In its upcoming report, Commvault Systems (CVLT - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.25 per share, reflecting an increase of 37.4% compared to the same period last year. Revenues are forecasted to be $310.8 million, representing a year-over-year increase of 12.5%.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Commvault metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts predict that the 'Revenues- Subscription' will reach $263.16 million. The estimate suggests a change of +52.4% year over year.
The combined assessment of analysts suggests that 'Revenues- Perpetual license' will likely reach $8.78 million. The estimate indicates a change of -27.3% from the prior-year quarter.
The consensus estimate for 'Revenues- Other services' stands at $11.02 million. The estimate suggests a change of -1.8% year over year.
View all Key Company Metrics for Commvault here>>>
Shares of Commvault have experienced a change of +9.5% in the past month compared to an unchanged Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), CVLT is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Commvault Systems v poslední seanci vzrostla o 1,91 % na 149,20 USD a za měsíc přidala 11,63 %. Před výsledky analytici čekají EPS 1,25 USD a tržby 310,8 mil. USD.
In the latest close session, Commvault Systems (CVLT - Free Report) was up +1.91% at $149.20. This move outpaced the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.13%.
Shares of the data-management software company witnessed a gain of 11.63% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.68%, and the S&P 500's gain of 1.26%.
Market participants will be closely following the financial results of Commvault Systems in its upcoming release. In that report, analysts expect Commvault Systems to post earnings of $1.25 per share. This would mark year-over-year growth of 37.36%. Meanwhile, the latest consensus estimate predicts the revenue to be $310.8 million, indicating a 12.53% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.44 per share and revenue of $1.31 billion, indicating changes of +25.06% and +10.39%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Commvault Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Commvault Systems possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Commvault Systems is currently being traded at a Forward P/E ratio of 26.92. Its industry sports an average Forward P/E of 16.37, so one might conclude that Commvault Systems is trading at a premium comparatively.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVLT in the coming trading sessions, be sure to utilize Zacks.com.
Commvault rozšířil služby kybernetické odolnosti s autorizací FedRAMP High pro kvalifikované MSP partnery v USA. Ti je mohou nabízet federálním a obranným zákazníkům pro ochranu a obnovu citlivých dat.
New MSP route to market helps service providers protect and recover sensitive government data while supporting customers' evolving federal cybersecurity requirements
, /PRNewswire/ -- Commvault (NASDAQ: CVLT), a leader in unified resilience at enterprise scale, today announced that qualified managed service provider (MSP) partners can now offer services built on Commvault Cloud for Government, a FedRAMP High Authorized service. This milestone helps service providers deliver FedRAMP High Authorized data protection and cyber resilience services to U.S. federal agencies and organizations across the Defense Industrial Base (DIB).
Through Commvault's MSP model, service providers can now deliver a platform that helps federal customers protect sensitive data, support recovery operations, and align with evolving federal cybersecurity and compliance requirements for both FedRAMP and the Cybersecurity Maturity Model Certification (CMMC).
"MSPs need a platform they can build a business on and today that includes delivering trusted and scalable resilience services to customers," said Mario Pirolozzi, Vice President, Managed Service Providers for Commvault. "For partners serving federal agencies and defense entities, providing FedRAMP High Authorized capabilities enables them to do that – helping customers protect sensitive data, strengthen recovery, and meet evolving security requirements."
"Federal and defense customers aren't just asking whether their data is protected – they need confidence that the services supporting their mission can stand up to rigorous security requirements and recover when disruption occurs," said Kevin Cronin, CEO, KELYN Technologies. "Combining Commvault's FedRAMP High Authorized capabilities with an MSP delivery model gives us a powerful foundation for helping customers protect critical data while staying focused on their missions."
Helping MSPs Protect Data and Strengthen Recovery
For MSPs serving federal agencies, defense contractors, and other organizations handling sensitive government information, Commvault Cloud for Government provides a trusted foundation for delivering cyber resilience services. That foundation enables MSPs to:
Protect sensitive government data across complex environments: Provide data protection across hybrid, SaaS, and on-premises workloads in high-security federal environments. Support cybersecurity and compliance responsibilities: FedRAMP High Authorized cloud services provide inherited security controls that can help MSPs address portions of their security obligations. Commvault's FedRAMP High authorization also enabled rapid achievement of CMMC Level 2 compliance and can help organizations support applicable NIST SP 800-171 and CMMC requirements within their own environments and assessment scopes. Recover critical data and operations with confidence: Help federal and DIB customers rapidly recover data and restore critical operations following cyber incidents, outages, or other disruptions. Availability
Commvault Cloud for Government services are available to qualified MSP partners in the United States via the FedRAMP Marketplace. For more information about Commvault Cloud for Government, visit: https://www.commvault.com/fedramp-high-authorized.
About Commvault
Commvault (NASDAQ: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.
Commvault uvedl Active Directory Pre Recover, který má zkrátit obnovu Active Directory z hodin na minuty během kyberútoku. Novinka využívá Cleanroom a Threat Scan k udržení přístupu ke kritickým systémům.
Solution couples recovery speed with recovery cleanliness, helping organizations maintain access to critical systems when identity infrastructure is compromised
, /PRNewswire/ -- Commvault (NASDAQ: CVLT), a leader in unified resilience at enterprise scale, today announced Commvault Active Directory Pre Recover. This new solution, which utilizes existing Commvault technologies – including Commvault Cleanroom and Threat Scan, can reduce the time it takes to cleanly recover Active Directory ("AD") from hours to minutes.
Active Directory Pre Recover creates a clean, standby copy of AD in an isolated, air-gapped Cleanroom environment. When disaster or disruption strikes, rather than waiting for a full forest recovery, or relying on complicated identity synchronization, organizations can fail over in minutes to this clean copy and keep the business running. Commvault also utilizes Threat Scan to continuously scan AD backups so the standby copy is free of malicious content.
This innovation comes as identity systems have become a primary target for attackers and organizations are facing increased pressure to restore rapidly and without risk of re-infection.
"Identity is foundational to every enterprise application, user, and business process," said Rajiv Kottomtharayil, Chief Products Officer, Commvault. "Commvault has already made significant progress reducing identity recovery times from weeks to hours, and now we are extending that progress toward near-real-time availability. The result is faster access to critical business systems and greater confidence during cyber recovery."
Additional Benefits of Commvault Active Directory Pre Recover:
Keep critical operations running during a cyber incident: With the AD standby copy stored in Cleanroom, organizations can have peace of mind that, in the event production identity services are unavailable, trusted access to critical systems can continue. Minimize application and infrastructure disruption: Applications can continue authenticating against trusted identity services without requiring complicated replication of accounts in alternate Identity and Access Management Systems or waiting for a full forest restore to complete. Availability
Commvault Active Directory Pre Recover will be available for early access in the coming months, delivered as part of Commvault's Identity Resilience portfolio. All enterprise AD customers will receive Active Directory Pre Recover as part of their existing license, including a lite version of Cleanroom. This offering will be available globally through Commvault's partner ecosystem.
