Commvault Q2 2027: SaaS Surge Powers an 11% EPS Beat
As seen on the 24/7 Wall St. homepage on October 27, 2026.
SaaS revenue jumped 33% year over year to $106.2 million, the engine behind an EPS beat, a raised full-year subscription ARR outlook and operating income that more than doubled. Keep an eye on the stock as the perpetual license business keeps shrinking.
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Commvault posted adjusted non-GAAP EPS of $1.38 for its fiscal second quarter of 2027, beating expectations, with revenue also edging past the consensus estimate.
SaaS revenue drove the beat, surging 33% year over year and pulling total subscription revenue and subscription ARR higher with it. A subscription net dollar retention rate above 100% signals existing customers are spending meaningfully more over time.
Margins expanded alongside the growth, with GAAP operating income rising 143% year over year. Net income nearly doubled over the same period.
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Management raised full-year FY2027 guidance on the back of the results, lifting its subscription ARR and free cash flow outlook. Q3 FY2027 guidance points to continued subscription growth at a non-GAAP EBIT margin above 20%.
The structural headwind worth tracking is the legacy perpetual license business, which fell 40% year over year, with perpetual support revenue also declining. As that older revenue stream shrinks, growth depends increasingly on sustaining SaaS and subscription momentum.
Mentioned: CVLT