Commvault Reports Record Free Cash Flow in FY 2026 Earnings Release
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CVLT?
Source: PRnewswire
- Strong Financial Performance: Commvault achieved a record $132 million in free cash flow for Q4 FY 2026, significantly increasing from the previous year, reflecting ongoing improvements in cash management and profitability, which bolsters investor confidence.
- Annual Recurring Revenue Growth: The company reported a 21% year-over-year increase in Annual Recurring Revenue (ARR), reaching $1.12 billion, showcasing robust growth in its SaaS business and further solidifying its leadership position in the data protection market.
- Innovation-Driven Growth: CEO Sanjay Mirchandani highlighted that the rise of AI will drive increased data demand, thereby enhancing the need for the company's platform's protection and recovery capabilities, indicating a favorable strategic positioning for future market dynamics.
- Optimistic Future Outlook: The company has a positive outlook for FY 2027, expecting to achieve profitable growth through new customer relationships and expansions with existing clients, demonstrating strong adaptability and growth potential in a rapidly changing market environment.
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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: 93.920
Low
100.00
Averages
140.33
High
185.00
Current: 93.920
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’s cyber resilience platform combines data security and rapid recovery at enterprise scale across any workload. The Company provides these products and services for their data across many types of environments, including on-premises, hybrid and multi-cloud. Its offerings are delivered via self-managed software, software-as-a-service (SaaS), integrated appliances, or managed by partners. Its Commvault Cloud offerings are organized into three packages, such as Operational Recovery, Autonomous Recovery and Cyber Recovery. Its Operational Recovery provides backup, verifiable recovery, and cost-optimized cloud workload mobility, helping to ensure data availability and granular recovery, even across multiple clouds. In addition, it also provides customers with a range of offerings, including Cleanroom Recovery, HyperScale X, Air Gap Protect, Cloud Rewind, Clumio Backtrack and Compliance.
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 Systems Set to Announce Q4 Earnings on April 28
- Earnings Announcement: CommVault Systems is set to release its Q4 earnings on April 28 before market open, with consensus estimates predicting an EPS of $1.09 and revenue of $306.7 million, indicating a stable financial outlook for the company.
- Strong Performance Record: Over the past two years, CommVault has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, showcasing the company's robust performance against market analyst expectations.
- Revisions Trend: In the last three months, EPS estimates have seen 13 upward revisions and no downward adjustments, while revenue estimates have experienced 10 upward revisions and 2 downward, reflecting a positive sentiment towards the company's future performance.
- Acquisition Premium Potential: Analysts suggest that CommVault could see a 30% premium in any potential takeover, which not only highlights the market's recognition of its value but also presents additional profit opportunities for investors.
See More
CommVault Systems Q4 Earnings Exceed Expectations
- Strong Earnings Performance: CommVault Systems reported a Q4 non-GAAP EPS of $1.28, beating expectations by $0.19, which reflects the company's robust profitability and boosts investor confidence.
- Significant Revenue Growth: The total reported revenue of $312 million represents a 13.5% year-over-year increase, exceeding market expectations by $5.3 million, indicating the company's sustained competitive strength in the market.
- Robust Subscription Revenue: Subscription revenue reached $208 million, up 20% year-over-year, with term-based license revenue at $114 million (up 6%) and SaaS revenue soaring 43%, showcasing the company's successful transition to cloud services.
- Positive Future Outlook: CommVault anticipates Q1 FY2027 subscription revenue between $263 million and $265 million, with total revenue expected between $1.3 billion and $1.31 billion for the full fiscal year, demonstrating confidence in future growth and clear strategic planning.
See More
Commvault Reports Record Free Cash Flow in FY 2026 Earnings Release
- Strong Financial Performance: Commvault achieved a record $132 million in free cash flow for Q4 FY 2026, significantly increasing from the previous year, reflecting ongoing improvements in cash management and profitability, which bolsters investor confidence.
- Annual Recurring Revenue Growth: The company reported a 21% year-over-year increase in Annual Recurring Revenue (ARR), reaching $1.12 billion, showcasing robust growth in its SaaS business and further solidifying its leadership position in the data protection market.
- Innovation-Driven Growth: CEO Sanjay Mirchandani highlighted that the rise of AI will drive increased data demand, thereby enhancing the need for the company's platform's protection and recovery capabilities, indicating a favorable strategic positioning for future market dynamics.
- Optimistic Future Outlook: The company has a positive outlook for FY 2027, expecting to achieve profitable growth through new customer relationships and expansions with existing clients, demonstrating strong adaptability and growth potential in a rapidly changing market environment.
