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what it is
Commvault sells software that backs up, moves, and recovers company data after outages or attacks.
how it gets paid
Last year Commvault Systems made $996M in revenue. subscription software was the main engine at $420M, or 42% of sales.
why it's growing
Revenue grew 18.6% last year. The $206M subscription number mattered most. It grew 30%.
what just happened
Commvault posted $872M in revenue and $1.24 EPS, with gross margin at 81.1%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
25/100 earnings predictability — expect surprises
71.4x trailing p/e — you're paying up for this one
23.4% return on capital — every dollar works hard here
$1.68 fy2024 eps est
xvary composite: 47/100 — below average
What they do
Commvault sells software that backs up, moves, and recovers company data after outages or attacks.
Your backups are not a drawer. They are the plan after a breach. Commvault keeps 23.4% return on capital (profit from each dollar invested), versus 9.8% operating margin (profit after running the business), so the company earns more than most software shops on each dollar it puts to work.
How they make money
$996M
annual revenue · their business grew +18.6% last year
subscription software
$420M
+30.0%
maintenance and support
$275M
+6.0%
license software
$185M
+2.0%
services and other
$116M
+8.0%
The products that matter
unified cyber resilience platform
Commvault Cloud
100,000+ organizations
it's the core platform used by more than 100,000 organizations to back up, secure, and recover data across mixed environments. that scale is why CVLT still shows up in serious enterprise conversations.
core platform
recurring software revenue
Subscription software
$206M · +30%
this business generated $206M and grew 30% from a year ago. it's still the minority of revenue, but it's the part the market actually cares about.
21% of revenue
legacy license base
Perpetual license
$790M · +15%
this segment still produced $790M, or 79% of revenue, while growing 15%. the transition story is real, but the old engine is still doing most of the work.
79% of revenue
Key numbers
$996M
annual revenue
That is the full-year top line. It shows a $3B company still lives on a sub-$1B revenue base.
81.1%
gross margin
That means 81 cents of every sales dollar stays before overhead. Software gets to keep a lot of the cash.
23.4%
return on capital
That says the business earns 23.4 cents of profit for each dollar invested in the business.
71.4x
trailing p/e
You are paying 71.4 years of current earnings for the stock, so expectations are already loud.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $903M (21% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CVLT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Commvault posted $872M in revenue and $1.24 EPS, with gross margin at 81.1%.
Revenue jumped 178% vs. prior year, and EPS rose 210%. Subscription revenue rose 30% to $206M, while ARR reached $1.085B.
$249M
revenue
$1.24
eps
81.1%
gross margin
subscription revenue
The $206M subscription number mattered most. It grew 30%, which says the recurring engine is outrunning the rest of the business.
source: company earnings report, 2026
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What could go wrong
the #1 risk is saaS ARR deceleration during the subscription transition.
med
SaaS ARR deceleration
Q3 FY2026 showed the market exactly what it fears: good headline numbers and a softer growth signal underneath. If recurring growth keeps slowing, CVLT stops looking like a SaaS rerating story and starts looking like a legacy software stock with nicer branding.
ARR is already large at $1.085B, so even modest deceleration changes how investors value the whole company.
med
Leadership and insider optics
The company disclosed a CFO transition in Dec 2025, added a board member in Oct 2025, and insiders including the CEO and CCO sold more than $10M of stock over the last 24 months. None of that is fatal on its own. Together, it gives nervous investors more to stare at.
This is mostly a confidence risk. In a stock trading at 71.4x earnings, confidence matters a lot.
med
Legal overhang
A law firm announced a securities-law investigation on Mar 11, 2026. We do not have evidence here of a material outcome. We do have another source of uncertainty landing at a bad time.
This may end up as noise. It can still pressure sentiment while the business is trying to prove its transition is on track.
CVLT needs growth above 15% and margins near 80%. If either slips, the stock stops behaving like a quality story.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q4 FY2026 earnings on mar 3, 2026
This is the next real verdict. Another beat without cleaner SaaS ARR probably does not help much. A cleaner growth print changes the conversation fast.
metric
SaaS ARR growth rate
This is the number that spooked investors. Subscription revenue can look good at $206M and still lose the market if recurring growth underneath keeps cooling.
trend
Revenue mix shift toward subscription
Right now subscription is 21% of revenue and perpetual license is 79%. You want that gap closing for fundamental reasons, not just presentation reasons.
risk
Legal and management noise
The investigation headline and CFO transition are not the thesis. They can still weigh on a stock already trying to rebuild trust after a harsh post-earnings reaction.
Analyst rankings
earnings predictability
25 / 100
Low predictability. In human-speak, analysts do not think this business delivers clean, boring quarters.
risk rank
3
Middle-of-the-pack safety. You're not buying a distressed balance sheet, but you're not buying a bunker stock either.
price target spread
$101–$200.02
That range is wide. Translation: analysts agree less on fair value than the neat midpoint suggests.
source: institutional data
Institutional activity
institutional ownership data for CVLT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$127
current price
n/a
target midpoint · n/a from current
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