CommVault Systems (NASDAQ:CVLT) Posts Quarterly Earnings Results, Beats Estimates By $0.26 EPS

CommVault Systems (NASDAQ:CVLT) posted its earnings results on Tuesday. The software maker reported $1.42 earnings per share for the quarter, topping analysts’ consensus estimates of $1.16 by $0.26, FiscalAI reports. CommVault Systems had a return on equity of 51.64% and a net margin of 5.97%.The business had revenue of $314.13 million for the quarter, compared to analyst estimates of $310.43 million. During the same period in the previous year, the firm earned $1.01 EPS. The firm’s revenue was up 11.4% compared to the same quarter last year.

Here are the key takeaways from CommVault Systems’ conference call:

• Positive Sentiment: Commvault exceeded first-quarter expectations, with subscription ARR up 22% to $1.05 billion, SaaS ARR up 38% to $424 million, and free cash flow up 71% year over year to $51 million.
• Positive Sentiment: SaaS momentum continued, surpassing $100 million in quarterly revenue and 10,000 active customers; 49% of managed SaaS customers now use at least two products, supporting cross-sell potential.
• Positive Sentiment: The company raised full-year subscription revenue guidance and non-GAAP EBIT margin guidance to approximately 21%, while maintaining its ARR and free cash flow outlook and planning to increase share repurchases.
• Neutral Sentiment: Management said AI-driven data growth, identity resilience, and cyber-recovery needs are expanding Commvault’s long-term opportunity, although AI workloads are still largely experimental and incremental AI-related ARR is not included in current-year guidance.
• Negative Sentiment: Hardware availability created timing pressure for on-premises deals and contributed to a mid-single-digit sequential decline in term length; foreign exchange and below-average conversion from perpetual contracts also reduced quarterly subscription ARR.

CommVault Systems Stock Down 19.7%

CVLT stock opened at $120.02 on Wednesday. CommVault Systems has a 52 week low of $71.75 and a 52 week high of $200.68. The business has a 50-day simple moving average of $132.16 and a 200 day simple moving average of $107.01. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 117.54. The company has a market cap of $4.97 billion, a PE ratio of 75.48 and a beta of 0.79.

CommVault Systems News Summary

Here are the key news stories impacting CommVault Systems this week:

• Positive Sentiment: Commvault reported non-GAAP earnings of $1.42 per share, above the $1.16–$1.18 analyst consensus, while revenue of $314.13 million exceeded estimates of roughly $310 million. Revenue increased 11.4% year over year. Commvault Systems Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Subscription revenue rose 16% to a record $267 million, subscription annualized recurring revenue increased 22% to $1.054 billion, and free cash flow jumped 71% to $51 million, highlighting continued momentum in recurring revenue and cash generation. Commvault Announces First Quarter Fiscal 2027 Financial Results
• Neutral Sentiment: Piper Sandler reaffirmed its Neutral rating and set a $133 price target, implying potential upside from recent levels, but characterized the stock as lacking a near-term catalyst. Piper Sandler Rating and Price Target
• Negative Sentiment: Management’s second-quarter fiscal 2027 revenue outlook of $310 million was slightly below the approximately $310.6 million consensus estimate. Full-year revenue guidance of $1.3 billion was essentially in line, while EPS guidance was not provided in the available update, giving investors limited evidence of accelerating growth. Commvault Collapses After Q1 Results
• Negative Sentiment: A shareholder-rights law firm is investigating potential fiduciary-duty breaches by Commvault directors and officers. The investigation is preliminary and does not establish wrongdoing, but it adds a possible legal and reputational overhang. Commvault Shareholder Investigation Alert

Analysts Set New Price Targets

Several equities analysts have commented on CVLT shares. Zacks Research downgraded shares of CommVault Systems from a “strong-buy” rating to a “hold” rating in a report on Friday, May 1st. Royal Bank Of Canada upped their price target on shares of CommVault Systems from $100.00 to $110.00 and gave the company a “sector perform” rating in a research note on Wednesday, April 29th. Mizuho increased their price target on shares of CommVault Systems from $140.00 to $175.00 and gave the company an “outperform” rating in a report on Wednesday, July 15th. DA Davidson restated a “buy” rating and set a $125.00 price objective on shares of CommVault Systems in a research report on Monday, April 13th. Finally, Truist Financial upped their target price on CommVault Systems from $155.00 to $182.00 and gave the company a “buy” rating in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $147.80.

Insider Buying and Selling at CommVault Systems

In other news, CFO Gary Merrill sold 4,560 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $105.10, for a total value of $479,256.00. Following the completion of the transaction, the chief financial officer directly owned 72,507 shares in the company, valued at approximately $7,620,485.70. The trade was a 5.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Sanjay Mirchandani sold 19,396 shares of the company’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $105.49, for a total transaction of $2,046,084.04. Following the sale, the chief executive officer directly owned 315,377 shares of the company’s stock, valued at approximately $33,269,119.73. This trade represents a 5.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 55,279 shares of company stock valued at $5,786,557 in the last ninety days. 0.86% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CommVault Systems

A number of institutional investors have recently modified their holdings of the business. First Trust Advisors LP grew its position in CommVault Systems by 25.5% in the fourth quarter. First Trust Advisors LP now owns 1,537,034 shares of the software maker’s stock valued at $192,683,000 after acquiring an additional 312,178 shares during the last quarter. AQR Capital Management LLC boosted its stake in shares of CommVault Systems by 60.8% in the 2nd quarter. AQR Capital Management LLC now owns 893,385 shares of the software maker’s stock valued at $155,744,000 after purchasing an additional 337,830 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of CommVault Systems by 2.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 611,659 shares of the software maker’s stock valued at $115,476,000 after purchasing an additional 12,177 shares during the last quarter. Champlain Investment Partners LLC increased its position in CommVault Systems by 18.0% during the 4th quarter. Champlain Investment Partners LLC now owns 406,457 shares of the software maker’s stock worth $50,953,000 after purchasing an additional 62,002 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its stake in CommVault Systems by 5.5% in the 4th quarter. JPMorgan Chase & Co. now owns 403,947 shares of the software maker’s stock valued at $50,639,000 after purchasing an additional 21,169 shares during the last quarter. Institutional investors and hedge funds own 93.50% of the company’s stock.

About CommVault Systems

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.