses an AI-enabled process to automatically detect threats and surgically remove them during recovery while keeping the "good" data intact. Customers can then make the most complete recovery possible.

"Businesses need confidence that the data they're restoring is clean," said Pranay Ahlawat, Chief Technology and AI Officer at Commvault. "By combining Threat Scan and inline scanning with Google Threat Intelligence, we're helping customers validate recovery points faster and accelerate clean recovery when it matters most."

"Organizations are looking for ways to strengthen cyber resilience while reducing complexity during incident response and recovery," said Miton Adhikari, Head of Google Security OEM Partnerships. "Through our collaboration with Commvault, customers will be able to apply Google Threat Intelligence within recovery workflows to make faster, more informed recovery decisions and reduce recovery uncertainty."

This announcement builds upon Commvault's ongoing collaboration with Google Cloud, including expanded cyber resilience capabilities for Google Cloud environments via Clumio, and support for Google Cloud workloads.

Availability
The Google Threat Intelligence integration, inline scanning capabilities, and associated Threat Scan enhancements are expected to be available in the coming months. To learn more and see a live demonstration of the integration, attend Google's Theater Session featuring Commvault at Black Hat on Tuesday, August 4 at 6:20pm PT, on the Mandalay Bay Convention Center Expo Floor. For more information about Commvault's partnership with Google, visit the partnership page.

About Commvault
Commvault (NASDAQ: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.

SOURCE COMMVAULT

Subscription revenue 1 climbs +16% year over year to a record $267 million

Subscription annualized recurring revenue (ARR) 1,2 reaches $1,054 million, up +22% year over year

Free cash flow 3 increased +71% year over year to $51 million

, /PRNewswire/ -- Commvault (Nasdaq: CVLT) today announced its financial results for the fiscal first quarter ended June 30, 2026.

"Our results reflect what we're hearing from customers every day – they are embracing our AI-enabled platform to protect data, govern access, and make clean, trusted recoveries," said Sanjay Mirchandani, President and CEO, Commvault. "With strong growth and record profitability, Commvault is well positioned to continue taking share in an AI-first world."

Notes are contained at the end of this press release

First Quarter Fiscal 2027 Highlights -

Subscription revenue1 was $267 million, up 16% year over year, inclusive of: SaaS revenue crossed $100 million, up 39% year over year Subscription ARR1,2 grew to $1,054 million, up 22% year over year Income from operations (EBIT) was $26 million, an operating margin of 8.2% Non-GAAP EBIT3 was $71 million, an operating margin of 22.8% Operating cash flow was $52 million, with free cash flow3 of $51 million, up 71% year over year Recent Business Highlights -

Commvault and Microsoft announced a multi-year strategic partnership to offer Commvault's AI and cyber resilience solutions as a native ISV service on Microsoft Azure, underscoring the importance of AI and resilience for enterprises. Commvault was named a Leader in the Gartner® Magic Quadrant™ for Backup and Data Protection Platforms for the 15th consecutive year. Financial Outlook for Second Quarter and Full Year Fiscal 20274 -
We are providing the following guidance for the second quarter of fiscal year 2027:

Subscription revenue1 is expected to be between $264 million and $268 million Non-GAAP EBIT margin3 is expected to be approximately 20% We are providing the following updated guidance for the full fiscal year 2027:

Subscription revenue1 is expected to be between $1,119 million and $1,129 million Subscription ARR1,2 is expected to be between $1,200 million and $1,210 million Non-GAAP EBIT margin3 is expected to be approximately 21% Free cash flow3 is expected to be between $250 million and $260 million Share repurchases are expected to be approximately 60% of free cash flow3 Diluted shares outstanding are expected to be approximately 42 million The above guidance metrics contemplate current macroeconomic conditions. These statements are forward-looking and made pursuant to the safe harbor provisions discussed in detail below. We do not undertake any obligation to update these forward-looking statements. Actual results may differ materially from anticipated results.

