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Investing.com - Cantor Fitzgerald raised its price target on CommVault Systems (NASDAQ:CVLT) to $189.00 from $173.00 on Wednesday, while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week high of $196.98, with an impressive 15.63% gain in the past week.
The price target increase follows CommVault’s strong fiscal first quarter 2026 performance, where the company exceeded expectations driven by large Term license deals closed in the final week of the quarter. The data management firm reported a 5% revenue beat compared to estimates, maintaining industry-leading gross margins of 82.02% and achieving 18.63% year-over-year revenue growth.
CommVault has updated its fiscal 2026 outlook, raising second-half revenue projections by 2% and increasing its second quarter revenue guidance by 0.9% compared to previous Street forecasts. The company also raised its projection for total net new Annual Recurring Revenue (ARR) to over $40 million for the remainder of fiscal 2026, up from prior guidance of $30-35 million. For deeper insights into CommVault’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and 15+ additional ProTips.
Cantor Fitzgerald noted CommVault is experiencing an uptick in large deals, including a significant increase in transactions exceeding $1 million. The company’s new cyber-related solutions, including ThreatWise, Cleanroom, and recently acquired Appranix, showed double-digit sequential growth and now represent 20% of net new ARR.
The firm believes CommVault is benefiting from improving industry trends in data management, cybersecurity, and AI, as well as solid execution resulting in market share gains, larger deal sizes, and successful cross-selling opportunities.
In other recent news, CommVault Systems reported impressive financial results for the first fiscal quarter of 2026, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.01, exceeding the forecasted $0.97, and recorded revenue of $282 million, which was higher than the anticipated $267.84 million. This strong performance contributed to a notable increase in the company’s stock during pre-market trading. Additionally, Guggenheim raised its price target for CommVault Systems to $220.00 from $210.00, maintaining a Buy rating. This decision was influenced by CommVault’s significant growth in net new annual recurring revenue (NNARR), which saw a nearly 20% year-over-year increase to $40 million. The company’s management expressed confidence in sustaining similar quarterly NNARR growth throughout fiscal year 2026. These developments highlight the positive momentum for CommVault Systems in the current financial period.
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