Rubrik 2026 Q2 Earnings Beats Expectations, Net Loss Narrows 50%

Rubrik(RBRK) reported its fiscal 2026 Q2 earnings on Sep 10th, 2025. The company delivered better-than-expected results, with revenue rising 52.3% year-over-year and losses narrowing significantly. Management raised its full-year guidance, signaling confidence in its growth trajectory despite ongoing losses and mixed market reaction.

Revenue
Rubrik’s total revenue surged by 52.3% to $298.92 million in the second quarter of fiscal 2026, compared to $196.33 million in the same period the previous year. The company’s robust performance was driven by strong demand for its cloud-based data protection solutions, with the majority of revenue coming from subscription-based services. The continued shift toward recurring revenue underscores Rubrik’s strategic focus on long-term customer relationships and scalable growth.

Earnings/Net Income
Rubrik significantly narrowed its per-share loss to $0.49 in the second quarter of fiscal 2026, representing a 50.0% improvement from the $0.98 loss in the prior-year period. On a net income basis, the company reduced its total loss to $-95.93 million from $-176.93 million, a 45.8% decline. However, the company has continued to post losses for the third consecutive year in this quarter, indicating ongoing challenges in achieving profitability.

Price Action
The stock price of Rubrik declined 14.64% during the latest trading day, with further losses of 7.98% over the past full week and 7.65% month-to-date. The recent price action reflects investor uncertainty, particularly following the earnings release and mixed guidance.

Post-Earnings Price Action Review
Following the earnings report, Rubrik’s shares faced downward pressure despite outperforming expectations in several key metrics. The stock retreated sharply, falling 15% in midday trading, and dropped below its 50-day moving average. Analysts suggest that while the company’s financial performance showed improvement, the market may have expected more aggressive steps toward profitability.

CEO Commentary
Bipul Sinha, CEO and Chairman of Rubrik, highlighted the company’s strong Q2 performance, including a 36% year-over-year increase in subscription ARR to $1.25 billion and free cash flow of $57 million. He emphasized Rubrik’s transition into a security and AI company, leveraging its cyber resilience solutions and AI acceleration capabilities through strategic acquisitions such as Predibase. Sinha also introduced new innovations like Agent Rewind and expressed confidence in the growing market opportunities in identity resilience and generative AI.

Guidance
Kiran Choudary, CFO of Rubrik, announced an upward revision of the company’s FY2026 guidance. The company now expects subscription ARR of $1.408–1.416 billion, representing 29–30% year-over-year growth. Total revenue is projected to reach $1.227–1.237 billion, up 38–40% year-over-year, with free cash flow anticipated to range from $145–155 million. For Q3, Rubrik expects revenue of $319–321 million, with a 35–36% year-over-year increase.

Additional News
Recent news on Rubrik includes its successful initial public offering in mid-2024, which raised over $750 million, with shares priced at $32. The IPO attracted significant institutional support, including Microsoft (MSFT), as an early investor. Rubrik’s stock currently holds a Composite Rating of 71 out of 99 from IBD Stock Checkup, and an Accumulation/Distribution Rating of B-minus, indicating more buying pressure in recent weeks. Analysts remain cautiously optimistic about Rubrik’s long-term growth, particularly with its strategic focus on enterprise AI and cybersecurity.