Commvault Misses Quarterly ARR Growth Target by $6 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: PRnewswire
- Performance Miss: Commvault reported a net new ARR of $39 million for Q3 FY2026, falling short of the $45 million target, resulting in a 31.1% stock price drop, equating to a loss of $40.23 per share, which severely undermines investor confidence.
- SaaS Sales Impact: The company disclosed that 70% of the new ARR stemmed from SaaS deals, which have average selling prices 2 to 3 times lower than traditional software licenses, diluting ARR calculations and revealing structural issues in the sales model that were overlooked when setting targets.
- Lawsuit Initiation: A securities class action has been filed against Commvault, alleging that the company set its targets in October 2025 while being aware that the accelerating SaaS mix would suppress ARR growth, failing to disclose these risks to investors, which could lead to significant legal repercussions.
- Investor Loss Recovery: Affected investors are encouraged to contact SueWallSt for loss assessments; even those who sold CVLT shares may still qualify for claims, highlighting the potential impact of the legal actions on investor recovery efforts.
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Analyst Views on CVLT
Wall Street analysts forecast CVLT stock price to rise
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 127.100
Low
100.00
Averages
140.33
High
185.00
Current: 127.100
Low
100.00
Averages
140.33
High
185.00
About CVLT
Commvault Systems, Inc. is a provider of cyber resilience and data protection solutions. The Company helps the enterprise protect, secure, and recover its data, applications, and identity systems against cyber threats and attacks. It delivers its solutions through Commvault Cloud, a cloud-native platform that unifies data security, cyber recovery, and identity resilience across on-premises, hybrid, multi-cloud, and software as a service (SaaS) environment. It provides a set of capabilities intended to help customers prepare for, withstand, and recover from cyber incidents such as ransomware, data corruption, infrastructure failures, and cyberattacks. Its Commvault Cloud offerings are organized into three packages, such as Operational Recovery, Autonomous Recovery and Cyber Recovery. Operational Recovery provides core backup and recovery capabilities across hybrid enterprise workloads. Its offerings include Commvault Cleanroom Recovery, Commvault HyperScale Grid, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Commvault Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Commvault securities between April 29, 2025, and January 26, 2026, to apply as lead plaintiffs by July 17, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Investors joining the class action will incur no out-of-pocket costs, as the law firm operates on a contingency fee basis, minimizing the financial burden on investors.
- Case Background: The lawsuit alleges that Commvault made overwhelmingly positive statements while concealing significant adverse facts regarding its annual recurring revenue (ARR) growth environment, resulting in investor losses when the truth emerged.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, demonstrating its expertise and successful track record in this field.
See More
Commvault Class Action Lawsuit Notification
- Lawsuit Timeline: Purchasers of Commvault Systems, Inc. securities between April 29, 2025, and January 26, 2026, have until July 17, 2026, to seek lead plaintiff status in the class action lawsuit, highlighting investor concerns regarding potential legal risks facing the company.
- Financial Performance Miss: On January 27, 2026, Commvault reported a net new annual recurring revenue (ARR) of $39 million for Q3 2026, falling short of the previously guided $45 million, which led to a stock price drop of over 31%, reflecting market disappointment in the company's performance expectations.
- False Statement Allegations: The class action lawsuit alleges that Commvault made false or misleading statements during the class period and failed to disclose the impact of sales types on ARR growth, potentially misleading investors about the company's financial health and affecting their investment decisions.
- Legal Representation Info: Investors can contact attorneys Ken Dolitsky or Michael Alberto at Robbins Geller Rudman & Dowd LLP for more information on how to participate in the lawsuit, underscoring the importance of legal proceedings in protecting investor rights.
See More
Commvault Systems Shareholder Class Action Notice
- Shareholder Lawsuit Notice: The Gross Law Firm has issued a notice encouraging shareholders who purchased Commvault Systems, Inc. (NASDAQ: CVLT) shares between April 29, 2025, and January 26, 2026, to contact them regarding potential lead plaintiff appointment for recovery participation.