Conference Call Information
Commvault will host a conference call today, July 28, 2026 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss quarterly results. The live webcast and call dial-in numbers can be accessed by registering under the "News & Events" section of Commvault's website at ir.commvault.com under the "Investor Events" heading. An archived webcast of this conference call will also be available following the call.

About Commvault
Commvault (Nasdaq: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.

Safe Harbor Statement
This press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as those related to our restructuring plans, competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.

Overview
($ in thousands)

Q1'26

Q2'26

Q3'26

Q4'26

Q1'27

Revenue

Y/Y
Growth

Revenue

Y/Y
Growth

Revenue

Y/Y
Growth

Revenue

Y/Y
Growth

Revenue

Y/Y
Growth

Subscription:

Term-based license

$ 109,282

36 %

$ 92,647

10 %

$ 118,950

22 %

$ 114,445

6 %

$ 110,420

1 %

Term-based support

47,582

20 %

49,686

19 %

50,962

18 %

53,933

21 %

56,057

18 %

SaaS

72,445

66 %

80,018

61 %

87,379

44 %

93,139

43 %

100,550

39 %

Total subscription

229,309

40 %

222,351

26 %

257,291

28 %

261,517

20 %

267,027

16 %

Perpetual license

7,335

(47) %

12,073

15 %

13,675

(17) %

10,129

(32) %

8,695

19 %

Perpetual support

31,439

(14) %

30,543

(15) %

29,309

(14) %

26,972

(15) %

25,475

(19) %

Other services

13,895

31 %

11,221

2 %

13,557

25 %

13,074

26 %

12,934

(7) %

Total revenues

$ 281,978

26 %

$ 276,188

18 %

$ 313,832

19 %

$ 311,692

13 %

$ 314,131

11 %

Constant Currency - Revenue
($ in thousands)

The constant currency impact is calculated using the average foreign exchange rates from the prior year period and applying these rates to foreign-denominated revenues in the current corresponding period. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Q1'26
Revenue as 
Reported
(GAAP)

Q1'27
Revenue as
Reported
(GAAP)

Constant
Currency
Impact

% Change Y/Y
(GAAP)

% Change Y/Y
Constant
Currency

Subscription:

Term-based license

$     109,282

$     110,420

$        (659)

1 %

— %

Term-based support

47,582

56,057

(603)

18 %

17 %

SaaS

72,445

100,550

(1,166)

39 %

37 %

Total subscription

229,309

267,027

(2,428)

16 %

15 %

Perpetual license

7,335

8,695

150

19 %

21 %

Perpetual support

31,439

25,475

(243)

(19) %

(20) %

Other services

13,895

12,934

114

(7) %

(6) %

Total

$     281,978

$     314,131

$      (2,407)

11 %

11 %

Disaggregation of Revenues
($ in thousands)

Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, the Middle East, Africa, Australia, India and Southeast Asia.

Q1'26

Q2'26

Q3'26

Q4'26

Q1'27

Revenue

Y/Y
Growth

Revenue

Y/Y
Growth

Revenue

Y/Y
Growth

Revenue

Y/Y
Growth

Revenue

Y/Y
Growth

Americas

$ 170,928

23 %

$ 168,125

16 %

$ 178,852

15 %

$ 184,977

9 %

$ 186,779

9 %

International

111,050

29 %

108,063

22 %

134,980

26 %

126,715

20 %

127,352

15 %

Total revenues

$ 281,978

26 %

$ 276,188

18 %

$ 313,832

19 %

$ 311,692

13 %

$ 314,131

11 %

Subscription ARR and SaaS ARR1,2
($ in thousands)

Q1'26

Q2'26

Q3'26

Q4'26

Q1'27

Subscription ARR

867,306

918,130

966,260

1,014,729

1,054,311

SaaS ARR

306,874

335,669

363,732

400,157

424,337

Additional Financial Information

We repurchased approximately 98,000 shares of common stock for $10 million during the three months ended June 30, 2026 Weighted average diluted shares outstanding were approximately 42 million for the period ended June 30, 2026 Cash and cash equivalents totaled $930 million as of June 30, 2026 Subscription net dollar retention rate5 was 114% Commvault Systems, Inc.

Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended
June 30,

2026

2025

Revenues:

Subscription:

  Term-based license

$ 110,420

$ 109,282

  Term-based support

56,057

47,582

  Software-as-a-service

100,550

72,445

Total subscription

267,027

229,309

Perpetual license

8,695

7,335

Perpetual support

25,475

31,439

Other services

12,934

13,895

Total revenues

314,131

281,978

Cost of revenues:

Term-based license

4,243

2,242

Software-as-a-service

29,652

25,972

Perpetual license

171

245

Customer support

14,699

14,207

Other services

8,844

8,111

Total cost of revenues

57,609

50,777

Gross margin

256,522

231,201

Operating expenses:

Sales and marketing

139,795

122,479

Research and development

39,542

40,062

General and administrative

46,751

41,270

Depreciation and amortization

2,319

2,607

Restructuring

2,396

237

Change in contingent consideration

—

(545)

Total operating expenses

230,803

206,110

Income from operations

25,719

25,091

Interest income

7,687

2,009

Interest expense

(1,473)

(278)

Other income, net

269

61

Income before income taxes

32,202

26,883

Income tax expense

11,063

3,387

Net income

$  21,139

$  23,496

Net income per common share:

Basic

$     0.51

$     0.53

Diluted

$     0.50

$     0.52

Weighted average common shares outstanding:

Basic

41,345

44,326

Diluted

41,869

45,283

Commvault Systems, Inc.

Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

June 30,

March 31,

2026

2026

ASSETS

Current assets:

Cash and cash equivalents

$        929,837

$        899,987

Trade accounts receivable, net

271,568

330,483

Other current assets

65,520

56,040

Total current assets

1,266,925

1,286,510

Deferred tax assets, net

150,360

153,766

Property and equipment, net

9,677

9,750

Operating lease assets

33,985

34,920

Deferred commissions cost

110,465

103,892

Intangible assets, net

18,459

19,715

Goodwill

209,132

209,322

Other assets

91,418

68,430

Total assets

$     1,890,421

$     1,886,305

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$             156

$             651

Accrued liabilities

138,979

165,583

Current portion of operating lease liabilities

7,148

6,963

Deferred revenue

473,744

484,973

Total current liabilities

620,027

658,170

Convertible notes, net

881,926

880,863

Deferred revenue, less current portion

291,151

293,725

Deferred tax liabilities

1,306

1,565

Long-term operating lease liabilities

28,581

29,675

Other liabilities

15,379

14,813

Total stockholders' equity

52,051

7,494

Total liabilities and stockholders' equity

$     1,890,421

$     1,886,305

Commvault Systems, Inc.

Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Three Months Ended
June 30,

2026

2025

Cash flows from operating activities

Net income

$  21,139

$  23,496

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

2,319

2,607

Amortization of debt issuance costs

1,164

85

Amortization of deferred commissions costs

14,582

10,989

Noncash stock-based compensation

35,290

30,180

Noncash operating lease expense

1,916

1,636

Noncash change in fair value of contingent consideration

—

(545)

Noncash adjustment on headquarters sale leaseback

—

495

Deferred income taxes

2,962

3,908

Other

(182)

(61)

Changes in operating assets and liabilities:

  Trade accounts receivable, net

58,714

3,748

  Other current assets and Other assets

(23,190)

2,378

  Deferred commissions cost

(21,299)

(15,072)

  Accounts payable

(506)

(320)

  Accrued liabilities

(26,281)

(47,260)

  Operating lease liabilities

(1,889)

(1,908)

  Deferred revenue

(12,308)

17,440

  Other liabilities

(761)

(115)

Net cash provided by operating activities

51,670

31,681

Cash flows from investing activities

Purchase of property and equipment

(569)

(1,879)

Purchase of investments

(7,895)

(6,144)

Proceeds from sale of headquarters, net

—

34,849

Net cash provided by (used in) investing activities

(8,464)

