Core Insights - Rubrik (RBRK) reported third-quarter fiscal 2026 non-GAAP earnings of 10 cents per share, significantly exceeding the Zacks Consensus Estimate by 158.82%, compared to a loss of 21 cents per share in the same quarter last year. Total revenues reached $350.2 million, surpassing the consensus mark by 9.11% and reflecting a 48% year-over-year increase. Rubrik's shares rose by 18.78% in after-market trading [1][8]. Revenue Performance - Subscription revenues, which constitute 96.1% of total revenues, increased by 51.9% year over year to $336.4 million, beating the Zacks Consensus Estimate by 8.84%. The subscription Net Retention Rate (NRR) exceeded 120%. Cloud Annual Recurring Revenue (ARR) grew to $1,175 million, marking a 53% year-over-year increase [2]. - Subscription Annual Recurring Revenue (ARR) reached $1.35 billion, representing a 34% year-over-year growth. Net New Subscription ARR hit a record $94 million, indicating strong customer acquisition and expansion. The number of customers contributing over $100K in subscription ARR rose to 2,638, a 27% year-over-year increase, with these large customers now accounting for 86% of Rubrik's subscription ARR, up from 83% the previous year [3]. Customer Growth - Rubrik added a record 23 new customers with subscription ARR exceeding $1 million, contributing to over 50% growth in its $1 million subscription base. The company maintained a high Net Promoter Score of over 80, placing it in the top 1% of enterprise software companies globally [4]. Operating Metrics - On a non-GAAP basis, gross margin improved by 400 basis points year over year to 83%. Research and development expenses rose by 20.2% year over year to $68.4 million, while sales and marketing expenses increased by 24.3% to $163.3 million. General and administrative expenses surged by 61.1% to $48.1 million [5]. - The operating income was reported at $10.1 million on a non-GAAP basis, a significant improvement from the operating loss of $31.2 million in the same quarter last year [6]. Financial Position - As of October 31, 2025, cash and cash equivalents and short-term investments totaled $1.60 billion, up from $1.52 billion as of July 31, 2025. The company generated a cash flow from operations of $85.5 million, compared to $64.7 million in the previous quarter [7]. - Free cash flow was reported at $76.9 million, an increase from $57.5 million as of July 31, 2025 [9]. Future Guidance - For the fourth quarter of fiscal 2026, Rubrik anticipates revenues between $341 million and $343 million, indicating approximately 33% year-over-year growth. The expected non-GAAP loss per share is projected to be between 12 cents and 10 cents. The company also expects a non-GAAP subscription ARR contribution margin of approximately 9% [10]. - For fiscal 2026, Rubrik forecasts revenues between $1.280 billion and $1.282 billion, reflecting an approximate 44% year-over-year growth. Subscription ARR is expected to be between $1,439 million and $1,443 million, with a projected non-GAAP loss per share between 20 cents and 16 cents. Free cash flow is anticipated to be between $194 million and $202 million [11].

Market Performance - U.S. stocks showed positive movement with the Nasdaq Composite gaining approximately 0.2% on Friday, while the Dow increased by 0.17% to 47,933.71, and the S&P 500 rose by 0.15% to 6,867.40 [1] - Communication services sector saw a notable increase of 0.9%, while utilities stocks experienced a decline of 0.6% [1] Economic Indicators - The U.S. PCE price index rose by 0.3% month-over-month in September, consistent with the previous month and aligning with market expectations [2][11] - U.S. personal income increased by 0.4% month-over-month to $26.397 trillion in September [8] Commodity Prices - Oil prices increased by 0.7% to $60.08, while gold rose by 0.1% to $4,245.70. Silver saw a significant increase of 2.7% to $59.035, and copper rose by 1.2% to $5.4385 [5] Company News - Praxis Precision Medicines Inc shares surged by 31% to $248.00 following the completion of its pre-NDA meeting with the FDA [9] - DigitalBridge Group Inc shares increased by 32% to $12.86 amid reports of SoftBank's interest in acquiring the company [9] - Rubrik Inc shares rose by 23% to $86.80 after reporting better-than-expected third-quarter results and raising its FY26 guidance [9] - Parsons Corp shares dropped by 25% to $62.97 after losing a joint bid with IBM for a new air traffic control system [9] - Sportsman's Warehouse Holdings Inc shares fell by 30% to $1.70 following disappointing third-quarter results [9] - Domo Inc shares decreased by 23% to $8.87 after reporting third-quarter results and issuing lower-than-expected fourth-quarter sales guidance [9]

