Core Viewpoint - Commvault Systems, Inc. is under investigation for potential violations of federal securities laws following a significant decline in stock price after reporting third-quarter financial results that indicated a slowdown in growth [1][3]. Financial Performance - Commvault reported a 40% growth in SaaS ARR, reaching $364 million for the third quarter of fiscal 2026, which ended on December 31, 2025 [2]. - This 40% growth represents a notable deceleration from the 56% growth reported in the second quarter of fiscal 2026 [2]. Stock Market Reaction - Following the earnings report, Commvault's stock experienced a decline of over 31% on January 27, 2026 [3].

Core Viewpoint - Kessler Topaz Meltzer & Check, LLP is investigating potential violations of federal securities laws on behalf of investors of Commvault Systems, Inc. following the company's financial results announcement for Q3 fiscal 2026 [1] Financial Performance - Commvault reported a 40% growth in SaaS Annual Recurring Revenue (ARR), reaching $364 million [1] - The company indicated that 60% of its deals closed in the last quarter [1]

Core Insights - Commvault Systems, Inc. is under investigation for potential violations of federal securities laws, as announced by Levi & Korsinsky [1] - The company reported a 40% growth in SaaS ARR, reaching $364 million for Q3 fiscal 2026, but this represents a deceleration from the 56% growth reported in Q2 fiscal 2026 [2] - Following the earnings report, Commvault's stock experienced a significant decline of over 31% on January 27, 2026 [3] Financial Performance - Commvault's SaaS ARR grew to $364 million, marking a 40% increase year-over-year [2] - The company noted that 60% of its deals closed in the last few weeks of the quarter, indicating a potential surge in sales activity towards the end of the reporting period [2] - The growth rate of 40% in SaaS ARR is a notable slowdown compared to the previous quarter's growth of 56% [2] Market Reaction - The stock price of Commvault fell by over 31% on the day the financial results were announced, reflecting investor concerns regarding the deceleration in growth [3]

Core Insights - Pure Storage has announced updates to its partner programs, focusing on creating a differentiated, solutions-led partner experience with deeper enablement and new program tiers [1][2] Partner Program Evolution - The updated partner program builds on previous foundational updates, emphasizing Pure's commitment to partner success and introducing the Ambassador tier to help partners integrate Pure into their solutions [2][3] - The program prioritizes verified technical expertise and solution specialization over volume-based participation, recognizing partners with deep knowledge of the Pure Storage platform [3][7] Focus Areas - The updates emphasize data-centric services, particularly in the Managed Services Provider (MSP) Partner program, and aim to enhance distributor roles to accelerate partner readiness [4][7] - The MSP Partner program will focus on services where data and storage are foundational, including private and sovereign cloud, Storage-as-a-Service, and backup and disaster recovery [7] New Recognition and Incentives - The introduction of the Ambassador tier rewards skilled partners who understand the Pure Storage platform and showcases expertise in key areas such as AI, cyber resilience, cloud, and application modernization [7] - The program now includes Solution Practice Designations to recognize partners with the skills to drive innovation in these areas [7] Industry Collaboration - Partners play a critical role in helping customers modernize their infrastructure and manage rising cyber risks, with Pure Storage's solutions-focused program creating opportunities for collaboration and integrated solutions [6][8] - The program aligns with industry trends, as customers increasingly seek complete, trusted solutions in AI, cloud, and cyber resilience [8]

Core Viewpoint - Commvault Systems (CVLT) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Commvault suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for Commvault - For the fiscal year ending March 2026, Commvault is expected to earn $4.19 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 24.8% over the past three months [8].

Core Viewpoint - Commvault Systems (CVLT) has experienced a significant decline of 31% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - CVLT's current RSI reading is 22.89, suggesting that the heavy selling pressure may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for CVLT have increased by 24.9% over the last 30 days, which often correlates with price appreciation in the near term [7]. - CVLT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8].

Core Viewpoint - CommVault Systems, Inc. has received a consensus recommendation of "Moderate Buy" from fourteen brokerages, with an average twelve-month price objective of $143.58 [2] Analyst Ratings - Guggenheim reduced its price target from $200.00 to $175.00 while maintaining a "buy" rating [3] - DA Davidson lowered its price target from $185.00 to $135.00 and also set a "buy" rating [3] - Wells Fargo cut its price target from $190.00 to $155.00, maintaining an "overweight" rating [3] - Royal Bank of Canada decreased its price target from $167.00 to $100.00, setting a "sector perform" rating [3] - Stephens lowered its price objective from $162.00 to $135.00 while keeping an "overweight" rating [3] Stock Performance - CommVault Systems shares opened at $85.70, with a one-year low of $84.44 and a high of $200.68 [4] - The company has a market capitalization of $3.77 billion, a PE ratio of 44.18, and a beta of 0.57 [4] - The firm has a debt-to-equity ratio of 4.06, a current ratio of 2.34, and a quick ratio of 2.53 [4] Financial Performance - For the last quarter, CommVault reported an EPS of $1.17, exceeding the consensus estimate of $0.98 by $0.19 [5] - The company achieved revenue of $313.83 million, surpassing the consensus estimate of $299.07 million, with a year-over-year revenue increase of 19.5% [5] - Analysts project an EPS of 1.65 for the current fiscal year [5] Insider Transactions - CFO Jennifer Leigh Dirico sold 830 shares at an average price of $123.58, totaling $102,571.40, reducing her position by 1.84% [6] - Insider Gary Merrill sold 1,845 shares at an average price of $122.40, totaling $225,828.00, representing a 2.67% decrease in his position [6] - Insiders have sold a total of 33,111 shares worth $4,058,851 in the last three months, with insiders owning 1.00% of the company's stock [6] Institutional Investment - Tudor Investment Corp ET AL acquired a new position valued at $1.89 billion in the 3rd quarter [7] - First Trust Advisors LP increased its stake by 1,335.8%, now owning 1,224,856 shares worth $231.23 million [7] - M&T Bank Corp boosted its position by 22,133.9%, owning 610,098 shares valued at $76.48 million [7] - Westfield Capital Management Co. LP increased its holdings by 135.6%, now owning 786,175 shares worth $148.41 million [8] - AQR Capital Management LLC raised its stake by 60.8%, owning 893,385 shares valued at $155.74 million [8] - 93.50% of the stock is owned by hedge funds and institutional investors [8] Company Overview - CommVault Systems, Inc. is a global provider of data protection and information management software, helping organizations manage, protect, and activate data across on-premises and cloud environments [9] - The company offers integrated products and services for data backup, recovery, archiving, and analysis, including Commvault Complete Data Protection and the SaaS-based Metallic portfolio [9][10]

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].

Core Viewpoint - Commvault Systems, Inc. (CVLT) shares experienced a significant decline of 30.30 percent, or $39.20, closing at $90.16 after the release of third-quarter results that, despite showing higher profit and strong revenue growth, did not satisfy investor expectations [1]. Financial Performance - The company reported a net income of $17.78 million, translating to $0.40 per share, which is an increase from $11.02 million, or $0.24 per share, in the same quarter last year [1]. Stock Performance - The stock opened at $103.79 after a previous close of $129.36, with intraday trading ranging between $84.44 and $106.44 on the Nasdaq [2]. - Trading volume surged to approximately 4.04 million shares, significantly higher than the average volume of around 0.79 million shares [2]. - The stock has fluctuated within a 52-week range of $84.44 to $200.68 [2].