CommVault Systems (NASDAQ:CVLT) Posts Quarterly Earnings Results, Beats Estimates By $0.19 EPS

CommVault Systems (NASDAQ:CVLT) issued its earnings results on Tuesday. The software maker reported $1.17 EPS for the quarter, topping analysts’ consensus estimates of $0.98 by $0.19, Briefing.com reports. CommVault Systems had a net margin of 7.58% and a return on equity of 37.38%. The company had revenue of $313.83 million for the quarter, compared to analysts’ expectations of $299.07 million. During the same quarter last year, the company earned $0.94 EPS. The firm’s revenue was up 19.5% compared to the same quarter last year.

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

• Subscription and SaaS momentum: Subscription revenue grew 30% to $206M, SaaS ARR rose 40% to $364M, subscription ARR increased 28% to $941M, and the company added ~700 subscription customers while achieving the Rule of 40.
• Upgraded guidance and capital return: Management raised fiscal 2026 revenue and margin targets (subscription revenue to $764–$768M; total revenue to $1.177–$1.18B; non‑GAAP EBIT margin to 19–20%), lifted full‑year FCF outlook to $215–$220M, and recommitted share repurchases to $250M.
• Near‑term cash and working‑capital pressure: Q3 free cash flow was only $2M due to late‑quarter deal timing and an extra payroll cycle, and the cost‑optimization program carries $12–$15M of one‑time payments that will reduce near‑term FCF.
• ARR mix volatility: Net new ARR was $39M (below prior mid‑$40M expectations) largely because a heavy mix of lower‑ASP SaaS landings and longer‑duration term deals created quarter‑to‑quarter ARR variability even as total ARR grew.

CommVault Systems Stock Performance

Shares of CVLT stock opened at $89.85 on Thursday. The firm has a market capitalization of $3.96 billion, a price-to-earnings ratio of 50.48 and a beta of 0.57. The stock has a fifty day moving average of $122.47 and a 200 day moving average of $154.00. CommVault Systems has a 52 week low of $84.44 and a 52 week high of $200.68. The company has a quick ratio of 2.53, a current ratio of 2.34 and a debt-to-equity ratio of 4.06.

Insiders Place Their Bets

In other news, insider Gary Merrill sold 2,674 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $123.58, for a total value of $330,452.92. Following the completion of the sale, the insider directly owned 69,163 shares of the company’s stock, valued at approximately $8,547,163.54. This trade represents a 3.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Sanjay Mirchandani sold 14,653 shares of the business’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $123.65, for a total transaction of $1,811,843.45. Following the transaction, the chief executive officer owned 372,369 shares in the company, valued at $46,043,426.85. This represents a 3.79% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 33,111 shares of company stock worth $4,058,851. 1.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On CommVault Systems

Hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC grew its stake in CommVault Systems by 60.8% in the second quarter. AQR Capital Management LLC now owns 893,385 shares of the software maker’s stock worth $155,744,000 after purchasing an additional 337,830 shares during the period. Dimensional Fund Advisors LP grew its position in shares of CommVault Systems by 2.0% in the 3rd quarter. Dimensional Fund Advisors LP now owns 611,659 shares of the software maker’s stock worth $115,476,000 after buying an additional 12,177 shares during the period. UBS Group AG increased its stake in shares of CommVault Systems by 145.1% in the 3rd quarter. UBS Group AG now owns 363,017 shares of the software maker’s stock worth $68,530,000 after acquiring an additional 214,919 shares in the last quarter. Franklin Resources Inc. increased its stake in shares of CommVault Systems by 4.5% in the 3rd quarter. Franklin Resources Inc. now owns 266,351 shares of the software maker’s stock worth $50,282,000 after acquiring an additional 11,502 shares in the last quarter. Finally, Legal & General Group Plc lifted its position in CommVault Systems by 1.5% during the 3rd quarter. Legal & General Group Plc now owns 179,142 shares of the software maker’s stock valued at $33,818,000 after acquiring an additional 2,564 shares during the period. 93.50% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

CVLT has been the subject of a number of recent research reports. Truist Financial reissued a “buy” rating and issued a $155.00 target price (down previously from $175.00) on shares of CommVault Systems in a research note on Wednesday. Oppenheimer decreased their price target on CommVault Systems from $180.00 to $150.00 and set an “outperform” rating on the stock in a research note on Wednesday. Wall Street Zen lowered CommVault Systems from a “buy” rating to a “hold” rating in a research note on Saturday, November 1st. Cantor Fitzgerald decreased their target price on shares of CommVault Systems from $144.00 to $100.00 and set a “neutral” rating on the stock in a research note on Wednesday. Finally, Stephens lowered their price target on shares of CommVault Systems from $162.00 to $135.00 and set an “overweight” rating for the company in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $143.58.

Key CommVault Systems News

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

• Positive Sentiment: Q3 results beat expectations: EPS $1.17 vs. $0.98 consensus and revenue $313.8M vs. $299.1M; revenue grew ~19.5% year‑over‑year. This shows the company is still delivering top‑line and EPS upside. MarketBeat: Q3 results
• Positive Sentiment: Recurring revenue momentum: ARR reached ~$1,085M (up ~22% YoY) and the company set a record for new customers — supports longer‑term SaaS growth and revenue visibility. PR Newswire: Q3 release
• Positive Sentiment: Several sell‑side firms kept constructive ratings (buy/overweight/outperform) even while lowering price targets — signaling analysts still see upside but are re‑setting expectations. Benzinga: analyst notes
• Neutral Sentiment: Earnings call transcripts and slide decks are available for further detail on guidance, margin drivers and SaaS mix — worth reviewing for guidance color and management cadence. Seeking Alpha: transcript
• Neutral Sentiment: Reported short‑interest entries for January appear to contain invalid zero/NaN values and provide no clear signal; treat those with caution until exchanges publish clean data.
• Negative Sentiment: Market reaction: the stock plunged intraday after the earnings release (reports note roughly a 30% decline), indicating investor concern/sell‑off despite the beat. Forbes: market reaction
• Negative Sentiment: Broad price‑target cuts from multiple firms (DA Davidson, Mizuho, KeyCorp, RBC, Cantor Fitzgerald, etc.) reflect a re‑rating of the stock — greater analyst dispersion raises near‑term downside risk until guidance/metrics settle. Benzinga: PT changes
• Negative Sentiment: Some firms moved to neutral/sector‑perform after the quarter (e.g., Cantor, RBC), suggesting concerns about the near‑term outlook despite longer‑term SaaS growth. StreetInsider: RBC note

CommVault Systems Company Profile

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.