About Commvault
Commvault (NASDAQ: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.
Commvault představil integraci s CrowdStrike Charlotte Agentic SOAR, která automatizuje kroky kybernetické obnovy v bezpečnostních pracovních postupech. Cílem je rychlejší reakce, forenzní analýza a méně ruční koordinace.
New integration automates Commvault cyber recovery actions within Charlotte Agentic SOAR workflows, helping accelerate forensic investigations and incident response
, /PRNewswire/ -- Commvault (NASDAQ: CVLT), a leader in unified resilience at enterprise scale, today announced a new integration with CrowdStrike that makes Commvault cyber recovery actions available as native steps within Charlotte Agentic SOAR workflows. The integration enables joint customers to automate Commvault recovery actions as part of security workflows, helping accelerate response and forensic investigations while reducing manual coordination between security and recovery teams.
AI-driven automation is helping organizations detect, investigate, and respond to threats at machine speed, yet fragmented tools and workflows can slow security teams at critical moments. The new purpose-built connector enables security teams to incorporate Commvault cyber recovery actions directly into workflows orchestrated by Charlotte Agentic SOAR and rapidly accelerate investigation, response, and recovery. Key capabilities include:
Restrict access in Commvault to help prevent unauthorized changes during an active incident. Preserve clean recovery options by automatically suspending Commvault backup data aging policies to retain viable recovery points during active incidents. Accelerate forensic investigations by restoring potentially compromised assets into Commvault Cleanroom, enabling investigators to begin analysis without disrupting production systems. "Security and recovery teams need to move quickly and in coordination during an incident," said Vidya Shankaran, Field CTO, Commvault. "Our integration with CrowdStrike Charlotte Agentic SOAR makes Commvault cyber recovery actions available directly within security workflows, helping joint customers reduce manual handoffs and accelerate investigation and response. This strengthens cyber resilience and simplifies how security and recovery teams work together seamlessly."
Today's news is the latest in a series of integrations with CrowdStrike: Falcon Insight XDR brought CrowdStrike threat intelligence into Commvault Cloud; Falcon Next-Gen SIEM extended visibility; and the new Charlotte Agentic SOAR integration enables Commvault cyber recovery actions to be incorporated directly into automated security workflows.
Availability
The integration between Commvault and Charlotte Agentic SOAR is generally available for joint Commvault and CrowdStrike customers. The integration is also available through the CrowdStrike Marketplace. For more information, visit the Commvault and CrowdStrike joint partner page.
About Commvault
Commvault (NASDAQ: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.
Commvault za poslední měsíc přidal asi 11,6 % poté, co v 1. čtvrtletí fiskálního roku 2027 překonal odhady zisku i tržeb. Tržby vzrostly o 11,4 % na 314,13 milionu USD a tržby ze SaaS poprvé překonaly 100 milionů USD, když dosáhly 100,55 milionu USD.
It has been about a month since the last earnings report for Commvault Systems (CVLT - Free Report) . Shares have added about 11.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Commvault due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for CommVault Systems, Inc. before we dive into how investors and analysts have reacted as of late.
CVLT Q1 Earnings Beat Estimates, Revenues Rise Y/Y on SaaS GrowthCommvault reported first-quarter fiscal 2027 non-GAAP earnings of $1.42 per share, up 40.6% year over year. The figure beat the Zacks Consensus Estimate of $1.18 by 20.3%.
Revenues advanced 11.4% to $314.13 million and surpassed the consensus mark by 0.99%. Results benefited from strong SaaS demand, subscription growth and improving profitability. Subscription annual recurring revenues (ARR) increased 22% to $1.05 billion.
CVLT’s Subscription Revenues Maintain MomentumSubscription revenues increased 16% year over year to $267.03 million and accounted for 85% of total revenues, up from 81% in the prior-year quarter.
Term-based license revenues rose 1% to $110.42 million, while term-based support revenues climbed 18% to $56.06 million. SaaS revenues surged 39% to $100.55 million, crossing the $100 million quarterly threshold for the first time.
Perpetual license revenues increased 19% to $8.70 million. However, perpetual support revenues declined 19% to $25.48 million, while other services revenues fell 7% to $12.93 million.
Commvault’s ARR Growth Reflects SaaS StrengthSubscription ARR reached $1.05 billion, up from $867.31 million a year earlier. CVLT added $39 million in net new subscription ARR during the quarter, driven by continued strength in its SaaS offerings.
SaaS ARR grew 38% to $424.34 million from $306.87 million. The company surpassed 10,000 active SaaS customers, while subscription net dollar retention remained steady at 114%.
Identity resilience and data security offerings represented more than one-third of net new subscription ARR. Emerging SaaS offerings, including Clumio S3 Protection, Google Workspace and Azure DevOps, also recorded strong growth.
CVLT Benefits From Broader Platform AdoptionThe percentage of Commvault-managed SaaS customers using at least two products increased to 49% from 42% a year earlier. This reflected continued upselling and cross-selling across the Commvault Cloud Platform.
Management highlighted identity resilience as an important entry point for broader platform adoption. Demand was supported by customers seeking to protect identity systems, govern data access and recover operations following cyber incidents.
Commvault also expanded its relationship with Microsoft. Its cyber-resilience capabilities are expected to become available as a native independent software vendor service on Microsoft Azure, making the platform easier to integrate into Azure-based workflows.
Commvault’s Margins Expand on Operating LeverageGross margin reached 82.1% in the reported quarter. SaaS gross margin improved 635 basis points year over year to 70.6%, aided by product optimization, acquisition integration and strategic agreements with hyperscaler partners.
Operating expenses increased 7% to $185 million but declined as a percentage of revenues to 59% from 61% a year earlier. Headcount remained roughly flat year over year.
Non-GAAP EBIT increased to $71.47 million from $58.25 million. The corresponding margin expanded 210 basis points to 22.8%, marking the company’s strongest quarterly EBIT margin performance in more than a decade.
CVLT’s Cash Flow and Balance Sheet Remain SolidOperating cash flow increased to $51.67 million from $31.68 million in the year-ago quarter. Free cash flow rose 71% to $51.10 million, reflecting stronger collections and continued spending discipline.
Commvault ended the quarter with cash and cash equivalents of $929.84 million, up from $899.99 million at the end of fiscal 2026. During the quarter, the company repurchased roughly 98,000 shares for $10 million.
Management continues to target share repurchases equal to approximately 60% of annual free cash flow while retaining balance sheet flexibility.
Commvault Updates Fiscal 2027 Profit OutlookFor the second quarter of fiscal 2027, subscription revenues are projected between $264 million and $268 million. Total revenues are expected to be approximately $310 million, while the non-GAAP EBIT margin is forecast at about 20%.
