Revenue Growth - Total Annualized Recurring Revenue (ARR) increased to $1,084.9 million, representing a 22% growth compared to $889.6 million in 2024[131] - Subscription ARR rose to $940.9 million, reflecting a 28% increase from $734.2 million in 2024[133] - SaaS ARR reached $363.7 million, showing a 40% growth compared to $259.0 million in 2024[135] - Total revenues for the three months ended December 31, 2025, were $313.8 million, a 19% increase from $262.6 million in 2024[146] - Subscription revenues, including term-based licenses and SaaS, totaled $206.3 million, up 30% from $158.3 million in 2024[146] - Total revenues increased by $151.4 million, or 21% year over year, driven primarily by increases in term-based license revenue and SaaS revenue[160] - Term-based license revenue increased by $58.4 million, or 22% year over year, due to a 23% increase in larger transactions[160] - SaaS revenue increased by $85.9 million, or 56% year over year, reflecting higher SaaS bookings from new customer acquisitions and existing customer base expansion[160] Revenue Sources - Revenue from the Americas accounted for 57% of total revenues, while the International region contributed 43%[147] - Revenue generated through indirect distribution channels constituted approximately 90% of total revenues for the nine months ended December 31, 2025[126] - Partner A contributed approximately 32% of total revenues for the nine months ended December 31, 2025[127] Customer Metrics - SaaS Net Dollar Retention Rate (SaaS NRR) was 121% for 2025, down from 127% in 2024[137] - Customer support revenue increased to $80.3 million, a 4% rise from $77.1 million in 2024[146] - Customer support revenue increased by $8.5 million, or 4% year over year, driven by a $23.6 million increase related to term-based license arrangements[160] Expenses - Total cost of revenues increased by $33.8 million, representing 19% of total revenues for the nine months ended December 31, 2025[162] - Cost of SaaS revenue increased by $30.5 million, representing 36% of SaaS revenue for the nine months ended December 31, 2025[162] - Sales and marketing expenses increased by $23.2 million, or 20%, primarily due to higher employee compensation and marketing initiatives[154] - Sales and marketing expenses increased by $70.1 million, or 22%, primarily due to a $38.3 million rise in employee compensation and related expenses[165] - Research and development expenses increased by $2.2 million, or 6%, reflecting a focus on software applications and hosted services development[154] - Research and development expenses rose by $15.2 million, or 14%, driven by a $10.0 million increase in employee compensation, including $3.8 million in stock-based compensation[165] - General and administrative expenses increased by $22.5 million, or 22%, with $9.2 million attributed to professional services and $3.9 million to employee compensation[165] Income and Cash Flow - Interest income rose to $8.4 million for the three months ended December 31, 2025, compared to $1.6 million for the same period in 2024, due to cash investments in money market funds[155] - Interest income for the nine months ended December 31, 2025, was $13.5 million, up from $5.1 million in the same period of 2024, primarily due to investments in money market funds[167] - Income tax expense increased to $13.0 million for the nine months ended December 31, 2025, compared to $7.3 million in the prior year, driven by higher pre-tax income projections[168] - Net cash provided by operating activities was $112.5 million for the nine months ended December 31, 2025, compared to $130.4 million in 2024[174] Capital and Stock Activity - Cash and cash equivalents totaled $1,026.3 million as of December 31, 2025, with approximately $274.3 million held outside the United States[169] - Working capital increased by $748.4 million from $80.0 million as of March 31, 2025, to $828.4 million as of December 31, 2025[177] - The company completed a private offering of senior, unsecured convertible notes with an aggregate principal amount of $900.0 million, netting approximately $878.4 million after costs[170] - The company repurchased $186.8 million of its common stock during the nine months ended December 31, 2025, with $117.7 million paid from the net proceeds of the convertible notes[173]

