Commvault’s Q2 results saw a significant positive market reaction, as the company outperformed Wall Street’s expectations for both revenue and non-GAAP profit. Management pointed to accelerated growth in its SaaS platform and strong customer expansion across industries as the main drivers of the quarter. CEO Sanjay Mirchandani specifically highlighted that, “SaaS ARR soared 63% to $307 million,” and emphasized the company’s progress in landing and expanding major enterprise accounts, including notable wins with Honeywell and Equifax. The quarter also featured growth in cloud marketplace transactions and healthy uptake of new products such as Cleanroom Recovery and Air Gap Protect.
Is now the time to buy CVLT? Find out in our full research report (it’s free).
Commvault Systems (CVLT) Q2 CY2025 Highlights:
- Revenue: $282 million vs analyst estimates of $268 million (25.5% year-on-year growth, 5.2% beat)
- Adjusted EPS: $1.01 vs analyst estimates of $0.97 (4.1% beat)
- Adjusted Operating Income: $58.25 million vs analyst estimates of $56.21 million (20.7% margin, 3.6% beat)
- The company lifted its revenue guidance for the full year to $1.16 billion at the midpoint from $1.14 billion, a 2.5% increase
- Operating Margin: 8.9%, in line with the same quarter last year
- Annual Recurring Revenue: $996.2 million vs analyst estimates of $966 million (24.1% year-on-year growth, 3.1% beat)
- Billings: $320.6 million at quarter end, up 37.3% year on year
- Market Capitalization: $8.56 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Commvault Systems’s Q2 Earnings Call
- Aaron Christopher Rakers (Wells Fargo): Asked about Satori Cyber’s revenue impact and the sustainability of cross-sell momentum. CFO Jennifer DiRico replied the acquisition’s revenue contribution is immaterial for now, but cross-sell rates are improving, with 40% of SaaS net dollar retention coming from cross-sell in Q2.
- Jason Noah Ader (William Blair): Queried the bundling strategy for Commvault’s expanding product set. CEO Sanjay Mirchandani explained that logical bundles—such as Cleanroom with Active Directory—are gaining traction, and more comprehensive packages will be unveiled at the upcoming Shift event.
- Howard Ma (Guggenheim Securities): Pressed on acquisition criteria and Satori’s fit. Mirchandani emphasized that acquisitions target core security and cloud-native capabilities, and Satori’s policy enforcement for AI data is a natural extension to the platform.
- Rudy Grayson Kessinger (D.A. Davidson): Asked about the unusual strength in term license ARR versus SaaS ARR this quarter. DiRico responded that SaaS performance was as expected, but late-quarter close rates drove software license outperformance.
- James Edward Fish (Piper Sandler): Sought details on the contribution of mature products like M365 and Air Gap Protect compared to newer security solutions. DiRico noted the older products remain the largest ARR contributors, while security offerings contributed 20% of net new ARR this quarter.
Catalysts in Upcoming Quarters
In the next few quarters, our analyst team will monitor (1) the pace of SaaS and subscription ARR growth, especially the success of cross-sell initiatives, (2) the completion and integration of the Satori Cyber acquisition and its impact on product differentiation, and (3) the effectiveness of new partnerships in driving enterprise adoption and large deal activity. Continued expansion in cloud marketplaces and the roll-out of bundled cyber resilience solutions will also be critical to watch.
Commvault Systems currently trades at $192.64, up from $163.58 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.