Commvault’s Expanded HyperScale Portfolio Might Change the Case for Investing in CVLT

• On August 27, 2025, Commvault unveiled HyperScale Edge and HyperScale Flex, expanding its HyperScale portfolio to target both edge locations and large-scale enterprise workloads amid rising cyber threats to distributed environments.
• This dual launch directly addresses the sharp increase in breaches linked to edge devices and VPNs, as highlighted by the 2024 Verizon Data Breach Investigations Report.
• We'll explore how Commvault's focus on cyber-resilient edge solutions may reshape its longer-term investment outlook.

Find companies with promising cash flow potential yet trading below their fair value.

Commvault Systems Investment Narrative Recap

For investors considering Commvault, the essential thesis revolves around its ability to capitalize on rising demand for advanced cyber-resilience as data threats intensify at the edge and in enterprise environments. The launch of HyperScale Edge and HyperScale Flex addresses this trend directly, potentially supporting Commvault’s efforts to convert more enterprise workloads and mitigating its exposure to legacy on-premises growth headwinds, but the most immediate risk, margin pressure linked to the SaaS transition, remains a dominant challenge and this news does not materially change it.

The most relevant recent announcement is the expanded partnership with HPE in June 2025, aimed at strengthening data protection capabilities across hybrid cloud environments. By enhancing offerings and deepening key alliances, Commvault is reinforcing its position as enterprises prioritize cloud and hybrid resilience, tying directly into the product catalysts highlighted with the HyperScale Edge and Flex launch.

In contrast, investors should also be aware that much of Commvault’s reported ARR growth appears concentrated in existing customer expansions rather than new client wins...

Read the full narrative on Commvault Systems (it's free!)

Commvault Systems is projected to achieve $1.5 billion in revenue and $173.1 million in earnings by 2028. This outlook assumes a 12.2% annual revenue growth rate and an earnings increase of $92 million from the current earnings of $81.1 million.

Uncover how Commvault Systems' forecasts yield a $208.09 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Community members on Simply Wall St have issued fair value estimates for Commvault ranging from US$75.61 to US$208.09, based on four analyses. While opinions vary widely, the recent emphasis on recurring SaaS revenues brings both opportunity and risk for margins, emphasizing the importance of reviewing several viewpoints before drawing your own conclusion.

Explore 4 other fair value estimates on Commvault Systems - why the stock might be worth as much as 13% more than the current price!

Build Your Own Commvault Systems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Commvault Systems research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Commvault Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Commvault Systems' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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