
CommVault Systems (CVLT) Stock Forecast & Price Target
CommVault Systems (CVLT) Analyst Ratings
Bulls say
Commvault Systems Inc reported a significant growth in its Total Annual Recurring Revenue (ARR), reaching $1.04 billion, which represents a 22% year-over-year increase, underlining a robust demand for its data management solutions. The company's strong performance in term software sales, including a 17% rise in deals exceeding $100,000, highlights its competitive positioning and successful customer acquisition efforts, with the second-best quarter for term software ARR in Q2. Additionally, Commvault's impressive SaaS ARR growth of 56% and ongoing positive trends in net revenue retention (NRR) indicate strong customer engagement and the efficacy of its identity and data security-focused offerings, supporting a positive long-term outlook for the company's financial performance.
Bears say
Commvault Systems Inc. reported strong second-quarter fiscal 2026 results with revenue and annual recurring revenue (ARR) exceeding expectations; however, a significant contraction in term license duration resulted in missed subscription revenue targets. The company's gross margin (GM%) contracted by 170 basis points, primarily due to the decline in high-margin term license sales and a shift towards SaaS subscriptions, which have lower margins, highlighting concerns about profitability moving forward. Additionally, management's projections indicate weaker expected earnings per share (EPS) and operating margins (OM%), primarily driven by this unfavorable shift in revenue mix and ongoing investments in growth, leading to a downward adjustment of the firm's stock multiple.
This aggregate rating is based on analysts' research of CommVault Systems and is not a guaranteed prediction by Public.com or investment advice.
CommVault Systems (CVLT) Analyst Forecast & Price Prediction
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