CVLT

It has been about a month since the last earnings report for Blackbaud (BLKB). Shares have added about 21.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Blackbaud due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. BLKB Q2 Earnings Beat on Gross Margin Gain, Revenues Miss Blackbaud reported non-GAAP earnings for the second quarter of 2026 of $1.33 per share, up 9.0% year over year. The figure beat the Zacks Consensus Estimate of $1.32 by 0.76%, aided by a higher non-GAAP gross margin and a lower diluted share count. Revenues of $290.6 million rose 3.0% but missed the consensus mark of $292 million by 0.54%. Contractual and transactional recurring revenues increased, while one-time services declined. Recurring revenues grew 3.3% to $285.3 million and represented 98.2% of total revenues. BLKB's Recurring Streams Drive Growth Contractual recurring revenues increased $6.2 million to $186.4 million. Pricing initiatives and demand for cloud solutions supported the increase. Transactional recurring revenues advanced $2.8 million to $98.9 million, helped by higher volumes for Blackbaud Integrated Payments and Blackbaud Tuition Management. One-time services and other revenues fell to $5.3 million from $5.8 million. Geographically, U.S. revenues reached $234.0 million, while revenues from the United Kingdom and other countries were $37.0 million and $19.6 million, respectively. Blackbaud's Gross Margin Expands GAAP cost of revenues declined 1.1% to $112.4 million. The GAAP gross margin expanded 160 basis points to 61.3%, reflecting higher revenues, lower contractor costs and reduced amortization of acquisition-related intangibles, partly offset by increased hosting and data-center costs. The non-GAAP gross margin improved 70 basis points to 64.2%. However, non-GAAP operating income slipped to $94.6 million from $95.0 million, while the related margin contracted 110 basis points to 32.6% as spending on marketing, research and internal software increased. BLKB's AI Pipeline Deepens The fundraising Development Agent reached general availability ahead of schedule. Blackbaud also announced four additional Agents for Good offerings covering data health, admissions, digital marketing and accounts payable. The company said these products are not expected to make a meaningful revenue contribution in 2026. More than half of Raiser’s Edge NXT customers use machine-learning-enabled donor prospecting, generating tens of billions of predictions annually. Management also cited competitive wins and returning customers as evidence that product innovation is supporting bookings and win rates. Blackbaud's Cash Flow Backs Buybacks Second-quarter operating cash flow increased $24.1 million to $91.1 million. Non-GAAP free cash flow rose $23.8 million to $75.3 million, with the free cash flow margin improving 760 basis points to 25.9%. During the first half, BLKB repurchased 2.4 million shares for $110.1 million. Including net share settlement of employee awards, repurchase activity represented 6.2% of the shares outstanding on Dec. 31, 2025. Weighted average diluted shares fell 7.0% year over year to 44.9 million. BLKB Reaffirms 2026 Outlook Blackbaud reaffirmed 2026 revenue guidance of $1.173-$1.179 billion, adjusted EBITDA of $430-$438 million, non-GAAP earnings of $5.15-$5.25 per share and free cash flow of $280-$290 million. Management expects results in the upper half of all four ranges, with earnings and free cash flow at or above the high end. Performance is expected to be weighted toward the second half, particularly the fourth quarter. A new platform fee should contribute to that weighting. The roughly 40% larger contractual renewal cohort is expected to reduce 2026 revenue growth by 0.5-0.75 percentage points. Blackbaud's Contract Base Adds Visibility Gross dollar retention was approximately 91% for the 12 months ended June 30. Roughly 90% of contractual recurring revenues are tied to contracts of three years or longer, while 25% are associated with terms of at least four years. Deferred revenues increased 9.3% from year-end to $406.4 million. Remaining performance obligations totaled about $1.6 billion, with approximately 45% expected to be recognized over the next 12 months. Blackbaud ended the quarter with $34.4 million in cash, $1.15 billion in debt and a net leverage ratio of 2.58. In the past month, investors have witnessed a flat trend in fresh estimates. At this time, Blackbaud has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Blackbaud has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Blackbaud is part of the Zacks Computer - Software industry. Over the past month, Commvault Systems (CVLT), a stock from the same industry, has gained 20.6%. The company reported its results for the quarter ended June 2026 more than a month ago. Commvault reported revenues of $314.13 million in the last reported quarter, representing a year-over-year change of +11.4%. EPS of $1.42 for the same period compares with $1.01 a year ago. For the current quarter, Commvault is expected to post earnings of $1.25 per share, indicating a change of +37.