For fiscal 2027, CVLT raised its subscription revenue outlook to $1.119-$1.129 billion from $1.115-$1.125 billion. Subscription ARR guidance was maintained at $1.20-$1.21 billion, with SaaS ARR expected to exceed $500 million.
The company continues to expect total revenues of $1.30-$1.31 billion and free cash flow of $250-$260 million. Non-GAAP EBIT margin guidance was increased by 50 basis points to approximately 21%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, Commvault has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Commvault has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCommvault is part of the Zacks Computer - Software industry. Over the past month, SAP (SAP - Free Report) , a stock from the same industry, has gained 13.8%. The company reported its results for the quarter ended June 2026 more than a month ago.
SAP reported revenues of $11.48 billion in the last reported quarter, representing a year-over-year change of +12.1%. EPS of $1.85 for the same period compares with $1.70 a year ago.
For the current quarter, SAP is expected to post earnings of $2.04 per share, indicating a change of +9.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for SAP. Also, the stock has a VGM Score of D.
Commvault rozšířil Cloud Rewind pro Microsoft Azure a nyní pokrývá 62 % relevantních typů zdrojů, aby firmy mohly rychleji obnovit cloudové a AI aplikace po útoku nebo výpadku.
Broadened Azure resource coverage helps organizations recover more complete cloud-native and AI-driven applications following cyberattacks and outages
, /PRNewswire/ -- Commvault (NASDAQ: CVLT), a leader in unified resilience at enterprise scale, today announced advancements to Cloud Rewind, expanding Microsoft Azure resource coverage for configuration protection and recovery. Through this expansion, Commvault is helping organizations more rapidly restore cloud applications and the resources that support them.
Manually rebuilding environments is often slow, complex, and error-prone. According to Absolute Security's 2026 State of Enterprise Cyber Resilience report, 57% of enterprises said recovery from a cyberattack took more than 4.5 days on average.1
Cloud Rewind addresses this by continuously discovering cloud resources, mapping application dependencies, and orchestrating the recovery and rebuild of cloud applications, including the infrastructure, configurations, and dependencies they need to operate, from a single platform. This expansion broadens Azure protection by 3X – now covering 62% of enterprise-relevant Azure resource types available in the market. Organizations can also validate recovery readiness through application recovery simulations, including within isolated, air-gapped environments, before an incident occurs.
"In global logistics, every minute of downtime can disrupt supply chains and impact customer trust. Data is critical, but it needs the right cloud infrastructure to stay actionable," said Venkata Sudhakar Nagandla, SVP & Global Head-IT Infrastructure & Cloud, Allcargo Group Companies. "With Cloud Rewind, we don't just recover files — we restore our operational environment in hours, ensuring our customers experience continuity without compromise."
Additional enhancements include:
Deeper integration into Commvault backup and recovery: Protection Groups unite application data and cloud configuration into a single, air-gapped recovery experience, so teams can plan and execute recovery from one place instead of stitching together separate tools. More advanced policies for dynamic at-scale protection: Policy-based protection automatically enrolls discovered resources by tag, region, and type across multiple cloud environments, using a single workflow, so teams can protect resources at cloud scale instead of onboarding them one at a time. "Modern applications depend on interconnected cloud services, infrastructure, and configurations that must be recovered together," said Pranay Ahlawat, Chief Technology and AI Officer, Commvault. "Cloud Rewind helps organizations recover cloud applications through a unified experience in Commvault Cloud, increasing customers' confidence in their ability to recover following a cyberattack or outage."
"Many organizations discover their recovery plan is incomplete only after an incident has occurred," said Melinda Marks, Senior Research Director and Chief Analyst, Omdia. "As applications and their associated cloud resources become more complex, organizations need an effective way to rapidly recover, with restoration capabilities across configurations, dependencies, and multiple cloud platforms."
Availability and Pricing
Cloud Rewind, available today, is delivered as an add-on workload within Commvault Cloud for cloud application protection and app-centric recovery. Expanded Azure protection is targeted for availability in the coming months. Pricing is metered based on protected cloud resources.
About Commvault
Commvault (NASDAQ: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.
1 Absolute Security. (2026, January 8). Cyber Incidents and Attacks Disrupt Enterprise Business Operations for Two Weeks, Reveals First Comprehensive Global Cyber Resilience Survey [Press release]. https://www.absolute.com/press-releases/cyber-incidents-and-attacks-disrupt-enterprise-business-operations-for-two-weeks-reveals-first-comprehensive-global-cyber-resilience-survey
Commvault uvedl, že poptávku po ochraně dat táhne kybernetická odolnost; subscription ARR vzrostl meziročně o 22 % a SaaS ARR o 38 %. Firma potvrdila celoroční výhled na zhruba 19% růst subscription ARR.
3 Under-the-Radar Cybersecurity Stocks With Major Upside PotentialCommVault Systems NASDAQ: CVLT said the market for data protection has shifted from traditional backup and recovery toward cyber resilience, a trend Chief Financial Officer Gary Merrill said has accelerated over the past three years.
Speaking at the KeyBanc Technology Leadership Forum, Merrill said ransomware, hybrid-cloud complexity and governance requirements are creating sustained demand drivers for the company. He also pointed to growth opportunities in cloud data protection, identity resilience, data security and cloud-native protection.
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3 Under-the-Radar Software Stocks Ready to Bounce“Historically, our space was considered backup,” Merrill said. “What’s accelerated is away from backup and the relevance of recovery.”
Subscription and SaaS Growth Merrill characterized Commvault’s fiscal first quarter as solid and largely in line with expectations. Subscription annual recurring revenue, or ARR, increased 22%, while SaaS ARR rose 38% year over year. The company added 500 new subscription customers and maintained subscription net dollar retention of 114%, according to Merrill.
Commvault Stock: AI Cybersecurity Giant Ready to Double AgainThe company reported $39 million in net new subscription ARR on an as-reported basis. Merrill said foreign-exchange movements affected comparisons with the prior-year quarter. On a constant-currency basis, he said net new subscription ARR would have been approximately $41 million in the latest first quarter, compared with about $43 million a year earlier.
Merrill said a lower contribution from conversions of legacy perpetual-license customers into subscription arrangements also affected results. He attributed the decline to a shrinking pool of perpetual customers, while noting that conversion activity can vary by quarter.
The SaaS business accounted for about $25 million of the company’s $39 million in reported net new ARR during the first quarter, compared with $18 million in the prior-year period, Merrill said. He described that increase as evidence of the growing contribution from cloud workloads to subscription growth.
Second-Half Cross-Sell Opportunity Commvault maintained its annual guidance for approximately 19% year-over-year subscription ARR growth. Merrill said the company expects a modest sequential increase in net new subscription ARR in fiscal second quarter, followed by a larger step-up in the second half of the fiscal year.
That outlook is tied in part to renewal and expansion opportunities within the SaaS customer base. Commvault’s cloud customers typically sign contracts ranging from one to two years, Merrill said, and customers can add products or co-term purchases to their renewals.