Core Viewpoint - Commvault Systems (CVLT) shares dropped by 31% to $89.13 following a disappointing forward guidance despite strong revenue and earnings beats, leading to lowered price targets by analysts and increased selling pressure [2]. Financial Performance - Commvault reported a revenue increase of 22% over the last 12 months, rising from $898 million to $1.1 billion, with quarterly revenues up by 18.4% to $276 million [7]. - The company achieved an operating income of $86 million, resulting in an operating margin of 7.8%, and generated nearly $216 million in operating cash flow with a cash flow margin of 19.7% [8]. - Net income for the last 12 months was approximately $80 million, indicating a net margin of about 7.3% [8]. Valuation and Market Position - Commvault has a market capitalization of $4.0 billion and a Debt-to-Equity Ratio of 22.9%, with total debt at $908 million [9]. - The company's cash and cash equivalents amount to $1.1 billion, representing a Cash-to-Assets Ratio of 55.5% [9]. - The stock is considered fairly priced due to its strong operational performance and financial health, despite a high valuation [3]. Growth and Profitability - The average top-line growth for Commvault over the past three years has been 11.7% [7]. - Profitability appears weak compared to the broader market, indicating potential concerns for investors [5]. Historical Stock Performance - CVLT stock has shown significant volatility, with a decline of 39.1% from its peak of $83.87 in September 2021 to $51.08 in September 2022, while the S&P 500 experienced a peak-to-trough decline of 25.4% during the same period [12]. - The stock has historically rebounded from declines, recovering to pre-crisis peaks after significant downturns [12].

Commvault Systems Inc. (NASDAQ:CVLT) shares are trending on Wednesday.Shares of the New Jersey–based data management and cyber resilience company rose 0.15% to $89.26 in after-hours trading on Tuesday following the company's fiscal third-quarter earnings announcement.According to Benzinga Pro data, the stock closed the regular session at $89.13, down 31.10%.Q3 Results Show 19% Revenue GrowthOn Tuesday, Commvault reported total revenue of $314 million for the quarter ended Dec. 31, 2025, up 19% year over yea ...

Commvault Systems, Inc. (CVLT) shares fell 30.30 percent, or $39.20, to $90.16 on Tuesday after the company reported third-quarter results that showed higher profit and strong revenue growth compared with last year but still failed to reassure investors.The data management software company posted net income of $17.78 million, or $0.40 per share, up from $11.02 million, or $0.24 per share, a year earlier. The stock opened at $103.79 after closing at $129.36 in the prior session and traded between $84.44 and ...

Market Overview - U.S. stocks showed mixed performance with the Nasdaq Composite gaining over 200 points, while the Dow fell by 1% to 48,919.57 and the S&P 500 rose by 0.39% to 6,977.34 [1] - Information technology shares increased by 1.3%, while health care stocks declined by 1% [1] Boeing Company Performance - Boeing's stock fell by 3% after reporting fourth-quarter revenue of $23.948 billion, a 57% increase from $15.242 billion, driven by a sharp rise in commercial deliveries [2] - The fourth-quarter revenue exceeded analyst estimates of $22.470 billion, but the company reported an adjusted loss of $1.91 per share, missing Wall Street expectations for a loss of $0.39 per share [3] Commodity Market - Oil prices increased by 2.2% to $62.00, while gold prices decreased by 0.4% to $5,061.20 [6] - Silver prices fell by 8% to $106.30, and copper prices dropped by 3% to $5.8380 [6] Notable Stock Movements - Redwire Corp shares surged by 135% to $0.63 after securing a contract worth up to $151 billion for the Missile Defense Agency [9] - HCA Healthcare Inc shares rose by 9% to $514.82 following better-than-expected fourth-quarter adjusted EPS results and an upward revision of FY25 guidance [9] - Corning Inc shares increased by 15% to $109.16 after announcing a $6 billion agreement with Meta for U.S. data center infrastructure [9] - CommVault Systems, Inc. shares dropped by 35% to $84.72 after third-quarter results [9] - Twin Hospitality Group Inc shares fell by 43% to $0.30 after filing for voluntary Chapter 11 [9] - FAT Brands Inc shares decreased by 43% to $0.23 after commencing Chapter 11 to strengthen its financial foundation [9] Asian Market Performance - Asian markets closed higher, with Japan's Nikkei gaining 0.85%, Hong Kong's Hang Seng Index rising by 1.35%, China's Shanghai Composite increasing by 0.18%, and India's BSE Sensex gaining 0.39% [10]

