Commvault Systems (CVLT) is poised for subscription annual recurring revenue growth of over 20%, driven by its product innovation, demand for identity resilience products, and the mission-critical nature of its offerings, Oppenheimer said in a note Friday.
The company, scheduled to release fiscal Q1 earnings on July 28, is seen posting results at the higher end of its guidance and modestly raising its fiscal 2027 outlook for revenue as subscriber ARR growth estimates rise to a 20% to 21% range, the brokerage said.
The company has continued its rapid pace of innovation, particularly around agentic AI, and its new capabilities in the area are targeted at matching customer demand, with the novel offerings expected to add to growth in H2 of fiscal 2027, according to the note.
As agentic AI grows, the need for identity resilience will also increase, driving around 35% to 45% of net new annual recurring revenue for fiscal 2027, the brokerage said.
The mission-critical nature of cyber resilience should also protect the company from the trend of shifting budget away from software expenses, the brokerage added.
Oppenheimer reiterated its outperform rating on the stock and raised the price target to $175 from $150.
Shares of Commvault Systems were down about 2% in Friday trading.
Price: 146.83, Change: -2.94, Percent Change: -1.96