He said fewer than half of Commvault-managed SaaS customers currently use more than one product, while the company has penetrated only roughly 20% of the identity-resilience opportunity. The company is seeking to expand cross-selling and multi-product adoption through its Commvault Cloud Unity platform.
Unity, introduced in November, combines on-premises, SaaS and cloud environments into a platform intended to help customers manage their environments, identify unprotected workloads and set policies, Merrill said.
Margins, Hardware and Capital Returns Commvault reported EBIT margin of nearly 23% in the first quarter, which Merrill described as a 10-year quarterly high. He said the improvement was supported by SaaS gross margins reaching 70%, aided by infrastructure optimization, work with hyperscalers and the integration of acquisitions.
The company expects to keep operating-expense growth below revenue growth in the near term while continuing to invest selectively in go-to-market operations, products and innovation, Merrill said.
On hardware availability, Merrill said the dynamic has remained relatively consistent from quarter to quarter. On-premises competitive replacements can often coincide with hardware refresh cycles, he said, though Commvault has been able to manage the environment. He added that SaaS offerings can provide an alternative for some cloud-workload projects because they do not require customer hardware or infrastructure.
Regarding capital allocation, Merrill said Commvault remains committed to returning at least 60% of free cash flow to shareholders, with share repurchases viewed as a primary use of excess cash. The company repurchased more than $400 million of stock over the past year, including more than $200 million in fiscal fourth quarter. He said buybacks were lower in the fiscal first quarter following that fourth-quarter activity but are expected to accelerate in the current fiscal second quarter.
AI Seen as a Future Tailwind Merrill said Commvault has not included any incremental benefit from AI-driven data growth in its fiscal 2027 guidance. However, he said the company expects artificial intelligence to become a longer-term growth tailwind as data volumes expand and organizations face more complicated requirements around security, governance, access controls and non-human identities.
“In an AI-first world, data’s going to be more relevant,” Merrill said. He added that Commvault is preparing for potential opportunities in fiscal 2028, fiscal 2029 and beyond, as recovery becomes increasingly important for organizations managing large data sets across multi-cloud and hybrid environments.
About CommVault Systems (NASDAQ:CVLT)Commvault Systems, Inc is a global provider of data protection and information management software designed to help organizations manage, protect, and activate data across on-premises and cloud environments. Founded in 1996 and headquartered in Tinton Falls, New Jersey, Commvault offers a suite of integrated products and services that enable enterprises to back up, recover, archive, and analyze data. Its flagship solutions include Commvault Complete Data Protection, Commvault HyperScale, and the SaaS-based Metallic portfolio, which deliver scalable and automated data management capabilities across hybrid infrastructure environments.
Commvault's platform is built on a unified architecture that allows customers to streamline operations, reduce complexity, and ensure data resiliency.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Commvault oznámil integraci Threat Scan s Google Threat Intelligence, která má zrychlit nalezení čistých bodů obnovy po kyberútocích. Nové inline skenování přidává hashe souborů během zálohování.
New threat-informed recovery capabilities help organizations identify clean recovery points quicker, reduce downtime after cyberattacks, and restore operations with confidence
, /PRNewswire/ -- Commvault (NASDAQ: CVLT), a leader in unified resilience at enterprise scale, today announced a new integration with Google Threat Intelligence, Google's comprehensive threat intelligence platform, that incorporates Google Threat Intelligence data and scanning capabilities into Commvault Threat Scan workflows. Through this collaboration, Commvault can help customers transform global threat intelligence into actionable recovery insights, enabling organizations to identify clean recovery points faster and accelerate recovery following cyberattacks.
When cyberattacks occur, organizations often face a critical challenge: determining which recovery points are safe to restore. While security teams may quickly identify indicators of compromise (IOCs), recovery teams still need to validate backup data before recovery can begin, delaying recovery efforts when every minute of downtime matters.
Google Threat Intelligence combines Mandiant frontline intelligence, VirusTotal's crowdsourced intelligence, and Google threat insights gained from protecting billions of users. Integrating Commvault Threat Scan workstreams with Google Threat Intelligence helps customers analyze protected workloads for malware, while also helping organizations identify threats and pinpoint which recovery points are compromised. Commvault Threat Scan customers will also receive actionable threat context from Google Threat Intelligence for threats found in their environment to help with further research and remediation.
As part of this release, Commvault is also introducing new scanning capabilities that collect file hashes inline during backup operations. File hashes, like individual fingerprints, provide a fast and easy way to quickly check recovery points against threat intelligence indicators so teams can identify clean files to be used for recovery.
Commvault's inline inspection capability allows customers to start with rapid threat intelligence validation and selectively perform deeper malware, encryption, and forensic analysis when additional inspection is required. This layered approach helps organizations accelerate recovery decisions while maintaining confidence in the integrity of restored data.
These new threat insights and scanning capabilities strengthen Commvault's Synthetic Recovery capability, which uses an AI-enabled process to automatically detect threats and surgically remove them during recovery while keeping the "good" data intact. Customers can then make the most complete recovery possible.
"Businesses need confidence that the data they're restoring is clean," said Pranay Ahlawat, Chief Technology and AI Officer at Commvault. "By combining Threat Scan and inline scanning with Google Threat Intelligence, we're helping customers validate recovery points faster and accelerate clean recovery when it matters most."
"Organizations are looking for ways to strengthen cyber resilience while reducing complexity during incident response and recovery," said Miton Adhikari, Head of Google Security OEM Partnerships. "Through our collaboration with Commvault, customers will be able to apply Google Threat Intelligence within recovery workflows to make faster, more informed recovery decisions and reduce recovery uncertainty."
This announcement builds upon Commvault's ongoing collaboration with Google Cloud, including expanded cyber resilience capabilities for Google Cloud environments via Clumio, and support for Google Cloud workloads.
Availability
The Google Threat Intelligence integration, inline scanning capabilities, and associated Threat Scan enhancements are expected to be available in the coming months. To learn more and see a live demonstration of the integration, attend Google's Theater Session featuring Commvault at Black Hat on Tuesday, August 4 at 6:20pm PT, on the Mandalay Bay Convention Center Expo Floor. For more information about Commvault's partnership with Google, visit the partnership page.
About Commvault
Commvault (NASDAQ: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.
Commvault Systems (CVLT - Free Report) came out with quarterly earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +20.34%. A quarter ago, it was expected that this data-management software company would post earnings of $1.09 per share when it actually produced earnings of $1.28, delivering a surprise of +17.43%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Commvault, which belongs to the Zacks Computer - Software industry, posted revenues of $314.13 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.99%. This compares to year-ago revenues of $281.98 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Commvault shares have added about 19.2% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Commvault?While Commvault has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Commvault was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.20 on $313.2 million in revenues for the coming quarter and $5.22 on $1.31 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, OptimizeRx Corp. (OPRX - Free Report) , has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -54.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
OptimizeRx Corp.'s revenues are expected to be $20.48 million, down 29.8% from the year-ago quarter.
