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].