26,826

Cash flows from financing activities

Repurchase of common stock

(10,131)

(15,050)

Payment of debt issuance costs

—

(1,846)

Other

(75)

(12)

Net cash used in financing activities

(10,206)

(16,908)

Effects of exchange rate — changes in cash

(3,150)

19,532

Net increase in cash and cash equivalents

29,850

61,131

Cash and cash equivalents at beginning of period

899,987

302,103

Cash and cash equivalents at end of period

$ 929,837

$ 363,234

Supplemental disclosures of noncash activities

Operating lease liabilities arising from obtaining right-of-use assets

$     932

$  20,252

Commvault Systems, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)

Three Months Ended
June 30,

2026

2025

Non-GAAP financial measures and reconciliation:

GAAP income from operations

$  25,719

$  25,091

Noncash stock-based compensation6

34,725

30,105

FICA and payroll tax expense related to stock-based compensation7

877

1,799

Restructuring8

2,396

237

Amortization of intangible assets9

1,256

1,071

Change in contingent consideration10

—

(545)

Adjustment on headquarters sale leaseback11

—

495

Non-recurring strategic pricing initiative costs12

6,500

—

Non-GAAP income from operations

$  71,473

$  58,253

GAAP net income

$  21,139

$  23,496

Noncash stock-based compensation6

34,725

30,105

FICA and payroll tax expense related to stock-based compensation7

877

1,799

Restructuring8

2,396

237

Amortization of intangible assets9

1,256

1,071

Change in contingent consideration10

—

(545)

Adjustment on headquarters sale leaseback11

—

495

Non-recurring strategic pricing initiative costs12

6,500

—

Non-GAAP provision for income taxes adjustment13

(7,646)

(11,024)

Non-GAAP net income

$  59,247

$  45,634

GAAP diluted earnings per share

$     0.50

$     0.52

Noncash stock-based compensation6

0.83

0.66

FICA and payroll tax expense related to stock-based compensation7

0.02

0.04

Restructuring8

0.06

0.01

Amortization of intangible assets9

0.03

0.02

Change in contingent consideration10

—

(0.01)

Adjustment on headquarters sale leaseback11

—

0.01

Non-recurring strategic pricing initiative costs12

0.16

—

Non-GAAP provision for income taxes adjustment13

(0.18)

(0.24)

Non-GAAP diluted earnings per share

$    1.42

$    1.01

GAAP diluted weighted average shares outstanding

41,869

45,283

Three Months Ended
June 30,

2026

2025

Non-GAAP free cash flow reconciliation:

GAAP cash provided by operating activities

$  51,670

$  31,681

Purchase of property and equipment

(569)

(1,879)

Non-GAAP free cash flow

$  51,101

$  29,802

Key Performance Indicators

We monitor subscription annualized recurring revenue ("Subscription ARR"), SaaS ARR and subscription net dollar retention rate ("Subscription NRR") to help evaluate the state of our business. We believe these metrics are material to investors to understand the growth and performance of our business, as they help normalize certain variable factors and provide a consistent view of our recurring revenue profile. Subscription ARR and SaaS ARR exclude non-recurring elements and reflect the annualized value of active contracts, while subscription NRR measures net expansion within our existing subscription customer base. Together, we believe these metrics offer meaningful insight into the health and trajectory of our recurring revenue streams. Total ARR, which also included the annualized maintenance contract on perpetual licenses, is no longer disclosed.

Use of Non-GAAP Financial Measures

We have provided in this press release the following non-GAAP financial measures: non-GAAP income from operations (EBIT), non-GAAP EBIT margin, non-GAAP net income, non-GAAP diluted earnings per share, and non-GAAP free cash flow. This financial information has not been prepared in accordance with GAAP. Commvault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. Commvault believes that the use of these non-GAAP financial measures, when used as a supplement to GAAP financial measures, provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Commvault's industry, many of which present similar non-GAAP financial measures to the investment community. Commvault has also provided its revenues on a constant currency basis. We analyze revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.

