📊 CVLT Key Takeaways
Is Commvault Systems Inc. (CVLT) a Good Investment?
Commvault demonstrates solid operational fundamentals with strong profitability margins (81.1% gross margin, 6.4% net margin) and excellent liquidity position (2.34x current ratio, $1.0B cash). However, stagnant revenue growth (0.0% YoY) combined with a significant 54.9% decline in net income raises concerns about earnings sustainability and operational challenges that warrant cautious monitoring.
Commvault shows solid underlying software economics with an 81.1% gross margin, positive free cash flow, and an exceptionally strong balance sheet supported by $1.03B in cash and no meaningful leverage. However, flat revenue and a sharp decline in net income and EPS indicate weakening earnings momentum, which tempers the otherwise healthy liquidity and cash generation profile. The fundamentals support resilience, but growth quality and margin durability need to improve before the outlook becomes more compelling.
Why Buy Commvault Systems Inc. Stock? CVLT Key Strengths
- Exceptional gross margin of 81.1% indicates strong pricing power and efficient cost of goods sold
- Robust free cash flow generation of $105.3M (12.1% FCF margin) provides financial flexibility
- Strong balance sheet with $1.0B in cash, minimal debt (0.00x debt/equity), and 2.34x current ratio
- Excellent return on equity of 25.8% demonstrates efficient capital deployment
- Very high interest coverage ratio of 138.2x indicates zero financial distress risk
- Very strong balance sheet with over $1.0B in cash, no meaningful debt, and solid liquidity ratios
- High gross margin indicates attractive core software economics and pricing power
- Positive operating cash flow and free cash flow provide financial flexibility despite earnings pressure
CVLT Stock Risks: Commvault Systems Inc. Investment Risks
- Complete revenue stagnation (0.0% YoY growth) suggests market maturity or competitive pressures in core business
- Sharp 54.9% decline in net income despite flat revenue indicates margin compression or significant non-recurring charges
- Operating margin of only 6.6% is thin relative to gross margin, suggesting high operating expenses or R&D spending
- Return on assets of 2.7% is weak relative to total assets of $2.0B, indicating capital inefficiency
- Only 4 Form 4 insider filings in 90 days provides limited visibility into insider confidence
- Revenue was flat year over year, suggesting limited near-term growth momentum
- Net income and diluted EPS declined by more than 50%, pointing to weaker profitability trends
- Operating margin of 6.6% is modest for a software company and leaves less cushion if costs rise
Key Metrics to Watch
- Quarterly revenue growth trajectory and bookings trends to confirm turnaround or continued stagnation
- Operating margin expansion as company scales or cost optimization initiatives
- Free cash flow sustainability and capital allocation decisions (buybacks, dividends, M&A)
- Customer retention and net dollar retention rates in recurring revenue segments
- Revenue growth reacceleration, especially subscription and recurring revenue trends
- Operating margin and free cash flow margin to confirm whether profitability stabilizes or improves
Commvault Systems Inc. (CVLT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.34x current ratio provides a solid financial cushion.
CVLT Profit Margin, ROE & Profitability Analysis
CVLT vs Technology Sector: How Commvault Systems Inc. Compares
How Commvault Systems Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Commvault Systems Inc. Stock Overvalued? CVLT Valuation Analysis 2026
Based on fundamental analysis, Commvault Systems Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Commvault Systems Inc. Balance Sheet: CVLT Debt, Cash & Liquidity
CVLT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Commvault Systems Inc.'s revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.80 indicates the company is currently unprofitable.
CVLT Revenue Growth, EPS Growth & YoY Performance
CVLT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $262.6M | $11.0M | $0.24 |
| Q2 2026 | $233.3M | $14.7M | $0.33 |
| Q1 2026 | $224.7M | $18.5M | $0.41 |
| Q3 2025 | $216.8M | $11.0M | $0.24 |
| Q2 2025 | $201.0M | $13.0M | $0.29 |
| Q1 2025 | $198.2M | $12.6M | $0.28 |
| Q3 2024 | $195.1M | -$310.0K | $-0.01 |
| Q2 2024 | $188.1M | $4.5M | $0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Commvault Systems Inc. Dividends, Buybacks & Capital Allocation
CVLT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Commvault Systems Inc. (CIK: 0001169561)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CVLT
What is the AI rating for CVLT?
Commvault Systems Inc. (CVLT) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CVLT's key strengths?
Claude: Exceptional gross margin of 81.1% indicates strong pricing power and efficient cost of goods sold. Robust free cash flow generation of $105.3M (12.1% FCF margin) provides financial flexibility. ChatGPT: Very strong balance sheet with over $1.0B in cash, no meaningful debt, and solid liquidity ratios. High gross margin indicates attractive core software economics and pricing power.
What are the risks of investing in CVLT?
Claude: Complete revenue stagnation (0.0% YoY growth) suggests market maturity or competitive pressures in core business. Sharp 54.9% decline in net income despite flat revenue indicates margin compression or significant non-recurring charges. ChatGPT: Revenue was flat year over year, suggesting limited near-term growth momentum. Net income and diluted EPS declined by more than 50%, pointing to weaker profitability trends.
What is CVLT's revenue and growth?
Commvault Systems Inc. reported revenue of $872.0M.
Does CVLT pay dividends?
Commvault Systems Inc. does not currently pay dividends.
Where can I find CVLT SEC filings?
Official SEC filings for Commvault Systems Inc. (CIK: 0001169561) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CVLT's EPS?
Commvault Systems Inc. has a diluted EPS of $1.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CVLT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Commvault Systems Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CVLT stock overvalued or undervalued?
Valuation metrics for CVLT: ROE of 25.8% (sector avg: 22%), net margin of 6.4% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy CVLT stock in 2026?
Our dual AI analysis gives Commvault Systems Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CVLT's free cash flow?
Commvault Systems Inc.'s operating cash flow is $112.5M, with capital expenditures of $7.2M. FCF margin is 12.1%.
How does CVLT compare to other Technology stocks?
Vs Technology sector averages: Net margin 6.4% (avg: 18%), ROE 25.8% (avg: 22%), current ratio 2.34 (avg: 2.5).
Why is CVLT's return on equity (ROE) so high?
Commvault Systems Inc. has a return on equity of 25.8%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 6.4% net margin.