The Short Answer
Commvault stock (CVLT) has a qualitative business verdict that is HALAL, but its current filing-based financial screen FAILS on debt, liquidity, and receivables. Commvault provides data-protection, backup-and-recovery, and cyber-resilience software.
Enterprise-software development is generally permissible at the activity level. The March 31, 2026 filing reports debt/assets of 46.70%, liquidity/assets of 47.71% and receivables-plus-cash/assets of 65.23%, above the examined limits.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-15.
880.863 / 1,886.305
899.987 / 1,886.305
1,230.47 / 1,886.305
21.81 / 1,183.69
- Financial
- Fails
- Overall
- Fails
Debt/assets is 46.70% and liquidity/assets is 47.71%, both above the examined FTSE limits; receivables-plus-cash/assets is 65.23%.
- Financial
- Fails
- Overall
- Fails
Debt/assets, liquidity/assets and receivables-plus-cash/assets are above the examined MSCI limits; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets and identifiable liquidity/assets are above the examined Malaysia limits; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; the filing-based asset-ratio failures are documented independently.
Business-activity disclosure
Commvault provides data-protection, backup, cyber-resilience, cloud and information-management software and services. The core software activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for customer or end uses.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; government, surveillance, security and customer end-use allocation remains qualitative.
Purification
The filing discloses $21.810 million of interest income; ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Commvault's March 31, 2026 Form 10-K.
- Interest-bearing debt is $880.863 million of convertible notes, net of issuance costs; operating leases are excluded.
- Cash and cash equivalents are $899.987 million and trade accounts receivable are $330.483 million; no separate interest-bearing securities balance is identified.
- Fiscal-year revenue is $1,183.690 million and disclosed interest income is $21.810 million (1.84% of revenue).
- Cloud, data-protection and software activity is retained as qualitative analysis; no universal prohibited-revenue numerator is disclosed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Commvault's Business Activity
Commvault provides:
- Data protection and backup: Backup-and-recovery software across on-premises, cloud, and hybrid environments
- Cyber resilience: Ransomware-recovery, threat-detection, and data-security capabilities
- SaaS offerings: Subscription and cloud-delivered data-management and protection services
These are general-purpose enterprise-software and SaaS businesses — protecting and managing organizations' data. This is permissible at the activity level.
Concerns to Be Aware Of
1. Minor Interest Income
The filing discloses $21.810 million of interest income, or 1.84% of fiscal-year revenue. ZakatInvest does not prescribe a fixed scholar-approved purification percentage; Commvault does not currently pay a dividend.
2. Liquidity-Ratio Check
Commvault reports $899.987 million of cash against $880.863 million of convertible notes, so the net-cash position does not remove the gross debt and liquidity tests used by the examined methodologies.
3. Competitive and Transition Dynamics
The software business is competitive and subscription-transition-sensitive. This is a business and valuation consideration rather than a Sharia screen concern.
Filing-Based Ratios (March 31, 2026)
Using Commvault's latest Form 10-K (USD millions):
- Debt / total assets: 46.70% — above the examined one-third limits
- Cash + securities / total assets: 47.71%
- Receivables + cash / total assets: 65.23%
- Disclosed interest income / revenue: 1.84%
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Debt, liquidity and receivables screens fail.
- MSCI-style: Debt, liquidity and receivables screens fail; this is not an index-membership claim.
- Malaysia-style: Debt and liquidity screens fail; this is not an official classification.
Bottom Line
Commvault (CVLT) has a generally permissible software business, but its current filing-based debt, liquidity and receivables screens fail. The qualitative business verdict remains HALAL while the quantitative result is not compliant under the examined financial limits; consult the methodology you follow.
For Muslim investors seeking software exposure, CVLT sits alongside other halal-screened names like Pure Storage (PSTG) and NetApp (NTAP).
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