Subscription revenue 1 climbs +16% year over year to a record $267 million
Subscription annualized recurring revenue (ARR) 1,2 reaches $1,054 million, up +22% year over year
Free cash flow 3 increased +71% year over year to $51 million
, /PRNewswire/ -- Commvault (Nasdaq: CVLT) today announced its financial results for the fiscal first quarter ended June 30, 2026.
"Our results reflect what we're hearing from customers every day – they are embracing our AI-enabled platform to protect data, govern access, and make clean, trusted recoveries," said Sanjay Mirchandani, President and CEO, Commvault. "With strong growth and record profitability, Commvault is well positioned to continue taking share in an AI-first world."
Notes are contained at the end of this press release
First Quarter Fiscal 2027 Highlights -
Subscription revenue1 was $267 million, up 16% year over year, inclusive of: SaaS revenue crossed $100 million, up 39% year over year Subscription ARR1,2 grew to $1,054 million, up 22% year over year Income from operations (EBIT) was $26 million, an operating margin of 8.2% Non-GAAP EBIT3 was $71 million, an operating margin of 22.8% Operating cash flow was $52 million, with free cash flow3 of $51 million, up 71% year over year Recent Business Highlights -
Commvault and Microsoft announced a multi-year strategic partnership to offer Commvault's AI and cyber resilience solutions as a native ISV service on Microsoft Azure, underscoring the importance of AI and resilience for enterprises. Commvault was named a Leader in the Gartner® Magic Quadrant™ for Backup and Data Protection Platforms for the 15th consecutive year. Financial Outlook for Second Quarter and Full Year Fiscal 20274 -
We are providing the following guidance for the second quarter of fiscal year 2027:
Subscription revenue1 is expected to be between $264 million and $268 million Non-GAAP EBIT margin3 is expected to be approximately 20% We are providing the following updated guidance for the full fiscal year 2027:
Subscription revenue1 is expected to be between $1,119 million and $1,129 million Subscription ARR1,2 is expected to be between $1,200 million and $1,210 million Non-GAAP EBIT margin3 is expected to be approximately 21% Free cash flow3 is expected to be between $250 million and $260 million Share repurchases are expected to be approximately 60% of free cash flow3 Diluted shares outstanding are expected to be approximately 42 million The above guidance metrics contemplate current macroeconomic conditions. These statements are forward-looking and made pursuant to the safe harbor provisions discussed in detail below. We do not undertake any obligation to update these forward-looking statements. Actual results may differ materially from anticipated results.
Conference Call Information
Commvault will host a conference call today, July 28, 2026 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss quarterly results. The live webcast and call dial-in numbers can be accessed by registering under the "News & Events" section of Commvault's website at ir.commvault.com under the "Investor Events" heading. An archived webcast of this conference call will also be available following the call.
About Commvault
Commvault (Nasdaq: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.
Safe Harbor Statement
This press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as those related to our restructuring plans, competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.
Overview
($ in thousands)
Q1'26
Q2'26
Q3'26
Q4'26
Q1'27
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Subscription:
Term-based license
$ 109,282
36 %
$ 92,647
10 %
$ 118,950
22 %
$ 114,445
6 %
$ 110,420
1 %
Term-based support
47,582
20 %
49,686
19 %
50,962
18 %
53,933
21 %
56,057
18 %
SaaS
72,445
66 %
80,018
61 %
87,379
44 %
93,139
43 %
100,550
39 %
Total subscription
229,309
40 %
222,351
26 %
257,291
28 %
261,517
20 %
267,027
16 %
Perpetual license
7,335
(47) %
12,073
15 %
13,675
(17) %
10,129
(32) %
8,695
19 %
Perpetual support
31,439
(14) %
30,543
(15) %
29,309
(14) %
26,972
(15) %
25,475
(19) %
Other services
13,895
31 %
11,221
2 %
13,557
25 %
13,074
26 %
12,934
(7) %
Total revenues
$ 281,978
26 %
$ 276,188
18 %
$ 313,832
19 %
$ 311,692
13 %
$ 314,131
11 %
Constant Currency - Revenue
($ in thousands)
The constant currency impact is calculated using the average foreign exchange rates from the prior year period and applying these rates to foreign-denominated revenues in the current corresponding period. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Q1'26
Revenue as
Reported
(GAAP)
Q1'27
Revenue as
Reported
(GAAP)
Constant
Currency
Impact
% Change Y/Y
(GAAP)
% Change Y/Y
Constant
Currency
Subscription:
Term-based license
$ 109,282
$ 110,420
$ (659)
1 %
— %
Term-based support
47,582
56,057
(603)
18 %
17 %
SaaS
72,445
100,550
(1,166)
39 %
37 %
Total subscription
229,309
267,027
(2,428)
16 %
15 %
Perpetual license
7,335
8,695
150
19 %
21 %
Perpetual support
31,439
25,475
(243)
(19) %
(20) %
Other services
13,895
12,934
114
(7) %
(6) %
Total
$ 281,978
$ 314,131
$ (2,407)
11 %
11 %
Disaggregation of Revenues
($ in thousands)
Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, the Middle East, Africa, Australia, India and Southeast Asia.
