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1. Company Snapshot

1.a. Company Description

Commvault Systems, Inc.provides data protection and information management software applications and related services in the United States and internationally.The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; and Commvault Complete Data Protection, a data protection solution.


It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; Commvault Distributed Storage Platform that offers software-defined storage built on a hyperscale architecture; Metallic Cloud Storage service, which is the easy button to adopt secure and scalable cloud storage; and Metallic Software-as-a-Service.In addition, the company provides technology and business consulting, education, and remote managed services.Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers professional and customer support services that include data management-as-a-service under the Metallic brand.


The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small and medium sized businesses, and government agencies.It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy.Commvault Systems, Inc.


was founded in 1988 and is headquartered in Tinton Falls, New Jersey.

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1.b. Last Insights on CVLT

Commvault Systems, Inc. faces potential securities law violations investigations, sparked by its Q3 2026 earnings report. Despite a 40% growth in SaaS ARR to $364 million, concerns arise. Multiple law firms, including Levi & Korsinsky and Kessler Topaz Meltzer & Check, LLP, are investigating potential violations. The company's recent earnings release and deal closures have raised questions. These investigations may impact investor confidence. Commvault's robust Q3 performance did not translate to stock gains.

1.c. Company Highlights

2. Commvault's Strong Q3 Earnings Driven by SaaS and Term Software Growth

Commvault reported a robust Q3 with total revenue growing 19% to $314 million, driven by a 30% increase in subscription revenue, which reached $206 million. The company's SaaS revenue saw a significant 44% increase, contributing to one of its strongest customer acquisition quarters in years. The earnings per share (EPS) came in at $1.17, beating analyst estimates of $0.98. The company's subscription ARR increased 28% to $941 million, and SaaS ARR grew 40% to $364 million.

Publication Date: Feb -08

📋 Highlights
  • Strong Subscription Revenue Growth: Subscription revenue surged 30% to $206M, driven by a 44% SaaS revenue increase, with total revenue up 19% to $314M.
  • ARR Expansion and Customer Growth: Subscription ARR rose 28% to $941M, SaaS ARR grew 40% to $364M, alongside 700+ new subscription customers (total 14,000+).
  • Enterprise Strength and Deal Value: Large enterprise term software revenue grew 25%, with million-dollar deals and higher transaction volumes, reflecting premium positioning.
  • Cloud Unity Launch and Innovation: Launched Cloud Unity platform, integrated data security and cyber recovery, earning 1,600 patents and positive industry validation.
  • Guidance Upgrades: Raised FY2026 subscription revenue to $764–$768M (+30%) and total revenue to $1,177–$1,180M (+18%), driven by SaaS momentum and margin improvements.

Revenue Growth and Customer Acquisition

The company's revenue growth was broad-based, with strength across all geographies and customer sizes. Notably, revenue from term software transactions over $100,000 rose 25%, driven by gains in both transaction volume and average deal size. Commvault added approximately 700 new subscription customers, bringing the total to over 14,000. The company's net new term software customer additions were its best ever in Q3, and its SaaS customer acquisition was the second-best ever.

Product Innovation and Customer Feedback

Commvault's innovation was highlighted with the release of the Commvault Cloud Unity platform, which brings together data security, identity resilience, and cyber recovery on one platform. Customer and partner feedback has been overwhelmingly positive, with IDC validating the company's approach to "res ops," a discipline that unifies operations, security, and infrastructure across the business.

Guidance and Margin Expectations

The company guided subscription revenue to be in the range of $203 to $207 million in fiscal Q4 '26, representing 18% growth at the midpoint. Total revenue is expected to be in the range of $305 million to $308 million, with growth of 11% at the midpoint. Commvault also raised its full-year fiscal 2026 revenue guidance to a range of $1,177 million to $1,180 million, representing growth of 18% at the midpoint. Gross margins are expected to be 81% to 81.5%, and non-GAAP EBIT margin guidance was increased to a range of 19% to 20%.

Valuation and Growth Prospects

With a P/E Ratio of 43.64 and an EV/EBITDA of 33.69, the market seems to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 11.5%. The company's strong track record of innovation and customer acquisition, coupled with its expanding product offerings, positions it well for continued growth. The introduction of the Commvault Cloud Unity platform is expected to drive future growth, and the company's focus on "res ops" is likely to resonate with customers.

