Commvault combines a wide economic moat with free cash flow running at roughly four times reported net income and strong price momentum that has cleared its upper threshold. The critical concern is that the stock has reached its near-term resistance target with less than 1% headroom — creating a reward-to-risk ratio of approximately 0.03 to 1 — while two of the two most recent earnings results missed consensus and financial leverage stands above 120%.
Thesis pillars
- Strong Growth Elevated Leverage↓Deteriorating
- Wide Moat Cash Generation→Stable
- Momentum Recovery Late Cycle Risk↑Improving
- +2 more pillars — see the Why tab for full reasoning
Commvault Systems, Inc. (CVLT) Stock Analysis
Range Bound setup
Technology · Software - Application
Wait for pullback to $140.78. Weak momentum; also recent C-suite change — blocks BUY_NOW at $146.87. Engine's entry $140.78 (support + ATR (held)) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 122.6): -1.5.
Commvault provides cyber resiliency solutions including data protection, cyber recovery, and identity resilience via its Commvault Cloud platform, serving large enterprises and government agencies across on-premise, hybrid, and multi-cloud environments. Revenue is primarily... Read more
Wait for pullback to $140.78. Weak momentum; also recent C-suite change — blocks BUY_NOW at $146.87. Engine's entry $140.78 (support + ATR (held)) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 122.6): -1.5. Chart setup: RSI 41 mid-range, Bollinger mid-band. Earnings in 1 day. Wait until post-earnings. Score 5.8/10, moderate confidence.
Passes 5/9 gates (positive momentum, clean insider activity, news boost analyst 0.70, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 1d<=7d. Suitability: moderate.
About Commvault Systems, Inc.
About Commvault Systems, Inc.
Commvault's two largest indirect-channel distribution partners — "Partner A" and "Partner B" — accounted for approximately 32% and 11% of total revenues, respectively, in the fiscal year ended March 31, 2026. The company invested $162.2 million in R&D (14% of fiscal 2026 revenues) and employed approximately 3,300 people globally, with 64% of the workforce outside the United States. Primary competitors cited in the 10-K include Rubrik, Cohesity, and Veeam.
Commvault generates revenue through subscription-based arrangements — including SaaS and term-based software licenses — plus perpetual licenses, customer support, and professional services delivered across Commvault Cloud, a platform covering data protection, cyber recovery, and identity resilience. The company sells to large enterprises, government agencies, and mid-market businesses in banking, financial services, healthcare, government, and technology sectors, primarily through value-added resellers, system integrators, distributors, OEMs, and cloud marketplaces. The transition from perpetual licensing to subscription and SaaS models has improved revenue visibility, though the company remains subject to renewal risk at each term end, with customers potentially reducing workloads, migrating to lower-cost configurations, or seeking pricing concessions. A portion of costs are tied to long-term or minimum-commitment arrangements with third-party cloud service providers, which may limit expense reduction if SaaS demand shifts. As of March 31, 2026, Commvault held more than 1,600 issued patents worldwide.
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Partner A alone has represented 32% to 36% of Commvault's total revenues across fiscal years 2024 through 2026 — a multi-year concentration the 10-K characterizes as material. The filing explicitly warns that if Partner A were to discontinue or materially reduce its Commvault sales, and if the company were unable to effectively replace that partner or assume management of affected distribution activities, business, results of operations, and financial condition could be materially adversely affected. Agreements with resellers are generally non-exclusive and may be terminated by either party without cause, meaning this exposure lacks contractual permanence.
See also: Technology · Software - Application
From Commvault Systems, Inc.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-07-27Recent Developments — Commvault Systems, Inc.
Latest news
- NEWS CommVault Systems (NASDAQ:CVLT) Price Target Raised to $125.00 - MarketBeat — MarketBeat positive
- NEWS Commvault Systems (CVLT) Dips More Than Broader Market: What You Should Know - Yahoo Finance — Yahoo Finance negative
- NEWS Commvault Systems (CVLT) Surpasses Market Returns: Some Facts Worth Knowing - Yahoo Finance — Yahoo Finance positive
- NEWS CommVault Systems (NASDAQ:CVLT) Rating Increased to Hold at Scotiabank - MarketBeat — MarketBeat neutral
- NEWS Deadline Alert: Commvault Systems Inc. (CVLT) Shareholders - GlobeNewswire — GlobeNewswire negative
Generated 2026-07-27T15:57:49Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerPartner A distributor32%10-K Item 1A: 'One such partner ("Partner A") accounted for approximately 32%, 35% and 36% of our total revenues for the years ended March 31, 2026, 2025 and 2024'
- LOWCustomerPartner B distributor11%10-K Item 1A: 'a second partner ("Partner B") accounted for approximately 11% of our total revenues for the year ended March 31, 2026'
Material Events(8-K, last 90d)
- 2026-04-13Item 5.02LOWGary Merrill appointed CFO of Commvault effective April 13, 2026 (moving from Chief Commercial Officer role held since August 2024). Geoff Haydon simultaneously appointed President of Customer and Field Operations and resigned from Board. Both are internal transitions; no officer departures without successors.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $140.78. Weak momentum; also recent C-suite change — blocks BUY_NOW at $146.87. Engine's entry $140.78 (support + ATR (held)) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 122.6): -1.5. Chart setup: RSI 41 mid-range, Bollinger mid-band. Earnings in 1 day. Wait until post-earnings. Target $151.73 (+3.3%), stop $128.96 (−13.9%), A.R:R -0.3:1. Score 5.8/10, moderate confidence.
Take-profit target: $151.73 (-2.8% upside). Target $151.73 (+3.3%), stop $128.96 (−13.9%), A.R:R -0.3:1. Stop-loss: $128.96.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 122.6): -1.5; Value-trap signals (2/5): Margin compression (op margin 4.5%), Material insider selling (10 sells, 0.15% of cap).
Commvault Systems, Inc. trades at a P/E of 90.1 (forward 23.6). TrendMatrix value score: 4.9/10. Verdict: Buy (Wait for Entry).
25 analysts cover CVLT with a consensus score of 3.9/5. Average price target: $159.
What does Commvault Systems, Inc. do?Commvault provides cyber resiliency solutions including data protection, cyber recovery, and identity resilience via...
Commvault provides cyber resiliency solutions including data protection, cyber recovery, and identity resilience via its Commvault Cloud platform, serving large enterprises and government agencies across on-premise, hybrid, and multi-cloud environments. Revenue is primarily subscription-based (SaaS and term licenses), with distribution concentrated in indirect channels; Partner A alone represented 32% of total revenues in fiscal 2026.