Valuation Fluctuations and Investment Opportunities in Software Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 17 2026
0mins
Source: Yahoo Finance
- Market Pullback Impact: The software sector has experienced a 15.4% decline over the past six months, contrasting sharply with the S&P 500's 10% return, indicating significant valuation pressure that may affect investor confidence.
- Commvault Performance Concerns: Commvault (CVLT), with a market cap of $4.22 billion, has seen only 10.3% annual revenue growth over the past five years, lagging behind peers, while its operating margin has declined by 1.2 percentage points, increasing pressure to spend more on sales and marketing in a competitive landscape.
- Atlassian Growth Potential: Atlassian (TEAM), valued at $21.57 billion, boasts an impressive 84.8% gross margin and is projected to increase its free cash flow margin by 9 percentage points next year, showcasing strong market fit and growth potential, making it a favorable investment choice.
- Guidewire Software Advantages: Guidewire (GWRE), with a market cap of $11.12 billion, has achieved an average billings growth of 21.1% over the past year, indicating steady product demand, and its 21.9% free cash flow margin exceeds industry averages, providing ample room for future growth initiatives.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CVLT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 106.000
Low
100.00
Averages
140.33
High
185.00
Current: 106.000
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 Class Action Lawsuit Initiated
- Class Action Announcement: Rosen Law Firm has initiated a class action lawsuit on behalf of purchasers of Commvault Systems, Inc. (NASDAQ: CVLT) securities from April 29, 2025, to January 26, 2026, indicating significant legal risks facing the company and potential compensation for investors.
- Lawsuit Background: The lawsuit alleges that Commvault made overwhelmingly positive statements while concealing materially false information regarding its Annual Recurring Revenue (ARR) growth, leading to investor losses when the truth emerged, highlighting deficiencies in corporate governance and disclosure practices.
- Investor Action Guide: Investors can join the class action by visiting Rosen Law Firm's website or calling toll-free at 866-767-3653, reflecting the firm's proactive approach to protecting investor rights while also illustrating the complexities of legal proceedings.
- Law Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, which underscores its influence and professionalism in the legal field, thereby enhancing investor trust.
See More
Commvault Faces Securities Class Action Lawsuit
- Lawsuit Background: Commvault Systems, Inc. is facing a securities class action lawsuit aimed at representing investors who purchased its securities between April 29, 2025, and January 26, 2026, following a 31% stock price collapse on January 27, 2026, due to significant shortfalls in its Q3 financial metrics.
- Financial Missteps: During the class period, Commvault's annual recurring revenue (ARR) growth rate plummeted from 71% to 40%, indicating a shift towards lower-priced SaaS deals and heavy discounting, which severely undermined investor confidence in its growth outlook.
- Investor Reaction: The market reacted swiftly and negatively to the disappointing financial results, prompting several analysts to downgrade their investment ratings and price targets for Commvault, with some characterizing the results as a “mess” and questioning the company's ability to execute.
- Legal Investigation: Hagens Berman is investigating whether Commvault intentionally misled investors by failing to disclose the adverse impact of changes in sales types on its growth narrative, encouraging investors who suffered substantial losses to submit their information to assist in the investigation.
See More
Commvault Faces Class Action for Securities Fraud
- Lawsuit Background: Leading securities law firm Bleichmar Fonti & Auld LLP has filed a class action lawsuit against Commvault Systems, Inc. and certain executives for securities fraud, following a significant stock drop due to potential violations of federal securities laws.
- Stock Price Plunge: On January 27, 2026, Commvault reported a net new ARR of only $39 million, falling short of the projected $45 million, causing its stock price to plummet from $129.36 to $89.13, a staggering 31% decline.
- Legal Basis: The lawsuit is grounded in Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alleging that Commvault's failure to achieve promised ARR growth has undermined investor confidence and decision-making.
- Investor Action: Investors have until July 17, 2026, to apply to lead the case, with BFA Law offering representation on a contingency fee basis, ensuring that investors' rights are protected without upfront legal costs.
