Commvault Systems reported better-than-expected fiscal fourth-quarter 2026 earnings, but its fiscal 2027 outlook points to slower growth, making the stock a quality play rather than an acceleration story. Non-GAAP earnings per share rose 24.3% year over year to $1.28, beating the Zacks Consensus Estimate by 17.4%, while revenues increased 13.3% to $311.7 million, with subscription revenues up 20% to $208 million and SaaS revenues jumping 43% to $93 million. Management guided for fiscal 2027 total revenues of $1.30 billion to $1.31 billion, implying roughly 12% to 13% growth from fiscal 2026 revenues of $1.18 billion, and subscription annual recurring revenues of $1.20 billion to $1.21 billion, a slowdown from the 27% subscription annual recurring revenue growth in fiscal 2026. The stock trades at 23.41 times forward earnings, above the Zacks sub-industry multiple of 19.84 times but below the broader sector multiple of 25.11 times, and with shares at $126.01 as of June 22, 2026, the $132 price target suggests modest upside. Free cash flow reached a quarterly record of $132 million and totaled $237 million for fiscal 2026, up 16% year over year, while the company ended the year with $900 million in cash and repurchased $446 million of stock. CVLT carries a Zacks Rank #3 (Hold), with a Growth Score of B and a Value Score of D, supporting a patient entry point for new buyers.
CommVault Systems IncQ4 earnings beat but FY2027 guidance implies slower growth; stock is a quality play with modest upside
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