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CommVault Systems
(NASDAQ:CVLT)
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Rating:66Neutral
Price Target:
$159.00
▲(11.73% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by strong operating/cash-flow performance and a bullish earnings-call outlook (ARR growth, margin expansion, and FCF guidance). These positives are tempered by meaningfully elevated balance-sheet leverage and an expensive valuation (high P/E), with technicals supportive but somewhat extended.
Positive Factors
Recurring Subscription Growth
Rapid subscription ARR growth and a rising recurring-revenue mix improve visibility, retention economics, and customer lifetime value. This transition makes Commvault less dependent on perpetual licenses and supports more durable revenue generation.
Negative Factors
Highly Leveraged Balance Sheet
Very high leverage and a thin equity cushion reduce financial flexibility and increase vulnerability if growth or cash generation weakens. Strong cash flow helps, but a materially more leveraged structure can constrain investment and raise refinancing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Subscription Growth
Rapid subscription ARR growth and a rising recurring-revenue mix improve visibility, retention economics, and customer lifetime value. This transition makes Commvault less dependent on perpetual licenses and supports more durable revenue generation.
Read all positive factors
CommVault Systems (CVLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.46B
Dividend YieldN/A
Average Volume (3M)755.66K
Price to Earnings (P/E)84.7
Beta (1Y)1.45
Revenue Growth15.47%
EPS Growth-13.79%
CountryUS
Employees3,300
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.58
Shares Outstanding41,444,565
10 Day Avg. Volume536,738
30 Day Avg. Volume755,659
Financial Highlights & Ratios
PEG Ratio-6.48
Price to Book (P/B)457.07
Price to Sales (P/S)2.89
P/FCF Ratio14.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$161.67Price Target Upside13.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)5.23
Revenue Forecast (FY)$1.30B
CommVault Systems Business Overview & Revenue Model
Company Description
Commvault Systems, Inc. provides a cyber resilience platform for protecting and recovering data and cloud-native applications in the Americas and internationally. The company offers Operational Recovery, which provides backup, verifiable recovery,...
How the Company Makes Money
Commvault makes money primarily by licensing its software and providing related maintenance/support and services, with a growing emphasis on subscription-based offerings. The key revenue streams typically include: (1) Subscription and term-based s...
CommVault Systems Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line SaaS and subscription ARR growth, significant margin expansion, record-level profitability metrics, and robust free cash flow — driven by SaaS momentum, product innovation (identity and AI-resilience capabilities), ecosystem expansion (Microsoft partnership), and growing multiproduct adoption. The primary negatives were execution/timing headwinds from hardware supply constraints, modest FX impact, lighter-than-usual convergence from perpetual to subscription in Q1, and the seasonal nature of ARR additions (weighted to H2). These drawbacks were characterized as manageable and largely timing-related rather than structural, and management maintained or raised full-year guidance, indicating confidence in the company's trajectory.Positive Updates
Subscription ARR Growth
Subscription ARR grew 22% year-over-year to $1.05 billion in Q1, supported by $39 million of net new subscription ARR for the quarter.
Negative Updates
Supply Chain / Hardware Constraints
Hardware availability and higher memory/hardware prices created timing issues on on-prem deals and impacted some term software transactions. Management described these as timing-related headwinds that affected deal cadence.
Read all updates
Q1-2027 Updates
Positive
Negative
Subscription ARR Growth
Subscription ARR grew 22% year-over-year to $1.05 billion in Q1, supported by $39 million of net new subscription ARR for the quarter.
