Rubrik: Fiscal 1Q27 Financial Results

Summary:

• Results exceeded all guided metrics
• Raising all guided metrics for fiscal year 2027
• First quarter subscription ARR grew 32% YoY to $1.57 billion
• First quarter revenue grew 39% YoY to $387.1 million 
• Operating cash flow margin of 21%; free cash flow margin of 19%

Rubrik, Inc., a security and AI operations company, announced financial results for the first quarter of fiscal year 2027, ended April 30, 2026.“We are off to an excellent start to fiscal 2027 as Rubrik is now an increasingly strategic platform for agentic cyber resilience — bringing together data, identity, and AI in a single architecture. 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.

“We are pleased with our strong start to fiscal year 2027, exceeding all guided metrics with subscription ARR of $1.57 billion growing 32% year-over-year and free cash flow margin of 19%. This demonstrates our ability to drive durable growth and meaningful operating leverage at scale,” added Kiran Choudary, CFO, Rubrik.

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First Quarter Fiscal 2027 Financial Highlights

• Subscription Annual Recurring Revenue (ARR): Subscription ARR was up 32% YoY, growing to $1.57 billion as of April 30, 2026
• Revenue: Subscription revenue was $374.2 million, a 41% increase compared to $265.7 million in the first quarter of fiscal 2026. Total revenue was $387.1 million, a 39% increase compared to $278.5 million in the first quarter of fiscal 2026. This includes $8.5 million in revenue from material rights in the first quarter of fiscal 2027 and $13.4 million in revenue from material rights in the first quarter of fiscal 2026. Revenue excluding material rights increased 43% YoY in the first quarter of fiscal 2027
• Gross Margin: GAAP gross margin was 80.5%, compared to 78.3% in the first quarter of fiscal 2026. Non-GAAP gross margin was 82.9%, compared to 80.5% in the first quarter of fiscal 2026
• Subscription ARR Contribution Margin: Subscription ARR contribution margin was 13.2% compared to 8.0% in the first 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 $(0.21), compared to $(0.53) in the first quarter of fiscal 2026. Non-GAAP net income per share, diluted, was $0.16, compared to non-GAAP net loss per share, diluted, of $(0.15) in the first quarter of fiscal 2026
• Cash Flow from Operations: Cash flow from operations was $81.7 million, compared to $39.7 million in the first quarter of fiscal 2026. Free cash flow was $73.6 million, compared to $33.3 million in the first quarter of fiscal 2026
• Cash, Cash Equivalents, and Short-Term Investments: Cash, cash equivalents, and short-term investments were $1.75 billion as of April 30, 2026

Recent Business Highlights

• As of April 30, 2026, Rubrik had 2,946 customers with Subscription ARR of $100,000 or more, up 24% YoY
• Announced access to Anthropic’s Mythos Research Preview as part of Project Glasswing. An important next step in the evolution of AI and cybersecurity, Rubrik is testing this advanced frontier AI to ensure we can better serve our customers when cyber breaches inevitably happen
• Announced the launch of data protection for Google Workspace, designed to bring immutable, air-gapped backups and rapid recovery to Gmail and Google Drive. The offering extends Rubrik’s SaaS cyber resilience coverage to one of the most widely used enterprise platforms alongside M365
• Launched Rubrik Agent Cloud (RAC) for Google Cloud’s Gemini Enterprise Agent Platform, designed to enable organizations to auto-discover AI agents, apply real-time intent-based guardrails, and use Rubrik’s “Agent Rewind” capability to instantly reverse destructive agentic actions
• Unveiled SAGE (Semantic AI Governance Engine), Rubrik’s proprietary AI governance engine underpinning real-time, intent-based agentic guardrails in Rubrik Agent Cloud
• Announced a new integration with Microsoft Defender that connects Microsoft’s real-time identity threat detection with Rubrik’s automated identity rollback and recovery, enabling response times measured in hours rather than days
• Selected as an American Hospital Association (AHA) Preferred Cybersecurity Provider, giving nearly 5,000 AHA member hospitals access to Rubrik’s cyber resilience bundle including Identity Recovery, M365 protection, ransomware-response workshops, and financial impact assessments
• Launched rubrik.com/community, a dedicated practitioner platform for professionals across data protection, identity security, cloud resilience, and AI operations, featuring peer networking, practitioner-authored playbooks, and Regional Huddle for Resilience (H4R) in-person meetups

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

• Second Quarter Fiscal 2027 Outlook:
  • Revenue of $395 million to $397 million
  • Non-GAAP subscription ARR contribution margin of approximately 11-12%
  • Non-GAAP net income per share of $0.03 to $0.05
  • Weighted-average shares outstanding of approximately 224 million
• Full Fiscal Year 2027 Outlook:
  • Subscription ARR between $1,854 million and $1,862 million
  • Revenue of $1,638 million to $1,648 million
  • Non-GAAP subscription ARR contribution margin of approximately ~14%
  • Non-GAAP net income per share of $0.25 to $0.35
  • Weighted-average shares outstanding of approximately 228 million
  • Free cash flow of $293 million to $303 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.