- False Statement Allegations: The complaint alleges that Commvault provided overly optimistic statements to investors while concealing critical adverse facts regarding the company's Annual Recurring Revenue (ARR) growth environment, misleading investors significantly.
- Performance Below Expectations: On January 27, 2026, Commvault reported third-quarter results showing ARR growth of $39 million, which fell short of the $45 million guidance, resulting in a dramatic stock price drop of over 31% in a single day.
- Deadline for Shareholder Action: Shareholders must register by July 17, 2026, to participate in the class action lawsuit, and upon registration, they will receive status updates throughout the case lifecycle to ensure their rights are protected.
See More
Commvault Faces Securities Class Action Lawsuit
- Lawsuit Background: Commvault Systems, Inc. is facing a securities class action lawsuit representing investors who purchased its securities between April 29, 2025, and January 26, 2026, alleging significant undisclosed impacts on financial metrics that resulted in investor losses.
- Stock Price Collapse: On January 27, 2026, Commvault's Q3 financial results revealed substantial shortfalls in key metrics, leading to a 31% drop in the company's stock price, reflecting strong market concerns about its growth outlook.
- ARR Growth Missteps: The lawsuit centers on allegations that Commvault failed to disclose how different sales types impacted annual recurring revenue (ARR) growth, particularly the increase in lower-priced SaaS deals and discounting strategies that pressured ARR, misleading investors about the company's growth trajectory.
- Analyst Reactions: Following the earnings report, several analysts promptly downgraded their investment ratings and price targets for Commvault, with some characterizing the results as a
See More
Commvault Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Commvault securities between April 29, 2025, and January 26, 2026, to apply as lead plaintiffs by July 17, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Investors joining the class action will incur no upfront costs, as the law firm operates on a contingency fee basis, thereby reducing financial risk for investors.
- Case Background: The lawsuit alleges that Commvault made overwhelmingly positive statements while concealing significant adverse facts regarding its Annual Recurring Revenue (ARR) growth environment, resulting in investor losses when the truth emerged.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, recovering hundreds of millions for investors, demonstrating its expertise and successful track record in this field.
See More
Commvault Faces Securities Class Action Lawsuit
- Stock Price Collapse: Commvault's shares plummeted 31% on January 27, 2026, primarily due to a significant shortfall in key financial metrics reported in its Q3 results, leading to a swift and negative market reaction that undermined investor confidence.
- Lawsuit Context: The securities class action lawsuit seeks to represent investors who purchased Commvault securities between April 29, 2025, and January 26, 2026, alleging that the company failed to disclose how different sales types would impact annual recurring revenue (ARR) growth, potentially resulting in substantial investor losses.
- ARR Growth Miss: The company revealed a dramatic decline in year-over-year ARR growth from 71% to just 40% in its financial report, coupled with a reduction in full-year ARR growth guidance, indicating a shift towards lower-priced SaaS deals that compromised its growth narrative.
- Analyst Reactions: Following the disappointing earnings report, several analysts promptly downgraded their investment ratings and price targets for Commvault, with some describing the results as a “mess” and questioning the company's ability to execute, further exacerbating negative sentiment in the market.
See More
Commvault Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Commvault securities between April 29, 2025, and January 26, 2026, to apply as lead plaintiffs by July 17, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Investors joining the class action will incur no out-of-pocket costs, as the law firm operates on a contingency fee basis, minimizing the financial burden on investors.
- Case Background: The lawsuit alleges that Commvault made overwhelmingly positive statements while concealing significant adverse facts regarding its annual recurring revenue (ARR) growth environment, resulting in investor losses when the truth emerged.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, demonstrating its expertise and successful track record in this field.
See More
Commvault Class Action Lawsuit Notification
- Lawsuit Timeline: Purchasers of Commvault Systems, Inc. securities between April 29, 2025, and January 26, 2026, have until July 17, 2026, to seek lead plaintiff status in the class action lawsuit, highlighting investor concerns regarding potential legal risks facing the company.
- Financial Performance Miss: On January 27, 2026, Commvault reported a net new annual recurring revenue (ARR) of $39 million for Q3 2026, falling short of the previously guided $45 million, which led to a stock price drop of over 31%, reflecting market disappointment in the company's performance expectations.
