Rubrik (RBRK) Announces Third Quarter Fiscal Year 2026 Financial Earnings Results

Rubrik, Inc. (RBRK) today announced its financial results for the most recent quarter, revealing a revenue of $350.2 million, which surpassed analysts’ expectations by approximately $29.7 million. However, the company reported a diluted earnings per share of -$0.32, missing the estimate of -$0.17 by a notable margin. Despite the earnings miss, Rubrik’s strong revenue performance highlights its continued growth in the competitive data management market.

Key Highlights

• Rubrik reported a 34% year-over-year growth in Subscription Annual Recurring Revenue (ARR), reaching $1.35 billion.
• Total revenue for Q3 fiscal 2026 was $350.2 million, a 48% increase from the previous year.
• The company generated over $76 million in free cash flow during the quarter.
• Gross margin improved to 80.5%, up from 76.2% in the same quarter last year.
• Rubrik launched new products including Rubrik Agent Cloud and Rubrik Okta Recovery, enhancing its offerings in AI and identity security.
• The company expanded its partnership with CrowdStrike and partnered with Cognizant for Business Resilience-as-a-Service (BRaaS).
• Rubrik raised its fiscal 2026 outlook, anticipating strong performance in the upcoming quarter.

Summary

Rubrik, Inc. (NYSE: RBRK) reported strong financial results for the third quarter of fiscal year 2026, ending October 31, 2025. The company achieved a remarkable 34% year-over-year growth in Subscription Annual Recurring Revenue (ARR), totaling $1.35 billion, while total revenue surged to $350.2 million, reflecting a 48% increase compared to the previous year. CEO Bipul Sinha noted, “Rubrik had another exceptional quarter, with record net new subscription ARR and free cash flow generation,” highlighting the growing demand for the company’s solutions in the security and AI sectors.

The company also reported over $76 million in free cash flow and improved its gross margin to 80.5%. With the launch of new products like Rubrik Agent Cloud and Rubrik Okta Recovery, along with strategic partnerships with CrowdStrike and Cognizant, Rubrik is well-positioned for continued growth. CFO Kiran Choudary expressed optimism about the company’s trajectory, stating that they exceeded all key performance metrics and raised their fiscal 2026 outlook, indicating a strong finish to the year.

Rubrik, Inc. (RBRK) has experienced a rollercoaster ride in its stock price, with a notable 33.85% increase over the past year, despite a more recent decline of 28.53% over the last six months. This volatility may raise eyebrows, especially considering the company’s negative price-to-earnings ratio of -28.52, indicating that it is currently unprofitable. However, the robust revenue growth of 35.72% over the past two years suggests that Rubrik is expanding its market presence, which could bode well for future profitability. Additionally, the staggering free cash flow growth of 231.69% over the same period highlights the company’s ability to generate cash, even in the face of operational challenges, as evidenced by a net profit margin of -41.89%. Investors may be cautious given the negative return on invested capital of -1.21%, but the recent uptick in price over the past week could signal a potential turnaround. As Rubrik navigates its financial landscape, stakeholders will be keenly watching how these fundamental metrics evolve in the coming quarters.

Rubrik, Inc. provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves financial, retail, trade, transportation, energy, industrial, healthcare and life science, education, technology, media, communications, and public sectors. Rubrik, Inc. was formerly known as Scaledata, Inc. and changed its name to Rubrik, Inc. in October 2014. The company was incorporated in 2013 and is based in Palo Alto, California.