Key Points
CommVault's Q1 sales and earnings breezed by Wall Street's forecasts.
Management issued exciting forward guidance.
- 10 stocks we like better than Commvault Systems ›
CommVault Systems (NASDAQ: CVLT) stock is marching higher in Tuesday's trading despite a bearish backdrop for the broader market. The company's share price was up 11.6% as of 2:40 p.m. ET. Meanwhile, the S&P 500 was down 0.6%, and the Nasdaq Composite had fallen 1%.
CommVault is managing to defy momentum for the broader market today thanks to a stronger-than-expected quarterly report. The company published its latest quarterly update before the market opened today, and results handily topped Wall Street's expectations.
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CommVault's quarterly results support the bull case
Before the market opened this morning, CommVault published results for the fourth quarter of its 2026 fiscal year -- a period that ended March 31. The company announced non-GAAP (adjusted) earnings per share of $1.28 on sales of roughly $312 million for the quarter, beating the average analyst estimate's earnings forecast by $0.19 per share and the average sales estimate by roughly $5.3 million. With revenue for subscription services rising roughly 20% year over year, the business closed out the quarter with annual revenue growth of roughly 13.5% -- and earnings per share were up roughly 24% compared to the prior-year period.
What's next for CommVault?
Strong guidance is also helping to support gains for CommVault stock today. The company said that it expects annual recurring revenue growth to increase between 18% and 19% this year -- hitting roughly $1.25 billion at the midpoint of the guidance range. Meanwhile, free cash flow for the year is projected to come in between $250 million and $260 million. Between the company's new $250 million share buyback authorization and an encouraging outlook for sales and margins, the earnings picture looks promising this year.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
