CommVault Systems (CVLT) AI Stock Analysis

• Market Cap: $5.67B
• Dividend Yield: N/A
• Average Volume (3M): 863.52K
• Price to Earnings (P/E): 70.5
• Beta (1Y): 1.23
• Revenue Growth: 22.02%
• EPS Growth: -55.25%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.91
• Shares Outstanding: 44,094,360
• 10 Day Avg. Volume: 1,398,434
• 30 Day Avg. Volume: 863,525
• PEG Ratio: -1.66
• Price to Book (P/B): 21.28
• Price to Sales (P/S): 6.95
• P/FCF Ratio: 33.97
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 7.64
• Enterprise Value/Gross Profit: 9.37
• Enterprise Value/Ebitda: 86.10
• 1Y Price Target: $203.14
• Price Target Upside: 62.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.91
• Revenue Forecast (FY): $1.16B

• Rating: 62 Neutral
• Price Target: $133.00 ▲(6.33% Upside)

CommVault Systems' overall stock score is driven by strong financial performance and positive earnings call highlights, including significant ARR and revenue growth. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The absence of a dividend yield further impacts the valuation score.

Positive Factors

Revenue Growth

The 18% revenue growth indicates strong market demand and effective sales strategies, suggesting sustained business expansion and market presence.

SaaS Adoption

Significant SaaS ARR growth reflects successful transition to cloud-based services, enhancing recurring revenue streams and long-term customer retention.

Strategic Partnerships

The partnership with BeyondTrust strengthens Commvault's cloud offerings, potentially expanding market reach and enhancing competitive positioning.

Negative Factors

High Debt-to-Equity Ratio

A high debt-to-equity ratio indicates financial leverage risk, which could impact financial stability and limit future investment flexibility.

Gross Margin Pressure

Pressure on gross margins due to SaaS transition may affect profitability, requiring cost management to maintain margin sustainability.

Contract Duration Shift

Shorter contract durations reduce revenue predictability and could impact long-term financial planning and stability.

CommVault Systems Business Overview & Revenue Model

Company Description

Commvault Systems (CVLT) is a leading data protection and information management software company headquartered in Tinton Falls, New Jersey. The company specializes in providing solutions for data backup, recovery, archiving, and cloud services, catering to a wide array of industries including healthcare, finance, and education. Commvault's core products include its flagship software suite, which enables organizations to manage their data across on-premises and cloud environments efficiently, ensuring data integrity and compliance.

How the Company Makes Money

Commvault generates revenue primarily through software licensing, subscription services, and professional services. The company offers its products on a perpetual license basis as well as a subscription model, allowing customers to choose the payment structure that best suits their needs. Key revenue streams include sales from its software solutions, maintenance and support services, and cloud services that facilitate data storage and management. Additionally, Commvault has established significant partnerships with leading cloud service providers and technology companies, enhancing its market reach and contributing to its earnings through joint marketing and integrated solutions.

CommVault Systems Financial Statement Overview

Summary

CommVault Systems demonstrates solid financial performance with strong revenue growth and efficient cash flow management. However, the high debt-to-equity ratio suggests potential financial risk. The company should focus on improving net profit margins and reducing leverage to enhance financial stability.

Income Statement

CommVault Systems shows a solid revenue growth rate of 4.08% TTM, indicating a positive trajectory. The gross profit margin remains strong at 81.55%, reflecting efficient cost management. However, the net profit margin is relatively low at 7.32%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, indicating stable operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 4.32 TTM, which could pose a risk if not managed carefully. The return on equity is robust at 27.01%, demonstrating effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

CommVault Systems exhibits a healthy free cash flow growth rate of 10.47% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.40, showing adequate cash flow relative to net income. The free cash flow to net income ratio is high at 0.97, reflecting efficient conversion of income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.10B	995.62M	839.25M	784.59M	769.59M	723.47M
Gross Profit	893.63M	816.58M	687.64M	649.19M	655.73M	614.10M
EBITDA	97.30M	90.66M	90.56M	-4.57M	54.47M	-5.36M
Net Income	80.24M	76.11M	168.91M	-35.77M	33.62M	-30.95M
Balance Sheet
Total Assets	1.92B	1.12B	943.91M	792.60M	827.92M	914.20M
Cash, Cash Equivalents and Short-Term Investments	1.06B	302.10M	312.75M	287.78M	267.51M	397.24M
Total Debt	908.49M	10.95M	12.09M	12.78M	16.05M	22.89M
Total Liabilities	1.71B	793.14M	665.83M	606.50M	572.09M	520.17M
Stockholders Equity	210.46M	325.12M	278.08M	186.10M	255.83M	394.03M
Cash Flow
Free Cash Flow	209.44M	203.63M	199.71M	167.05M	173.27M	115.78M
Operating Cash Flow	215.55M	207.38M	203.80M	170.29M	177.18M	123.95M
Investing Cash Flow	-48.97M	-70.40M	-5.52M	-5.29M	-24.44M	35.47M
Financing Cash Flow	583.38M	-147.82M	-170.58M	-135.58M	-276.09M	-74.74M

CommVault Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 125.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVLT, the sentiment is Negative. The current price of 125.08 is below the 20-day moving average (MA) of 158.05, below the 50-day MA of 173.77, and below the 200-day MA of 171.71, indicating a bearish trend. The MACD of -13.06 indicates Positive momentum. The RSI at 22.52 is Positive, neither overbought nor oversold. The STOCH value of 3.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVLT.

