Rubrik (NYSE:RBRK) reported third-quarter results that significantly exceeded Wall Street expectations, sending shares up nearly 24% in early trading on Friday.
The cybersecurity company posted revenue of $350.2 million, up 48% from a year earlier and above analysts’ estimate of $321 million.
Non-GAAP earnings per share came in at $0.10, compared with expectations for a loss of $0.17, while EBIT reached $10 million versus a projected loss of $43 million.
The company raised its full-year 2026 guidance across the board, now forecasting revenue of $1.28 billion to $1.282 billion, a non-GAAP EPS loss of $0.20 to $0.16, subscription annual recurring revenue (ARR) of $1.439 billion to $1.443 billion, and free cash flow of $194 million to $202 million, which were all above prior Street forecasts.
Rubrik’s subscription business showed strong momentum, with customers spending $100,000 or more in ARR, rising 27% year-over-year to 2,638. Net new subscription ARR hit a record $94.4 million, up from roughly $71 million in the prior period, while cloud ARR surged 53% year-over-year to $1.175 billion as enterprises increasingly adopt cloud and GenAI solutions. Subscription ARR contribution margin came in at 10.3%, exceeding guidance of roughly 6.5% and last year’s 9.4%, and free cash flow rose to $76.7 million, well above analysts’ $31.2 million forecast.
“Rubrik’s Q3 results and raised guidance reflect robust demand for our cyber resilience solutions, driven by AI-related enterprise threats,” Wedbush analysts wrote, maintaining an “Outperform” rating and a $120 price target. “Demand trends remain healthy, and our land-and-expand strategy continues to take hold, positioning Rubrik to capture a growing share of the cybersecurity market.”