See More
CommVault Faces Class Action Lawsuit Over Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against CommVault Systems, Inc., seeking damages for investors who purchased securities between April 29, 2025, and January 26, 2026, highlighting serious concerns over the company's financial transparency.
- Allegations of False Statements: The complaint alleges that the defendants made misleading financial guidance throughout the class period and failed to disclose critical variables affecting annual recurring revenue (ARR) growth, leading to investor misconceptions that could impact stock prices.
- Investor Rights Protection: Affected investors have until July 17, 2026, to apply as lead plaintiffs, indicating that legal proceedings provide a crucial avenue for protecting investor rights, which may influence future investor confidence.
- Law Firm Credentials: Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that has recovered hundreds of millions for investors, demonstrating its expertise and successful track record in securities fraud cases.
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, triggered by a 31% stock price collapse following the company's Q3 2026 financial results that revealed significant shortfalls in key financial metrics.
- Financial Missteps: During the class period, Commvault touted its SaaS annual recurring revenue (ARR) as the best growth indicator, yet its Q3 2026 report showed a substantial miss in net new ARR and a drastic reduction in full-year ARR growth guidance from 71% to just 40%, leading to investor dissatisfaction.
- Sales Strategy Issues: The lawsuit centers on allegations that the company failed to disclose how different types of sales impacted ARR growth, particularly as a shift towards lower-priced SaaS deals and heavily discounted long-term contracts significantly pressured both ARR and SaaS ARR, misleading investors about the company's growth narrative.
- Market Reaction and Analyst Ratings: Following the earnings report, the market reacted negatively, prompting several analysts to downgrade their investment ratings and price targets for Commvault, with some describing the results as a
See More
Commvault Class Action Lawsuit Notification
- Class Action Initiation: Purchasers of Commvault Systems, Inc. (NASDAQ:CVLT) securities between April 29, 2025, and January 26, 2026, have until July 17, 2026, to seek lead plaintiff status in the class action lawsuit, indicating strong investor concern over the company's financial transparency.
- Financial Misstep Revelation: On January 27, 2026, Commvault's third-quarter report revealed a net new annual recurring revenue (ARR) of $39 million, falling short of the previously guided $45 million, leading to a stock price drop of over 31%, reflecting market disappointment in the company's performance.
- False Statement Allegations: The lawsuit alleges that Commvault and its executives made false or misleading statements during the class period and failed to disclose the impact of sales types on ARR growth, potentially causing significant investor losses and highlighting governance risks within the company.
- Legal Representation Selection: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Commvault securities during the class period can seek to be appointed as lead plaintiff, who will represent other investors in the lawsuit, emphasizing the importance of investor roles in legal proceedings.
See More
Commvault Systems Class Action Lawsuit Initiated
- Class Action Announcement: Rosen Law Firm has initiated a class action lawsuit on behalf of purchasers of Commvault Systems, Inc. (NASDAQ: CVLT) securities from April 29, 2025, to January 26, 2026, indicating significant legal risks facing the company and potential compensation for investors.
- Lawsuit Background: The lawsuit alleges that Commvault made overwhelmingly positive statements while concealing materially false information regarding its Annual Recurring Revenue (ARR) growth, leading to investor losses when the truth emerged, highlighting deficiencies in corporate governance and disclosure practices.
- Investor Action Guide: Investors can join the class action by visiting Rosen Law Firm's website or calling toll-free at 866-767-3653, reflecting the firm's proactive approach to protecting investor rights while also illustrating the complexities of legal proceedings.
- Law Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, which underscores its influence and professionalism in the legal field, thereby enhancing investor trust.
See More
Commvault Faces Securities Class Action Lawsuit
- Lawsuit Background: Commvault Systems, Inc. is facing a securities class action lawsuit aimed at representing investors who purchased its securities between April 29, 2025, and January 26, 2026, following a 31% stock price collapse on January 27, 2026, due to significant shortfalls in its Q3 financial metrics.
- Financial Missteps: During the class period, Commvault's annual recurring revenue (ARR) growth rate plummeted from 71% to 40%, indicating a shift towards lower-priced SaaS deals and heavy discounting, which severely undermined investor confidence in its growth outlook.