See More
Jefferies Initiates Coverage on Cybersecurity Firms
- Rubrik Rating and Price Target: Jefferies initiated coverage on Rubrik (RBRK) with a Buy rating and a price target of $65, highlighting the company's strong position in cyber resilience and projecting significant upside in FY27 annual recurring revenue (ARR) estimates, with expected growth rates exceeding 20%.
- Commvault Transformation and Market Opportunities: Jefferies set a $105 price target for Commvault (CVLT), noting its evolution from a traditional backup vendor to a cyber resilience platform, with SaaS ARR increasing from 9% in FY22 to 33.5% as of F3Q26, indicating strong market adaptability despite early-stage growth potential.
- AvePoint Market Positioning: Jefferies rated AvePoint (AVPT) as a Buy with a $16 price target, emphasizing its strengthening position in both enterprise and SMB markets, and projecting a 26% year-over-year growth in ARR, positioning it well to benefit from consolidating data management expenditures amid rising AI implementation demands.
- Market Reaction and Stock Movements: Rubrik's shares rose approximately 1%, while AvePoint also saw positive movement, contrasting with Commvault's decline of about 1%, reflecting varying investor reactions to these rating changes and underscoring the market's focus on cybersecurity sector dynamics.
See More
Commvault Rated as One of the Best Cybersecurity Stocks
- Analyst Rating: On April 21, Scotiabank initiated coverage of Commvault Systems Inc. (NASDAQ:CVLT) with a Sector Perform rating and a price target of $105, reflecting a cautious view on its competitiveness in the data protection market.
- Growth Risks: Analysts noted that Commvault's revenue growth is primarily reliant on its large installed base rather than sustainable new customer acquisition, which may limit the company's long-term growth potential in a highly competitive environment.
- Acquisition Opportunities: Oppenheimer highlighted on April 13 that Commvault is a potential acquisition target due to Thoma Bravo's interest, suggesting that acquiring the company at a 15 times EV/FCF multiple would be a wise investment, with an expected stock price of $125-$130, representing about a 40% premium to the current market price.
- Market Competition: With the top six players controlling nearly 70% of the market share, Oppenheimer believes a financial buyer is more likely to acquire Commvault, while a Rubrik acquisition may not be strategically suitable, and Veeam could make a bid to enter the large enterprise market.
See More
Commvault Cloud Platform Launches on Google Cloud
- Cloud Platform Collaboration: Commvault announces that its cloud platform is now available on Google Cloud, aiming to provide customers with enhanced business continuity and data recovery capabilities to address the challenge of 55% of organizations lacking confidence in recovery after major cyber incidents.
- Streamlined Procurement: The availability of Commvault Cloud through Google Cloud Marketplace allows partners and customers to accelerate time to value while optimizing costs and budgets with a flexible, usage-based purchasing model, thereby enhancing overall operational efficiency.
- Enhanced Cyber Resilience: The collaboration between Commvault and Google Cloud not only simplifies complexity but also improves visibility across workloads, helping enterprises maintain resilience in data and workloads during AI-driven transformations, ensuring continuous business operations.
- Global Availability: Commvault Cloud is offered globally through a credit-based utility pricing model that aligns costs with consumption, meeting the evolving needs of customers and further driving innovation in multi-cloud environments.
See More
CommVault Systems Set to Announce Q4 Earnings on April 28
- Earnings Announcement: CommVault Systems is set to release its Q4 earnings on April 28 before market open, with consensus estimates predicting an EPS of $1.09 and revenue of $306.7 million, indicating a stable financial outlook for the company.
- Strong Performance Record: Over the past two years, CommVault has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, showcasing the company's robust performance against market analyst expectations.
- Revisions Trend: In the last three months, EPS estimates have seen 13 upward revisions and no downward adjustments, while revenue estimates have experienced 10 upward revisions and 2 downward, reflecting a positive sentiment towards the company's future performance.
- Acquisition Premium Potential: Analysts suggest that CommVault could see a 30% premium in any potential takeover, which not only highlights the market's recognition of its value but also presents additional profit opportunities for investors.
See More
CommVault Systems Q4 Earnings Exceed Expectations
- Strong Earnings Performance: CommVault Systems reported a Q4 non-GAAP EPS of $1.28, beating expectations by $0.19, which reflects the company's robust profitability and boosts investor confidence.
- Significant Revenue Growth: The total reported revenue of $312 million represents a 13.5% year-over-year increase, exceeding market expectations by $5.3 million, indicating the company's sustained competitive strength in the market.
- Robust Subscription Revenue: Subscription revenue reached $208 million, up 20% year-over-year, with term-based license revenue at $114 million (up 6%) and SaaS revenue soaring 43%, showcasing the company's successful transition to cloud services.
