Guggenheim Increases Commvault Price Target
Investment firm Guggenheim has raised its price target for Commvault Systems from $175 to $200, maintaining its Buy rating after the data protection and cybersecurity software company reported stronger-than-expected subscription performance.
The revised target reflects confidence in Commvault’s growing software-as-a-service (SaaS) business, improved financial outlook and demand for data protection and cyber resilience solutions.
The analyst update followed Commvault’s second-quarter fiscal 2027 results, announced on October 27, 2026. The company reported growth across subscription revenue and annual recurring revenue, supported by continued adoption of its cloud-based services.
SaaS and Subscription Revenue Drive Growth
Commvault reported second-quarter subscription revenue of $269 million, representing a 21% increase year over year. SaaS revenue reached $106 million, up 33% from the same period a year earlier.
Subscription annual recurring revenue (ARR), which measures the annualised value of recurring subscription business, reached $1.104 billion, an increase of 20% year over year.
The company also generated $51 million in net new subscription ARR during the quarter. This was approximately $6 million to $7 million above consensus expectations cited in the analyst report.
These results strengthened the outlook for Commvault’s recurring-revenue business and supported Guggenheim’s decision to increase its price target.
Company Raises Fiscal 2027 Outlook
Alongside its quarterly results, Commvault updated its financial guidance for fiscal 2027.
The company now expects full-year subscription revenue of between $1.127 billion and $1.133 billion. Its subscription ARR forecast stands at $1.205 billion to $1.215 billion.
Commvault also expects free cash flow of $255 million to $265 million for the full fiscal year.
The revised outlook indicates that management expects continued demand for its subscription offerings while maintaining a focus on profitability and cash generation.
Cyber Resilience Adds to Business Momentum
Commvault provides data protection, recovery and cyber resilience solutions that help organisations protect critical information and restore operations following disruptions.
As enterprises adopt cloud services and expand their use of AI, the volume and complexity of business data continue to grow. This increases the importance of reliable data recovery, identity protection and security capabilities.
Commvault has continued to develop its offerings in these areas. Recent product initiatives include improvements to Active Directory recovery and the integration of Threat Scan with Google Threat Intelligence to help organisations identify clean recovery points more efficiently.
These developments support the company's efforts to address enterprise security and recovery requirements.
Investors Continue to Assess Valuation
Guggenheim’s higher price target reflects confidence in Commvault’s growth prospects, but it does not guarantee future share-price gains. The company’s market valuation and its ability to sustain subscription growth remain important considerations for investors.
The analyst’s decision highlights the importance of recurring revenue, SaaS adoption and improved guidance in evaluating enterprise software businesses.
Going forward, investors will watch whether Commvault can maintain its subscription momentum, meet its fiscal 2027 targets and convert revenue growth into sustainable cash flow.
