Rubrik, Inc. (RBRK): Results of Operations and Financial Condition
Rubrik, Inc. (RBRK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Rubrik Reports Second Quarter Fiscal Year 2027 Financial Results • Results exceeded all guided metrics • Raising guidance for all guided metrics for fiscal year 2027 • Second quarter subscription ARR grew 33% year-over-year to $1.66 billion • Second quarter revenue grew 38% year-
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to drive immediate buying pressure, while the new AI offerings may sustain longer‑term upside.
Market read
First‑report earnings with strong metrics and guidance raise Rubrik's near‑term trade case.
What to watch
Potential execution risk on rapid AI product rollout and integration costs.
Rubrik Reports Second Quarter Fiscal Year 2027 Financial Results • Results exceeded all guided metrics • Raising guidance for all guided metrics for fiscal year 2027
Subscription ARR grew 33% year-over-year, total revenue grew 38% year-over-year, non-GAAP diluted EPS turned positive, Subscription ARR contribution margin expanded, and Rubrik raised guidance for all guided metrics for fiscal year 2027.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Subscription Annual Recurring Revenue (ARR)other | $1,660,903 (in thousands) | – | 33% |
| Cloud ARRother | $1.48 billion | – | 39% |
| Net new Subscription ARRother | up 35% year-over-year | – | 35% |
| Adjusted net new Cloud ARRother | grew 20% year-over-year | – | 20% |
| Total revenueGAAP | $427,260 (in thousands) | – | 38% |
| Subscription revenueGAAP | $407,156 (in thousands) | – | 37% |
| Other revenueGAAP | $20,104 (in thousands) | – | – |
| Revenue from material rightsGAAP | $4.7 million | – | – |
| Revenue normalized for material rightsother | increased 43% year-over-year | – | 43% |
| Gross profitGAAP | $335,123 (in thousands) | – | – |
| Gross profitnon-GAAP | $345,987 (in thousands) | – | – |
| Total gross marginGAAP | 78.4% | – | – |
| Total gross marginnon-GAAP | 81.0% | – | – |
| Research and development operating expenseGAAP | $126,863 (in thousands) | – | – |
| Research and development operating expensenon-GAAP | $90,285 (in thousands) | – | – |
| Sales and marketing operating expenseGAAP | $224,453 (in thousands) | – | – |
| Sales and marketing operating expensenon-GAAP | $187,596 (in thousands) | – | – |
| General and administrative operating expenseGAAP | $55,709 (in thousands) | – | – |
| General and administrative operating expensenon-GAAP | $34,623 (in thousands) | – | – |
| Total operating expensesGAAP | $407,025 (in thousands) | – | – |
| Loss from operationsGAAP | $(71,902) (in thousands) | – | – |
| Non-GAAP operating income (loss)non-GAAP | $33,483 (in thousands) | – | – |
| Net lossGAAP | $(61,777) (in thousands) | – | – |
| Non-GAAP net income (loss)non-GAAP | $44,722 (in thousands) | – | – |
| GAAP net loss per share, basic and dilutedGAAP | $(0.30) | – | – |
| Non-GAAP net income (loss) per share, basicnon-GAAP | $0.22 | – | – |
| Non-GAAP net income (loss) per share, dilutednon-GAAP | $0.20 | – | – |
| Weighted-average shares used to compute non-GAAP net income per share, dilutednon-GAAP | 226,847 (in thousands) | – | – |
| Cash flow from operationsGAAP | $76,846 (in thousands) | – | – |
| Free cash flownon-GAAP | $65,672 (in thousands) | – | – |
| Operating cash flow marginother | 18% | – | – |
| Free cash flow marginother | 15% | – | – |
| Subscription ARR Contributionnon-GAAP | $233,102 (in thousands) | – | – |
| Subscription ARR Contribution Marginnon-GAAP | 14.0% | – | – |
| Customers with Subscription ARR of $100,000 or moreother | 3,084 customers | – | 23% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SubscriptionSubscription ARR grew 33% year-over-year to $1.66 billion as of July 31, 2026. | $407,156 (in thousands) | – | 37% |
| OtherNo segment driver was provided. | $20,104 (in thousands) | – | – |
Third Quarter Fiscal 2027 and Full Fiscal Year 2027 outlook
- RevenueThird Quarter Fiscal 2027: $429 million to $431 million. Full Fiscal Year 2027: $1,685 million to $1,693 million.
