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1. Company Snapshot

1.a. Company Description

Commvault Systems, Inc.provides data protection and information management software applications and related services in the United States and internationally.The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; and Commvault Complete Data Protection, a data protection solution.


It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; Commvault Distributed Storage Platform that offers software-defined storage built on a hyperscale architecture; Metallic Cloud Storage service, which is the easy button to adopt secure and scalable cloud storage; and Metallic Software-as-a-Service.In addition, the company provides technology and business consulting, education, and remote managed services.Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers professional and customer support services that include data management-as-a-service under the Metallic brand.


The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small and medium sized businesses, and government agencies.It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy.Commvault Systems, Inc.


was founded in 1988 and is headquartered in Tinton Falls, New Jersey.

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1.b. Last Insights on CVLT

Breaking News: Commvault Systems Inc reported Q4 earnings of $1.28 per share beating estimates of $1.09 per share. Revenue and EPS exceeded expectations with total reported ARR growing 21% year over year. The company achieved a record $132 million in free cash flow in Q4. Key metrics indicate strong business performance. Some analysts have raised their estimates following the earnings release. No immediate recommendations from analysts are available. Commvault's management reported achieving all guided metrics for Q4 and fiscal 2026.

1.c. Company Highlights

2. Commvault’s Data‑Defense Surge

In FY 2026 Commvault posted a 27 % jump in subscription ARR to $989 million, with SaaS ARR climbing 42 % to $400 million. The company beat EPS estimates, reporting $1.28 versus $1.09, and generated $237 million in free cash flow for the year. Non‑GAAP EBIT margin stands at 20.5 %, and the firm projects 18‑19 % ARR growth for FY 2027, targeting over $500 million in SaaS ARR and a free cash flow of $250‑$260 million. The latest valuation reflects a P/E of 60.66, P/B of 571.95, P/S of 3.70, EV/EBITDA of 37.56, and a free‑cash‑flow yield of 5.42 %.

Publication Date: May -04

📋 Highlights
  • Subscription ARR Growth:: Increased 27% YoY to $989 million, driven by 42% SaaS ARR growth to $400 million.
  • Record Free Cash Flow:: Generated $132 million in Q4 and $237 million for FY 2026, with $250–260 million projected for FY 2027.
  • Identity Resilience Growth:: Contributed 33% of net new ARR in Q4, with identity protection revenue doubling YoY.
  • Customer Expansion:: Added 2,500+ subscription customers in FY 2026, 600 in Q4, and achieved 48% multiproduct adoption among managed SaaS clients.
  • Future Guidance:: Targets 18–19% ARR growth in FY 2027, 20.5% non-GAAP EBIT margin, and $500+ million SaaS ARR by year-end.

Robust Revenue & Margin

Revenue surged to $1.205 billion in FY 2026, driven by a 114 % net retention rate and a 48 % multiproduct adoption rate among managed SaaS customers. Operating margin guidance of 20.5 % for FY 2027 is underpinned by AI‑driven efficiencies and a growing hybrid workload base.

Subscription Growth & SaaS Momentum

The company added 2,500 new subscription customers in FY 26, with 600 acquired this quarter alone. SaaS ARR is expected to exceed $500 million by FY 27, and the average contract length of 1‑2 years fuels recurring revenue and cross‑sell opportunities.

Identity Resilience as Growth Engine

Identity resilience, a new revenue stream, accounted for 33 % of net new ARR in Q4 and grew 100 % YoY. The Unity platform, integrating data security, identity resilience, and recovery, is gaining traction among CSO and CIO buyers, reinforcing the “single‑click” recovery narrative.

Hybrid & Cloud Strategy

Commvault’s hybrid model—protecting workloads on‑prem and across Google, Amazon, and other hyperscalers—remains a competitive advantage. Cloud gross margins are improving, and the firm is targeting North Star margins of 70 % in the next few years, driven by the growing cloud penetration in subscription ARR.

Free Cash Flow & Share Repurchase

Record Q4 free cash flow of $132 million and $237 million for FY 26 underpin a refreshed $250 million share‑repurchase authorization. The company plans to allocate roughly 60 % of annual free cash flow to buybacks, reinforcing shareholder value.

Valuation Snapshot

With a P/E of 60.66 and P/B of 571.95, Commvault trades at a premium to peers, reflecting expectations of AI‑driven data growth and durable hybrid demand. The free‑cash‑flow yield of 5.42 % and a modest net debt/EBITDA of 0.15 indicate financial resilience.

