Investing RBRK Surges 13% After Crushing Q3 FY26 Earnings Quick Read ByJoel South Published 4 minutes ago Skip to content S&P 500 6,860.00 +0.03% Dow Jones 47,854.50 -0.30% Nasdaq 100 25,598.20 -0.07% Russell 2000 2,533.11 +0.84% FTSE 100 9,711.80 0.00% Nikkei 225 50,619.00 +1.51% Stock Market Live December 4: S&P 500 (SPY) Flat Ahead of Potential Rate Cuts This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. How to Ad ...

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]