All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are included in this press release.

Non-GAAP EBIT and non-GAAP EBIT margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional Federal Insurance Contribution Act (FICA) and related payroll tax expense incurred by Commvault when employees vest in restricted stock awards. Commvault has also excluded restructuring costs, noncash amortization of intangible assets, the change in the estimated fair value of contingent consideration, adjustments from the sale and leaseback of headquarters, and non-recurring strategic pricing initiative costs from its non-GAAP results. These adjustments are further discussed in the reconciliation of GAAP to non-GAAP financial measures. Commvault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare Commvault's core operating results over multiple periods. When evaluating the performance of Commvault's operating results and developing short- and long-term plans, Commvault does not consider such expenses.

Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on vesting of restricted stock awards allow investors to make meaningful comparisons between Commvault's operating results and those of other companies.

There are a number of limitations related to the use of non-GAAP EBIT and non-GAAP EBIT margin.  The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in Commvault's operating results.  In addition, noncash stock-based compensation is an important part of Commvault's employees' compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ in thousands):

Three Months Ended
June 30,

2026

2025

Cost of revenues

$   1,403

$   1,249

Sales and marketing

14,168

12,586

Research and development

8,284

7,070

General and administrative

10,870

9,200

Stock-based compensation expense

$  34,725

$  30,105

The table above excludes stock-based compensation expense related to the Company's restructuring activities described below in Note 8.

The components that Commvault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures. Due to the limitations related to the use of non-GAAP measures, Commvault's management assists investors by providing a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Commvault's management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.

Non-GAAP net income and non-GAAP diluted earnings per share (EPS).  In addition to the adjustments discussed in non-GAAP EBIT, non-GAAP net income and non-GAAP diluted EPS incorporates a non-GAAP effective tax rate of 24%.

Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rates in recent fiscal years were not meaningful percentages due to the dollar amount of GAAP pre-tax income.  For the same reason as the GAAP tax rates, the estimated cash tax rates in recent fiscal years are not meaningful percentages. Commvault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income. Over time, Commvault believes its GAAP and cash tax rates will align.

Commvault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for Commvault management and its investors for the same basic reasons that Commvault uses non-GAAP EBIT and non-GAAP EBIT margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP net income and non-GAAP diluted EPS.

Non-GAAP free cash flow.  Commvault defines this non-GAAP financial measure as net cash provided by operating activities less purchases of property and equipment. Commvault considers non-GAAP free cash flow a useful metric for Commvault management and its investors in evaluating Commvault's ability to generate cash from its business operations. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP free cash flow.

Forward-looking non-GAAP measures.  In this press release, Commvault presents non-GAAP EBIT margin and free cash flow on a forward-looking basis. The most directly comparable GAAP measures are not accessible on a forward-looking basis without unreasonable efforts, because certain items that impact these GAAP measures, cannot be reasonably predicted or quantified. The probable significance of these items may be material, and as a result, the corresponding GAAP measures and a quantitative reconciliation to those GAAP measures are not available on a forward-looking basis.

Notes

Beginning in fiscal 2027, Customer support revenue has been further disaggregated between support associated with term-based software license arrangements ("Term-based support") and support associated with perpetual software license arrangements ("Perpetual support"). Subscription revenue has also been reclassified to include Term-based support revenue, in addition to Term-based license and SaaS revenues. Prior period amounts have been reclassified to conform to the current period presentation. These reclassifications have no impact on total revenues, net income, or the underlying revenue recognition for these arrangements.In addition, Subscription ARR2 has been reclassified to include enterprise support, further aligning Subscription ARR with Subscription revenue. Prior to fiscal 2027, enterprise support was included only in Total ARR. Prior period amounts have been reclassified to conform to the current period presentation. Total ARR, which also included the annualized maintenance contract on perpetual licenses, is no longer disclosed.

