Rubrik Inc (NYSE:RBRK) Surpasses Q2 Earnings and Revenue Estimates with 51% Growth

Rubrik Inc (NYSE:RBRK) delivered a strong second quarter performance that significantly exceeded analyst expectations, with both revenue and earnings surpassing projections. The cybersecurity and data management company reported robust growth across key metrics, prompting a positive market response as investors digested the better-than-anticipated results.

Earnings and Revenue Performance

The company reported total revenue of $309.9 million for Q2 fiscal 2026, representing a 51% year-over-year increase and notably exceeding the analyst consensus estimate of $287.9 million. Subscription revenue showed particularly strong momentum, growing 55% year-over-year to $297.0 million.

On the profitability front, Rubrik reported a non-GAAP net loss per share of $(0.03), dramatically outperforming the analyst expectation of $(0.35) per share. This represents substantial improvement from the $(0.40) non-GAAP loss per share reported in the same quarter last year.

Key financial highlights include:

• Subscription Annual Recurring Revenue (ARR) reached $1.25 billion, up 36% year-over-year
• GAAP gross margin improved to 79.5% from 73.1% in the prior year period
• Free cash flow turned positive at $57.5 million, compared to $(32.0) million last year
• Cash, cash equivalents, and short-term investments totaled $1.52 billion

Market Reaction and Outlook

The market responded favorably to these results, with the stock showing positive momentum across various timeframes. Shares gained approximately 8% over the past week and 10.6% over the past month, reflecting investor optimism about the company's performance and future prospects.

Looking ahead, management provided guidance that suggests continued strong performance. For the third quarter of fiscal 2026, Rubrik expects revenue between $319-321 million, compared to analyst estimates of $307.9 million. The full-year outlook calls for revenue of $1.227-1.237 billion, exceeding the consensus estimate of $1.209 billion.

The company's non-GAAP net loss per share guidance for the full year ranges between $(0.50) to $(0.44), which compares favorably to analyst expectations of $(1.00) per share.

Strategic Developments

Beyond the financial results, Rubrik demonstrated strategic progress through several key initiatives. The acquisition of Predibase aims to accelerate agentic AI adoption, enhancing the company's capabilities in secure generative AI deployment for customers. The company also launched Agent Rewind, a new product powered by Predibase's AI infrastructure designed to enable organizations to undo mistakes made by agentic AI systems.

Customer growth remained robust, with the number of customers generating $100,000 or more in Subscription ARR increasing 27% year-over-year to 2,505. The company also maintained its leadership position in Gartner's Magic Quadrant for Enterprise Backup and Recovery Software Solutions for the sixth consecutive year.

Operational Efficiency

Rubrik showed significant improvement in operating leverage, with subscription ARR contribution margin turning positive at 9.4% compared to (8.2)% in the prior year period. This improvement reflects both strong net new subscription ARR growth and increased operational efficiency throughout the business.

The company's balance sheet remains strong, with total assets growing to $2.39 billion as of July 31, 2025, up from $1.42 billion at the beginning of the fiscal year, bolstered by the company's recent public offering and convertible note issuance.

For more detailed earnings information and future estimates, readers can access additional data through Rubrik's earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.