- Positive Future Outlook: CommVault anticipates Q1 FY2027 subscription revenue between $263 million and $265 million, with total revenue expected between $1.3 billion and $1.31 billion for the full fiscal year, demonstrating confidence in future growth and clear strategic planning.
See More
Commvault Reports Record Free Cash Flow in FY 2026 Earnings Release
- Strong Financial Performance: Commvault achieved a record $132 million in free cash flow for Q4 FY 2026, significantly increasing from the previous year, reflecting ongoing improvements in cash management and profitability, which bolsters investor confidence.
- Annual Recurring Revenue Growth: The company reported a 21% year-over-year increase in Annual Recurring Revenue (ARR), reaching $1.12 billion, showcasing robust growth in its SaaS business and further solidifying its leadership position in the data protection market.
- Innovation-Driven Growth: CEO Sanjay Mirchandani highlighted that the rise of AI will drive increased data demand, thereby enhancing the need for the company's platform's protection and recovery capabilities, indicating a favorable strategic positioning for future market dynamics.
- Optimistic Future Outlook: The company has a positive outlook for FY 2027, expecting to achieve profitable growth through new customer relationships and expansions with existing clients, demonstrating strong adaptability and growth potential in a rapidly changing market environment.
See More
Jefferies Initiates Coverage on Cybersecurity Firms
- Rubrik Rating and Price Target: Jefferies initiated coverage on Rubrik (RBRK) with a Buy rating and a price target of $65, highlighting the company's strong position in cyber resilience and projecting significant upside in FY27 annual recurring revenue (ARR) estimates, with expected growth rates exceeding 20%.
- Commvault Transformation and Market Opportunities: Jefferies set a $105 price target for Commvault (CVLT), noting its evolution from a traditional backup vendor to a cyber resilience platform, with SaaS ARR increasing from 9% in FY22 to 33.5% as of F3Q26, indicating strong market adaptability despite early-stage growth potential.
- AvePoint Market Positioning: Jefferies rated AvePoint (AVPT) as a Buy with a $16 price target, emphasizing its strengthening position in both enterprise and SMB markets, and projecting a 26% year-over-year growth in ARR, positioning it well to benefit from consolidating data management expenditures amid rising AI implementation demands.
- Market Reaction and Stock Movements: Rubrik's shares rose approximately 1%, while AvePoint also saw positive movement, contrasting with Commvault's decline of about 1%, reflecting varying investor reactions to these rating changes and underscoring the market's focus on cybersecurity sector dynamics.
See More
Commvault Rated as One of the Best Cybersecurity Stocks
- Analyst Rating: On April 21, Scotiabank initiated coverage of Commvault Systems Inc. (NASDAQ:CVLT) with a Sector Perform rating and a price target of $105, reflecting a cautious view on its competitiveness in the data protection market.
- Growth Risks: Analysts noted that Commvault's revenue growth is primarily reliant on its large installed base rather than sustainable new customer acquisition, which may limit the company's long-term growth potential in a highly competitive environment.
- Acquisition Opportunities: Oppenheimer highlighted on April 13 that Commvault is a potential acquisition target due to Thoma Bravo's interest, suggesting that acquiring the company at a 15 times EV/FCF multiple would be a wise investment, with an expected stock price of $125-$130, representing about a 40% premium to the current market price.
- Market Competition: With the top six players controlling nearly 70% of the market share, Oppenheimer believes a financial buyer is more likely to acquire Commvault, while a Rubrik acquisition may not be strategically suitable, and Veeam could make a bid to enter the large enterprise market.
See More
Commvault Cloud Platform Launches on Google Cloud
- Cloud Platform Collaboration: Commvault announces that its cloud platform is now available on Google Cloud, aiming to provide customers with enhanced business continuity and data recovery capabilities to address the challenge of 55% of organizations lacking confidence in recovery after major cyber incidents.
- Streamlined Procurement: The availability of Commvault Cloud through Google Cloud Marketplace allows partners and customers to accelerate time to value while optimizing costs and budgets with a flexible, usage-based purchasing model, thereby enhancing overall operational efficiency.
- Enhanced Cyber Resilience: The collaboration between Commvault and Google Cloud not only simplifies complexity but also improves visibility across workloads, helping enterprises maintain resilience in data and workloads during AI-driven transformations, ensuring continuous business operations.
- Global Availability: Commvault Cloud is offered globally through a credit-based utility pricing model that aligns costs with consumption, meeting the evolving needs of customers and further driving innovation in multi-cloud environments.
See More
