Rubrik, Inc. (RBRK) delivered a knockout quarter that sent its stock surging in Thursday's after-hours session. The data security company didn't just beat expectations—it obliterated them, posting profits where analysts had penciled in losses and raising its full-year outlook in the process.
The Numbers Tell the Story
Rubrik reported adjusted earnings of 10 cents per share for the third quarter, a pleasant surprise compared to the consensus estimate for losses of 17 cents. That's a 27-cent swing in the right direction.
Revenue came in at $350.17 million, crushing the Street estimate of $319.25 million and representing substantial growth from $236.18 million in the same period last year. That's nearly 50% year-over-year growth, which helps explain why investors got excited.
Digging Into the Details
The quarter showcased some impressive operational milestones. Subscription annual recurring revenue grew 34% year-over-year to $1.35 billion, the kind of metric that makes Wall Street pay attention. The company now counts 2,638 customers with at least $100,000 in subscription ARR, up 27% from a year ago.
Profitability metrics also improved dramatically. Subscription ARR contribution margin hit 10.3%, a sharp turnaround from negative 3.3% in the third quarter of fiscal 2025. Non-GAAP gross margin expanded to 82.8% from 79.2% in the prior-year period.
"Rubrik had another exceptional quarter, with record net new subscription ARR and free cash flow generation. As the AI transformation unfolds, organizations worldwide are turning to Rubrik to ensure their businesses remain secure and AI ready," said Bipul Sinha, Rubrik's CEO.
Looking Ahead
Perhaps most encouraging for investors, Rubrik significantly raised its fiscal 2026 guidance. The company now expects adjusted losses of just 16 cents to 20 cents per share, compared to the previous analyst estimate for losses of 49 cents per share. That's a massive improvement in the profit trajectory.
Revenue guidance also got a boost, with Rubrik now projecting between $1.28 billion and $1.282 billion for fiscal 2026, well above the $1.23 billion consensus estimate.
The market responded enthusiastically: Rubrik shares climbed 10.1% to $77.60 in extended trading Thursday.
