Commvault stock rocketed higher Tuesday after the cloud-based data backup and security software company reported strong fiscal first-quarter results and raised its fiscal year guidance.
Commvault said in a news release that it earned an adjusted $1.01 per share for the June-ended quarter, up 19% from a year earlier. That topped the 97 cents per share that analysts polled by FactSet were forecasting. Sales increased 26% year-over-year to $282 million, compared to analyst estimates of $268 million.
On the stock market today, Commvault stock rose more than 18% to close at 193.27. Shares rocketed back above Commvault's 50-day moving average and closed at a record high for the first time since June 9.
Founded in 1996, Commvault offers what is calls a cyber resilience platform. Its software allows companies to back-up data and defend against breaches.
Commvault's revenue growth has accelerated for six consecutive quarters, helped by its shift to a cloud-based subscription model. That has helped Commvault stock rally nearly 60% over the past 12 months and more than 140% since the start of 2024.
Commvault Chief Financial Officer Jen DiRico said the June-quarter results highlighted the company's strong execution and momentum for its broader offerings.
"The market for cyber resilience is growing and the demand is incredibly strong from a customer base perspective," DiRico told IBD.
Subscription revenue increased 46% year-over-year to $182 million for June-ended period, ahead of estimates for $180 million.
Commvault also offered a stronger-than-expected sales forecast for the current quarter. The company told investors that it expects sales of about $273 million, based on the midpoint of its given range. Analysts were previously forecasting$271 million, according to FactSet.
Commvault also raised its total sales guidance for fiscal year 2026 to $1.163 billion, at the midpoint of its range, compared to the $1.135 billion the company gave in late April. Commvault's fiscal year ends March 31.
Commvault Stock: Cyber Resilience A 'Top Priority'
Prior to Tuesday's surge, Commvault's rally had slowed compared to last year. Shares were ahead 8% overall year-to-date, roughly in-line with the gain for the S&P 500.
Even with broader economic uncertainty, DiRico said Commvault's results highlight how cyber resiliency remains a "top priority for CSOs, CIOs and businesses alike," referring to chief security officers and chief information officers.
William Blair analyst Jason Ader reiterated an outperform call for Commvault stock following the report.
The strong market response shows that investors "see the fruits of Commvault's labor in the numbers and clear evidence of the company's formidable position in the crowded data protection landscape," Ader wrote to clients.
Commvault rival Rubrik gained abut 2.5% in Tuesday trading. Rubrik has rallied more than 130% since its April 2024 initial public offering.
Meanwhile, Commvault last week announced it would acquire Satori Cyber, an AI-focused data and cybersecurity company.
Coming into the report, Commvault stock had an IBD Composite Rating of 90 out of a best possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
