Rubrik: Fiscal 2Q27 Financial Results

Summary:

• Results exceeded all guided metrics
• Raising guidance for all guided metrics for fiscal year 2027
• Second quarter subscription ARR grew 33% YoY to $1.66 billion
• Second quarter revenue grew 38% YoY to $427.3 million
• Operating cash flow margin of 18%; free cash flow margin of 15%

Rubrik, Inc., a security and AI operations company, announced financial results for the second quarter of fiscal year 2027, ended July 31, 2026.“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,” said Bipul Sinha, CEO, chairman, and co-founder, Rubrik.

“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,” added Kiran Choudary, CFO, Rubrik.

Click to enlarge

Second Quarter Fiscal 2027 Financial Highlights

• Subscription Annual Recurring Revenue (ARR): Subscription ARR grew 33% YoY to $1.66 billion as of July 31, 2026 with net new Subscription ARR up 35% YoY. Cloud ARR grew 39% YoY to $1.48 billion as of July 31, 2026. Adjusted net new Cloud ARR grew 20% YoY in the second quarter of fiscal 2027
• Revenue: Subscription revenue was $407.2 million, a 37% increase compared to $297.0 million in the second quarter of fiscal 2026. Total revenue was $427.3 million, a 38% increase compared to $309.9 million in the second quarter of fiscal 2026. This includes $4.7 million in revenue from material rights in the second quarter of fiscal 2027 and $14.2 million in revenue from material rights in the second quarter of fiscal 2026. Revenue normalized for material rights increased 43% YoY in the second quarter of fiscal 2027
• Gross Margin: 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
• Subscription ARR Contribution Margin: Subscription ARR contribution margin was 14.0% compared to 9.4% in the second quarter of fiscal 2026, reflecting the strong net new subscription ARR in the quarter and an improvement in operating leverage in the business
• Net Income/Loss per Share: GAAP net loss per share was $(0.30), compared to $(0.49) in the second quarter of fiscal 2026. Non-GAAP net income per share, diluted, was $0.20, compared to non-GAAP net loss per share, diluted, of $(0.03) in the second quarter of fiscal 2026
• Cash Flow from Operations: Cash flow from operations was $76.8 million, compared to $64.7 million in the second quarter of fiscal 2026. Free cash flow was $65.7 million, compared to $57.5 million in the second quarter of fiscal 2026
• Cash, Cash Equivalents, and Short-Term Investments: Cash, cash equivalents, and short-term investments were $1.75 billion as of July 31, 2026

Recent Business Highlights

• As of July 31, 2026, Rubrik had 3,084 customers with Subscription ARR of $100,000 or more, up 23% YoY.
• Appointed Rakefet Russak-Aminoach to Rubrik’s Board of Directors. Ms. Russak-Aminoach, a globally recognized financial services leader and venture investor, brings vast digital transformation and enterprise governance experience to Rubrik as organizations face compounding cyber threats
• Launched Rubrik AI, an agentic-first layer spanning Rubrik Security Cloud and Rubrik Agent Cloud designed to act autonomously, at machine speed, with built-in guardrails. Rubrik AI continuously adapts to each organization’s context and threat landscape, autonomously taking action toward defined business outcomes and orchestrating recovery workflows
• Launched Rubrik Agent Cloud for Anthropic’s Claude Code and unveiled Project Hourglass, a GSI alliance with Cognizant, Deloitte, HCLTech, NTT DATA, and Wipro to deploy it across enterprises
• Introduced Autonomous Business Recovery for cloud applications, powered by the Preemptive Recovery Engine. This solution discovers application dependencies, validates clean recovery points, and rebuilds an organization’s Minimum Viable Business across data, network, identity, and configurations following a disruption
• Advanced Rubrik Annapurna, creating an AI-ready unstructured data layer for enterprise Data Intelligence platforms. Annapurna is available today for qualified enterprise partners
• Unveiled Rubrik Agent Identity, delivered as an expansion to Rubrik Agent Cloud with control access per tool call at speed and scale with AI. This new solution operates alongside Rubrik’s established SAGE governance framework, and now provides four distinct Rubrik Agent Cloud pillars: Observability, Identity, Runtime Security, and Rewind
• Advanced Rubrik Identity Resilience through the acquisition of Strata.io and the introduction of Identity Roll Forward and Identity Continuity capabilities. Identity Roll Forward reconstructs identity services after an attack while preserving legitimate changes, and Identity Continuity keeps authentication running by automatically failing over to a secondary identity provider when the primary is disrupted
• Named a Leader in the 2026 Gartner® Magic Quadrant™ for Backup and Data Protection Platforms for the seventh consecutive year, positioned furthest in Vision
• Announced a £375 million ($500 million) UK investment and named London as its EMEA headquarters
• Joined the Cloud Security Alliance’s AI Resilience Center of Excellence as Lead Founding Partner

Third Quarter and Fiscal Year 2027 Outlook
Rubrik is providing the following guidance for the third quarter of fiscal year 2027 and the full fiscal year 2027:

• Third Quarter Fiscal 2027 Outlook:

  • Revenue of $429 million to $431 million
  • Non-GAAP subscription ARR contribution margin of approximately 14%
  • Non-GAAP net income per share of $0.07 to $0.09
  • Weighted-average shares outstanding of approximately 230 million

• Full Fiscal Year 2027 Outlook:

  • Subscription ARR between $1,880 million and $1,885 million
  • Revenue of $1,685 million to $1,693 million
  • Non-GAAP subscription ARR contribution margin of approximately ~15.5%
  • Non-GAAP net income per share of $0.47 to $0.53
  • Weighted-average shares outstanding of approximately 228 million
  • Free cash flow of $323 million to $333 million

Additional information on Rubrik’s reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Rubrik’s results computed in accordance with GAAP. For example, stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of Rubrik’s Class A common stock, and Rubrik’s future hiring and retention needs, all of which are difficult to predict and subject to constant change.