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→Stable
- Wide Moat Cash Generation→Stable
- Momentum Recovery Late Cycle Risk↓Deteriorating
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed May 11, 2026
Commvault Systems, Inc. (CVLT) Stock Analysis
Breakout setup
Technology · Software - Application
Hold if already holding. Not a fresh buy at $166.46, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.5% away).
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
Hold if already holding. Not a fresh buy at $166.46, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.5% away). Chart setup: Golden cross, above all MAs, RSI 62, MACD bullish. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.9/10, high confidence.
Passes 7/9 gates (positive momentum, clean insider activity, news boost analyst 0.60, news boost analyst cluster(4), earnings proximity 88d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. 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 2026-10-29Recent Developments — Commvault Systems, Inc.
Latest news
- NEWS Why Commvault (CVLT) Shares Are Getting Obliterated Today - Yahoo Finance — Yahoo Finance negative
- NEWS CommVault Systems (NASDAQ:CVLT) Price Target Raised to $125.00 - MarketBeat — MarketBeat positive
- NEWS Commvault (CVLT) Q2 Earnings Power Upends A Modest Stock Reaction - Yahoo Finance — Yahoo Finance positive
- NEWS Commvault (CVLT) Stock Climbs As Q2 Earnings Highlight ARR Strength - Simply Wall Street — Simply Wall Street positive
- NEWS Commvault Systems (CVLT) Dips More Than Broader Market: What You Should Know - Yahoo Finance — Yahoo Finance negative
Generated 2026-10-29T11:48:39Z.
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. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $166.46, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.5% away). Chart setup: Golden cross, above all MAs, RSI 62, MACD bullish. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Analyst target $170.44 (+2.4%), stop $154.81 (−7.5%), A.R:R 0.2:1. Score 5.9/10, high confidence.
Analyst target: $170.44 (+2.4% upside). Analyst target $170.44 (+2.4%), stop $154.81 (−7.5%), A.R:R 0.2:1. Stop-loss: $154.81.
Analyst target reached - limited upside remaining; Near 52-week high (4.5% away); Sector modifier (Technology): -0.8.
Commvault Systems, Inc. trades at a P/E of 106.0 (forward 26.9). TrendMatrix value score: 4.8/10. Verdict: Hold.
27 analysts cover CVLT with a consensus score of 3.8/5. Average price target: $189.
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.