U.S. Stock Market Performance - U.S. stocks traded higher, with the Nasdaq Composite gaining around 0.2% on Friday [1] - The Dow increased by 0.17% to 47,933.71, while the NASDAQ rose 0.16% to 23,543.03, and the S&P 500 gained 0.15% to 6,867.40 [1] - Communication services shares jumped by 0.9%, while utilities stocks fell by 0.6% [1] Economic Indicators - The U.S. PCE price index increased by 0.3% month-over-month in September, consistent with the previous month and market estimates [2][11] - U.S. personal income rose by 0.4% month-over-month to $26.397 trillion in September [8] Commodity Market - Oil traded up 0.7% to $60.08, gold increased by 0.1% to $4,245.70, silver rose by 2.7% to $59.035, and copper gained 1.2% to $5.4385 [5] Company-Specific Movements - Praxis Precision Medicines Inc shares surged 31% to $248.00 after announcing completion of its pre-NDA meeting with the FDA [9] - DigitalBridge Group Inc shares increased by 32% to $12.86 following reports of SoftBank's interest in acquiring the company [9] - Rubrik Inc shares rose 23% to $86.80 after reporting better-than-expected third-quarter results and raising FY26 guidance [9] - Parsons Corp shares dropped 25% to $62.97 after losing a joint bid with IBM for a new air traffic control system [9] - Sportsman's Warehouse Holdings Inc shares fell 30% to $1.70 after reporting third-quarter results [9] - Domo Inc shares decreased by 23% to $8.87 after reporting third-quarter results and issuing lower-than-expected fourth-quarter sales guidance [9]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Insights - Rubrik Inc (NYSE:RBRK) stock has surged by 24.6% to $87.82 following the release of better-than-expected third-quarter earnings and revenue, along with a reduction in its full-year loss forecast [1] - Four analysts have raised their price targets for the stock after the earnings report [1] Stock Performance - RBRK is trading at its highest levels since mid-September, marking its best daily percentage gain since March 14, with a year-to-date increase of 34.2% [2] - The stock has gapped above recent pressure at the 30-day moving average, indicating a strong upward trend [2] Short Interest and Trading Activity - Short interest in RBRK represents 9% of its available float, with nearly four days required for short positions to cover at the stock's average trading pace [2] - Options trading has seen significant activity, with 27,000 calls and 13,000 puts exchanged, which is 14 times the average daily amount [3] - The most popular option is the weekly 12/5 77.50-strike put, with new positions being sold to open [3]

Upgrades - Rubrik (RBRK) upgraded to Outperform from Market Perform due to "stellar beat-and-raise results" and ongoing share gains in the cyber-resilience market [2] - Corpay (CPAY) upgraded to Outperform from Perform with a price target of $380, as shares offer "growth at a discount" [2] - Humana (HUM) upgraded to Buy from Hold with a price target increased to $313 from $253, following an analysis of the company's Stars diversification effort [2] - Unity (U) upgraded to Overweight from Equal Weight with a price target raised to $51 from $42, based on a positive outlook for the mobile game advertising industry in 2026 [3] - Dollar General (DG) upgraded to Buy from Accumulate with a price target of $140, noting strong traffic growth compared to Dollar Tree (DLTR) [3] Downgrades - Argan (AGX) downgraded to Hold from Buy with a price target raised to $325 from $260, citing a top-tier valuation despite strong execution and a $3B backlog [4] - AIG (AIG) downgraded to Equal Weight from Overweight with a price target reduced to $88 from $95, due to limited attractive growth opportunities in the current pricing environment [4] - Synchrony (SYF) downgraded to Neutral from Outperform with an unchanged price target of $82, as lower end consumer exposure makes shares less appealing after a recent rally [4] - Parsons (PSN) double downgraded to Market Perform from Strong Buy without a price target, following the FAA's decision to award a significant contract to Peraton [4] - Kosmos (KOS) double downgraded to Underperform from Buy with a price target lowered to $1 from $3.40, after cutting brent oil price forecasts for 2026 and 2027 to $60 and $62 per barrel respectively [4]

Group 1 - Rubrik's stock surged nearly 17% in pre-market trading following the announcement of its Q3 FY2026 results, which showed a 48% year-over-year revenue growth reaching $350.2 million [1] - The company reported record net new subscription annual recurring revenue (ARR) and free cash flow for the quarter [1] - Rubrik has raised its outlook for FY2026 and anticipates a strong finish for the current fiscal year [1] Group 2 - The closing price of Rubrik's stock was $71.410, with a pre-market price of $82.210, reflecting a 16.73% increase [2] - The stock's trading volume was 8.9371 million shares, with a market capitalization of $13.907 billion [2] - The stock has a 52-week high of $103.000 and a low of $47.350, indicating significant volatility [2]

