Guggenheim raises CommVault Systems stock price target on strong data protection growth

Published 29/07/2025, 22:58
Guggenheim raises CommVault Systems stock price target on strong data protection growth

Investing.com - Guggenheim raised its price target on CommVault Systems (NASDAQ:CVLT) to $220.00 from $210.00 on Tuesday, while maintaining a Buy rating on the data protection company. According to InvestingPro data, the stock is currently trading near its 52-week high of $196.98, having surged an impressive 15.83% in the past week alone.

The revision follows CommVault’s strong fiscal first-quarter performance, which showed organic constant currency net new annual recurring revenue (NNARR) of $40 million, representing nearly 20% year-over-year growth. The company’s management indicated similar quarterly NNARR performance is expected for the remainder of fiscal year 2026. InvestingPro analysis reveals the company maintains an impressive 82.02% gross profit margin and has achieved 18.63% revenue growth over the last twelve months. Get access to 16+ additional ProTips and comprehensive financial metrics with InvestingPro.

CommVault reported 21% constant currency annual recurring revenue (ARR) growth, 23% constant currency revenue growth, and 21% non-GAAP EBIT margin in the first quarter. Based on these results, the company raised its fiscal 2026 guidance, projecting 18% ARR growth (up 1.5 percentage points) and 17% total revenue growth (up 3 percentage points). While the company shows strong growth metrics, InvestingPro’s Fair Value analysis suggests the stock is currently trading above its intrinsic value. Discover detailed valuation analysis and more in CommVault’s comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The company’s non-GAAP EBIT margin guidance was lowered by 50 basis points to 20.5% due to the planned acquisition of Satori, which is expected to close in August. Satori helps enterprises implement governance for internal AI use cases, furthering CommVault’s expansion into security and cloud-native features. Despite the margin adjustment, InvestingPro data shows the company maintains a strong financial health score, operating with moderate debt levels and sufficient cash flows to cover interest payments.

Other quarterly highlights included a 39% year-over-year increase in deals exceeding $100,000, a 70% increase in large SaaS customers, security contributing 20% of SaaS NNARR, triple-digit growth in cloud marketplace deals, and new cyber partnerships with Deloitte and Kyndryl, along with an enhanced partnership with Crowdstrike.

In other recent news, CommVault Systems Inc. reported impressive financial results for its first fiscal quarter of 2026. The company achieved an earnings per share (EPS) of $1.01, which exceeded the forecasted $0.97. Additionally, CommVault’s revenue reached $282 million, surpassing expectations of $267.84 million. These results reflect a strong performance for the company, marking a significant earnings and revenue beat. The financial community responded positively to this news, although specific stock movements will not be discussed here. Analysts and investors are likely to take note of CommVault’s ability to outperform expectations. As these developments unfold, it will be interesting to see how analyst firms respond to this performance in their future assessments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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