Q1'26
Q2'26
Q3'26
Q4'26
Q1'27
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Americas
$ 170,928
23 %
$ 168,125
16 %
$ 178,852
15 %
$ 184,977
9 %
$ 186,779
9 %
International
111,050
29 %
108,063
22 %
134,980
26 %
126,715
20 %
127,352
15 %
Total revenues
$ 281,978
26 %
$ 276,188
18 %
$ 313,832
19 %
$ 311,692
13 %
$ 314,131
11 %
Subscription ARR and SaaS ARR1,2
($ in thousands)
Q1'26
Q2'26
Q3'26
Q4'26
Q1'27
Subscription ARR
867,306
918,130
966,260
1,014,729
1,054,311
SaaS ARR
306,874
335,669
363,732
400,157
424,337
Additional Financial Information
We repurchased approximately 98,000 shares of common stock for $10 million during the three months ended June 30, 2026 Weighted average diluted shares outstanding were approximately 42 million for the period ended June 30, 2026 Cash and cash equivalents totaled $930 million as of June 30, 2026 Subscription net dollar retention rate5 was 114% Commvault Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
2026
2025
Revenues:
Subscription:
Term-based license
$ 110,420
$ 109,282
Term-based support
56,057
47,582
Software-as-a-service
100,550
72,445
Total subscription
267,027
229,309
Perpetual license
8,695
7,335
Perpetual support
25,475
31,439
Other services
12,934
13,895
Total revenues
314,131
281,978
Cost of revenues:
Term-based license
4,243
2,242
Software-as-a-service
29,652
25,972
Perpetual license
171
245
Customer support
14,699
14,207
Other services
8,844
8,111
Total cost of revenues
57,609
50,777
Gross margin
256,522
231,201
Operating expenses:
Sales and marketing
139,795
122,479
Research and development
39,542
40,062
General and administrative
46,751
41,270
Depreciation and amortization
2,319
2,607
Restructuring
2,396
237
Change in contingent consideration
—
(545)
Total operating expenses
230,803
206,110
Income from operations
25,719
25,091
Interest income
7,687
2,009
Interest expense
(1,473)
(278)
Other income, net
269
61
Income before income taxes
32,202
26,883
Income tax expense
11,063
3,387
Net income
$ 21,139
$ 23,496
Net income per common share:
Basic
$ 0.51
$ 0.53
Diluted
$ 0.50
$ 0.52
Weighted average common shares outstanding:
Basic
41,345
44,326
Diluted
41,869
45,283
Commvault Systems, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30,
March 31,
2026
2026
ASSETS
Current assets:
Cash and cash equivalents
$ 929,837
$ 899,987
Trade accounts receivable, net
271,568
330,483
Other current assets
65,520
56,040
Total current assets
1,266,925
1,286,510
Deferred tax assets, net
150,360
153,766
Property and equipment, net
9,677
9,750
Operating lease assets
33,985
34,920
Deferred commissions cost
110,465
103,892
Intangible assets, net
18,459
19,715
Goodwill
209,132
209,322
Other assets
91,418
68,430
Total assets
$ 1,890,421
$ 1,886,305
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 156
$ 651
Accrued liabilities
138,979
165,583
Current portion of operating lease liabilities
7,148
6,963
Deferred revenue
473,744
484,973
Total current liabilities
620,027
658,170
Convertible notes, net
881,926
880,863
Deferred revenue, less current portion
291,151
293,725
Deferred tax liabilities
1,306
1,565
Long-term operating lease liabilities
28,581
29,675
Other liabilities
15,379
14,813
Total stockholders' equity
52,051
7,494
Total liabilities and stockholders' equity
$ 1,890,421
$ 1,886,305
Commvault Systems, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
June 30,
2026
2025
Cash flows from operating activities
Net income
$ 21,139
$ 23,496
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
2,319
2,607
Amortization of debt issuance costs
1,164
85
Amortization of deferred commissions costs
14,582
10,989
Noncash stock-based compensation
35,290
30,180
Noncash operating lease expense
1,916
1,636
Noncash change in fair value of contingent consideration
—
(545)
Noncash adjustment on headquarters sale leaseback
—
495
Deferred income taxes
2,962
3,908
Other
(182)
(61)
Changes in operating assets and liabilities:
Trade accounts receivable, net
58,714
3,748
Other current assets and Other assets
(23,190)
2,378
Deferred commissions cost
(21,299)
(15,072)
Accounts payable
(506)
(320)
Accrued liabilities
(26,281)
(47,260)
Operating lease liabilities
(1,889)
(1,908)
Deferred revenue
(12,308)
17,440
Other liabilities
(761)
(115)
Net cash provided by operating activities
51,670
31,681
Cash flows from investing activities
Purchase of property and equipment
(569)
(1,879)
Purchase of investments
(7,895)
(6,144)
Proceeds from sale of headquarters, net
—
34,849
Net cash provided by (used in) investing activities
(8,464)
26,826
Cash flows from financing activities
Repurchase of common stock
(10,131)
(15,050)
Payment of debt issuance costs
—
(1,846)
Other
(75)
(12)
Net cash used in financing activities
(10,206)
(16,908)
Effects of exchange rate — changes in cash
(3,150)
19,532
Net increase in cash and cash equivalents
29,850
61,131
Cash and cash equivalents at beginning of period
899,987
302,103
Cash and cash equivalents at end of period
$ 929,837
$ 363,234
Supplemental disclosures of noncash activities
Operating lease liabilities arising from obtaining right-of-use assets
$ 932
$ 20,252
Commvault Systems, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
2026
2025
Non-GAAP financial measures and reconciliation:
GAAP income from operations
$ 25,719
$ 25,091
Noncash stock-based compensation6
34,725
30,105
FICA and payroll tax expense related to stock-based compensation7
We monitor subscription annualized recurring revenue ("Subscription ARR"), SaaS ARR and subscription net dollar retention rate ("Subscription NRR") to help evaluate the state of our business. We believe these metrics are material to investors to understand the growth and performance of our business, as they help normalize certain variable factors and provide a consistent view of our recurring revenue profile. Subscription ARR and SaaS ARR exclude non-recurring elements and reflect the annualized value of active contracts, while subscription NRR measures net expansion within our existing subscription customer base. Together, we believe these metrics offer meaningful insight into the health and trajectory of our recurring revenue streams. Total ARR, which also included the annualized maintenance contract on perpetual licenses, is no longer disclosed.
Use of Non-GAAP Financial Measures
We have provided in this press release the following non-GAAP financial measures: non-GAAP income from operations (EBIT), non-GAAP EBIT margin, non-GAAP net income, non-GAAP diluted earnings per share, and non-GAAP free cash flow. This financial information has not been prepared in accordance with GAAP. Commvault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. Commvault believes that the use of these non-GAAP financial measures, when used as a supplement to GAAP financial measures, provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Commvault's industry, many of which present similar non-GAAP financial measures to the investment community. Commvault has also provided its revenues on a constant currency basis. We analyze revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.
All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are included in this press release.
Non-GAAP EBIT and non-GAAP EBIT margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional Federal Insurance Contribution Act (FICA) and related payroll tax expense incurred by Commvault when employees vest in restricted stock awards. Commvault has also excluded restructuring costs, noncash amortization of intangible assets, the change in the estimated fair value of contingent consideration, adjustments from the sale and leaseback of headquarters, and non-recurring strategic pricing initiative costs from its non-GAAP results. These adjustments are further discussed in the reconciliation of GAAP to non-GAAP financial measures. Commvault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare Commvault's core operating results over multiple periods. When evaluating the performance of Commvault's operating results and developing short- and long-term plans, Commvault does not consider such expenses.
Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on vesting of restricted stock awards allow investors to make meaningful comparisons between Commvault's operating results and those of other companies.
There are a number of limitations related to the use of non-GAAP EBIT and non-GAAP EBIT margin. The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in Commvault's operating results. In addition, noncash stock-based compensation is an important part of Commvault's employees' compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ in thousands):
Three Months Ended
June 30,
2026
2025
Cost of revenues
$ 1,403
$ 1,249
Sales and marketing
14,168
12,586
Research and development
8,284
7,070
General and administrative
10,870
9,200
Stock-based compensation expense
$ 34,725
$ 30,105
The table above excludes stock-based compensation expense related to the Company's restructuring activities described below in Note 8.
The components that Commvault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures. Due to the limitations related to the use of non-GAAP measures, Commvault's management assists investors by providing a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Commvault's management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.
