Summary
Commvault exceeded expectations in Q4 2025, reporting strong revenue growth driven by a surge in subscription revenue. The company’s strategic focus on cyber resilience and cloud-first innovation continues to resonate with customers, as evidenced by its growing subscription base. Looking ahead, Commvault projects continued growth in fiscal 2026, with projected revenues between $1.13 billion and $1.14 billion.
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** Main Story**
Commvault, a leading provider of data protection and cyber resilience solutions, recently announced its financial results for the fourth quarter and fiscal year ended March 31, 2025. The company significantly exceeded expectations, demonstrating the effectiveness of its strategic initiatives. This performance highlights Commvault’s strong position in the expanding market for cyber resilience solutions, fueled by rising concerns over ransomware attacks and the increasing need for robust data protection. The company’s cloud-first approach and focus on subscription services have propelled its growth and positioned it for continued success in fiscal 2026.
Record-Breaking Q4 and Fiscal Year 2025 Results
Commvault achieved record-breaking results in both the fourth quarter and the full fiscal year 2025. Total revenue for Q4 reached \$275 million, a significant 23% increase year-over-year, exceeding guidance of \$260-264 million. Subscription revenue, a crucial growth driver for the company, surged by an impressive 45% to \$173 million, also surpassing guidance. The company’s total revenue for fiscal 2025 reached \$996 million, up 19% year-over-year.
This growth underscores the market’s increasing demand for cyber resilience solutions. Commvault estimates its Total Addressable Market (TAM) at \$24 billion, projected to reach \$38 billion by 2028, a 12% compound annual growth rate (CAGR). This expansion is driven by the growing threat of ransomware, which Commvault identifies as a \$57 billion global crisis. The company’s focus on addressing this challenge has resonated strongly with customers.
Strong Subscription Growth
Commvault’s transition to a recurring revenue model is proving highly successful. Subscription revenue now represents 59% of total revenue, up from 51% in fiscal 2024. Annual Recurring Revenue (ARR) reached \$930 million, up 21% year-over-year, placing Commvault on track to exceed its \$1 billion ARR target earlier than anticipated. Subscription ARR grew even more rapidly at 31% year-over-year, reaching \$780 million, now comprising 84% of total ARR.
The company’s SaaS business stands out as a particularly strong performer, with SaaS ARR soaring 68% year-over-year to \$281 million. This rapid growth in SaaS is significantly contributing to Commvault’s overall ARR growth. The trend indicates a growing preference for cloud-based data protection solutions, and Commvault is capitalizing on this shift.
Profitability and Cash Flow
Commvault also maintained strong profitability, with a non-GAAP EBIT margin of 21.5% in Q4 2025, exceeding guidance. Free cash flow for the quarter was \$76 million. For the full fiscal year, free cash flow reached \$204 million, a slight increase from the previous year.
Expanding Customer Base and Shareholder Returns
Commvault’s customer base expanded to over 12,200 subscription customers, marking a 31% increase year-over-year. This growth signals a strong market adoption of the company’s cloud platform and cyber resilience solutions. Commvault’s commitment to providing comprehensive data protection and rapid recovery capabilities is attracting new customers and solidifying its market position.
The company also continued its share repurchase program, demonstrating its commitment to returning value to shareholders. In Q4, Commvault repurchased \$30 million worth of common stock, and \$165 million for the full fiscal year. The Board of Directors recently increased the share repurchase program to \$250 million.
Positive Outlook for Fiscal 2026
Looking ahead to fiscal 2026, Commvault provides a positive outlook, projecting total revenues between \$1.13 billion and \$1.14 billion. Subscription revenue is expected to range from \$727 million to \$732 million, reflecting continued strong growth in this segment. This projection indicates Commvault’s confidence in its ability to execute its strategic initiatives and capitalize on market opportunities. The company’s focus on innovation and growth in recurring revenue streams positions it well for continued success in the dynamic cyber resilience market. Commvault’s strong Q4 and fiscal year 2025 results demonstrate its effective strategies and highlight its position as a key player in the evolving landscape of data protection and cyber resilience.
Wow, $1.13 billion to $1.14 billion projected revenue? Are you planning on backing up the entire internet or just a really big social media platform? Seriously though, what’s the secret sauce for that kind of growth in this economy? Asking for a friend… who happens to be a small business owner.
That’s a great question! While we’re not backing up the entire internet *yet*, a key ingredient is definitely our focus on cyber resilience, especially helping businesses protect themselves from ransomware. It’s a growing concern, and we’re seeing strong demand for solutions that keep data safe and recoverable.
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Commvault’s projected TAM reaching $38 billion by 2028 highlights the increasing importance of cyber resilience. How are you seeing businesses prioritize investment between proactive security measures versus reactive recovery solutions?
That’s a fantastic point! We’re definitely seeing a shift towards businesses understanding that cyber resilience is not just about *if* an attack happens, but *when*. The savviest organizations are balancing proactive security with robust recovery plans, focusing on minimizing downtime and data loss after an incident. It’s a layered approach!
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\$1.14 billion, eh? With that kind of revenue, are you guys also providing cyber resilience solutions for time travelers worried about data corruption in the space-time continuum?
That’s a creative thought! While we haven’t branched into time travel (yet!), we’re laser-focused on protecting businesses from very real, here-and-now threats like ransomware. Maybe securing the space-time continuum is next on the roadmap? What future data challenges do you foresee?
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$57 billion global crisis from ransomware, eh? Should we start a GoFundMe to buy everyone affected a stress ball? Or maybe just better cyber resilience solutions… Just thinking out loud!
That’s an interesting idea! Stress balls might offer temporary relief, but you’re right, the real solution lies in robust cyber resilience. Many businesses still underestimate the potential impact of ransomware. Proactive strategies, like air-gapped backups, can be a game-changer for data recovery. What are your thoughts on proactive resilience?
Editor: StorageTech.News
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$57 billion global crisis, you say? Maybe we should start offering ransomware insurance with a side of air-gapped backups. It’s the new “peace of mind” package!
That’s a funny concept! An air-gapped backup side dish sounds like a winning combination with ransomware insurance. But, on a more serious note, it highlights a need to look at a multi-layered approach to cyber resilience. What other services do you think could be bundled for comprehensive protection?
Editor: StorageTech.News
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