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days. Commvault has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Commvault Systems (CVLT). Shares have added about 11.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Commvault due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for CommVault Systems, Inc. before we dive into how investors and analysts have reacted as of late. Commvault reported first-quarter fiscal 2027 non-GAAP earnings of $1.42 per share, up 40.6% year over year. The figure beat the Zacks Consensus Estimate of $1.18 by 20.3%. Revenues advanced 11.4% to $314.13 million and surpassed the consensus mark by 0.99%. Results benefited from strong SaaS demand, subscription growth and improving profitability. Subscription annual recurring revenues (ARR) increased 22% to $1.05 billion. Subscription revenues increased 16% year over year to $267.03 million and accounted for 85% of total revenues, up from 81% in the prior-year quarter. Term-based license revenues rose 1% to $110.42 million, while term-based support revenues climbed 18% to $56.06 million. SaaS revenues surged 39% to $100.55 million, crossing the $100 million quarterly threshold for the first time. Perpetual license revenues increased 19% to $8.70 million. However, perpetual support revenues declined 19% to $25.48 million, while other services revenues fell 7% to $12.93 million. Subscription ARR reached $1.05 billion, up from $867.31 million a year earlier. CVLT added $39 million in net new subscription ARR during the quarter, driven by continued strength in its SaaS offerings. SaaS ARR grew 38% to $424.34 million from $306.87 million. The company surpassed 10,000 active SaaS customers, while subscription net dollar retention remained steady at 114%. Identity resilience and data security offerings represented more than one-third of net new subscription ARR. Emerging SaaS offerings, including Clumio S3 Protection, Google Workspace and Azure DevOps, also recorded strong growth. The percentage of Commvault-managed SaaS customers using at least two products increased to 49% from 42% a year earlier. This reflected continued upselling and cross-selling across the Commvault Cloud Platform. Management highlighted identity resilience as an important entry point for broader platform adoption. Demand was supported by customers seeking to protect identity systems, govern data access and recover operations following cyber incidents. Commvault also expanded its relationship with Microsoft. Its cyber-resilience capabilities are expected to become available as a native independent software vendor service on Microsoft Azure, making the platform easier to integrate into Azure-based workflows. Gross margin reached 82.1% in the reported quarter. SaaS gross margin improved 635 basis points year over year to 70.6%, aided by product optimization, acquisition integration and strategic agreements with hyperscaler partners. Operating expenses increased 7% to $185 million but declined as a percentage of revenues to 59% from 61% a year earlier. Headcount remained roughly flat year over year. Non-GAAP EBIT increased to $71.47 million from $58.25 million. The corresponding margin expanded 210 basis points to 22.8%, marking the company’s strongest quarterly EBIT margin performance in more than a decade. Operating cash flow increased to $51.67 million from $31.68 million in the year-ago quarter. Free cash flow rose 71% to $51.10 million, reflecting stronger collections and continued spending discipline. Commvault ended the quarter with cash and cash equivalents of $929.84 million, up from $899.99 million at the end of fiscal 2026. During the quarter, the company repurchased roughly 98,000 shares for $10 million. Management continues to target share repurchases equal to approximately 60% of annual free cash flow while retaining balance sheet flexibility. For the second quarter of fiscal 2027, subscription revenues are projected between $264 million and $268 million. Total revenues are expected to be approximately $310 million, while the non-GAAP EBIT margin is forecast at about 20%. For fiscal 2027, CVLT raised its subscription revenue outlook to $1.119-$1.129 billion from $1.115-$1.125 billion. Subscription ARR guidance was maintained at $1.20-$1.21 billion, with SaaS ARR expected to exceed $500 million. The company continues to