Non-GAAP net income and non-GAAP diluted earnings per share (EPS). In addition to the adjustments discussed in non-GAAP EBIT, non-GAAP net income and non-GAAP diluted EPS incorporates a non-GAAP effective tax rate of 24%.
Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rates in recent fiscal years were not meaningful percentages due to the dollar amount of GAAP pre-tax income. For the same reason as the GAAP tax rates, the estimated cash tax rates in recent fiscal years are not meaningful percentages. Commvault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income. Over time, Commvault believes its GAAP and cash tax rates will align.
Commvault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for Commvault management and its investors for the same basic reasons that Commvault uses non-GAAP EBIT and non-GAAP EBIT margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP net income and non-GAAP diluted EPS.
Non-GAAP free cash flow. Commvault defines this non-GAAP financial measure as net cash provided by operating activities less purchases of property and equipment. Commvault considers non-GAAP free cash flow a useful metric for Commvault management and its investors in evaluating Commvault's ability to generate cash from its business operations. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP free cash flow.
Forward-looking non-GAAP measures. In this press release, Commvault presents non-GAAP EBIT margin and free cash flow on a forward-looking basis. The most directly comparable GAAP measures are not accessible on a forward-looking basis without unreasonable efforts, because certain items that impact these GAAP measures, cannot be reasonably predicted or quantified. The probable significance of these items may be material, and as a result, the corresponding GAAP measures and a quantitative reconciliation to those GAAP measures are not available on a forward-looking basis.
Notes
Beginning in fiscal 2027, Customer support revenue has been further disaggregated between support associated with term-based software license arrangements ("Term-based support") and support associated with perpetual software license arrangements ("Perpetual support"). Subscription revenue has also been reclassified to include Term-based support revenue, in addition to Term-based license and SaaS revenues. Prior period amounts have been reclassified to conform to the current period presentation. These reclassifications have no impact on total revenues, net income, or the underlying revenue recognition for these arrangements.In addition, Subscription ARR2 has been reclassified to include enterprise support, further aligning Subscription ARR with Subscription revenue. Prior to fiscal 2027, enterprise support was included only in Total ARR. Prior period amounts have been reclassified to conform to the current period presentation. Total ARR, which also included the annualized maintenance contract on perpetual licenses, is no longer disclosed.
Subscription ARR represents the annualized value of all active contracts as of the end of a reporting period attributable to term‑based licenses, maintenance and support services associated with term license arrangements, SaaS subscriptions, and consumption‑based arrangements, calculated by dividing the total active contract value by the number of days in the contract term and multiplying the result by 365. For consumption-based arrangements on a pay as you go model without a fixed commitment, the applicable ARR is calculated by annualizing the revenue contractually expected to be received in a given month based on actual monthly usage from a prior month. SaaS ARR includes only the cloud‑hosted portion of subscription ARR and is calculated using the same methodology.These metrics should be viewed independently of GAAP revenue, deferred revenue and unbilled revenue and are not intended to be combined with or to replace those items. These metrics are not a forecast of future revenues. Management believes that reviewing these metrics, in addition to GAAP results, helps investors and financial analysts understand the value of Commvault's recurring revenue streams presented on an annualized basis. There is no direct GAAP comparative to ARR.
A reconciliation of GAAP to non-GAAP results has been provided in the reconciliation of GAAP to non-GAAP financial measures included in this press release. An explanation of these measures is also included under the heading "Use of Non-GAAP Financial Measures." 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 available and cannot be reasonably estimated. See "Forward-looking non-GAAP measures" for additional explanation. Subscription net dollar retention rate (Subscription NRR) includes all contracts attributable to term‑based licenses, maintenance and support services associated with term license arrangements, SaaS subscriptions, and consumption‑based arrangements. Subscription NRR is calculated as the percentage of subscription ARR retained from existing customers at the start of an annual period after accounting for expansion revenue, churn, and downgrades, measured on an annualized basis using the trailing four quarter average. Acquired subscription ARR is excluded until the acquisition is fully integrated, which we generally expect to occur twelve months from the close date. We believe our subscription NRR offers valuable insight into the year-over-year expansion of our existing customer base, reflecting both increased utilization of current products and services as well as the adoption of additional offerings. There is no direct GAAP comparative to NRR. Represents noncash stock-based compensation charges associated with restricted stock units granted and our Employee Stock Purchase Plan, exclusive of stock-based compensation expense related to Commvault's restructuring activities described below in Note 8. Represents additional FICA and related payroll tax expenses incurred by Commvault when employees vest in restricted stock awards. Restructuring charges relate to two plans designed to optimize our cost structure, enhance organizational agility, align resources with strategic priorities, and reorganize our business technology function. These initiatives include workforce reductions, technology transitions, office lease closures, and the exit of operations in certain jurisdictions. The related charges primarily consist of severance and associated employee termination costs, stock‑based compensation expense resulting from modification events, and office closure and exit charges. As of June 30, 2026, the majority of these costs have been incurred and the remaining activities are anticipated to be completed in fiscal 2027. Represents noncash amortization of intangible assets. Represents the change in the estimated fair value of the contingent consideration arrangement related to the acquisition of Appranix, Inc. During the first quarter of fiscal 2026, we finalized the sale of our corporate headquarters and entered into a lease for a portion of the premises. These noncash charges represent accounting adjustments for a $1.3 million loss associated with the related lease terms and an $0.8 million adjustment to reflect the final sale price of the assets resulting in a net charge of $0.5 million recorded in general and administrative expense on the consolidated statements of operations. These charges relate to a non-routine business expense incurred during the period associated with contingent performance-based fees tied to strategic pricing and packaging initiatives. The arrangement also includes provisions for potential additional contingent fees of up to $3.0 million. As of June 30, 2026, no amounts have been recognized with respect to the potential additional contingent fees, which remain subject to future contractual conditions and performance outcomes. Given the non-recurring nature of the matter, these costs have been excluded from operating results as they are episodic in nature, directly tied to a discrete strategic initiative, and not reflective of ongoing operating performance. The provision for income taxes is adjusted to reflect Commvault's estimated non-GAAP effective tax rate of 24%. SOURCE COMMVAULT
Na Commvault Systems (CVLT) byla rozšířena hromadná žaloba kvůli údajným zkresleným informacím o konkurenci a maržích. Akcie po oznámení výsledků 27. ledna 2026 klesly o 40,23 USD, tedy zhruba 31 %, na 89,13 USD.
, /PRNewswire/ -- Hagens Berman (HBSS), a national shareholder rights firm, alerts investors in Commvault Systems, Inc. (NASDAQ: CVLT) that a newly filed securities class action lawsuit has expanded the alleged class period. The lawsuit now covers investors who purchased or otherwise acquired Commvault securities between January 28, 2025, and January 26, 2026, inclusive.
Hagens Berman is investigating the claims pled in the pending litigation and encourages Commvault investors who suffered substantial losses to submit your losses now.