3. NewsRoom

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Citigroup Inc. Sells 19,282 Shares of CommVault Systems, Inc. $CVLT

Mar -08

Source: defenseworld.net

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3 Under-the-Radar Software Stocks Ready to Bounce

Mar -06

Source: marketbeat.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Commvault Systems, Inc. - CVLT

Mar -05

Source: prnewswire.com

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Commvault and CloudSEK Join Forces to Address a Growing and Rapidly Emerging Identity Threat: Exposed Credentials on the Dark Web

Mar -05

Source: prnewswire.com

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Commvault Extends Identity Resilience to Okta Amid Exploding Identity-Driven Cyber Risk

Mar -05

Source: prnewswire.com

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3 Software Stocks to Watch as the Industry Gains Momentum

Mar -04

Source: zacks.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Commvault Systems, Inc. - CVLT

Mar -03

Source: globenewswire.com

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NASDAQ: CVLT Investigation Alert: Kessler Topaz Meltzer & Check, LLP Encourages Commvault Systems, Inc. (NASDAQ: CVLT) Investors to Contact the Firm

Feb -27

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.83%)

6. Segments

Subscription

Expected Growth: 12%

Commvault's subscription growth is driven by increasing demand for data protection and management, expansion into cloud and edge computing, strategic partnerships, and a growing need for ransomware protection and disaster recovery solutions, resulting in a 12% growth rate.

Customer Support

Expected Growth: 10%

Commvault Systems, Inc.'s 10% growth in Customer Support is driven by increasing demand for data management and protection, expansion into new markets, and strategic partnerships. Additionally, the company's focus on customer satisfaction, innovative solutions, and competitive pricing have contributed to the growth.

Perpetual License

Expected Growth: 8%

Commvault's perpetual license growth is driven by increasing demand for data protection and management, expansion into cloud and hybrid environments, and strategic partnerships. Additionally, the company's focus on innovation, customer satisfaction, and competitive pricing strategy contribute to its growth. Furthermore, the rising need for data analytics, artificial intelligence, and machine learning capabilities also fuels the demand for Commvault's solutions.

Other Services

Expected Growth: 9%

Commvault's Other Services segment growth is driven by increasing demand for data management and protection, expansion into new markets, and strategic partnerships. The company's focus on cloud-based solutions, artificial intelligence, and machine learning also contributes to growth. Additionally, the rise of remote work and digital transformation initiatives among enterprises fuels the need for Commvault's services, resulting in a 9% growth rate.

7. Detailed Products

Commvault Complete Backup & Recovery

A comprehensive data protection solution that provides backup, recovery, and archiving for a wide range of data sources, including virtual machines, databases, and applications.

Commvault HyperScale

A scale-out data protection solution that provides a converged backup and storage platform for large-scale data environments.

Commvault Orchestrate

An automated workflow management solution that enables organizations to automate and orchestrate data protection, migration, and disaster recovery processes.

Commvault Activate

A data analytics and insights platform that provides visibility into data usage, storage, and protection, enabling data-driven decision making.

Commvault Metallic

A SaaS-based data protection solution that provides automated backup and recovery for cloud-native applications and data.

8. Commvault Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Commvault Systems, Inc. operates in a niche market with a unique product offering, reducing the threat of substitutes. However, the company faces competition from larger companies that offer similar products, which could lead to a moderate threat of substitutes.

Bargaining Power Of Customers

Commvault Systems, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to its customers' operations, making it difficult for customers to switch to alternative products.

Bargaining Power Of Suppliers

Commvault Systems, Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company also has a strong financial position, which gives it the ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The data management and protection industry has high barriers to entry, including significant research and development costs and the need for specialized expertise. This makes it difficult for new entrants to compete with established companies like Commvault Systems, Inc.

Intensity Of Rivalry

The data management and protection industry is highly competitive, with several established companies competing for market share. Commvault Systems, Inc. faces intense competition from companies like Veritas Technologies, Dell EMC, and IBM, which could lead to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.17%
Debt Cost 3.95%
Equity Weight 95.83%
Equity Cost 7.18%
WACC 7.04%
Leverage 4.35%

11. Quality Control: Commvault Systems, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Commvault Systems

A-Score: 3.4/10

Value: 1.0

Growth: 6.9

Quality: 6.5

Yield: 0.0

Momentum: 1.5

Volatility: 4.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

85.85$

Current Price

85.85$

Potential

-0.00%

Expected Cash-Flows