CommVault Systems: RBC Capital raises PT to $217 from $185.

CommVault Systems: RBC Capital raises PT to $217 from $185.

RBC Capital Markets has recently upgraded its price target for CommVault Systems (NASDAQ: CVLT) to $217 from $185. This move follows the company's strong fiscal first quarter 2026 performance and reflects RBC's optimism about CommVault's growth prospects. The upgrade comes as CommVault continues to demonstrate robust financial performance and innovation in the data management and cybersecurity sectors.

CommVault Systems reported revenue of $282 million and earnings per share (EPS) of $1.01 for the first fiscal quarter of 2026, surpassing analyst expectations [2]. The company achieved a 5% revenue beat and maintained industry-leading gross margins of 82.02%. CommVault's performance was driven by significant term license deals closed in the final week of the quarter, contributing to a 18.63% year-over-year revenue growth.

RBC Capital Markets cited CommVault's successful execution in large deals, with a notable increase in transactions exceeding $1 million. The company's cyber-related solutions, including ThreatWise, Cleanroom, and recently acquired Appranix, showed double-digit sequential growth, now representing 20% of net new annual recurring revenue (ARR). CommVault's strong performance in these areas underscores its ability to capitalize on improving industry trends in data management, cybersecurity, and AI.

The upgrade in the price target reflects RBC's belief in CommVault's ability to sustain similar quarterly NNARR growth throughout fiscal year 2026. The company's management has expressed confidence in continuing this momentum, which highlights the positive financial trajectory for CommVault Systems.

References:
[1] https://simplywall.st/stocks/us/software/nasdaq-cvlt/commvault-systems/news/can-commvault-systems-cvlt-dynamodb-innovation-strengthen-it
[2] https://www.investing.com/news/analyst-ratings/commvault-stock-price-target-raised-to-189-from-173-at-cantor-fitzgerald-93CH-4159662