Is Rubrik Stock a Good Buy?

Core Viewpoint - The cybersecurity industry is considered safe from AI disruption, particularly companies like Rubrik that focus on data recovery and management rather than just prevention [1][12]. Company Overview - Rubrik's stock has decreased over 45% from its all-time high in mid-2025, yet the company is thriving, presenting a compelling investment opportunity [2]. - The current stock price is $54.55, with a market cap of $11 billion [5]. Business Model and Performance - Rubrik provides enterprises with solutions for safe data storage and recovery in the event of cyberattacks, which allows it to avoid reputational risks faced by competitors [4]. - The company’s annual recurring revenue (ARR) increased by 34% year-over-year to $1.35 billion in Q3 2025, driven by a 27% growth from customers spending over $100,000 annually [6]. - Rubrik generates positive free cash flow, which is growing rapidly on a per-share basis, with the stock trading at 44 times its free cash flow [7]. Market Position and Valuation - Despite some perceptions of high valuation, Rubrik's rapid growth and profitability justify its current stock price [9]. - The company is expected to achieve approximately 40% year-over-year revenue growth for the upcoming fourth quarter, with preliminary results indicating even better performance than guidance [12]. Industry Context - AI agents present new security risks as they access enterprise data, but Rubrik's platform allows for controlled access and offers solutions to reverse potential mistakes made by AI [11]. - The cybersecurity sector is viewed as resilient against AI disruption, with Rubrik proactively addressing emerging challenges [12].