- NoteThird Quarter Fiscal 2027 non-GAAP subscription ARR contribution margin of approximately 14%.
- NoteThird Quarter Fiscal 2027 non-GAAP net income per share of $0.07 to $0.09.
- NoteThird Quarter Fiscal 2027 weighted-average shares outstanding of approximately 230 million.
- NoteFull Fiscal Year 2027 Subscription ARR between $1,880 million and $1,885 million.
- NoteFull Fiscal Year 2027 non-GAAP subscription ARR contribution margin of approximately 15.5%.
- NoteFull Fiscal Year 2027 non-GAAP net income per share of $0.47 to $0.53.
- NoteFull Fiscal Year 2027 weighted-average shares outstanding of approximately 228 million.
- NoteFull Fiscal Year 2027 free cash flow of $323 million to $333 million.
What drove it
- Subscription ARR grew 33% year-over-year to $1.66 billion as of July 31, 2026.
- Cloud ARR grew 39% year-over-year to $1.48 billion as of July 31, 2026.
- Subscription ARR contribution margin improved to 14.0% from 9.4%, reflecting strong net new subscription ARR and improvement in operating leverage.
- Rubrik launched Rubrik AI, Rubrik Agent Cloud for Anthropic’s Claude Code, and Autonomous Business Recovery for cloud applications.
- Rubrik advanced Identity Resilience through the acquisition of Strata.io and introduced Identity Roll Forward and Identity Continuity capabilities.
Concerns
- GAAP gross margin was 78.4%, compared to 79.5% in the second quarter of fiscal 2026.
- Non-GAAP gross margin was 81.0%, compared to 81.6% in the second quarter of fiscal 2026.
- Rubrik reported a GAAP net loss of $(61,777) (in thousands).
- Operating cash flow margin was 18%, compared to 21% in the second quarter of fiscal 2026, and free cash flow margin was 15%, compared to 19%.
- Convertible senior notes, net were $1,132,895 (in thousands) as of July 31, 2026.
What to watch
- Execution against third-quarter revenue guidance of $429 million to $431 million.
- Progress toward full fiscal year 2027 Subscription ARR of $1,880 million to $1,885 million.
- Subscription ARR contribution margin relative to approximately 14% for the third quarter and approximately 15.5% for full fiscal year 2027.
- Full fiscal year 2027 free cash flow relative to guidance of $323 million to $333 million.
- Cloud ARR growth and adjusted net new Cloud ARR growth following the reported 39% and 20% year-over-year growth rates.
Balance sheet and cash flow
- Cash and cash equivalents were $416,166 (in thousands) as of July 31, 2026, compared to $380,196 (in thousands) as of January 31, 2026.
- Short-term investments were $1,331,483 (in thousands) as of July 31, 2026, compared to $1,295,579 (in thousands) as of January 31, 2026.
- Cash, cash equivalents, and short-term investments were $1.75 billion as of July 31, 2026.
- Convertible senior notes, net were $1,132,895 (in thousands) as of July 31, 2026, compared to $1,130,721 (in thousands) as of January 31, 2026.
- Deferred revenue was $1,179,553 (in thousands) current and $750,223 (in thousands) noncurrent as of July 31, 2026.
- For the six months ended July 31, 2026, net cash provided by operating activities was $158,535 (in thousands), compared to $104,379 (in thousands).
- For the six months ended July 31, 2026, free cash flow was $139,285 (in thousands), compared to $90,883 (in thousands).
- For the six months ended July 31, 2026, net cash used in investing activities was $(83,755) (in thousands), compared to $(701,712) (in thousands).
- For the six months ended July 31, 2026, net cash used in financing activities was $(35,197) (in thousands), compared to net cash provided by financing activities of $727,098 (in thousands).
Analysis
Rubrik delivered a high-growth second quarter, with total revenue of $427,260 (in thousands), up 38% year-over-year, and subscription revenue of $407,156 (in thousands), up 37%. Subscription ARR reached $1,660,903 (in thousands), up 33% year-over-year, while Cloud ARR grew 39% year-over-year to $1.48 billion. Net new Subscription ARR was up 35% year-over-year, and adjusted net new Cloud ARR grew 20% year-over-year. The company also reported 3,084 customers with Subscription ARR of $100,000 or more, up 23% year-over-year.
