NetApp (NasdaqGS:NTAP) Q3 2026 Earnings call February 26, 2026 05:30 PM ET Company ParticipantsAlek Valero - Equity Research AssociateDavid Vogt - Managing DirectorGeorge Kurian - CEOKatherine Murphy - VP of Equity ResearchKris Newton - VP of Investor RelationsKrish Sankar - Managing DirectorSimon Leopold - Managing DirectorSteven Fox - Founder and CEOTim Long - Managing DirectorWissam Jabre - CFOConference Call ParticipantsAaron Rakers - Managing Director and Technology AnalystAsiya Merchant - Technology E ...

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Core Insights - Kyndryl has launched the Kyndryl Intelligent Recovery Service (KIRS), a cloud-based solution aimed at enhancing cyber resilience and compliance for organizations facing operational disruptions and cyber incidents [1] Group 1: Service Overview - KIRS automates recovery processes and provides comprehensive visibility across hybrid and multi-cloud environments, enabling faster recovery and supporting regulatory compliance [1] - The service is integrated with Kyndryl Bridge, an AI-powered platform, allowing for recovery at scale across customer IT estates [1] Group 2: Market Challenges - Organizations are facing a dual challenge of recovering from disruptions quickly while navigating a complex regulatory landscape [1] - Kyndryl aims to close this gap by automating recovery workflows and providing real-time visibility into recovery objectives and system health [1] Group 3: Industry Applications - KIRS addresses recovery challenges across various industries, including: - Manufacturing and energy: Supports operational technology (OT) and IoT platforms to mitigate production disruptions [1] - Financial services: Protects sensitive data and transaction systems in regulated environments [1] - Healthcare: Manages workloads across hospitals and clinics to support continuous patient care [1] - Retail: Safeguards essential systems like point-of-sale and inventory management to prevent revenue loss during outages [1] Group 4: Features and Benefits - The service features unified dashboards for centralized visibility into recovery progress and compliance metrics, simplifying governance and oversight [1] - KIRS reduces manual effort, accelerates system restoration, and supports proactive continuity planning by helping organizations anticipate operational needs [1]

Core Insights - Pure Storage has announced updates to its partner programs, focusing on creating a differentiated, solutions-led partner experience with deeper enablement and new program tiers [1][2] Partner Program Evolution - The updated partner program builds on previous foundational updates, emphasizing Pure's commitment to partner success and introducing the Ambassador tier to help partners integrate Pure into their solutions [2][3] - The program prioritizes verified technical expertise and solution specialization over volume-based participation, recognizing partners with deep knowledge of the Pure Storage platform [3][7] Focus Areas - The updates emphasize data-centric services, particularly in the Managed Services Provider (MSP) Partner program, and aim to enhance distributor roles to accelerate partner readiness [4][7] - The MSP Partner program will focus on services where data and storage are foundational, including private and sovereign cloud, Storage-as-a-Service, and backup and disaster recovery [7] New Recognition and Incentives - The introduction of the Ambassador tier rewards skilled partners who understand the Pure Storage platform and showcases expertise in key areas such as AI, cyber resilience, cloud, and application modernization [7] - The program now includes Solution Practice Designations to recognize partners with the skills to drive innovation in these areas [7] Industry Collaboration - Partners play a critical role in helping customers modernize their infrastructure and manage rising cyber risks, with Pure Storage's solutions-focused program creating opportunities for collaboration and integrated solutions [6][8] - The program aligns with industry trends, as customers increasingly seek complete, trusted solutions in AI, cloud, and cyber resilience [8]

Core Insights - 11:11 Systems has launched its inaugural Partner Awards 2025 to recognize partners who excel in cloud, security, and digital transformation for clients across the region [1][2] - The awards highlight partners that have demonstrated technical excellence and customer focus, aiding organizations in modernizing, protecting, and managing mission-critical applications and data [1][2] Group 1: Partner Awards Overview - The 11:11 Partner Awards acknowledge organizations that consistently deliver exceptional value during their cybersecurity and digital transformation journeys [2] - Winners were chosen based on their innovative implementation of the resilient 11:11 cloud platform, strong financial performance, and ability to achieve impactful business results in a changing threat landscape [2][3] Group 2: Role of Partners - Partners combine 11:11's leading solutions in cloud, network, backup, cybersecurity, disaster recovery, and security with their industry knowledge to help clients achieve resilience and operational excellence [3] - The company emphasizes that partners are an extension of their team, playing a crucial role in enhancing resilience across the region by providing expertise, innovation, and strategic consultancy [4] Group 3: Increasing Cyber Threats - With rising cyber threats and a growing need for secure, scalable cloud and network resilience, partners support clients by protecting critical data and enabling confident progress in business operations [5] Group 4: Award Categories and Winners - The program recognizes winners in four categories: Partner of the Year, Innovator of the Year, Accelerator of the Year, and Rising Star of the Year [6] - Notable winners include Interstellar as Partner of the Year for the UK and Europe, BlueBridge as Innovator of the Year for the UK, and various managed service providers and value-added resellers in different categories [7] Group 5: Company Background - 11:11 Systems is a provider of managed infrastructure solutions that enable clients to modernize, protect, and manage mission-critical applications and data using its resilient cloud platform [9]

