
CommVault Systems (CVLT) Stock Forecast & Price Target
CommVault Systems (CVLT) Analyst Ratings
Bulls say
CommVault Systems Inc. demonstrated strong financial performance in the second quarter of fiscal year 2026, exiting with a Total Annual Recurring Revenue (ARR) of $1.04 billion, representing a 22% year-over-year increase. The company saw a notable rise in SaaS ARR, which grew by 56% and accounted for 32% of total ARR, while Subscription ARR increased by 30% to $894 million, driven by a significant 52% growth in SaaS revenue. Additionally, the firm recorded its second-best quarter for net new customer additions in term software, alongside a stable Net Revenue Retention (NRR) rate of 125%, reflecting robust customer engagement and momentum in their identity and data security offerings.
Bears say
Commvault Systems Inc reported solid results for 2Q26, surpassing revenue and ARR guidance; however, the company experienced a contraction in term duration that negatively impacted subscription revenue. This contraction, coupled with a shift towards lower-margin SaaS subscriptions and a 170 basis point decline in gross margin percentage, highlights concerns about the sustainability of high-margin term license revenue, which saw a 9% decrease in average duration quarter-over-quarter. Additionally, the lowered EPS estimates for F26E and F27E, driven by a reduced gross margin due to the evolving revenue mix, further underscores the financial headwinds facing the company.
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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