CVLT Q2 Deep Dive: SaaS Momentum and Cyber Resilience Drive Outlook Upgrade

August 12, 2025 at 23:06 PM EDT

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Data backup provider Commvault (NASDAQ: CVLT) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 25.5% year on year to $282 million. Guidance for next quarter’s revenue was better than expected at $273 million at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $1.01 per share was 4.1% above analysts’ consensus estimates.

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

StockStory’s Take

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.

Looking forward, Commvault’s raised full-year guidance is underpinned by ongoing demand for its cyber resilience solutions and the growing significance of its SaaS business. Management attributed the outlook to a strong pipeline of cross-sell opportunities and the anticipated benefits from integrating new security capabilities, including the pending acquisition of Satori Cyber. CFO Jennifer DiRico stated, “Our updated guidance reflects our confidence in the opportunity ahead and our ability to execute against it,” while also noting that continued investments in partner channels and product innovation will remain key to sustaining growth.

Key Insights from Management’s Remarks

Management credited Q2’s outperformance to rapid SaaS adoption, robust cross-sell activity, and expansion within cloud marketplaces, while also emphasizing the value of new partnerships and innovation in cyber resilience.

SaaS platform momentum: Commvault’s SaaS annual recurring revenue (ARR) grew by 63%, reflecting customer preference for subscription-based, cloud-delivered data protection. The platform surpassed 8,000 customers, with management expecting to reach its $330 million ARR target ahead of schedule.
Land and expand success: The company experienced its best quarter ever for expanding within existing accounts, landing large deals with enterprises such as Honeywell, Equifax, and NTT DATA Services. Cross-sell efforts contributed to a 45% increase in customers adopting multiple SaaS products.
Cloud marketplace growth: Management highlighted “triple-digit growth” in transactions through cloud marketplaces, enabling Commvault to reach new customers efficiently and close multiple six- and seven-figure deals.
Strategic partnerships: New alliances with Deloitte, CrowdStrike, HPE, and Kyndryl were formed to enhance cyber resilience offerings and expand market reach. These partnerships are designed to strengthen recovery services and accelerate enterprise adoption.
Innovation and acquisitions: The company announced its intent to acquire Satori Cyber, aiming to add advanced data and AI security features. This follows recognition for AI and machine learning capabilities in industry analyst reports, underscoring Commvault’s focus on evolving its platform for emerging threats.

Drivers of Future Performance

Commvault’s outlook is driven by continued SaaS growth, expanding cyber resilience offerings, and strategic investments in product development and partner channels.

SaaS and subscription expansion: Management expects SaaS to remain the fastest-growing segment, with cross-sell and upsell activities driving higher average contract values. The increasing share of customers adopting multiple products is expected to boost recurring revenue and customer retention.
Integration of new security capabilities: The planned acquisition of Satori Cyber is aimed at enhancing Commvault’s data and AI security portfolio. Management noted that while Satori will be modestly dilutive to margins in the near term, it is expected to support long-term product differentiation and customer value.
Partner and channel investments: Ongoing investments in strategic partnerships and cloud marketplaces are intended to broaden Commvault’s reach into new industry verticals and geographies. Management believes these relationships will help capture larger enterprise deals and support sustained growth, though integration risks and evolving competitive dynamics remain areas to watch.

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? See for yourself in our full research report (it’s free).

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