CommVault Systems (CVLT) saw its stock price plummet 13.20% in intraday trading on Tuesday, following the release of its second quarter fiscal 2026 financial results and disappointing full-year revenue guidance. The sharp decline came after the data management software company had already seen its shares fall between 5.25% and 9.3% in pre-market trading.

For the second quarter, CommVault reported revenue of $276 million, slightly beating the analyst estimate of $273.3 million. However, the company's adjusted earnings per share (EPS) of $0.91 fell short of the expected $0.94. While CommVault achieved a significant milestone by surpassing $1 billion in Annual Recurring Revenue (ARR), investors seemed more focused on the company's forward-looking projections.

The primary driver of the stock's dramatic decline appears to be CommVault's full-year revenue outlook. The company forecasted fiscal 2026 revenue in the range of $1.161 billion to $1.165 billion, which fell short of Wall Street's expectations. This tepid revenue guidance suggests CommVault may be facing headwinds in its core markets, potentially due to increased competition or slower enterprise IT spending. As a result, investors are reassessing the company's growth prospects, leading to the significant sell-off in Tuesday's trading session.