expect total revenues of $1.30-$1.31 billion and free cash flow of $250-$260 million. Non-GAAP EBIT margin guidance was increased by 50 basis points to approximately 21%. In the past month, investors have witnessed a upward trend in estimates review. Currently, Commvault has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Commvault has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Commvault is part of the Zacks Computer - Software industry. Over the past month, SAP (SAP), a stock from the same industry, has gained 13.8%. The company reported its results for the quarter ended June 2026 more than a month ago. SAP reported revenues of $11.48 billion in the last reported quarter, representing a year-over-year change of +12.1%. EPS of $1.85 for the same period compares with $1.70 a year ago. For the current quarter, SAP is expected to post earnings of $2.04 per share, indicating a change of +9.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for SAP. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Commvault Systems stock has had a strong run over the past few years. The current valuation picture is mixed, with the Discounted Cash Flow (DCF) intrinsic value estimate pointing to some upside, while traditional market multiples lean the other way. Commvault Systems has returned 63.5% over the past 3 years, which puts extra focus on whether the current price still leaves room for further value. Recent recognition in data protection along with a new AI-focused partnership can support growth expectations, while rising concern about identity and cyber risks may keep investors cautious about how sustainable that growth and profitability could be. The company scores 2 out of 6 on broader valuation checks, which suggests the stock does not screen as a straightforward bargain, even though the DCF estimate indicates it may be undervalued by about 12.3%. The issue now is whether Commvault Systems' recent share price weakness has created an attractive entry point, or whether the low value score and richer multiples reflect a market that is already pricing in much of the good news. Find out why Commvault Systems' -37.9% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) approach estimates what Commvault Systems is worth based on the cash it is expected to generate for shareholders. The model uses last twelve month free cash flow of about $258.9 million in $ and assumes that cash flows continue to grow from this base rather than swinging sharply higher or lower. On these assumptions, the DCF model arrives at an intrinsic value of about $136.86 per share, which implies the stock is 12.3% undervalued relative to the current market price. Because the recent partnership with Microsoft highlights new AI and cyber resilience products, the current discount suggests investors are still applying some caution to those cash flow projections. Overall, the Discounted Cash Flow workup suggests Commvault Systems stock currently looks undervalued based on its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Commvault Systems is undervalued by 12.3%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Commvault Systems. P/E is a useful yardstick for Commvault Systems because the company is profitable and investors often focus on earnings for established software businesses. On this metric, Commvault Systems currently trades on a P/E of about 72.8x, which is well above the broader software industry average of roughly 29.3x and the peer group average of about 23.7x. A tailored fair P/E for Commvault Systems, which factors in its business profile and risk, sits closer to 35.8x. That is less than half of where the stock currently trades. The gap suggests the market is assigning a rich earnings multiple that already reflects a lot of optimism around the company’s data protection position and recent AI partnerships. Based on its earnings multiple alone, Commvault Systems stock appears expensive compared with both its fair P/E estimate and sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. For Commvault Systems, Simply Wall St Narratives sit between the DCF upside and the rich P/E, and spell out what kind of growth, margins and earnings path would need to play out for the stock to be worth meaningfully more or less than today. Rather than focusing on a single multiple or model output, each Narrative lays out the assumptions behind its fair value so you can compare those expectations with future results as they are reported. Community views on Commvault Systems sit wide apart, with one camp focused on AI driven upside and another on contract risk and SaaS mix. Bull case: 31% undervalued Read the full Bull Case to see why Commvault Systems could be undervalued Bear case: 20% overvalued