Read all positive updates
Company Guidance
Commvault reiterated full‑year fiscal 2027 targets and provided Q2 guidance anchored to its subscription metrics: after a Q1 baseline of $1.05B subscription ARR (up 22%), $424M SaaS ARR (up 38%), $267M subscription revenue (Q1 total revenue $314M), $51M free cash flow (up 71% YoY), subscription NRR 114% (SaaS NRR >120%), 10,000+ SaaS customers and $39M net new subscription ARR in Q1, management guided Q2 subscription revenue of $264M–$268M (≈20% YoY growth at the midpoint) and total revenue of ~$310M with ~20% EBIT margin and ~42M diluted shares; for fiscal 2027 they reaffirmed subscription ARR of $1.20B–$1.21B (≈19% growth at midpoint), expect SaaS ARR to exceed $500M by year end, raised full‑year subscription revenue to $1.119B–$1.129B (≈16% YoY at midpoint), total revenue $1.30B–$1.31B, lifted non‑GAAP EBIT margin to ~21% (up 50 bps), and forecasted $250M–$260M of free cash flow (weighted to H2) while targeting to return at least 60% of annual FCF to shareholders via repurchases.CommVault Systems Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
28
Negative
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22B | 1.18B | 995.62M | 839.25M | 784.59M | 769.59M |
| Gross Profit | 983.33M | 950.22M | 816.58M | 687.64M | 649.19M | 655.73M |
| EBITDA | 104.54M | 106.27M | 90.66M | 90.56M | -4.57M | 54.47M |
| Net Income | 68.30M | 70.66M | 76.11M | 168.91M | -35.77M | 33.62M |
Balance Sheet | ||||||
| Total Assets | 1.89B | 1.89B | 1.12B | 943.91M | 792.60M | 827.92M |
| Cash, Cash Equivalents and Short-Term Investments | 929.84M | 899.99M | 302.10M | 312.75M | 287.78M | 267.51M |
| Total Debt | 917.65M | 917.50M | 10.95M | 12.09M | 12.78M | 16.05M |
| Total Liabilities | 1.84B | 1.88B | 793.14M | 665.83M | 606.50M | 572.09M |
| Stockholders Equity | 52.05M | 7.49M | 325.12M | 278.08M | 186.10M | 255.83M |
Cash Flow | ||||||
| Free Cash Flow | 258.45M | 237.15M | 203.63M | 199.71M | 167.05M | 173.27M |
| Operating Cash Flow | 264.67M | 244.68M | 207.38M | 203.80M | 170.29M | 177.18M |
| Investing Cash Flow | -40.74M | -5.45M | -70.40M | -5.52M | -5.29M | -24.44M |
| Financing Cash Flow | 352.00M | 345.30M | -147.82M | -170.58M | -135.58M | -276.09M |
CommVault Systems Technical Analysis
Neutral
142.31
Price Trends
138.11
Negative
119.36
Positive
113.14
Positive
Market Momentum
0.51
Positive
46.42
Neutral
11.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVLT, the sentiment is Neutral. The current price of 142.31 is above the 20-day moving average (MA) of 134.58, above the 50-day MA of 138.11, and above the 200-day MA of 113.14, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 11.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVLT.
CommVault Systems Risk Analysis
CommVault Systems disclosed 36 risk factors in its most recent earnings report. CommVault Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CommVault Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.53B | 17.66 | 48.90% | 0.45% | 3.60% | 48.92% | |
79 Outperform | $8.93B | 24.25 | 37.43% | ― | 17.26% | ― | |
73 Outperform | $3.86B | 37.98 | 12.46% | ― | 24.21% | 206.42% | |
69 Neutral | $3.93B | 216.95 | 1.85% | ― | 24.68% | -83.75% | |
69 Neutral | $7.11B | -276.14 | -2.66% | ― | 24.90% | -233.01% | |
66 Neutral | $5.46B | 84.69 | 56.13% | ― | 15.47% | -13.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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CommVault Systems Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Commvault Shareholders Approve Directors, Compensation and Equity Plan
Positive
Aug 6, 2026
At its Annual Meeting of Stockholders held on August 6, 2026, Commvault Systems shareholders elected seven directors to serve until the 2027 Annual Meeting, reaffirming the company’s existing board leadership and governance structure. Invest...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.