- False Statement Allegations: The class action lawsuit alleges that Commvault made false or misleading statements during the class period and failed to disclose the impact of sales types on ARR growth, potentially misleading investors about the company's financial health and affecting their investment decisions.
- Legal Representation Info: Investors can contact attorneys Ken Dolitsky or Michael Alberto at Robbins Geller Rudman & Dowd LLP for more information on how to participate in the lawsuit, underscoring the importance of legal proceedings in protecting investor rights.
See More
Commvault Systems Shareholder Class Action Notice
- Shareholder Lawsuit Notice: The Gross Law Firm has issued a notice encouraging shareholders who purchased Commvault Systems, Inc. (NASDAQ: CVLT) shares between April 29, 2025, and January 26, 2026, to contact them regarding potential lead plaintiff appointment for recovery participation.
- False Statement Allegations: The complaint alleges that Commvault provided overly optimistic statements to investors while concealing critical adverse facts regarding the company's Annual Recurring Revenue (ARR) growth environment, misleading investors significantly.
- Performance Below Expectations: On January 27, 2026, Commvault reported third-quarter results showing ARR growth of $39 million, which fell short of the $45 million guidance, resulting in a dramatic stock price drop of over 31% in a single day.
- Deadline for Shareholder Action: Shareholders must register by July 17, 2026, to participate in the class action lawsuit, and upon registration, they will receive status updates throughout the case lifecycle to ensure their rights are protected.
See More
Commvault Faces Securities Class Action Lawsuit
- Lawsuit Background: Commvault Systems, Inc. is facing a securities class action lawsuit representing investors who purchased its securities between April 29, 2025, and January 26, 2026, alleging significant undisclosed impacts on financial metrics that resulted in investor losses.
- Stock Price Collapse: On January 27, 2026, Commvault's Q3 financial results revealed substantial shortfalls in key metrics, leading to a 31% drop in the company's stock price, reflecting strong market concerns about its growth outlook.
- ARR Growth Missteps: The lawsuit centers on allegations that Commvault failed to disclose how different sales types impacted annual recurring revenue (ARR) growth, particularly the increase in lower-priced SaaS deals and discounting strategies that pressured ARR, misleading investors about the company's growth trajectory.
- Analyst Reactions: Following the earnings report, several analysts promptly downgraded their investment ratings and price targets for Commvault, with some characterizing the results as a
See More
Commvault Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Commvault securities between April 29, 2025, and January 26, 2026, to apply as lead plaintiffs by July 17, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Investors joining the class action will incur no upfront costs, as the law firm operates on a contingency fee basis, thereby reducing financial risk for investors.
- Case Background: The lawsuit alleges that Commvault made overwhelmingly positive statements while concealing significant adverse facts regarding its Annual Recurring Revenue (ARR) growth environment, resulting in investor losses when the truth emerged.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, recovering hundreds of millions for investors, demonstrating its expertise and successful track record in this field.
See More
Commvault Faces Securities Class Action Lawsuit
- Stock Price Collapse: Commvault's shares plummeted 31% on January 27, 2026, primarily due to a significant shortfall in key financial metrics reported in its Q3 results, leading to a swift and negative market reaction that undermined investor confidence.
- Lawsuit Context: The securities class action lawsuit seeks to represent investors who purchased Commvault securities between April 29, 2025, and January 26, 2026, alleging that the company failed to disclose how different sales types would impact annual recurring revenue (ARR) growth, potentially resulting in substantial investor losses.
- ARR Growth Miss: The company revealed a dramatic decline in year-over-year ARR growth from 71% to just 40% in its financial report, coupled with a reduction in full-year ARR growth guidance, indicating a shift towards lower-priced SaaS deals that compromised its growth narrative.
- Analyst Reactions: Following the disappointing earnings report, several analysts promptly downgraded their investment ratings and price targets for Commvault, with some describing the results as a “mess” and questioning the company's ability to execute, further exacerbating negative sentiment in the market.
See More
