Why Commvault Systems Stock Plunged More Than 30% Today
2026-01-27 15:49:51 ET
Shares of data protection specialist Commvault Systems (NASDAQ: CVLT) tumbled on Tuesday. On the heels of a strong earnings report with uninspiring next-quarter guidance , the stock fell as much as 34.7% in the morning session. As of 3 p.m. ET, Commvault had recovered slightly to a 31.8% drop.
Commvault's third-quarter sales rose 19% year over year, landing at $314 million. The average analyst had expected roughly $299 million. On the bottom line, adjusted earnings rose 24% to $1.17 per diluted share. Here, the Street consensus was $0.98.
Management's revenue target for the fourth quarter was in line with the current analyst consensus near $306 million. That's not good enough to support a stock trading at 73 times trailing earnings on Monday afternoon, just before the report. Simply put, investors expected better near-term growth prospects.
NASDAQ: CVLT
CVLT Trading
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