Subscription ARR represents the annualized value of all active contracts as of the end of a reporting period attributable to term‑based licenses, maintenance and support services associated with term license arrangements, SaaS subscriptions, and consumption‑based arrangements, calculated by dividing the total active contract value by the number of days in the contract term and multiplying the result by 365. For consumption-based arrangements on a pay as you go model without a fixed commitment, the applicable ARR is calculated by annualizing the revenue contractually expected to be received in a given month based on actual monthly usage from a prior month. SaaS ARR includes only the cloud‑hosted portion of subscription ARR and is calculated using the same methodology.These metrics should be viewed independently of GAAP revenue, deferred revenue and unbilled revenue and are not intended to be combined with or to replace those items. These metrics are not a forecast of future revenues. Management believes that reviewing these metrics, in addition to GAAP results, helps investors and financial analysts understand the value of Commvault's recurring revenue streams presented on an annualized basis. There is no direct GAAP comparative to ARR.

A reconciliation of GAAP to non-GAAP results has been provided in the reconciliation of GAAP to non-GAAP financial measures included in this press release. An explanation of these measures is also included under the heading "Use of Non-GAAP Financial Measures." Commvault does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Forward-looking non-GAAP measures" for additional explanation. Subscription net dollar retention rate (Subscription NRR) includes all contracts attributable to term‑based licenses, maintenance and support services associated with term license arrangements, SaaS subscriptions, and consumption‑based arrangements. Subscription NRR is calculated as the percentage of subscription ARR retained from existing customers at the start of an annual period after accounting for expansion revenue, churn, and downgrades, measured on an annualized basis using the trailing four quarter average. Acquired subscription ARR is excluded until the acquisition is fully integrated, which we generally expect to occur twelve months from the close date. We believe our subscription NRR offers valuable insight into the year-over-year expansion of our existing customer base, reflecting both increased utilization of current products and services as well as the adoption of additional offerings. There is no direct GAAP comparative to NRR. Represents noncash stock-based compensation charges associated with restricted stock units granted and our Employee Stock Purchase Plan, exclusive of stock-based compensation expense related to Commvault's restructuring activities described below in Note 8. Represents additional FICA and related payroll tax expenses incurred by Commvault when employees vest in restricted stock awards. Restructuring charges relate to two plans designed to optimize our cost structure, enhance organizational agility, align resources with strategic priorities, and reorganize our business technology function. These initiatives include workforce reductions, technology transitions, office lease closures, and the exit of operations in certain jurisdictions. The related charges primarily consist of severance and associated employee termination costs, stock‑based compensation expense resulting from modification events, and office closure and exit charges. As of June 30, 2026, the majority of these costs have been incurred and the remaining activities are anticipated to be completed in fiscal 2027. Represents noncash amortization of intangible assets. Represents the change in the estimated fair value of the contingent consideration arrangement related to the acquisition of Appranix, Inc. During the first quarter of fiscal 2026, we finalized the sale of our corporate headquarters and entered into a lease for a portion of the premises. These noncash charges represent accounting adjustments for a $1.3 million loss associated with the related lease terms and an $0.8 million adjustment to reflect the final sale price of the assets resulting in a net charge of $0.5 million recorded in general and administrative expense on the consolidated statements of operations. These charges relate to a non-routine business expense incurred during the period associated with contingent performance-based fees tied to strategic pricing and packaging initiatives. The arrangement also includes provisions for potential additional contingent fees of up to $3.0 million. As of June 30, 2026, no amounts have been recognized with respect to the potential additional contingent fees, which remain subject to future contractual conditions and performance outcomes. Given the non-recurring nature of the matter, these costs have been excluded from operating results as they are episodic in nature, directly tied to a discrete strategic initiative, and not reflective of ongoing operating performance. The provision for income taxes is adjusted to reflect Commvault's estimated non-GAAP effective tax rate of 24%. SOURCE COMMVAULT

BOCA RATON, Fla., July 02, 2026 (GLOBE NEWSWIRE) -- Saxena White P.A. has filed a securities class action lawsuit (the “Class Action”) in the United States District Court for the District of New Jersey against Commvault Systems, Inc. (“Commvault” or the “Company”) (Nasdaq: CVLT), and certain Commvault executive officers (“Defendants”). The Class Action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder on behalf of all persons and entities that purchased or otherwise acquired Commvault securities between January 28, 2025 and January 26, 2026, inclusive (the “Class Period”), and were damaged thereby. The Class Action filed by Saxena White is captioned City of Fort Lauderdale Police and Firefighters’ Retirement System v. Commvault Systems, Inc., et al., No. 3:26-cv-08144 (D.N.J.).