Core Insights - Rubrik, Inc. reported quarterly earnings of $0.1 per share, exceeding the Zacks Consensus Estimate of a loss of $0.17 per share, and showing improvement from a loss of $0.21 per share a year ago [1] - The company achieved revenues of $350.17 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 9.11% and increasing from $236.18 million year-over-year [2] - Rubrik, Inc. has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Financial Performance - The earnings surprise for the recent quarter was +158.82%, and the company also delivered a surprise of +90.91% in the previous quarter [1] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $325.2 million, and for the current fiscal year, it is -$0.49 on revenues of $1.23 billion [7] Market Position - Rubrik, Inc. shares have increased by approximately 9.3% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The Zacks Industry Rank for Internet - Software is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] Future Outlook - The sustainability of Rubrik, Inc.'s stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Rubrik, Inc. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Subscription ARR reached $1.35 billion, growing 34% year over year [5][24] - Net new subscription ARR reached a record $94 million [5][24] - Subscription revenue was $336 million, growing 52% year over year [5][26] - Total revenue was $350 million, up 48% [26] - Free cash flow was $77 million, compared to $16 million in the same quarter last year [29] Business Line Data and Key Metrics Changes - Subscription NRR remained above 120% [5][25] - Customers with $100K or more in subscription ARR reached 2,638, growing 27% year over year [6][25] - The identity resilience platform achieved about $20 million in subscription ARR, with significant growth in the number of identity customers [15][81] Market Data and Key Metrics Changes - Revenue from the Americas grew 51% to $256 million [26] - Revenue from outside the Americas grew 41% to $94 million [26] - Cloud ARR reached $1.17 billion, up 53% [24] Company Strategy and Development Direction - The company aims to lead in the security and AI operations space, focusing on cyber resilience and AI transformation [7][9] - Rubrik's strategy includes expanding its product offerings in data protection, identity resilience, and AI operations [10][18] - The company is investing in R&D and go-to-market strategies to enhance its offerings and market penetration [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for cyber resilience solutions and the growth potential in the AI sector [23][30] - The company anticipates continued strong performance and is raising its outlook for the fourth quarter and full year [23][31] Other Important Information - The company has launched Rubrik Agent Cloud, a new product suite for managing AI agents [18][21] - The integration with Microsoft Copilot Studio and Amazon Bedrock is expected to enhance the capabilities of Rubrik Agent Cloud [21][68] Q&A Session Summary Question: How additive can identity be to an average data protection deal? - Identity is completely additive to the deal, serving as a net new buyer for Rubrik, particularly in the CISO organization [37][38] Question: What is driving the acceleration in legacy replacement bookings? - The acceleration is driven by the need for modernization ahead of AI and the recognition of the risks posed by cyber attacks [46] Question: How is the platform expansion influencing sales strategy? - The strategy remains focused on being a true platform company, making it easier for customers to adopt and consume Rubrik products [53][54] Question: How is Rubrik positioned to capture the AI agent opportunity? - Rubrik is well-positioned due to its focus on data, identity, and business applications, providing a complete agentic operations platform [59][60] Question: What is the monetization strategy for Rubrik Agent Cloud? - Rubrik Agent Cloud is a separate product suite, and customer feedback has been strong during its beta phase [70]

Financial Data and Key Metrics Changes - Subscription ARR reached $1.35 billion, growing 34% year over year [4][21] - Net new subscription ARR reached a record $94 million [4][21] - Subscription revenue was $336 million, growing 52% year over year [4][23] - Subscription NRR remained strong, above 120% [4][22] - Free cash flow was $77 million, compared to $16 million in the same quarter last year [5][25] Business Line Data and Key Metrics Changes - Data protection, identity resilience, and AI operations are the three main business lines [8] - Identity resilience platform achieved approximately $20 million in subscription ARR, doubling the number of identity customers in Q3 [12][49] - Cloud ARR reached $1.17 billion, up 53% [21] - The number of customers with $100,000 or more in subscription ARR grew 27% to 2,638 [22] Market Data and Key Metrics Changes - Revenue from the Americas grew 51% to $256 million, while revenue from outside the Americas grew 41% to $94 million [23] - The company continues to see strong adoption of its Rubrik Security Cloud, contributing to overall revenue growth [21] Company Strategy and Development Direction - The company aims to lead in the security and AI operations space, focusing on cyber resilience and AI transformation [5][6] - Rubrik's strategy includes expanding its product offerings to address the evolving cyber landscape and the rise of AI agents [7][16] - The company plans to invest in R&D and go-to-market strategies to enhance its offerings in data, security, and AI [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust cyber resilience market and strong demand for their offerings [20][26] - The company raised its outlook for Q4 and the full fiscal year 2026, anticipating continued strong performance [20][27] - Management highlighted the importance of understanding risks associated with cyber breaches and the need for effective recovery solutions [6][49] Other Important Information - The company has launched Rubrik Agent Cloud, a new product suite aimed at managing AI agents safely and confidently [16][18] - The integration with Microsoft Copilot Studio and Amazon Bedrock is expected to enhance the capabilities of Rubrik Agent Cloud [18][44] Q&A Session Summary Question: How additive can identity be to an average data protection deal? - Identity is completely additive to the deal, creating new budget and targeting the CISO organization [30] Question: What is driving the acceleration in legacy replacement bookings? - The acceleration is driven by the need for modernization ahead of AI and the recognition of the risks posed by cyber attacks [34] Question: How is the platform expansion influencing the sales strategy? - The strategy remains focused on providing a comprehensive platform that enhances customer value through multiple product adoption [36] Question: What is the outlook for net new ARR going into 2027? - Net new ARR is expected to show some quarterly movements, but the focus should be on the annual number [51] Question: Is Rubrik's platform playing a role in lowering insurance premiums for customers? - Yes, having both identity resilience and cyber recovery is attractive for insurance companies, leading to potential recommendations [53] Question: What is the go-to-market strategy for the agent market? - The focus is on operationalizing agents and providing governance controls, with expectations for a gradual market emergence [56]