CommVault Systems, Inc. Price and Consensus

CommVault Systems, Inc. price-consensus-chart | CommVault Systems, Inc. Quote

Portfolio Strength Aids CommVault’s Prospects

CommVault’s availability of the cloud cyber resilience platform on Amazon Web Services (“AWS”) is a significant development. AWS customers will have access to state-of-the-art solutions for automating data protection, advancing cyber recovery and streamlining the process of rebuilding cloud applications after a cyberattack thanks to the Commvault Cloud platform, which includes its extensively used SaaS offerings - Metallic.

In October 2024, CommVault unveiled its extended partnership with Google Cloud by launching CommVault Cloud Backup & Recovery for Google Workspace. With the ease of SaaS, this new solution, which is anticipated to be available by the end of the year, will provide complete, end-to-end enterprise-grade protection for Gmail, Google Drive and Shared Drives, assisting in keeping important data secure, compliant and recoverable.

The recent launch of Cloud Rewind on the CommVault Cloud platform is a major plus for its prospects. This unique solution, which blends cloud-native distributed application recovery and rebuilds capabilities from the Appranix acquisition, gives cloud-first organizations a secret weapon to transform their cyber resilience capabilities.

Earlier this year, CommVault has also acquired Clumio, a leading technology leader in data protection for critical cloud data in AWS. Through this deal, Commvault can leverage Clumio's AWS-focused products to give next-generation AWS-based apps cyber resilience. Among the many clients that Clumio serves are Atlassian, Cox Automotive, Duolingo and LexisNexis.

CommVault has also enhanced its offerings by announcing a collaborative cyber readiness solution with Pure Storage that can be extremely helpful in assisting businesses in adhering to strict and changing regulations.

CommVault’s Strong Guidance Signals Continued Growth

CommVault has reported stronger-than-expected financial performance in the past seven quarters. In the second quarter of fiscal 2025, the company’s revenues soared approximately 16% while non-GAAP earnings per share (EPS) jumped nearly 19%. CVLT’s both top and bottom lines surpassed the respective Zacks Consensus Estimate.

Buoyed by better-than-expected second-quarter performance, CommVault raised guidance for the fiscal 2025. The company now projects fiscal 2025 revenues between $952 million and $957 million, up from the previous guidance of $915-$925 million. The Zacks Consensus Estimate for the same is pegged at $956.2 million, suggesting a year-over-year rise of 13.9%.

The consensus mark for fiscal 2025 EPS is pegged at $3.44, indicating a year-over-year increase of 15.4%. The Zacks Consensus Estimate for next fiscal also depicts continued double-digit growth for top and bottom lines.

What Investors Should Do With CVLT Stock

CommVault’s innovative product launches and continued efforts to stand out in the market through collaborative agreements highlight its resilience and long-term growth potential. However, near-term challenges, including macroeconomic uncertainties, might pose a risk. 

Although the stock might be lucrative considering its long-term growth prospects,  a stretched valuation as suggested by the Zacks Value Style Score of F, suggests limited upside potential in the near term.

CVLT currently carries a Zacks Rank #3 (Hold), implying that existing investors should keep holding the stock while new buyers should wait for a better entry point into the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.