Company Performance - Boeing Company reported fourth-quarter revenue of $23.948 billion, a 57% increase from $15.242 billion, driven by a sharp rise in commercial deliveries, with 160 airplanes delivered in the quarter [2][3] - The revenue exceeded analyst estimates of $22.470 billion, but the company reported an adjusted loss of $1.91 per share, missing Wall Street expectations for a loss of $0.39 per share [3] Stock Movements - Boeing's stock fell 3% following the earnings report [2] - Redwire Corp shares surged 135% to $0.63 after securing a contract worth up to $151 billion for the Missile Defense Agency [9] - HCA Healthcare Inc shares rose 9% to $514.82 after reporting better-than-expected fourth-quarter adjusted EPS and raising FY25 guidance [9] - Corning Inc shares increased by 15% to $109.16 after announcing a $6 billion agreement with Meta [9] - CommVault Systems, Inc. shares dropped 35% to $84.72 following third-quarter results [9] - Twin Hospitality Group Inc shares fell 43% to $0.30 after filing for Chapter 11 [9] - FAT Brands Inc shares decreased by 43% to $0.23 after commencing Chapter 11 [9] Sector Performance - Information technology shares gained 1.3% on Tuesday, while health care stocks fell by 1% [1]

Core Viewpoint - Commvault Systems, Inc. is experiencing a gradual decline in consensus price targets, indicating a shift in analyst expectations due to market conditions or company performance [1] Group 1: Price Target Changes - The consensus price target for Commvault has decreased from $191.35 last year to $175.29 last month, reflecting analysts' adjustments [1] - Analyst Dan Bergstrom from RBC Capital has set a specific price target of $63 for Commvault, based on factors like institutional ownership, profitability, and valuation [5] Group 2: Earnings Reports - Commvault's upcoming third quarter fiscal year 2026 earnings results, scheduled for January 27, 2026, are expected to significantly influence analysts' views on the company [2] - Strong earnings could lead to upward revisions of price targets, while weaker results might have the opposite effect [2] Group 3: Product Developments - Commvault's focus on data protection and cloud storage solutions means that new product launches or updates could impact its growth potential [3] - Analysts may adjust price targets based on how these developments position Commvault against competitors like Synopsys and Wetouch Technology [3] Group 4: Market Trends - Increased demand for cloud solutions in the data protection industry can affect price targets, making Commvault's adaptability crucial [4] - Strategic partnerships with other tech companies could enhance Commvault's prospects and lead to more favorable analyst recommendations [4]

Core Insights - The company reported strong financial results with total revenue increasing 19% year over year to $314 million on a non-GAAP basis, driven by a 30% rise in subscription revenue to $206 million and a 44% increase in SaaS revenue [2][4] - The company added approximately 700 new subscription customers, ending the quarter with over 14,000 subscription customers and a SaaS customer base exceeding 9,000 [3][4][7] - Management raised guidance for fiscal year 2026, projecting total revenue between $1.177 billion and $1.18 billion, and subscription revenue between $764 million and $768 million [5][20] Financial Performance - Subscription revenue rose 30% year over year to $206 million, with SaaS revenue increasing by 44% [2][7] - Total annual recurring revenue (ARR) increased 22% to $1.085 billion, with subscription ARR growing 28% to $941 million and SaaS ARR up 40% to $364 million [8][11] - Gross margin for Q3 was reported at 81.5%, reflecting improved economies of scale and product efficiencies [14] Product and Innovation - The company launched the Commvault Cloud Unity Platform, which integrates data security, identity resilience, and recovery capabilities [6][12] - The company received its 1,600th lifetime patent, reinforcing its position as an innovation leader [3] - Partnerships and product releases aimed at unifying data security and recovery capabilities were highlighted, including recognition from AWS [6][12] Customer Engagement - The company reported a SaaS net dollar retention rate of 121%, indicating strong customer loyalty and expansion [9][10] - The addition of new subscription customers contributed to a strong quarter, with a noted increase in identity resilience offerings [10][17] Guidance and Future Outlook - For fiscal Q4 2026, the company expects subscription revenue of $203 million to $207 million and total revenue of $305 million to $308 million [19] - Full-year free cash flow is projected to be between $215 million and $220 million, reflecting one-time payments related to a cost optimization program [20] - The company initiated a cost optimization program to align its cost structure with business needs, which includes a voluntary retirement program [18]

