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BOCA RATON, Fla., July 02, 2026 (GLOBE NEWSWIRE) -- Saxena White P.A. has filed a securities class action lawsuit (the “Class Action”) in the United States District Court for the District of New Jersey against Commvault Systems, Inc. (“Commvault” or the “Company”) (Nasdaq: CVLT), and certain Commvault executive officers (“Defendants”). The Class Action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder on behalf of all persons and entities that purchased or otherwise acquired Commvault securities between January 28, 2025 and January 26, 2026, inclusive (the “Class Period”), and were damaged thereby. The Class Action filed by Saxena White is captioned City of Fort Lauderdale Police and Firefighters’ Retirement System v. Commvault Systems, Inc., et al., No. 3:26-cv-08144 (D.N.J.).

The Class Action complaint expands the allegations and class period asserted in a related action against Commvault and certain of its executive officers captioned Imbert v. Commvault Systems, Inc., et al., No. 3:26-cv-05654 (D.N.J. filed May 18, 2026) (the “Imbert Action”). Specifically, the Class Action expands the class period pled from April 29, 2025 through January 26, 2026 in the Imbert Action, to January 28, 2025 through January 26, 2026 in the Class Action, on behalf of all persons and entities that purchased or otherwise acquired Commvault securities.

Pursuant to the notice published on May 18, 2026 in connection with the filing of the Imbert Action, and as required by the Private Securities Litigation Reform Act of 1995 (PSLRA), investors wishing to serve as lead plaintiff are required to file a motion for appointment as lead plaintiff by no later than July 17, 2026. Saxena White’s filing of the Class Action does not alter the lead plaintiff deadline.

Commvault provides on-premise software licenses and cloud-delivered Software as a Service (“SaaS”) products for protecting and restoring customer data and cloud applications. Commvault’s key performance metrics are Annualized Recurring Revenue (“ARR”) and Net New ARR (“NNARR”), which measures the net increase in ARR during a given period. Leading up to the Class Period, Commvault repeatedly claimed that it was strategically positioned to outpace its competitors in growth and would continue to gain market share.

The Class Action alleges that Defendants misled investors regarding the Company’s prospects, financial condition, and competitive position. Specifically, Defendants failed to disclose that: (1) Commvault’s competitive positioning was materially weaker than Defendants had represented to investors; (2) due to the undisclosed increase in competition, Commvault was forced to make significant concessions on price and contract duration for its software licenses; (3) as these concessions became unsustainable, SaaS became a larger portion of the Company’s sales mix; and (4) in turn, the increasing mix of SaaS sales, which carry shorter term durations and lower average selling prices (“ASP”), negatively impacted the Company’s margin and NNARR.

The truth emerged before markets opened on January 27, 2026, when Commvault announced its financial results for the third-quarter of fiscal year 2026. Commvault disclosed NNARR in constant currency of $39 million, missing analysts’ expectations of approximately $45 million. The Company further revealed that the mix of SaaS deals increased to “70%” during the quarter and highlighted that “landing these customers at a 2 to 3x smaller ASP than software . . . does have a significant impact on ARR.” On this news, the price of Commvault common stock fell $40.23 per share, or about 31%, to close at a price of $89.13 per share on January 27, 2026.

If you purchased Commvault securities during the Class Period and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as lead plaintiff. If you wish to apply to be lead plaintiff, a motion on your behalf must be filed with the U.S. District Court for the District of New Jersey no later than July 17, 2026. The lead plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in the Class Action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.

You may contact Marco A. Dueñas ([email protected]), a Senior Attorney at Saxena White P.A., to discuss your rights regarding the appointment of lead plaintiff or your interest in the Class Action. You also may retain counsel of your choice to represent you in the Class Action. You may obtain a copy of the Complaint and inquire about actively joining the Class Action at www.saxenawhite.com.

Saxena White P.A., with offices in Florida, New York, California, and Delaware, is a leading national law firm focused on prosecuting securities class actions and other complex litigation on behalf of injured investors. Currently serving as lead counsel in numerous securities class actions nationwide, Saxena White has recovered billions of dollars on behalf of injured investors.