The Class Action complaint expands the allegations and class period asserted in a related action against Commvault and certain of its executive officers captioned Imbert v. Commvault Systems, Inc., et al., No. 3:26-cv-05654 (D.N.J. filed May 18, 2026) (the “Imbert Action”). Specifically, the Class Action expands the class period pled from April 29, 2025 through January 26, 2026 in the Imbert Action, to January 28, 2025 through January 26, 2026 in the Class Action, on behalf of all persons and entities that purchased or otherwise acquired Commvault securities.

Pursuant to the notice published on May 18, 2026 in connection with the filing of the Imbert Action, and as required by the Private Securities Litigation Reform Act of 1995 (PSLRA), investors wishing to serve as lead plaintiff are required to file a motion for appointment as lead plaintiff by no later than July 17, 2026. Saxena White’s filing of the Class Action does not alter the lead plaintiff deadline.

Commvault provides on-premise software licenses and cloud-delivered Software as a Service (“SaaS”) products for protecting and restoring customer data and cloud applications. Commvault’s key performance metrics are Annualized Recurring Revenue (“ARR”) and Net New ARR (“NNARR”), which measures the net increase in ARR during a given period. Leading up to the Class Period, Commvault repeatedly claimed that it was strategically positioned to outpace its competitors in growth and would continue to gain market share.

The Class Action alleges that Defendants misled investors regarding the Company’s prospects, financial condition, and competitive position. Specifically, Defendants failed to disclose that: (1) Commvault’s competitive positioning was materially weaker than Defendants had represented to investors; (2) due to the undisclosed increase in competition, Commvault was forced to make significant concessions on price and contract duration for its software licenses; (3) as these concessions became unsustainable, SaaS became a larger portion of the Company’s sales mix; and (4) in turn, the increasing mix of SaaS sales, which carry shorter term durations and lower average selling prices (“ASP”), negatively impacted the Company’s margin and NNARR.

The truth emerged before markets opened on January 27, 2026, when Commvault announced its financial results for the third-quarter of fiscal year 2026. Commvault disclosed NNARR in constant currency of $39 million, missing analysts’ expectations of approximately $45 million. The Company further revealed that the mix of SaaS deals increased to “70%” during the quarter and highlighted that “landing these customers at a 2 to 3x smaller ASP than software . . . does have a significant impact on ARR.” On this news, the price of Commvault common stock fell $40.23 per share, or about 31%, to close at a price of $89.13 per share on January 27, 2026.

If you purchased Commvault securities during the Class Period and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as lead plaintiff. If you wish to apply to be lead plaintiff, a motion on your behalf must be filed with the U.S. District Court for the District of New Jersey no later than July 17, 2026. The lead plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in the Class Action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.

You may contact Marco A. Dueñas ([email protected]), a Senior Attorney at Saxena White P.A., to discuss your rights regarding the appointment of lead plaintiff or your interest in the Class Action. You also may retain counsel of your choice to represent you in the Class Action. You may obtain a copy of the Complaint and inquire about actively joining the Class Action at www.saxenawhite.com.

Saxena White P.A., with offices in Florida, New York, California, and Delaware, is a leading national law firm focused on prosecuting securities class actions and other complex litigation on behalf of injured investors. Currently serving as lead counsel in numerous securities class actions nationwide, Saxena White has recovered billions of dollars on behalf of injured investors.

