# Commvault Raises FY2027 ARR and Cash Flow Targets After Q2 Growth By John Kim Canonical URL: https://www.tokenpost.com/news/business/42277 Published: 2026-10-28T02:47:57.000Z Updated: 2026-10-28T02:47:57.000Z Section: Business > Subscription revenue grew 21% year over year to $268.5 million. The company also raised its subscription revenue and non-GAAP EBIT margin outlook. Commvault raised its fiscal 2027 subscription annualized recurring revenue outlook to $1.205 billion-$1.215 billion and its non-GAAP free cash flow forecast to $255 million-$265 million after subscription revenue grew 21% in the quarter ended Sept. 30, 2026. The updated subscription ARR range was previously $1.200 billion-$1.210 billion, while the free cash flow forecast was $250 million-$260 million. The new ARR midpoint is $1.210 billion, compared with the previous midpoint of $1.205 billion. Commvault’s outlook bridge includes a $3 million year-to-date currency impact and an $8 million upward adjustment. Subscription ARR stood at $1.104 billion on Sept. 30, up 20% from a year earlier. The measure annualizes the value of active contracts at the end of a reporting period. Subscription revenue for the quarter was $268.5 million, while total revenue rose 13% to $312.4 million. The results supersede the earlier [second-quarter revenue forecast](). Commvault also raised its fiscal 2027 subscription revenue outlook to $1.127 billion-$1.133 billion, from $1.119 billion-$1.129 billion. Its non-GAAP earnings before interest and taxes margin target increased to 21%-21.5%, from about 21%. The company reported $70.9 million in non-GAAP free cash flow for the quarter. Its forecast is for the full fiscal year. Commvault defines free cash flow as cash from operating activities minus purchases of property and equipment. “With AI accelerating both innovation and risk in the enterprise, resilience continues to be a business imperative,” Commvault President and CEO Sanjay Mirchandani said. ## Links in this article - [second-quarter revenue forecast](https://www.tokenpost.com/news/business/41324)