Shares of CommVault Systems (CVLT) plunged 8.04% in pre-market trading on Tuesday, following the release of the company's fiscal first-quarter results and its full-year outlook.
The sell-off came after the data protection and management software provider issued a full-year revenue forecast that fell short of Wall Street expectations. CommVault said it expects fiscal 2027 subscription revenue in the range of $1.119 billion to $1.129 billion, which was below analysts' estimates. The weaker-than-expected outlook overshadowed a quarterly beat on both the top and bottom lines, with adjusted earnings of $1.42 per share surpassing the consensus estimate of $1.16 and revenue coming in above projections.
While the company's first-quarter results showed solid growth in subscription revenue and annual recurring revenue, the cautious annual guidance prompted investors to sell the stock in the pre-market session.