Rubrik Inc (NYSE:RBRK) Surges on Strong Q3 Earnings Beat and Raised Outlook

Last update: Dec 5, 2025

Rubrik Posts Strong Q3 Beat, Fueled by AI and Security Demand

Rubrik Inc (NYSE:RBRK) delivered a decisive earnings beat for its third quarter of fiscal 2026, surpassing analyst expectations on both the top and bottom lines. The cybersecurity and data management firm’s results, coupled with a raised full-year outlook, highlight robust demand for its platform as businesses prioritize resilience against escalating cyber threats and invest in AI-ready infrastructure.

Earnings and Revenue: A Clear Beat

The company’s performance for the quarter ended October 31, 2025, exceeded the high end of its own guidance and Wall Street’s forecasts. The transition to a subscription-based model continues to show strong momentum, with subscription revenue now constituting the vast majority of total sales.

Revenue: Total revenue reached $350.2 million, a 48% increase year-over-year. This comfortably beat the analyst consensus estimate of approximately $325.6 million.
Earnings Per Share (Non-GAAP): The company reported non-GAAP net income per diluted share of $0.10. This result is particularly notable as it swung to a profit from a non-GAAP net loss per share of $(0.21) in the prior-year quarter and crushed the analyst estimate for a loss of $(0.17) per share.

The market reaction has been decisively positive. In after-hours trading following the report, Rubrik’s stock surged over 15%, indicating investor approval of the company’s accelerating growth and improving profitability metrics.

Key Performance Highlights and Business Momentum

Beyond the headline numbers, Rubrik’s earnings release underscored significant operational progress and strategic positioning.

Subscription ARR Growth: Subscription Annual Recurring Revenue (ARR) grew 34% year-over-year to $1.35 billion, demonstrating the durability and expansion of its customer commitments.
Profitability Improvements: The company showcased improved operating leverage. The Subscription ARR Contribution Margin turned positive to 10.3%, compared to (3.3)% a year ago. Furthermore, free cash flow generation was strong at $76.9 million, up significantly from $15.6 million in Q3 fiscal 2025.
Large Customer Growth: The company added more large clients, with the number of customers generating over $100,000 in Subscription ARR growing 27% to 2,638.
AI and Product Expansion: Recent business highlights emphasized Rubrik’s push into the AI arena with the launch of Rubrik Agent Cloud, designed to secure enterprise AI agents. The company also expanded its identity security solutions through new products and a deepened partnership with CrowdStrike.

Forward Guidance Versus Analyst Expectations

Management provided an outlook for the fourth quarter and raised its guidance for the full fiscal year 2026, which appears to align with or modestly exceed current street expectations.

Q4 FY2026 Outlook: Rubrik anticipates revenue between $341 million and $343 million. The analyst consensus estimate for Q4 sales was approximately $331.4 million, suggesting the company’s guidance is above expectations.
Full-Year FY2026 Outlook: The company raised its full-year subscription ARR forecast to a range of $1.439 billion to $1.443 billion and expects revenue between $1.280 billion and $1.282 billion. The analyst consensus for full-year sales was approximately $1.256 billion, indicating the raised guidance is ahead of estimates. The company also projected full-year non-GAAP net loss per share between $(0.20) and $(0.16).

Market Reaction and Investor Takeaway

The sharp positive move in Rubrik’s stock price reflects a market rewarding several key factors: a clear earnings and revenue beat, a significant swing to non-GAAP profitability, robust cash flow generation, and a raised outlook that implies confidence in sustained momentum. Investors are likely interpreting the results as evidence that Rubrik’s focus on cyber resilience and data security is resonating in a challenging threat landscape, and that its early moves into AI operations are gaining traction.

While the company still reports a GAAP net loss, the rapid improvement in key subscription metrics and contribution margins suggests a path toward sustainable, profitable growth is materializing faster than anticipated.

For a detailed breakdown of future earnings estimates and historical performance, you can review Rubrik’s earnings data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.