Read the full Bear Case to see why Commvault Systems could be overvalued Do you think there's more to the story for Commvault Systems? Head over to our Community to see what others are saying! Commvault Systems sits in a tension between a Discounted Cash Flow (DCF) view that points to undervaluation and market multiples that screen as overvalued. The intrinsic value estimate leans on cash generation and capital needs, while the high P/E hinges on confidence that growth, margins and sentiment will stay strong enough to justify a premium. Broader checks remain weak despite the supportive DCF signal, which keeps the risk of a value trap on the table. The crux from here is whether Commvault Systems can turn its AI and cyber resilience positioning into durable earnings without investors needing to pay an even richer multiple. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CVLT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Commvault Systems, Inc. CVLT reported first-quarter fiscal 2027 non-GAAP earnings of $1.42 per share, up 40.6% year over year. The figure beat the Zacks Consensus Estimate of $1.18 by 20.3%. Revenues advanced 11.4% to $314.13 million and surpassed the consensus mark by 0.99%. Results benefited from strong SaaS demand, subscription growth and improving profitability. Subscription annual recurring revenues (ARR) increased 22% to $1.05 billion. Subscription revenues increased 16% year over year to $267.03 million and accounted for 85% of total revenues, up from 81% in the prior-year quarter. Term-based license revenues rose 1% to $110.42 million, while term-based support revenues climbed 18% to $56.06 million. SaaS revenues surged 39% to $100.55 million, crossing the $100 million quarterly threshold for the first time. Perpetual license revenues increased 19% to $8.70 million. However, perpetual support revenues declined 19% to $25.48 million, while other services revenues fell 7% to $12.93 million. CommVault Systems, Inc. price-consensus-eps-surprise-chart | CommVault Systems, Inc. Quote Subscription ARR reached $1.05 billion, up from $867.31 million a year earlier. CVLT added $39 million in net new subscription ARR during the quarter, driven by continued strength in its SaaS offerings. SaaS ARR grew 38% to $424.34 million from $306.87 million. The company surpassed 10,000 active SaaS customers, while subscription net dollar retention remained steady at 114%. Identity resilience and data security offerings represented more than one-third of net new subscription ARR. Emerging SaaS offerings, including Clumio S3 Protection, Google Workspace and Azure DevOps, also recorded strong growth. The percentage of Commvault-managed SaaS customers using at least two products increased to 49% from 42% a year earlier. This reflected continued upselling and cross-selling across the Commvault Cloud Platform. Management highlighted identity resilience as an important entry point for broader platform adoption. Demand was supported by customers seeking to protect identity systems, govern data access and recover operations following cyber incidents. Commvault also expanded its relationship with Microsoft. Its cyber-resilience capabilities are expected to become available as a native independent software vendor service on Microsoft Azure, making the platform easier to integrate into Azure-based workflows. Gross margin reached 82.1% in the reported quarter. SaaS gross margin improved 635 basis points year over year to 70.6%, aided by product optimization, acquisition integration and strategic agreements with hyperscaler partners. Operating expenses increased 7% to $185 million but declined as a percentage of revenues to 59% from 61% a year earlier. Headcount remained roughly flat year over year. Non-GAAP EBIT increased to $71.47 million from $58.25 million. The corresponding margin expanded 210 basis points to 22.8%, marking the company’s strongest quarterly EBIT margin performance in more than a decade. Operating cash flow increased to $51.67 million from $31.68 million in the year-ago quarter. Free cash flow rose 71% to $51.10 million, reflecting stronger collections and continued spending discipline. Commvault ended the quarter with cash and cash equivalents of $929.84 million, up from $899.99 million at the end of fiscal 2026. During the quarter, the company repurchased roughly 98,000 shares for $10 million. Management continues to target share repurchases equal to approximately 60% of annual free cash flow while retaining balance sheet flexibility. For the second quarter of fiscal 2027, subscription revenues are projected between $264 million and $268 million. Total revenues are expected to be approximately $310 million, while the non-GAAP EBIT margin