Group 1 - Rubrik, Inc. (NYSE:RBRK) is recognized as one of the 11 best stocks to buy for investment, with shares increasing by over 41% in the past six months and a median price target of $110, indicating a potential upside of over 71% [1] - The company launched Rubrik CXO Visionaries, an exclusive community for Fortune 500 and Enterprise 2000 CIOs, CISOs, and CTOs to facilitate global AI transformation [2] - Rubrik is addressing the growing cyber and AI-driven security threats, with 90% of IT and security leaders reporting cyberattacks in the past year, and 58% anticipating that agentic AI will drive nearly half of attacks this year [3] Group 2 - The Rubrik CXO Visionaries community aims to provide tech leaders with peer insights, strategic influence, and a trusted network to manage security, compliance, and AI risks, enhancing their ability to anticipate cyberattacks [4] - KeyBanc has lowered its price target for Rubrik from $113 to $95 while maintaining an Overweight rating, reflecting a cautious outlook on enterprise security spending [5] - Rubrik offers a range of data security solutions, including unstructured data protection, cloud data protection, and SaaS data protection, to combat cyber and AI threats [6]

Financial Data and Key Metrics Changes - Subscription revenue grew 30% to $206 million, driven by a record addition of 700 new subscription customers [4][13] - Total revenue increased 19% to $314 million, with a 22% growth in term software revenue to $119 million [13][14] - Subscription ARR rose 28% to $941 million, with SaaS ARR increasing 40% to $364 million [15][20] - Gross margins improved 100 basis points sequentially to 81.5% [16] - Non-GAAP EBIT was $61 million, reflecting a margin of 19.6% [16] Business Line Data and Key Metrics Changes - SaaS revenue saw a robust 44% increase, contributing significantly to overall subscription revenue growth [13] - Term software transactions over $100,000 grew 25%, indicating strong performance in large enterprise accounts [14] - ARR from identity resilience offerings doubled year over year, highlighting strong customer adoption [9] Market Data and Key Metrics Changes - Commvault achieved AWS resilience competency in the recovery category and was named the 2025 AWS Global Storage Partner of the Year [10] - The company reported strong growth across all geographies and customer sizes, particularly from large enterprises [14] Company Strategy and Development Direction - Commvault is focusing on innovation through the Commvault Cloud Unity Platform, which integrates data security, identity resilience, and cyber recovery [6][10] - The company aims to capitalize on the growing demand for cyber resilience in an AI-driven, hybrid, and multi-cloud environment [4][11] - Commvault is also addressing data sovereignty requirements by supporting regional sovereign clouds, including a partnership with AWS for the European Sovereign Cloud [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, citing record customer engagement and adoption [12] - The company anticipates finishing the year with solid results, reflecting its leadership in the market and customer trust [12] - Management noted that the business is in a good place, with strong performance in both software and SaaS customer acquisitions [29] Other Important Information - The company initiated a cost optimization program to align its cost structure with evolving business needs [17] - Commvault repurchased $41 million of stock during the quarter, with a total of $187 million year-to-date [17][21] Q&A Session Summary Question: Free cash flow and accounts receivable increase - Management explained that Q3 typically sees pressure on free cash flow due to sales cycles, with over 60% of deals closing in the last weeks of the quarter [25] Question: Long-term growth narrative and TAM expectations - Management refrained from providing guidance beyond the current fiscal year but indicated confidence in outpacing market growth [28][29] Question: Currency impact on revenue and ARR - Management confirmed that currency was in line with expectations for reported revenue, while ARR guidance is provided on a constant currency basis [36] Question: SaaS net retention rate drop - Management attributed the drop to a larger customer base and strong new customer acquisition, which does not immediately reflect in the NRR [55] Question: Term duration elongation and its impact - Management noted that the increase in term duration was influenced by large new customer deals, which may have affected term ARR [66][110]