Future Outlook & Risks

Guidance for FY 27—$1.205 billion in subscription ARR, 18‑19 % growth, and a 20.5 % operating margin—rests on continued AI adoption, cyber‑resilience demand, and cross‑sell momentum. Risks include competitive pricing pressures, potential contract duration compression, and higher memory component costs, but the firm’s integrated platform and partner ecosystem provide a robust moat.

3. NewsRoom

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Commvault Delivers the Blueprint for OpenShift Resilience at Red Hat Summit 2026

May -05

Source: prnewswire.com

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Here Are Friday’s Top Wall Street Analyst Research Calls: Avis Budget, Caterpillar, Celestica, Commvault Systems, Ciena, Dutch Bros. e.l.f. Beauty, Hershey, Roblox, and More

May -01

Source: 247wallst.com

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Commvault Systems, Inc. (CVLT) Q4 2026 Earnings Call Transcript

Apr -28

Source: seekingalpha.com

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Commvault (CVLT) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Apr -28

Source: zacks.com

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Commvault Systems (CVLT) Beats Q4 Earnings and Revenue Estimates

Apr -28

Source: zacks.com

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Commvault Announces Fourth Quarter Fiscal 2026 Financial Results

Apr -28

Source: prnewswire.com

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Is CommVault Systems Inc (CVLT) a Bargain After 5.7% Drop? GF Value Says Undervalued

Apr -23

Source: gurufocus.com

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Commvault (CVLT) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

Apr -23

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.83%)

6. Segments

Subscription

Expected Growth: 12%

Commvault's subscription growth is driven by increasing demand for data protection and management, expansion into cloud and edge computing, strategic partnerships, and a growing need for ransomware protection and disaster recovery solutions, resulting in a 12% growth rate.

Customer Support

Expected Growth: 10%

Commvault Systems, Inc.'s 10% growth in Customer Support is driven by increasing demand for data management and protection, expansion into new markets, and strategic partnerships. Additionally, the company's focus on customer satisfaction, innovative solutions, and competitive pricing have contributed to the growth.

Perpetual License

Expected Growth: 8%

Commvault's perpetual license growth is driven by increasing demand for data protection and management, expansion into cloud and hybrid environments, and strategic partnerships. Additionally, the company's focus on innovation, customer satisfaction, and competitive pricing strategy contribute to its growth. Furthermore, the rising need for data analytics, artificial intelligence, and machine learning capabilities also fuels the demand for Commvault's solutions.

Other Services

Expected Growth: 9%

Commvault's Other Services segment growth is driven by increasing demand for data management and protection, expansion into new markets, and strategic partnerships. The company's focus on cloud-based solutions, artificial intelligence, and machine learning also contributes to growth. Additionally, the rise of remote work and digital transformation initiatives among enterprises fuels the need for Commvault's services, resulting in a 9% growth rate.

7. Detailed Products

Commvault Complete Backup & Recovery

A comprehensive data protection solution that provides backup, recovery, and archiving for a wide range of data sources, including virtual machines, databases, and applications.

Commvault HyperScale

A scale-out data protection solution that provides a converged backup and storage platform for large-scale data environments.

Commvault Orchestrate

An automated workflow management solution that enables organizations to automate and orchestrate data protection, migration, and disaster recovery processes.

Commvault Activate

A data analytics and insights platform that provides visibility into data usage, storage, and protection, enabling data-driven decision making.

Commvault Metallic

A SaaS-based data protection solution that provides automated backup and recovery for cloud-native applications and data.

8. Commvault Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Commvault Systems, Inc. operates in a niche market with a unique product offering, reducing the threat of substitutes. However, the company faces competition from larger companies that offer similar products, which could lead to a moderate threat of substitutes.

Bargaining Power Of Customers

Commvault Systems, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to its customers' operations, making it difficult for customers to switch to alternative products.

Bargaining Power Of Suppliers

Commvault Systems, Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company also has a strong financial position, which gives it the ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The data management and protection industry has high barriers to entry, including significant research and development costs and the need for specialized expertise. This makes it difficult for new entrants to compete with established companies like Commvault Systems, Inc.

Intensity Of Rivalry

The data management and protection industry is highly competitive, with several established companies competing for market share. Commvault Systems, Inc. faces intense competition from companies like Veritas Technologies, Dell EMC, and IBM, which could lead to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.17%
Debt Cost 3.95%
Equity Weight 95.83%
Equity Cost 7.18%
WACC 7.04%
Leverage 4.35%

11. Quality Control: Commvault Systems, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 3.4/10

Value: 1.0

Growth: 6.9

Quality: 6.5

Yield: 0.0

Momentum: 1.5

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

105.52$

Current Price

105.52$

Potential

-0.00%

Expected Cash-Flows