- Investor Reaction: The market reacted swiftly and negatively to the disappointing financial results, prompting several analysts to downgrade their investment ratings and price targets for Commvault, with some characterizing the results as a “mess” and questioning the company's ability to execute.
- Legal Investigation: Hagens Berman is investigating whether Commvault intentionally misled investors by failing to disclose the adverse impact of changes in sales types on its growth narrative, encouraging investors who suffered substantial losses to submit their information to assist in the investigation.
See More
Commvault Faces Class Action for Securities Fraud
- Lawsuit Background: Leading securities law firm Bleichmar Fonti & Auld LLP has filed a class action lawsuit against Commvault Systems, Inc. and certain executives for securities fraud, following a significant stock drop due to potential violations of federal securities laws.
- Stock Price Plunge: On January 27, 2026, Commvault reported a net new ARR of only $39 million, falling short of the projected $45 million, causing its stock price to plummet from $129.36 to $89.13, a staggering 31% decline.
- Legal Basis: The lawsuit is grounded in Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alleging that Commvault's failure to achieve promised ARR growth has undermined investor confidence and decision-making.
- Investor Action: Investors have until July 17, 2026, to apply to lead the case, with BFA Law offering representation on a contingency fee basis, ensuring that investors' rights are protected without upfront legal costs.
See More
CommVault Faces Class Action Lawsuit Over Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against CommVault Systems, Inc., seeking damages for investors who purchased securities between April 29, 2025, and January 26, 2026, highlighting serious concerns over the company's financial transparency.
- Allegations of False Statements: The complaint alleges that the defendants made misleading financial guidance throughout the class period and failed to disclose critical variables affecting annual recurring revenue (ARR) growth, leading to investor misconceptions that could impact stock prices.
- Investor Rights Protection: Affected investors have until July 17, 2026, to apply as lead plaintiffs, indicating that legal proceedings provide a crucial avenue for protecting investor rights, which may influence future investor confidence.
- Law Firm Credentials: Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that has recovered hundreds of millions for investors, demonstrating its expertise and successful track record in securities fraud cases.
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, triggered by a 31% stock price collapse following the company's Q3 2026 financial results that revealed significant shortfalls in key financial metrics.
- Financial Missteps: During the class period, Commvault touted its SaaS annual recurring revenue (ARR) as the best growth indicator, yet its Q3 2026 report showed a substantial miss in net new ARR and a drastic reduction in full-year ARR growth guidance from 71% to just 40%, leading to investor dissatisfaction.
- Sales Strategy Issues: The lawsuit centers on allegations that the company failed to disclose how different types of sales impacted ARR growth, particularly as a shift towards lower-priced SaaS deals and heavily discounted long-term contracts significantly pressured both ARR and SaaS ARR, misleading investors about the company's growth narrative.
- Market Reaction and Analyst Ratings: Following the earnings report, the market reacted negatively, prompting several analysts to downgrade their investment ratings and price targets for Commvault, with some describing the results as a
See More
Commvault Class Action Lawsuit Notification
- Class Action Initiation: Purchasers of Commvault Systems, Inc. (NASDAQ:CVLT) securities between April 29, 2025, and January 26, 2026, have until July 17, 2026, to seek lead plaintiff status in the class action lawsuit, indicating strong investor concern over the company's financial transparency.
- Financial Misstep Revelation: On January 27, 2026, Commvault's third-quarter report revealed a net new annual recurring revenue (ARR) of $39 million, falling short of the previously guided $45 million, leading to a stock price drop of over 31%, reflecting market disappointment in the company's performance.
- False Statement Allegations: The lawsuit alleges that Commvault and its executives made false or misleading statements during the class period and failed to disclose the impact of sales types on ARR growth, potentially causing significant investor losses and highlighting governance risks within the company.
- Legal Representation Selection: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Commvault securities during the class period can seek to be appointed as lead plaintiff, who will represent other investors in the lawsuit, emphasizing the importance of investor roles in legal proceedings.
See More
