CommVault Systems (CVLT) shares plummeted 16.17% in intraday trading on Tuesday, extending a sharp pre-market sell-off after the company's fiscal first-quarter 2027 earnings release.
The steep decline was triggered by the company's full-year revenue guidance, which came in below Wall Street expectations. CommVault forecast fiscal 2027 subscription revenue between $1.119 billion and $1.129 billion, falling short of analysts' estimates. The weak outlook overshadowed the company's quarterly beat on both the top and bottom lines, with adjusted earnings of $1.42 per share surpassing the consensus estimate of $1.16 and revenue of $314.1 million exceeding the $310.4 million forecast.
Despite solid year-over-year growth in subscription revenue and annual recurring revenue, the cautious annual guidance prompted investors to offload the stock, driving the intraday decline.
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