Core Viewpoint - Commvault Systems (CVLT) reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, and showing an increase from $0.94 per share a year ago, indicating a positive earnings surprise of +19.39% [1] Financial Performance - The company achieved revenues of $313.83 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.96%, and up from $262.63 million in the same quarter last year [2] - Over the last four quarters, Commvault has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Commvault shares have increased approximately 3.2% since the beginning of the year, outperforming the S&P 500's gain of 1.5% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at $1.00 for the coming quarter and $3.91 for the current fiscal year [4][7] - The estimate revisions trend for Commvault was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Computer - Software industry, to which Commvault belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]

Financial Data and Key Metrics Changes - Subscription revenue grew 30% to $206 million, driven by a record addition of 700 new subscription customers [4][13] - Total revenue increased 19% to $314 million, with a 22% growth in term software revenue to $119 million [13][14] - Subscription ARR rose 28% to $941 million, with SaaS ARR increasing 40% to $364 million [15][20] - Gross margins improved 100 basis points sequentially to 81.5% [16] - Non-GAAP EBIT was $61 million, reflecting a margin of 19.6% [16] Business Line Data and Key Metrics Changes - SaaS revenue saw a robust 44% increase, contributing significantly to overall subscription revenue growth [13] - Term software transactions over $100,000 grew 25%, indicating strong performance in large enterprise accounts [14] - ARR from identity resilience offerings doubled year over year, highlighting strong customer adoption [9] Market Data and Key Metrics Changes - Commvault achieved AWS resilience competency in the recovery category and was named the 2025 AWS Global Storage Partner of the Year [10] - The company reported strong growth across all geographies and customer sizes, particularly from large enterprises [14] Company Strategy and Development Direction - Commvault is focusing on innovation through the Commvault Cloud Unity Platform, which integrates data security, identity resilience, and cyber recovery [6][10] - The company aims to capitalize on the growing demand for cyber resilience in an AI-driven, hybrid, and multi-cloud environment [4][11] - Commvault is also addressing data sovereignty requirements by supporting regional sovereign clouds, including a partnership with AWS for the European Sovereign Cloud [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, citing record customer engagement and adoption [12] - The company anticipates finishing the year with solid results, reflecting its leadership in the market and customer trust [12] - Management noted that the business is in a good place, with strong performance in both software and SaaS customer acquisitions [29] Other Important Information - The company initiated a cost optimization program to align its cost structure with evolving business needs [17] - Commvault repurchased $41 million of stock during the quarter, with a total of $187 million year-to-date [17][21] Q&A Session Summary Question: Free cash flow and accounts receivable increase - Management explained that Q3 typically sees pressure on free cash flow due to sales cycles, with over 60% of deals closing in the last weeks of the quarter [25] Question: Long-term growth narrative and TAM expectations - Management refrained from providing guidance beyond the current fiscal year but indicated confidence in outpacing market growth [28][29] Question: Currency impact on revenue and ARR - Management confirmed that currency was in line with expectations for reported revenue, while ARR guidance is provided on a constant currency basis [36] Question: SaaS net retention rate drop - Management attributed the drop to a larger customer base and strong new customer acquisition, which does not immediately reflect in the NRR [55] Question: Term duration elongation and its impact - Management noted that the increase in term duration was influenced by large new customer deals, which may have affected term ARR [66][110]