CONTACT INFORMATION
Marco A. Dueñas, Esq.
[email protected]
Saxena White P.A.
10 Bank Street, Suite 882
White Plains, New York 10606
Tel.: (914) 200-3263
www.saxenawhite.com

Key Takeaways CVLT topped fiscal Q4 earnings estimates as revenues rose 13.3% and subscription revenues climbed 20%.CVLT's fiscal 2027 revenue outlook implies 12%-13% growth as subscription revenue gains slow.CVLT's free cash flow, cash pile and buybacks help offset concerns about normalizing growth. Commvault Systems, Inc. (CVLT - Free Report) still has a credible investment case after strong fourth-quarter fiscal 2026 results, but the setup is no longer a simple growth-acceleration story.

The better question is whether steady execution, recurring revenue gains and cash generation are enough to justify a fresh entry when fiscal 2027 growth is expected to normalize.

CVLT Delivers Better Earnings Than ExpectedCommvault reported non-GAAP earnings of $1.28 per share for the fourth quarter of fiscal 2026, up 24.3% year over year and 17.4% above the Zacks Consensus Estimate.

Revenues increased 13.3% year over year to $311.7 million, topping the consensus mark by 1.5%. Subscription revenues rose 20% to $208 million, with SaaS revenues jumping 43% to $93 million.

The quarter also showed healthy operating leverage. Non-GAAP operating margin improved 170 basis points year over year to 21.3%, while free cash flow reached a quarterly record of $132 million.

Commvault's Fiscal 2027 Outlook Cools the StoryThe hesitation starts with guidance. Management expects fiscal 2027 total revenues of $1.30 billion to $1.31 billion, implying growth of roughly 12% to 13% from fiscal 2026 revenues of $1.18 billion.

Subscription annual recurring revenues are expected to reach $1.20 billion to $1.21 billion in fiscal 2027. That still indicates growth, but it marks a slowdown from the 27% subscription annual recurring revenue growth reported in fiscal 2026.

That makes CVLT more of a quality-growth story than an accelerating-growth story. Investors comparing the space may also watch Rubrik (RBRK - Free Report) , a cyber resilience and data security company with direct relevance to enterprise recovery demand. CrowdStrike Holdings (CRWD - Free Report) , a cybersecurity platform company, offers a broader benchmark for investor appetite toward security software.

CVLT's Valuation Looks Fair, Not CheapCVLT trades at 23.41 times forward 12-month earnings. That is above the Zacks sub-industry multiple of 19.84 times, but below the broader Zacks sector multiple of 25.11 times.

The valuation does not look excessive relative to the company’s recurring revenue base and cash generation. It also does not offer a clear discount that would make the stock easy to buy despite slower growth.

The $132 price target also points to a measured setup. With the stock at $126.01 as of June 22, 2026, the implied upside looks modest rather than compelling.

Commvault's Cash Flow Helps the Bull CaseCash flow is the strongest offset to the growth concern. Commvault generated $237 million in free cash flow in fiscal 2026, up 16% year over year.

The company ended fiscal 2026 with $900 million in cash and cash equivalents. That gives it flexibility to invest in product development, support strategic acquisitions and maintain shareholder returns.

Repurchases also remain part of the story. Commvault bought back 3 million shares for $259 million in the fiscal fourth quarter and repurchased $446 million of stock for the full fiscal year.

What CVLT's Scores Say About the Risk-RewardThe bottom line is that CVLT still looks like a solid software name, but the near-term risk-reward is more balanced than compelling. Strong execution and cash generation support patience, while slower expected revenue and annual recurring revenue growth argue against chasing the stock.

CVLT currently carries a Zacks Rank #3 (Hold). That rank is consistent with a more measured view over the next one to three months rather than a clear short-term buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Style Scores add nuance. CVLT has a VGM Score of C, Growth Score of B, Value Score of D and Momentum Score of C. The Growth Score of B supports the long-term appeal of the business, but the Value Score of D indicates that valuation is not the stock’s strongest attribute.

For investors already holding CVLT, the fundamentals still provide reasons to stay constructive. For new buyers, the combination of normalizing growth and fair valuation supports a more patient entry point.