CONTACT INFORMATION
Marco A. Dueñas, Esq.
[email protected]
Saxena White P.A.
10 Bank Street, Suite 882
White Plains, New York 10606
Tel.: (914) 200-3263
www.saxenawhite.com

Key Takeaways CVLT topped fiscal Q4 earnings estimates as revenues rose 13.3% and subscription revenues climbed 20%.CVLT's fiscal 2027 revenue outlook implies 12%-13% growth as subscription revenue gains slow.CVLT's free cash flow, cash pile and buybacks help offset concerns about normalizing growth. Commvault Systems, Inc. (CVLT - Free Report) still has a credible investment case after strong fourth-quarter fiscal 2026 results, but the setup is no longer a simple growth-acceleration story.

The better question is whether steady execution, recurring revenue gains and cash generation are enough to justify a fresh entry when fiscal 2027 growth is expected to normalize.

CVLT Delivers Better Earnings Than ExpectedCommvault reported non-GAAP earnings of $1.28 per share for the fourth quarter of fiscal 2026, up 24.3% year over year and 17.4% above the Zacks Consensus Estimate.

Revenues increased 13.3% year over year to $311.7 million, topping the consensus mark by 1.5%. Subscription revenues rose 20% to $208 million, with SaaS revenues jumping 43% to $93 million.

The quarter also showed healthy operating leverage. Non-GAAP operating margin improved 170 basis points year over year to 21.3%, while free cash flow reached a quarterly record of $132 million.

Commvault's Fiscal 2027 Outlook Cools the StoryThe hesitation starts with guidance. Management expects fiscal 2027 total revenues of $1.30 billion to $1.31 billion, implying growth of roughly 12% to 13% from fiscal 2026 revenues of $1.18 billion.

Subscription annual recurring revenues are expected to reach $1.20 billion to $1.21 billion in fiscal 2027. That still indicates growth, but it marks a slowdown from the 27% subscription annual recurring revenue growth reported in fiscal 2026.

That makes CVLT more of a quality-growth story than an accelerating-growth story. Investors comparing the space may also watch Rubrik (RBRK - Free Report) , a cyber resilience and data security company with direct relevance to enterprise recovery demand. CrowdStrike Holdings (CRWD - Free Report) , a cybersecurity platform company, offers a broader benchmark for investor appetite toward security software.

CVLT's Valuation Looks Fair, Not CheapCVLT trades at 23.41 times forward 12-month earnings. That is above the Zacks sub-industry multiple of 19.84 times, but below the broader Zacks sector multiple of 25.11 times.

The valuation does not look excessive relative to the company’s recurring revenue base and cash generation. It also does not offer a clear discount that would make the stock easy to buy despite slower growth.

The $132 price target also points to a measured setup. With the stock at $126.01 as of June 22, 2026, the implied upside looks modest rather than compelling.

Commvault's Cash Flow Helps the Bull CaseCash flow is the strongest offset to the growth concern. Commvault generated $237 million in free cash flow in fiscal 2026, up 16% year over year.

The company ended fiscal 2026 with $900 million in cash and cash equivalents. That gives it flexibility to invest in product development, support strategic acquisitions and maintain shareholder returns.

Repurchases also remain part of the story. Commvault bought back 3 million shares for $259 million in the fiscal fourth quarter and repurchased $446 million of stock for the full fiscal year.

What CVLT's Scores Say About the Risk-RewardThe bottom line is that CVLT still looks like a solid software name, but the near-term risk-reward is more balanced than compelling. Strong execution and cash generation support patience, while slower expected revenue and annual recurring revenue growth argue against chasing the stock.

CVLT currently carries a Zacks Rank #3 (Hold). That rank is consistent with a more measured view over the next one to three months rather than a clear short-term buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Style Scores add nuance. CVLT has a VGM Score of C, Growth Score of B, Value Score of D and Momentum Score of C. The Growth Score of B supports the long-term appeal of the business, but the Value Score of D indicates that valuation is not the stock’s strongest attribute.

For investors already holding CVLT, the fundamentals still provide reasons to stay constructive. For new buyers, the combination of normalizing growth and fair valuation supports a more patient entry point.