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

CommVault Systems (NASDAQ:CVLT) posted its quarterly earnings results on Tuesday. The software maker reported $1.17 EPS for the quarter, beating the consensus estimate of $0.98 by $0.19, Briefing.com reports. The firm 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 business’s revenue for the quarter was up 19.5% on a year-over-year basis. During the same quarter last year, the firm earned $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 Price Performance

CVLT opened at $92.47 on Wednesday. The firm has a market cap of $4.08 billion, a price-to-earnings ratio of 51.95 and a beta of 0.57. The company has a current ratio of 2.53, a quick ratio of 2.53 and a debt-to-equity ratio of 4.18. The stock’s 50-day moving average price is $123.06 and its 200 day moving average price is $154.45. CommVault Systems has a 12-month low of $84.44 and a 12-month high of $200.68.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on CVLT shares. Weiss Ratings reissued a “hold (c)” rating on shares of CommVault Systems in a report on Wednesday, January 21st. Truist Financial reiterated a “buy” rating and issued a $155.00 price objective (down from $175.00) on shares of CommVault Systems in a report on Wednesday. Robert W. Baird began coverage on CommVault Systems in a research note on Monday, October 27th. They set an “outperform” rating and a $215.00 target price for the company. Royal Bank Of Canada decreased their price target on CommVault Systems from $217.00 to $167.00 and set a “sector perform” rating on the stock in a research note on Wednesday, October 29th. Finally, Mizuho cut their price objective on CommVault Systems from $190.00 to $180.00 and set an “outperform” rating for the company in a research report on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $167.83.

Key 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

Insider Transactions at CommVault Systems

In other news, insider Gary Merrill sold 1,845 shares of the firm’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 owned 67,318 shares of the company’s stock, valued at approximately $8,239,723.20. This trade represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Sanjay Mirchandani sold 13,109 shares of CommVault Systems stock in a transaction that occurred 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 completion of the transaction, the chief executive officer owned 359,260 shares of the company’s stock, valued at $43,524,349. This trade represents a 3.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 33,111 shares of company stock valued at $4,058,851. 1.00% of the stock is currently owned by corporate insiders.

Institutional Trading of CommVault Systems

Large investors have recently modified their holdings of the stock. AQR Capital Management LLC boosted its holdings 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 valued at $155,744,000 after purchasing an additional 337,830 shares during the period. Dimensional Fund Advisors LP raised its position in CommVault Systems by 2.0% in 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 in the last quarter. UBS Group AG boosted 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 valued at $68,530,000 after buying an additional 214,919 shares during the period. Franklin Resources Inc. grew its position in shares of CommVault Systems by 4.5% during the third quarter. Franklin Resources Inc. now owns 266,351 shares of the software maker’s stock worth $50,282,000 after buying an additional 11,502 shares in the last quarter. Finally, Legal & General Group Plc increased its stake in shares of CommVault Systems by 1.5% during the third quarter. Legal & General Group Plc now owns 179,142 shares of the software maker’s stock worth $33,818,000 after buying an additional 2,564 shares during the period. Hedge funds and other institutional investors 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.