is forecast at about 20%. For fiscal 2027, CVLT raised its subscription revenue outlook to $1.119-$1.129 billion from $1.115-$1.125 billion. Subscription ARR guidance was maintained at $1.20-$1.21 billion, with SaaS ARR expected to exceed $500 million. The company continues to expect total revenues of $1.30-$1.31 billion and free cash flow of $250-$260 million. Non-GAAP EBIT margin guidance was increased by 50 basis points to approximately 21%. Commvault currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Applied Materials AMAT and Cisco Systems CSCO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Shares of Analog Devices have rallied 34.9% year to date. The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating a 59.4% year-over-year increase. Shares of Applied Materials have skyrocketed 85.4% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past 30 days, calling for a rise of 28.9% year over year. Cisco Systems shares have surged 50.1% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, implying an increase of 12.3% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Commvault Systems (CVLT) came out with quarterly earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.34%. A quarter ago, it was expected that this data-management software company would post earnings of $1.09 per share when it actually produced earnings of $1.28, delivering a surprise of +17.43%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Commvault, which belongs to the Zacks Computer - Software industry, posted revenues of $314.13 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.99%. This compares to year-ago revenues of $281.98 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Commvault shares have added about 19.2% since the beginning of the year versus the S&P 500's gain of 8.3%. While Commvault has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Commvault was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.20 on $313.2 million in revenues for the coming quarter and $5.22 on $1.31 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, OptimizeRx Corp. (OPRX), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -54.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OptimizeRx Corp.'s revenues are expected to be $20.48 million, down 29.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report OptimizeRx Corp. (OPRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Commvault Systems (CVLT) reported $314.13 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 11.4%. EPS of $1.42 for the same period compares to $1.01 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $311.07 million, representing a surprise of +0.99%. The company delivered an EPS surprise of +20.34%, with the consensus EPS estimate being $1.18. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Commvault performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Annualized Recurring Revenue (ARR): $1,054.00 versus $1,160.77 estimated by three analysts on average. Revenues- Perpetual license: $8.7 million versus the two-analyst average estimate of $7.16 million. The reported number represents a year-over-year change of +18.5%. Revenues- Subscription: $267.03 million compared to the $210 million average estimate based on two analysts. The reported number represents a change of +46.9% year over year. Revenues- Subscription - Term-based license: $110.42 million versus $111.96 million estimated by two analysts on average. Revenues- Subscription - Software-as-a-service (SaaS): $100.55 million compared to the $98.04 million average estimate based on two analysts. Revenues- Other services: $12.93 million versus $13.01 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -6.9% change. View all Key Company Metrics for Commvault here>>> Shares of Commvault have returned +3.7% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

According to The Fly, Piper Sandler downgraded Commvault to ‘Neutral’ from ‘Overweight’ and set a $133 price target. For the full year, the company expects subscription revenue to be between $1.12 billion and $1.13 billion, in line with the prior guidance. Commvault posted an 11% increase in Q1 sales at $314.1 million, beating Street estimates of $310.4 million, according to Fiscal.ai Commvault (CVLT) was in the spotlight on Tuesday after Piper Sandler downgraded the stock following the cybersecurity firm’s first-quarter results, citing expectations for more upside that failed to materialize. At the time of writing, CVLT stock was down 16%, its biggest single-day loss since Jan. 27, 2026. It also fell below the 50-day moving average (50-DMA) for the first time since April 10. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox According to The Fly, Piper Sandler downgraded Commvault to ‘Neutral’ from ‘Overweight’ and set a $133 price target, citing limited near-term upside. This represents a 5.7% upside potential from current levels. The brokerage said investors had expected stronger guidance after expectations were reset last quarter, but Commvault’s decision to not raise its outlook made its current forecasts appear conservative. Piper added that its bullish thesis on the company has not played out as expected and that it sees limited catalysts ahead for the stock. Commvault posted an 11% increase in Q1 sales at $314.1 million, beating Street estimates of $310.4 million, according to Fiscal.ai. This was driven by a 16% growth in subscription revenues. Earnings came in at $1.42 per share, compared to the $1.16 per share estimate. Commvault said subscription revenue for the second quarter is expected to be between $264 million and $268 million, compared to earlier guidance between $263 million and $265 million. For the full year, the company expects subscription revenue to be between $1.12 billion and $1.13 billion, in line with the prior guidance. The company said ongoing hardware shortages affected some deals, especially in its on-premise business. However, it said these challenges are mainly timing-related and are being managed through its broader sales pipeline. The company added that strong growth in its SaaS business provides flexibility and helps offset hardware-related delays. “It’s a timing issue, and that’s why the platform approach that we have- and you can see the strength in our SaaS business- we have that flexibility, and we continue to see that acceleration on the SaaS side of the business,” said CFO Gary Merrill in a call with analysts. Despite the slump, retail sentiment for CVLT on Stocktwits turned ‘bullish’ from ‘bearish’ a day earlier. The stock is up just over 1% so far this year. Also read: FDA Staff Raise Concerns On Replimune’s Skin Cancer Drug – REPL Stock Crashes 32% Today Ahead Of Advisory Meeting This Week For updates and corrections, email newsroom[at]stocktwits[dot]com. Arnab Paul has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: US Stock Futures Slip As Iran Targets American Forces Ahead Of Big Tech Earnings: SKHY, SNDK, BE, SOFI In Focus UPS Stock Under Pressure As Wall Street Weighs Amazon Shipping Cuts — But Retail Bulls Remain Unfazed HIMS Stock Eyes Comeback After 3-Week Slide: BlackRock Raises Stake, Bulls Bet On Peptide-Fueled Q2 Run

Interested in CommVault Systems, Inc.? Here are five stocks we like better. Strong Q1 performance: Revenue rose 11% year over year to $314 million, while subscription ARR increased 22% to $1.05 billion and SaaS ARR grew 38% to $424 million. Non-GAAP EBIT margin expanded to 22.8%, and free cash flow climbed 71% to $51 million. Guidance raised: Commvault increased its fiscal 2027 subscription revenue outlook to $1.119 billion-$1.129 billion and lifted full-year non-GAAP EBIT margin guidance by 50 basis points to approximately 21%. Total revenue and free cash flow guidance were maintained. AI and SaaS strategy gaining momentum: Management is developing AI-focused capabilities and expanding its Azure partnership as demand grows for data protection and cyber resilience. SaaS surpassed 10,000 customers, with Clumio and other cloud offerings driving new-customer acquisition. 3 Under-the-Radar Cybersecurity Stocks With Major Upside Potential CommVault Systems (NASDAQ:CVLT) reported first-quarter fiscal 2027 results that exceeded its expectations, driven by continued growth in subscription and software-as-a-service offerings, while the company raised its full-year non-GAAP EBIT margin outlook and subscription revenue guidance. Chief Executive Officer Sanjay Mirchandani said subscription annual recurring revenue, or ARR, rose 22% year over year to $1.05 billion. SaaS ARR increased 38% to $424 million, while subscription revenue grew 16% to $267 million. SaaS revenue surpassed $100 million for the quarter, and the company expanded its EBIT margin by more than 200 basis points to approximately 23%. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit 3 Under-the-Radar Software Stocks Ready to Bounce “AI is expanding the surface area for data disruption and cyber attacks,” Mirchandani said, describing artificial intelligence as a tailwind for Commvault’s data protection and cyber-resilience platform. He said enterprises are increasingly focused not only on backing up data, but also on verifying its integrity, governing access and recovering to a clean state following an incident. Chief Financial Officer Gary Merrill said Commvault added $39 million in net new subscription ARR during the quarter, with SaaS growth supported by new customers and expansion among existing customers. The company exceeded 10,000 active SaaS customers, and subscription net dollar retention was 114%, unchanged from the prior quarter. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Commvault Stock: AI Cybersecurity Giant Ready to Double Again Identity resilience and data security offerings accounted for more than one-third of net new subscription ARR, Merrill said. The company also cited growth in emerging SaaS offerings including Clumio S3 protection, Google Workspace and Azure DevOps. Among Commvault Managed SaaS customers, 49% used two or more products, up from 42% a year earlier. Total revenue increased 11% year over year to $314 million. Subscription revenue represented 85% of total revenue, compared with 81% in the prior-year period. Gross margin reached 82.1%, while SaaS gross margin rose 635 basis points year over year to 70.6%. Non-GAAP EBIT was $71 million, producing a 22.8% margin, up 210 basis points year over year. Free cash flow increased 71% year over year to $51 million. Merrill said the quarter’s non-GAAP EBIT margin was Commvault’s strongest quarterly performance in more than a decade. Operating expenses increased 7% to $185 million, while headcount was roughly flat from a year earlier. He said the company’s scale and gross-margin gains provide room to continue investing in sales, marketing and research and development while expanding profitability. → 2 Stocks Built to Thrive If Inflation Refuses to Fade The company repurchased about 98,000 shares for $10 million during the quarter. Merrill said Commvault intends to return at least 60% of annual free cash flow to shareholders through repurchases while preserving balance-sheet flexibility. Mirchandani said enterprise AI adoption remains in an early, experimental phase, but customer discussions increasingly center on AI data workloads, non-human identities, access controls and the ability to identify and reverse compromised changes. He said Commvault’s platform is designed to protect hybrid environments spanning on-premises infrastructure, cloud services, SaaS applications, legacy systems and AI workloads. The company discussed new AI-oriented capabilities, including AI Studio, which is intended to enable agentic use of core product capabilities; Data Activate, which is designed to classify and curate protected data for AI training and learning systems; and AI Protect, which is intended to help customers assess agent-driven changes and recover affected applications. Mirchandani said the offerings are expected over the coming months. Commvault also expanded its Microsoft partnership during the quarter. Its cyber-resilience capabilities will be available as a native independent software vendor service on Microsoft Azure, which Mirchandani said should make it easier for customers to use Commvault within Azure workflows and the marketplace. The company highlighted Clumio as one of the fastest-growing components of its SaaS portfolio. Mirchandani said the cloud-native offering is aimed at organizations with large cloud data sets and workloads across services such as Amazon S3, Snowflake and Google Cloud. Merrill added that 40% of SaaS customers are new to Commvault, with SaaS serving as the company’s principal new-customer acquisition engine. Management said hardware availability constraints remain a factor for some on-premises software deals, but characterized the impact as manageable. Merrill said term subscription lengths faced a mid-single-digit sequential impact as customers assessed hardware and storage plans, though Commvault’s cloud and SaaS offerings provide flexibility for customers facing supply constraints. Term software net new ARR was sequentially flat, he said. Foreign exchange also created a small-to-modest headwind to first-quarter ARR. Using beginning-of-quarter exchange rates, Merrill said net new subscription ARR would have been in the low-$40 million range rather than $39 million. For fiscal 2027, Commvault reiterated its subscription ARR outlook of $1.20 billion to $1.21 billion, representing approximately 19% growth at the midpoint. It expects SaaS ARR to exceed $500 million by year-end. Full-year subscription revenue guidance increased to $1.119 billion to $1.129 billion, or about 16% growth at the midpoint. Total revenue guidance was maintained at $1.30 billion to $1.31 billion. Full-year non-GAAP EBIT margin guidance increased by 50 basis points to approximately 21%. Free cash flow guidance remained $250 million to $260 million, weighted toward the second half of the fiscal year. For the fiscal second quarter, Commvault expects subscription revenue of $264 million to $268 million, total revenue of about $310 million and a non-GAAP EBIT margin of approximately 20%. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CommVault Systems Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Subscription ARR: Increased 22% to $1.05 billion. SaaS ARR: Grew 38% to $424 million. Subscription Revenue: Increased 16% to $267 million. SaaS Revenue: Surpassed $100 million in quarterly revenue. Gross Margin: Reached 82.1%, with SaaS margins at 70.6%. Operating Expenses: Increased 7% to $185 million. Non-GAAP EBIT: Grew to $71 million, with a margin of 22.8%. Free Cash Flow: $51 million, growing 71% year over year. Total Revenue: Grew 11% to $314 million. Share Repurchase: Approximately 98,000 shares for $10 million. Q2 Subscription Revenue Guidance: $264 million to $268 million. Full Year Subscription ARR Guidance: $1.20 billion to $1.21 billion. Full Year Subscription Revenue Guidance: $1.119 billion to $1.129 billion. Full Year Free Cash Flow Guidance: $250 million to $260 million. Warning! GuruFocus has detected 5 Warning Sign with CVLT. Is CVLT fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CommVault Systems Inc (NASDAQ:CVLT) reported strong financial results, exceeding expectations on both the top and bottom lines. Subscription ARR grew 22% to $1.05 billion, with the SaaS business contributing significantly with a 38% growth to $424 million in ARR. The company achieved a milestone of $100 million in quarterly SaaS revenue, demonstrating robust growth in this segment. CommVault Systems Inc (NASDAQ:CVLT) increased EBIT margins by over 200 basis points to approximately 23%, showcasing improved profitability. The company expanded its ecosystem through a strategic partnership with Microsoft, enhancing its cloud-native offerings and integration with Azure. CommVault Systems Inc (NASDAQ:CVLT) faces challenges related to hardware availability, which impacts some deals tied to on-premise software. There are modest headwinds in term software sales due to customers' hybrid environments and hardware constraints. The company experienced a small to modest impact from foreign exchange fluctuations on Subscription ARR. Despite strong SaaS growth, the overall Subscription net dollar retention remained flat at 114%, indicating limited expansion in existing customer accounts. The transition to a new management team, including a new CFO and President of Customer and Field Operations, may pose integration challenges. Q: How is the current demand environment, especially in light of IBM's comments on capital expenditure reprioritization? A: Sanjay Mirchandani, CEO, stated that overall demand remains strong, with a robust pipeline built over several quarters. He noted that discussions around AI data workloads are increasing, which is favorable for Commvault. The demand for data security and AI resilience is growing, aligning with IBM's observations. Q: Can you elaborate on the recent partnership with Microsoft and its significance? A: Sanjay Mirchandani explained that the partnership with Microsoft focuses on deeper engineering connections, integrating Commvault's resilience capabilities as a native service within Azure, and strengthening executive relationships. This collaboration aims to enhance AI resilience and make it easier for customers to integrate these capabilities into their Azure workflows. Q: How are hardware supply chain issues affecting your business, and what strategies are in place to mitigate these challenges? A: Gary Merrill, CFO, acknowledged that hardware constraints impact some deals, but Commvault manages these through pipeline adjustments. The company's decoupled architecture allows for flexibility, enabling customers to extend the life of existing assets or transition to SaaS solutions, mitigating supply chain disruptions. Q: What is the impact of hardware prices on customer buying behavior, particularly for term subscriptions? A: Gary Merrill noted that some customers are opting for shorter-term deals due to hardware price fluctuations. However, Commvault's SaaS offerings are seeing strong growth, with a significant portion of new ARR coming from identity resilience and data security products, which are less affected by hardware pricing. Q: How is Commvault positioned to capitalize on the growing importance of identity resilience in cybersecurity? A: Sanjay Mirchandani emphasized that identity compromise is a primary target in cyber-attacks. Commvault's platform offers comprehensive identity resilience, allowing organizations to manage non-human identities and quickly recover from attacks. This capability is increasingly becoming a priority for CISOs and is integral to Commvault's cyber resilience strategy. For the complete transcript of the earnings call, please refer to the full earnings call transcript.