Profitability improved materially on a non-GAAP basis. Non-GAAP operating income was $33,483 (in thousands), compared to a non-GAAP operating loss of $(4,374) (in thousands), and non-GAAP diluted net income per share was $0.20, compared to a non-GAAP diluted net loss per share of $(0.03). GAAP operating loss narrowed to $(71,902) (in thousands) from $(94,463) (in thousands), while GAAP net loss narrowed to $(61,777) (in thousands) from $(95,929) (in thousands). The reconciliation shows stock-based compensation expense of $101,018 (in thousands) during the quarter.
Margin trends were mixed. GAAP gross margin was 78.4%, compared to 79.5%, and non-GAAP gross margin was 81.0%, compared to 81.6%. In contrast, Subscription ARR Contribution Margin improved to 14.0% from 9.4%, which Rubrik attributed to strong net new subscription ARR and better operating leverage. Operating cash flow was $76,846 (in thousands), compared to $64,724 (in thousands), and free cash flow was $65,672 (in thousands), compared to $57,543 (in thousands). However, operating cash flow margin was 18% versus 21%, and free cash flow margin was 15% versus 19%.
The balance sheet reported $416,166 (in thousands) of cash and cash equivalents and $1,331,483 (in thousands) of short-term investments, while convertible senior notes, net were $1,132,895 (in thousands). Rubrik did not report dividends or share repurchases. Product activity centered on Rubrik AI, Agent Cloud, autonomous recovery, data intelligence, and identity resilience, including the Strata.io acquisition.
The outlook calls for third-quarter revenue of $429 million to $431 million, non-GAAP subscription ARR contribution margin of approximately 14%, and non-GAAP net income per share of $0.07 to $0.09. For full fiscal year 2027, Rubrik guided to Subscription ARR of $1,880 million to $1,885 million, revenue of $1,685 million to $1,693 million, non-GAAP subscription ARR contribution margin of approximately 15.5%, non-GAAP EPS of $0.47 to $0.53, and free cash flow of $323 million to $333 million. The filing states that Rubrik raised guidance for all guided metrics.
Management, verbatim
Mythos and frontier AI models have fundamentally changed the cybersecurity landscape. This new reality demands not only machine speed cyber recovery but also autonomous runtime AI agent security. Rubrik’s Agentic Cyber Resilience delivers on both to enable trusted AI transformation. We are more confident than ever that we are in the early innings of the AI acceleration opportunity.
Bipul Sinha, Chief Executive Officer, Chairman, and Co-Founder
Subscription ARR growth of 33%, expanding Subscription ARR contribution margins, and a raised outlook are a testament to our confidence in our solid execution at scale. We are pleased to enter the second half of fiscal year 2027 from a position of strength.
Kiran Choudary, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Prior-quarter comparisons were not reported for the presented quarterly metrics.
- GAAP operating income guidance was not provided.
- GAAP net income or loss per share guidance was not provided.
- Gross margin guidance was not provided.
- Operating expense guidance was not provided.
- Tax rate guidance was not provided.
- Dividend information was not provided.
- Share repurchase information was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Rubrik's 8‑K filing provides the first public disclosure of its Q2 FY2027 financials and forward outlook.
Ticker impact
Rubrik reported Q2 FY2027 results with 38% revenue growth, raised full-year guidance and announced new AI products.
Potential short-term price rally of 5‑8% on earnings day.
Revenue and ARR beat expectations, guidance raised, and product launches signal continued growth; market typically rewards such beats.
Market effects
Highlights strength in cloud security and AI‑driven cyber‑resilience, supporting sector peers.
Positive for US tech and cybersecurity stocks.
Reinforces global demand for AI‑enabled security solutions.
Counterpoint
If guidance falls short of analyst expectations, the stock could face a pull‑back despite the beat.
Key entities
- companyRubrik, Inc.
Cybersecurity and AI operations firm reporting earnings.
- executiveBipul Sinha
CEO and Co‑Founder who highlighted AI acceleration opportunity.