Expanded Alleged Class Period: Jan. 28, 2025 – Jan. 26, 2026
Lead Plaintiff Deadline: July 17, 2026
Visit: www.hbsslaw.com/investor-fraud/cvlt
Contact the Firm Now: [email protected]
844-916-0895
View our latest video summary of the allegations: www.youtube.com/watch?v=MUMo4d2ZLkI
Expanded Scope of Allegations
The new suit, City of Fort Lauderdale Police and Firefighters' Retirement System v. Commvault Systems, Inc., et al., extends the start of the alleged fraud period from April 29, 2025, back to January 28, 2025. This expansion captures a broader range of investor activity and expands the claims brought against the company and its senior executives regarding their business disclosures.
Focus of CVLT Securities Class Action Litigation:
The litigation alleges that Defendants misrepresented and failed to disclose that:
Commvault's competitive positioning was materially weaker than Defendants had represented to investors; Due to the undisclosed increase in competition, Commvault was forced to make significant concessions on price and contract duration for its software licenses; As these concessions became unsustainable, SaaS became a larger portion of the Company's sales mix; The increasing mix of SaaS sales, which carry shorter term durations and lower ASPs, negatively impacted the Company's margin and NNARR; and As a result, Defendants' positive statements about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. The truth allegedly emerged before markets opened on January 27, 2026, when Commvault announced its third-quarter fiscal year 20261 financial results. Commvault disclosed NNARR in constant currency of $39 million, missing analysts' expectations of approximately $45 million. Chief Accounting Officer Danielle Abrahamsen ("CAO Abrahamsen") 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.
HBSS Investigation
"We continue to investigate whether Commvault misled investors about its operational performance and financial reporting during the alleged expanded class period, as the new complaint contends" said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the pending claims.
If you invested in Commvault and have substantial losses, or have knowledge that will assist the firm's investigation, submit your losses now.
If you'd like more information and answers to frequently asked questions about the Commvault case and the firm's investigation, read more »
Whistleblowers: Persons with non-public information regarding Commvault should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.
Na společnost Commvault byla podána nová hromadná žaloba u federálního soudu v New Jersey kvůli údajnému klamání investorů ohledně konkurenceschopnosti a výhledu společnosti. Po zveřejnění výsledků za 3Q fiskálního roku 2026 akcie spadly o 40,23 USD na 89,13 USD, tedy zhruba o 31 %.
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
Commvault těží z poptávky po AI, identitní bezpečnosti a hybridním cloudu. SaaS ARR vzrostl ve 4. čtvrtletí fiskálního 2026 o 42 % na 400 mil. USD, subscription ARR o 27 % na 989 mil. USD.
Key Takeaways Commvault is positioning Commvault Cloud as a broader cyber resilience platform.AI, cloud adoption and identity-based attacks are creating a multi-year demand backdrop.CVLT's SaaS ARR rose 42% to $400M in Q4'26, while subscription ARR increased 27% to $989M. Commvault Systems, Inc. (CVLT - Free Report) is no longer just a backup-software story. The company is positioning Commvault Cloud as a broader cyber resilience platform spanning data protection, data security, identity resilience and recovery.
That matters because enterprise data is becoming larger, more distributed and more exposed. AI, cloud adoption and identity-based attacks are creating a multi-year demand backdrop that could matter more than any single quarter’s results.
Commvault Benefits From AI-Driven Data GrowthAI is increasing the value and volume of enterprise data, while also expanding the number of access points that must be secured. Commvault’s platform is built around that problem: protecting data sets, helping detect threats, supporting recovery at scale and adding governance around AI-related data use.
The company estimates its total addressable market across core data protection, cloud security and data security at $24 billion in 2025, with potential expansion to $38 billion by 2029. That gives CVLT a growth narrative tied to enterprise resilience, not just traditional backup demand.
CVLT Pushes Deeper Into Identity ResilienceIdentity resilience is becoming a more important part of the Commvault story. In the latest quarter, identity resilience and data security offerings represented 33% of net new annual recurring revenue, showing that newer modules are contributing to platform expansion.
Active Directory protection was one of the company’s fastest-growing SaaS offerings, with annual recurring revenue more than doubling year over year. Commvault is also extending protection across Microsoft Entra ID and Okta environments, which could make identity recovery a larger contributor as attacks increasingly target credentials and directory systems.
Commvault Expands Its Cloud and Partner ReachCommvault’s platform strategy is also getting support from integrations and alliances. Recent business highlights included an integration with Microsoft Security, expanded work with CrowdStrike Falcon Next-Gen SIEM, a strategic alliance with NetApp and a CloudSEK partnership focused on exposed credentials on the dark web.
CrowdStrike Holdings, Inc. (CRWD - Free Report) is relevant to this discussion because Commvault’s expanded integration with CrowdStrike connects threat visibility with recovery workflows. Okta, Inc. (OKTA - Free Report) also fits the theme, as Commvault has extended identity resilience to Okta environments.
The broader partner ecosystem reinforces Commvault’s role in hybrid and multi-cloud operations. The company’s materials also highlight cloud partners such as Amazon Web Services, Google Cloud, Microsoft and Oracle, underscoring the need to protect workloads across fragmented enterprise infrastructure.
CVLT Still Must Prove It Can Sustain the TrendThe opportunity is attractive, but not frictionless. Commvault competes in a highly fragmented market against vendors such as Rubrik, Inc. (RBRK - Free Report) , Cohesity and Veeam, as well as cloud providers and other cybersecurity companies.
Rubrik is a direct peer in data security and cyber resilience, making it an important comparison point for investors assessing CVLT’s competitive position. Commvault also faces risks from pricing pressure, longer enterprise sales cycles, reseller execution and hyperscalers expanding native cloud protection capabilities.
Currency and international execution add another layer of variability. In fiscal 2026, international markets accounted for a sizable portion of revenues, so foreign exchange swings and regional demand conditions can affect reported growth.
How CVLT's Zacks Signals Frame the Trend BetThe bottom line is that CVLT has exposure to several durable technology themes: AI-driven data growth, cyber resilience, identity recovery and hybrid cloud complexity. The company’s SaaS annual recurring revenue rose 42% year over year to $400 million in the fourth quarter of fiscal 2026, while subscription annual recurring revenue increased 27% to $989 million.
Still, the stock currently carries a Zacks Rank #3 (Hold). That rating suggests a more balanced near-term earnings outlook rather than a clear positive estimate-revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVLT has a VGM Score of C, with a Growth Score of B, Momentum Score of C and Value Score of D. The Growth Score of B aligns with the company’s longer-term expansion themes, while the VGM Score of C and Zacks Rank #3 indicate investors may want to keep the trend story in perspective.
Commvault ve 4. fiskálním čtvrtletí překonal odhady: zisk na akcii byl 1,28 USD a tržby vzrostly o 13,3 % na 311,7 milionu USD. Výhled na fiskální rok 2027 ale počítá už jen s růstem tržeb o 12 % až 13 %.
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.
