CommVault Systems 2026 Q1 Earnings Strong Performance as Net Income Surges 26.8%

CommVault Systems (CVLT) reported its fiscal 2026 Q1 earnings on Jul 30th, 2025. CommVault Systems exceeded expectations with a remarkable 25.5% increase in total revenue, reaching $281.98 million, surpassing analysts’ forecasts. The company also raised its full-year revenue guidance, projecting total revenues between $1,161 million and $1,165 million. This adjustment indicates a positive outlook and confidence in continued growth throughout the fiscal year. CommVault’s strong start is supported by disciplined execution and rising demand, positioning the company well for capturing more market share in fiscal 2026.

Revenue
CommVault Systems reported a significant revenue increase of 25.5% to $281.98 million in fiscal 2026 Q1, compared to $224.67 million in fiscal 2025 Q1.

Earnings/Net Income
CommVault Systems' EPS rose 26.2% to $0.53 in 2026 Q1 from $0.42 in 2025 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $23.50 million in 2026 Q1, marking 26.8% growth from $18.53 million in 2025 Q1. The EPS performance indicates strong earnings growth.

Post-Earnings Price Action Review
The strategy of purchasing CommVault Systems (CVLT) shares post-revenue increase and holding them for 30 days has proven highly successful over the past three years. This strategy delivered a substantial return of 227.16%, significantly outperforming the benchmark return of 87.61%. The excess return of 139.55% highlights the strategy's effectiveness in leveraging CommVault's positive earnings momentum. With a compound annual growth rate (CAGR) of 26.94% and a maximum drawdown of 0.00% during the backtested period, the strategy demonstrated robust risk-adjusted returns and minimal downside risk, making it an attractive option for investors seeking to capitalize on CommVault’s growth trajectory.

CEO Commentary
“Commvault delivered a strong start to the fiscal year, fueled by customer growth, disciplined execution, and rising demand for our industry-leading cyber resilience platform,” said Sanjay Mirchandani, President and CEO of Commvault. He highlighted the company’s robust performance, with revenue growth driven by a best-in-class partner ecosystem and continuous innovation. Mirchandani expressed optimism about Commvault's market positioning, stating that they are well-positioned to capture more market share in fiscal 2026 and beyond, thanks to their commitment to enhancing cyber resilience for customers.

Guidance
Commvault expects total revenues for the second quarter of fiscal 2026 to be between $272 million and $274 million, with subscription revenue anticipated to be between $174 million and $176 million. For the full fiscal year 2026, total revenues are projected to be between $1,161 million and $1,165 million, while subscription revenue is expected to range from $753 million to $757 million. Non-GAAP gross margin is anticipated to be between 81% and 82%, with non-GAAP EBIT margin projected at approximately 20.5%.

Additional News
CommVault Systems is set to acquire data and AI security firm Satori Cyber by August 2025, enhancing its data protection capabilities. Additionally, the company announced key executive appointments, with Alan Atkinson named Chief Business Development Officer and Michelle Graff as Senior Vice President of Global Partners and Channel. These changes aim to foster innovation and growth within Commvault’s partner ecosystem. Furthermore, Commvault received recognition from Gartner in the 2025 Critical Capabilities report, ranking highest in five out of six Use Cases, underscoring its leadership in the data protection industry.