CommVault Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	76 Outperform	$10.11B	40.38	51.96%	0.15%	17.00%	120.21%
MNDY	73 Outperform	$9.76B	244.23	3.80%	―	30.24%	-6.69%
SRAD	66 Neutral	$7.27B	64.58	9.79%	―	18.99%	66.43%
ESTC	65 Neutral	$9.41B	―	-9.65%	―	17.42%	-228.98%
GTLB	63 Neutral	$7.64B	―	-0.63%	―	28.97%	98.96%
CVLT	62 Neutral	$5.67B	70.47	32.87%	―	22.02%	-55.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CommVault Systems Corporate Events

Commvault Systems Faces Financial Risk from Conditional Note Conversion

The conditional conversion feature of Commvault Systems’ Notes poses a significant risk to the company’s financial stability. If triggered, it allows note holders to convert their Notes during specified periods, potentially requiring Commvault to settle these obligations in cash. This could strain the company’s liquidity and financial condition, as well as impact its results of operations. Additionally, even without conversions, accounting rules might necessitate reclassifying the Notes as current liabilities, thereby reducing reported working capital.

Commvault Systems Reports Strong Q2 Fiscal 2026 Results

Commvault Systems, Inc., a leader in cyber resilience, provides data protection and rapid recovery solutions across various workloads, focusing on enterprise-scale operations. In its latest earnings report, Commvault announced a robust second quarter for fiscal 2026, with total revenues reaching $276 million, marking an 18% increase year over year. The company also achieved a significant milestone by surpassing $1 billion in annualized recurring revenue (ARR) ahead of its target.

Commvault Systems Surpasses Milestones in Earnings Call

Commvault Systems’ recent earnings call was marked by a positive sentiment, underscoring significant growth in key financial metrics such as Annual Recurring Revenue (ARR), total revenue, and Software-as-a-Service (SaaS) adoption. The company celebrated surpassing major milestones ahead of schedule. While strategic partnerships and new customer acquisitions were highlighted, challenges related to contract duration and gross margin were also acknowledged.

CommVault Systems Appoints Geoff Haydon to Board

On October 17, 2025, Commvault appointed Geoff Haydon to its Board of Directors and the Audit Committee, highlighting his extensive experience in cybersecurity and enterprise technology. This strategic move is expected to bolster Commvault’s leadership in cyber resilience, as Haydon’s expertise aligns with the company’s mission to advance cyber resilience in the AI era. Concurrently, Allison Pickens resigned from the Board on October 15, 2025, to focus on her venture capital firm, with her departure not linked to any disagreements with Commvault.

The most recent analyst rating on (CVLT) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on CommVault Systems stock, see the CVLT Stock Forecast page.

CommVault Systems Issues $900M Convertible Notes

CommVault Systems, Inc. issued $900 million of 0% Convertible Senior Notes due 2030, with an additional $115 million option exercised by initial purchasers. These notes, issued on September 5, 2025, are senior unsecured obligations and are convertible under specific conditions, with a maturity date of September 15, 2030. The company also engaged in capped call transactions to mitigate potential dilution of common stock upon conversion of the notes, with a cap price set at $357.56 per share.

The most recent analyst rating on (CVLT) stock is a Buy with a $198.00 price target. To see the full list of analyst forecasts on CommVault Systems stock, see the CVLT Stock Forecast page.

CommVault Systems Announces $750M Convertible Notes Offering

On September 2, 2025, Commvault Systems announced its plan to initiate a private offering of $750 million in convertible senior notes due 2030, subject to market conditions. The proceeds from this offering are intended to enhance strategic flexibility, with a portion allocated for capped call transactions to offset share dilution, and up to $125 million for share repurchases, potentially impacting the market price of Commvault’s common stock.

The most recent analyst rating on (CVLT) stock is a Buy with a $198.00 price target. To see the full list of analyst forecasts on CommVault Systems stock, see the CVLT Stock Forecast page.

CommVault Systems Holds Annual Stockholders Meeting

CommVault Systems held its Annual Meeting of Stockholders on August 7, 2025, where stockholders voted on several key issues, including the election of nine directors, executive compensation, the appointment of Ernst & Young LLP as independent auditors, and the approval of additional shares under the 2016 Omnibus Incentive Plan. These decisions are crucial for the company’s governance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (CVLT) stock is a Hold with a $164.00 price target. To see the full list of analyst forecasts on CommVault Systems stock, see the CVLT Stock Forecast page.