Core Insights - Rubrik (NYSE: RBRK) reported strong fiscal Q3 results, exceeding expectations in both revenue and profitability, leading to a significant stock price increase in after-hours trading [3][5][10] Financial Performance - Revenue reached $350.2 million, surpassing the consensus estimate of $325.6 million, marking a 48% year-over-year increase [6][11] - Subscription revenue grew by 52% to $336.4 million, indicating effective scaling of the business model [6][11] - The company achieved a non-GAAP EPS of $0.10, compared to an expected loss of $0.17, marking a significant positive surprise [5][11] - Free cash flow surged to $76.9 million, up 394% year-over-year, while operating cash flow was reported at $85.5 million [7][11] Profitability Metrics - Non-GAAP gross margin expanded to 82.8%, an increase of 360 basis points from the previous year, reflecting improved operating leverage [7][11] - Rubrik posted its first positive non-GAAP operating income of $10.1 million, signaling progress towards sustained profitability [8][11] Future Outlook - Management raised the full-year revenue guidance to between $1.280 billion and $1.282 billion, with Q4 revenue expected to be between $341 million and $343 million [9][11] - The full-year non-GAAP net loss per share is now projected to be between $0.20 and $0.16, indicating a tighter range and reflecting a shift towards profitability [9][11] Strategic Initiatives - CEO Bipul Sinha highlighted the company's focus on AI transformation and new product launches, including Rubrik Agent Cloud and Rubrik Okta Recovery, which are expected to drive future growth [10] - Partnerships with CrowdStrike and Cognizant were emphasized as strategic moves to enhance offerings in data protection and cyber resilience [10] Market Position - Rubrik's stock trades at approximately 13 times trailing sales, indicating a premium valuation as the market anticipates continued execution on its profitability roadmap [12] - Analysts remain optimistic, with 21 buy ratings and a consensus price target of $114, suggesting potential upside from current levels [12]

Core Insights - Rubrik (RBRK) is experiencing significant growth in subscription revenue, reaching $297 million in Q2 of fiscal 2026, a 55% year-over-year increase [1][10] - The company's Annual Recurring Revenue (ARR) surpassed $1.25 billion, reflecting a 36% year-over-year growth, with $71 million in net new subscription ARR added in Q2 [2][10] - Cloud ARR grew 57% year-over-year to $1.1 billion, driven by the adoption of Rubrik Security Cloud and new offerings [3][10] Subscription Revenue Growth - Subscription revenue reached $297 million in Q2 fiscal 2026, marking a 55% increase year-over-year [1][10] - The subscription ARR surpassed $1.25 billion, with a 36% year-over-year increase and $71 million in net new subscription ARR added in Q2 [2][10] - Customers with over $100K in subscription ARR grew by 27% year-over-year, totaling 2,505, contributing 85% of total subscription ARR [2] Cloud Solutions and Product Expansion - Rubrik's focus on cloud-based solutions has significantly bolstered subscription revenue, with Cloud ARR growing 57% year-over-year to $1.1 billion [3][10] - The company announced expanded immutability for Amazon RDS for PostgreSQL and comprehensive protection for Amazon DynamoDB, reinforcing its leadership in cloud data protection [3] - The launch of Rubrik Okta Recovery provides automated, immutable backups and granular recovery for Okta Identity Provider environments, extending identity protection capabilities [4] Competitive Landscape - Rubrik faces competition from various data management and protection vendors, including Commvault and IBM [5] - Commvault launched Clumio for Apache Iceberg on AWS, enhancing data lakehouse protection and compliance [6] - IBM's growth is expected to be driven by analytics, cloud computing, and security, with a focus on hybrid and multi-cloud environments [7] Stock Performance and Valuation - RBRK shares have gained 20.3% year-to-date, outperforming the broader Zacks Computer & Technology sector's return of 23% [8] - RBRK is considered overvalued, with a forward 12-month Price/Sales ratio of 10.7X compared to the sector's 6.92X [11] - The Zacks Consensus Estimate for fiscal 2026 loss is pegged at 49 cents per share, unchanged over the past 30 days [13]

Core Insights - Rubrik (RBRK) shares have increased by 19.6% year-to-date, underperforming the broader Zacks Computer and Technology sector's 22.8% return due to challenging macroeconomic conditions and intense competition in the cybersecurity market [1] - The company has outperformed the Zacks Internet - Software sector, which rose by 18.2%, driven by a growing client base and increased demand for data security solutions [2] Company Performance - In Q2 of fiscal 2026, Rubrik's subscription ARR exceeded $1.25 billion, marking a 36% year-over-year growth, with net new subscription ARR of $71 million [2] - The number of customers with over $100K in subscription ARR increased by 27% year-over-year, reaching 2,505 customers as of July 31, 2025 [5] - Cloud ARR grew by 57%, reaching $1.1 billion, driven by the adoption of the Rubrik Security Cloud platform [5] Product and Service Expansion - In July 2025, Rubrik expanded its cloud data protection portfolio, introducing support for Amazon DynamoDB and a cyber resilience solution for Amazon RDS for PostgreSQL [6][7] - In September 2025, Rubrik announced a broader integration with CrowdStrike, enhancing unified identity security through real-time detection and rollback of harmful identity changes [8] - The launch of Rubrik Okta Recovery in September 2025 provides automated, immutable backups for Okta Identity Provider environments, extending identity protection capabilities [10] - The integration of AMD EPYC processors enhances computing efficiency and scalability across Rubrik's platform [11] - The acquisition of Predibase in Q2 of fiscal 2026 aims to accelerate the use of agentic AI, improving accuracy and automating data governance [12] Financial Outlook - For Q3 fiscal 2026, Rubrik expects a non-GAAP loss between 18 cents and 16 cents per share, with revenues projected between $319 million and $321 million, indicating a year-over-year revenue increase of 35.57% [13] - The Zacks Consensus Estimate for Q3 revenues is currently at $320.18 million [13] Valuation and Market Position - Rubrik's stock is currently trading at a premium, with a forward 12-month Price/Sales ratio of 10.65, higher than the broader sector's 6.90 [14] - The expanding clientele and strong cyber recovery solutions enhance Rubrik's competitive position in the cybersecurity market [16] Investment Rating - Rubrik stock carries a Zacks Rank 2 (Buy) and a Growth Score of A, indicating a strong investment opportunity [18]

Group 1 - Rubrik, Inc. (NYSE:RBRK) is recognized as one of the most promising new technology stocks to buy according to hedge funds [1] - The company launched its Rubrik Okta Recovery solution at Oktane 2025 in Las Vegas, aimed at protecting and restoring Okta Identity Provider environments [2][3] - The new solution enhances Rubrik's existing identity recovery capabilities for Active Directory and Entra ID, making it the only unified recovery platform for all three major Identity Providers (IdPs) [3] Group 2 - Key features of the Rubrik Okta Recovery solution include automated backups, air-gapped immutable storage, and fast, granular recovery directly within Okta tenants [3] - Rubrik, Inc. is a leading cloud data management company that provides a Zero Trust Data Security platform, helping organizations protect their data from cyberattacks, insider threats, and operational disruptions [4]