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

CommVault Systems (NASDAQ:CVLT) issued its quarterly earnings results on Tuesday. The software maker reported $1.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.98 by $0.19, Briefing.com reports. The business had revenue of $313.83 million during the quarter, compared to analysts’ expectations of $299.07 million. CommVault Systems had a return on equity of 31.53% and a net margin of 7.32%.The firm’s revenue for the quarter was up 19.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.94 earnings per share.

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 Trading Up 3.1%

CommVault Systems stock traded up $2.73 during trading hours on Wednesday, hitting $91.86. The stock had a trading volume of 794,599 shares, compared to its average volume of 909,534. The business’s 50 day simple moving average is $123.06 and its 200-day simple moving average is $154.45. The stock has a market cap of $4.05 billion, a price-to-earnings ratio of 51.75 and a beta of 0.57. CommVault Systems has a one year low of $84.44 and a one year high of $200.68. The company has a quick ratio of 2.53, a current ratio of 2.53 and a debt-to-equity ratio of 4.18.

More CommVault Systems News

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

• Positive Sentiment: Q3 results beat expectations — Commvault reported $1.17 EPS vs. $0.98 consensus and revenue of $313.8M vs. ~$299M estimate; total revenue +19% YoY and ARR rose ~22% to $1.085B, signaling strong subscription momentum. Commvault Announces Third Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Analyst view: Robert W. Baird highlights that the SaaS mix shift masks solid underlying fundamentals and calls CVLT an asymmetric buy opportunity — a bullish take that supports longer-term upside if execution continues. CommVault Systems: SaaS Mix Shift Masks Strong Fundamentals
• Neutral Sentiment: Partnerships / product momentum — recent expanded Google Cloud collaboration and commentary around customer additions reinforce product-market fit but are incremental to near-term earnings. Commvault stock rises after expanded Google Cloud collaboration
• Neutral Sentiment: Short interest data reported is inconclusive (entries show zero/NaN), so short-covering is unlikely to explain today’s move. This item appears not to be a material driver.
• Negative Sentiment: Guidance ambiguity and SaaS mix concerns pressured the stock — commentary and company guidance updates appeared to omit firm EPS targets (press release showed revenue ranges but EPS guidance fields were blank in summaries), raising investor worry about margin pressure as revenue shifts toward subscription/ARR recognition. Market commentary points to that as the main reason for the selloff. Why Commvault Systems, Inc.’s (CVLT) Stock Is Down 30.08%
• Negative Sentiment: Transition-related near-term profitability risk — investors are discounting that higher SaaS/subscription mix will increase near-term operating leverage and deferred revenue effects, creating uncertainty around FY26 EPS trajectory despite ARR growth. See earnings / call highlights. Commvault (CVLT) Q3 2026 Earnings Call Transcript

Analysts Set New Price Targets

CVLT has been the subject of several recent analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of CommVault Systems in a research report on Wednesday, January 21st. Stephens cut 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. Oppenheimer decreased their price objective on shares of CommVault Systems from $200.00 to $180.00 and set an “outperform” rating on the stock in a research note on Wednesday, January 21st. Mizuho cut their target price on CommVault Systems from $190.00 to $180.00 and set an “outperform” rating for the company in a research note on Wednesday, January 21st. Finally, Truist Financial reaffirmed a “buy” rating and issued a $155.00 target price (down previously from $175.00) on shares of CommVault Systems in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $159.17.

Insiders Place Their Bets

In other CommVault Systems news, insider Gary Merrill sold 1,845 shares of the company’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $122.40, for a total value of $225,828.00. Following the completion of the transaction, the insider directly owned 67,318 shares in the company, valued at approximately $8,239,723.20. This represents a 2.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Sanjay Mirchandani sold 13,109 shares of the firm’s stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $121.15, for a total transaction of $1,588,155.35. Following the transaction, the chief executive officer directly owned 359,260 shares of the company’s stock, valued at $43,524,349. The trade was a 3.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 33,111 shares of company stock valued at $4,058,851 in the last ninety days. 1.00% of the stock is currently owned by insiders.

Institutional Trading of CommVault Systems

Large investors have recently modified their holdings of the stock. Sivia Capital Partners LLC bought a new position in shares of CommVault Systems during the 2nd quarter worth about $327,000. Northwestern Mutual Wealth Management Co. raised its stake in CommVault Systems by 43.1% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 1,824 shares of the software maker’s stock worth $344,000 after buying an additional 549 shares during the period. Freestone Grove Partners LP bought a new position in CommVault Systems in the third quarter worth approximately $228,000. Orion Porfolio Solutions LLC acquired a new stake in CommVault Systems in the second quarter valued at approximately $229,000. Finally, EP Wealth Advisors LLC bought a new stake in shares of CommVault Systems during the second quarter valued at approximately $208,000. Institutional investors and hedge funds own 93.50% of the company’s stock.

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.