Financial Data and Key Metrics Changes - Subscription revenue grew 30% to $206 million, driven by a record addition of 700 new subscription customers [4][13] - Total revenue increased 19% to $314 million, with subscription revenue leading the growth [13] - Subscription ARR rose 28% to $941 million, while total ARR increased by 22% to $1.085 billion [15][20] - Gross margins improved 100 basis points sequentially to 81.5% [16] - Non-GAAP EBIT was $61 million, reflecting a margin of 19.6% [16] Business Line Data and Key Metrics Changes - SaaS ARR increased 40% to $364 million, representing a significant portion of the subscription growth [4][15] - Term software revenue grew 22% to $119 million, indicating strong demand for traditional software offerings [13] - Revenue from term software transactions over $100,000 grew 25%, highlighting strength in large enterprise accounts [14] Market Data and Key Metrics Changes - Strong growth was observed across all geographies and customer sizes, particularly from large enterprises [14] - The company added approximately 700 new subscription customers, ending the quarter with over 14,000 subscription customers [14] Company Strategy and Development Direction - Commvault is focusing on innovation through the Commvault Cloud Unity Platform, which integrates data security, identity resilience, and cyber recovery [6][12] - The company aims to capitalize on the growing need for cyber resilience in an AI-driven, hybrid, and multi-cloud environment [4][11] - Commvault is also addressing data sovereignty requirements by supporting regional sovereign clouds, including a partnership with AWS for the European Sovereign Cloud [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, citing strong customer engagement and adoption of new platforms [12][20] - The company anticipates finishing the year with solid results, reflecting leadership in the market and customer trust [12] - Management acknowledged the evolving competitive landscape and the importance of maintaining a balance between growth and profitability [16][20] Other Important Information - The company initiated a cost optimization program to align its cost structure with business needs [17] - Commvault repurchased $41 million of stock during the quarter, with a year-to-date total of $187 million [17][21] - The board approved a share repurchase authorization of up to $250 million [21] Q&A Session Summary Question: Free cash flow and accounts receivable increase - Management explained that Q3 typically sees pressure on free cash flow due to sales cycles, with over 60% of deals closing in the last weeks of the quarter [24][25] Question: Long-term growth narrative and TAM expectations - Management refrained from providing guidance beyond the current fiscal year but indicated confidence in outpacing market growth [27][29] Question: Currency impact on revenue and ARR - Currency was in line with expectations for reported revenue, while ARR guidance is provided on a constant currency basis [33][36] Question: SaaS net retention rate drop - Management attributed the drop to a larger customer base and strong new customer acquisition, which does not immediately reflect in NRR [55][56] Question: Impact of Unity on term to SaaS shift - Unity is expected to enhance customer management capabilities, but its impact is still early to quantify [53][91] Question: Term duration elongation - Management noted that large deals influenced term duration, leading to variability in ARR [66][110]

Financial Data and Key Metrics Changes - Subscription revenue grew 30% to $206 million, driven by a record addition of 700 new subscription customers [3][12] - Total revenue increased 19% to $314 million, with a 22% growth in term software revenue to $119 million [12][13] - Subscription ARR rose 28% to $941 million, with SaaS ARR increasing 40% to $364 million [12][14] - Gross margins improved 100 basis points sequentially to 81.5% [15] - Non-GAAP EBIT was $61 million, reflecting a margin of 19.6% [15] Business Line Data and Key Metrics Changes - SaaS revenue saw a robust 44% increase, contributing significantly to overall subscription revenue growth [12] - Term software transactions over $100,000 grew 25%, indicating strong demand from large enterprise accounts [13] - ARR from identity resilience offerings doubled year over year, highlighting growth in this segment [8] Market Data and Key Metrics Changes - Commvault achieved AWS resilience competency in the recovery category and was named the 2025 AWS Global Storage Partner of the Year [9] - The company is a launch partner for the AWS European Sovereign Cloud, addressing regional data sovereignty needs [10][11] Company Strategy and Development Direction - Commvault is focusing on innovation through the Commvault Cloud Unity Platform, which integrates data security, identity resilience, and cyber recovery [4][10] - The company aims to capitalize on the growing demand for cyber resilience in an AI-driven, hybrid, and multi-cloud environment [3][10] - A cost optimization program was initiated to align the cost structure with evolving business needs [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, citing strong customer engagement and adoption [11] - The company anticipates solid results for the year, reflecting leadership in the market and customer trust [11] - Management noted that the business is in a good place, with expectations to outpace market growth [27] Other Important Information - The company repurchased $41 million of stock during the quarter, with a year-to-date total of $187 million [16][19] - Free cash flow for Q3 was impacted by the timing of collections and an additional payroll cycle, but is expected to normalize in Q4 [16][24] Q&A Session Summary Question: Free cash flow and accounts receivable increase - Management explained that Q3 typically sees pressure on free cash flow due to sales cycles, with over 60% of deals closing in the last weeks of the quarter [22][24] Question: Long-term growth narrative and TAM expectations - Management refrained from discussing guidance beyond the fiscal year but acknowledged the total addressable market (TAM) growth expectations [25][26] Question: Currency impact on revenue and ARR - Currency was in line with expectations for revenue, while ARR guidance is provided on a constant currency basis [32][34] Question: SaaS NRR and customer acquisition - Management noted that the increase in new SaaS customers does not immediately reflect in NRR, as those dollars do not show up yet [53][54] Question: Unity platform impact on SaaS growth - The Unity platform is expected to enhance customer capabilities and facilitate cross-selling, although it is still early in its adoption [91][92] Question: Term duration and ARR expectations - Management indicated that longer duration deals impacted term ARR, but emphasized the importance of looking at annualized performance [108][109]

Commvault Fiscal Q3'26 Earnings Presentation JANUARY 2026 © Commvault 2026 2 Key Financial Highlights Forward-Looking Statements This presentation contains forward-looking statements regarding future events or the expected financial performance of our company, including statements about our outlook for future periods and related guidance. Commvault does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not avail ...