CommVault Systems (CVLT +1.18%) stock is marching higher in Tuesday's trading despite a bearish backdrop for the broader market. The company's share price was up 11.6% as of 2:40 p.m. ET. Meanwhile, the S&P 500 was down 0.6%, and the Nasdaq Composite had fallen 1%.
CommVault is managing to defy momentum for the broader market today thanks to a stronger-than-expected quarterly report. The company published its latest quarterly update before the market opened today, and results handily topped Wall Street's expectations.
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CommVault's quarterly results support the bull case
Before the market opened this morning, CommVault published results for the fourth quarter of its 2026 fiscal year -- a period that ended March 31. The company announced non-GAAP (adjusted) earnings per share of $1.28 on sales of roughly $312 million for the quarter, beating the average analyst estimate's earnings forecast by $0.19 per share and the average sales estimate by roughly $5.3 million. With revenue for subscription services rising roughly 20% year over year, the business closed out the quarter with annual revenue growth of roughly 13.5% -- and earnings per share were up roughly 24% compared to the prior-year period.
NASDAQ: CVLT
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What's next for CommVault?
Strong guidance is also helping to support gains for CommVault stock today. The company said that it expects annual recurring revenue growth to increase between 18% and 19% this year -- hitting roughly $1.25 billion at the midpoint of the guidance range. Meanwhile, free cash flow for the year is projected to come in between $250 million and $260 million. Between the company's new $250 million share buyback authorization and an encouraging outlook for sales and margins, the earnings picture looks promising this year.
