Commvault Systems Under Investigation for Securities Compliance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy CVLT?
Source: Globenewswire
- Investigation Launched: Johnson Fistel, PLLP is investigating whether Commvault Systems, Inc. complied with federal securities laws, focusing on investor losses and potential recovery under the law.
- Earnings Disclosure: On January 27, 2026, Commvault reported a 40% growth in SaaS annual recurring revenue to $364 million, but this marked a significant deceleration from the 56% growth reported in the previous quarter.
- Stock Price Plunge: Following the earnings report, Commvault's stock price fell by $40.23, approximately 31.1%, closing at $89.13, resulting in substantial losses for investors.
- Legal Services Background: Johnson Fistel is a nationally recognized shareholder rights law firm that has recovered approximately $90.725 million for clients in securities class actions, demonstrating its strength in investor rights protection.
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Analyst Views on CVLT
Wall Street analysts forecast CVLT stock price to rise
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 87.300
Low
144.00
Averages
182.27
High
220.00
Current: 87.300
Low
144.00
Averages
182.27
High
220.00
About CVLT
Commvault Systems, Inc. is a provider of cyber resilience and data protection solutions. The Company’s cyber resilience platform combines data security and rapid recovery at enterprise scale across any workload. The Company provides these products and services for their data across many types of environments, including on-premises, hybrid and multi-cloud. Its offerings are delivered via self-managed software, software-as-a-service (SaaS), integrated appliances, or managed by partners. Its Commvault Cloud offerings are organized into three packages, such as Operational Recovery, Autonomous Recovery and Cyber Recovery. Its Operational Recovery provides backup, verifiable recovery, and cost-optimized cloud workload mobility, helping to ensure data availability and granular recovery, even across multiple clouds. In addition, it also provides customers with a range of offerings, including Cleanroom Recovery, HyperScale X, Air Gap Protect, Cloud Rewind, Clumio Backtrack and Compliance.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Financial Performance Decline: Commvault reported a 40% growth in SaaS ARR to $364 million for Q3 FY2026, but this represents a significant slowdown from the 56% growth in Q2, indicating increased competitive pressure on the company.
- Stock Price Plunge: Following the disappointing earnings report, Commvault's stock price plummeted by 31.1% on January 27, 2026, from $129.36 to $89.13, undermining investor confidence and potentially triggering further legal actions.
- Legal Investigation Initiated: Bragar Eagel & Squire, P.C. is investigating whether Commvault has violated federal securities laws, assessing potential claims on behalf of shareholders, highlighting concerns over corporate governance and compliance.
- Investor Contact Information: Affected investors are encouraged to reach out via phone or email to the law firm to understand their legal rights and possible claims, indicating that the company's legal risks may impact its future market performance.
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- Cybersecurity Trends: Gartner's 2026 cybersecurity trends report indicates that 75% of enterprise intrusions now involve compromised identity credentials, highlighting a critical shift towards identity-first attack methods that legacy defenses cannot adequately address, necessitating a strategic overhaul in security approaches.
- Market Growth Forecast: Gartner forecasts that sovereign cloud IaaS spending will reach $80 billion in 2026, with Europe, the Middle East, and Asia-Pacific experiencing the highest growth, underscoring the urgency for enterprises to adapt to accelerating data residency mandates to maintain competitiveness.
- Educational Webinar: QSE Corp is set to host a webinar titled “The Post-Quantum Shift: What Changes? What Fails? What to Do Now?” on February 17, 2026, aimed at helping organizations understand the implications of quantum computing on traditional encryption, expected to attract significant participation from IT leaders and security professionals.
- International Expansion: QSE has renewed its enterprise agreement with The Muthoot Group in India for approximately 14,000 user licenses and entered South America with a three-year security agreement supporting three Brazilian government clients, marking its initial commercial presence in the region.
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- Shift in Security Focus: Gartner's report indicates that 75% of enterprise intrusions now involve compromised identity credentials, highlighting the need for companies to transition from traditional perimeter defenses to identity-first security measures to combat emerging cyber threats.
- Webinar Announcement: QSE is set to host a webinar titled “The Post-Quantum Shift: What Changes? What Fails? What to Do Now?” on February 17, 2026, aimed at helping organizations understand the impact of quantum computing on traditional encryption methods, expected to attract a wide audience of IT leaders and security professionals.
- Global Expansion Strategy: QSE has recently renewed its enterprise agreement with The Muthoot Group in India, covering approximately 14,000 user licenses, and has entered South America with a three-year security agreement supporting three Brazilian government clients, marking its initial commercial presence in the region.
- Market Outlook: With the global post-quantum cryptography market projected to reach $17.69 billion by 2034, QSE is building both the technology platform and market education infrastructure to capture enterprise adoption opportunities as quantum threats escalate.
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- Growth Deceleration: Commvault reported a 40% growth in SaaS ARR to $364 million for Q3 FY2026, a significant slowdown from the 56% growth in Q2, which may undermine investor confidence and future projections.
- Severe Market Reaction: Following the earnings report, Commvault's stock plummeted by $40.23, or approximately 31.1%, from $129.36 on January 26, 2026, to $89.13 on January 27, indicating a strong market response to the deceleration in growth.
- Legal Investigation Initiated: Kessler Topaz Meltzer & Check, LLP is investigating potential violations of federal securities laws by Commvault, aiming to protect investor interests and assess possible legal liabilities stemming from the earnings report.
- Increased Investor Scrutiny: As the investigation unfolds, Commvault's investors may face heightened uncertainty regarding the company's future financial performance and market confidence, potentially impacting its long-term stock price trajectory.
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- Financial Performance Decline: Commvault reported a 40% growth in SaaS ARR to $364 million for Q3 FY2026, indicating a significant slowdown from the 56% growth in Q2, which may undermine investor confidence.
- Severe Market Reaction: Following the earnings report, Commvault's stock plummeted by $40.23, a decline of approximately 31.1%, dropping from a closing price of $129.36 on January 26, 2026, to $89.13 on January 27, reflecting strong market disapproval of the slowed growth.
- Investigation Background: Kessler Topaz Meltzer & Check, LLP is investigating potential violations of federal securities laws by Commvault, aiming to protect investor rights and seek possible legal remedies.
- Investor Concerns: The investigation has garnered significant attention from Commvault investors, particularly as the company’s performance falls short of expectations, potentially exposing investors to risk of losses.
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- Severe Market Drawdown: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) has fallen for seven consecutive sessions, resulting in a 16% drop, marking the worst performance since the COVID panic in 2020, indicating immense pressure on the software sector.
- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
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