What Happened?
Shares of data protection software company Commvault (NASDAQ: CVLT) fell 6.9% in the afternoon session after the company's stock fell as negative sentiment persisted from its second-quarter earnings report and analysts lowered their price targets. The decline extended a sharp drop from the previous trading session, which occurred after the data protection company reported its financial results. While Commvault's revenue grew 18% year-over-year to $276.2 million, beating expectations, its earnings did not meet forecasts. The company posted an adjusted earnings per share of $0.91, which was just shy of the $0.94 Wall Street had hoped for. Investors focused on the profitability miss, suggesting the company's growth was less profitable than anticipated. Adding to the pressure, analysts at both Cantor Fitzgerald and RBC lowered their price targets on the stock, reinforcing investor concerns following the earnings announcement.
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What Is The Market Telling Us
Commvault’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 17.1% on the news that the company reported third-quarter financial results that missed analyst expectations for profitability. Commvault posted a non-GAAP earnings per share of $0.91, which fell short of the consensus estimate of $0.94. While revenue grew 18.4% year-over-year to $276.2 million and beat expectations, the company’s adjusted operating income also missed estimates, suggesting the growth was less profitable than anticipated. The market reacted negatively to the profitability misses, which overshadowed the positive news that the company's Annual Recurring Revenue (ARR) surpassed the $1 billion mark. Looking ahead, Commvault expects revenue for the next quarter to be around $299 million, which was in line with analyst estimates.
Commvault is down 8.6% since the beginning of the year, and at $139.07 per share, it is trading 28.8% below its 52-week high of $195.41 from September 2025. Investors who bought $1,000 worth of Commvault’s shares 5 years ago would now be looking at an investment worth $3,462.
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