Rubrik 2026 Q1 Earnings Strong Recovery as Net Income Improves 86%

Rubrik (RBRK) reported its fiscal 2026 Q1 earnings on June 9, 2025. The company demonstrated impressive performance with a 50.7% jump in total revenue to $267.99 million, surpassing market expectations significantly. The first-quarter results exceeded all guided metrics, setting a strong foundation for future growth. Rubrik raised its guidance for the fiscal year, reflecting confidence in its market opportunity and strategic direction. The company anticipates continued momentum, driven by subscription ARR growth and robust market positioning.

Revenue

Rubrik experienced a substantial revenue increase in fiscal 2026 Q1, reporting a total of $267.99 million, marking a 50.7% rise from the prior year. Subscription revenue was the primary driver, contributing $265.66 million. Maintenance added $2.33 million, while other revenue streams garnered $10.49 million, culminating in a total revenue of $278.48 million. This strong performance underscores the company's strategic focus on its subscription offerings.

Earnings/Net Income

Rubrik narrowed its losses to $0.53 per share in 2026 Q1, showcasing a significant 95.4% improvement from the $11.48 loss per share in 2025 Q1. The company's net loss reduced to $-102.10 million, an 86.1% improvement from the $-732.09 million loss in the prior year. Despite ongoing losses, the improved EPS reflects positive progress.

Price Action

The stock price of Rubrik has dropped 3.26% during the latest trading day, has dropped 6.61% during the most recent full trading week, and has surged 22.87% month-to-date.

Post-Earnings Price Action Review

The investment strategy of acquiring RBRK shares amid a revenue miss and holding for 30 days yielded considerable returns. The approach delivered a 155.04% overall return, substantially outperforming the benchmark return of 16.78%, thus generating an excess return of 138.25%. Despite a maximum drawdown of -41.08% and high volatility at 68.34%, the strategy's impressive CAGR of 136.57% makes it an attractive option for investors willing to embrace risk. The elevated Sharpe ratio of 2.00 further underscores the strategy's potential for substantial returns amidst volatility, presenting a viable choice for high-risk tolerance investors.

CEO Commentary

“Our outstanding first-quarter results not only surpassed all guided metrics but also underscore the power of our focused innovation and execution. We are winning the cyber resilience market, and I believe that our opportunity is bigger than ever,” said Bipul Sinha, Rubrik’s Chief Executive Officer, Chairman, and Co-Founder. He highlighted that the strong performance was driven by a 38% year-over-year growth in subscription ARR to $1.18 billion and a 49% increase in total revenue to $278.5 million. Sinha expressed optimism about Rubrik's growth trajectory, emphasizing the strength of their product offerings and market position while acknowledging the early stage of their journey to reach full potential.

Guidance

Rubrik is guiding for second-quarter fiscal 2026 revenue of $281 million to $283 million, with a non-GAAP EPS target of $(0.35) to $(0.33). For the full fiscal year 2026, the company expects subscription ARR between $1,380 million and $1,388 million and total revenue of $1,179 million to $1,189 million, alongside a non-GAAP EPS of $(1.02) to $(0.96) and free cash flow of $65 million to $75 million.

Additional News

Rubrik has been actively focusing on expanding its strategic partnerships and enhancing its product offerings. Recently, the company announced the integration of new identity resilience solutions, marking a significant step in strengthening its cybersecurity capabilities. Additionally, Rubrik has received Federal Risk and Authorization Management Program (FedRAMP®) authorization at the Moderate Impact Level, a milestone that underscores its commitment to providing secure and reliable solutions for government agencies. Furthermore, Rubrik's collaboration with Microsoft continues to flourish, contributing to its growth in the security cloud market. These developments highlight Rubrik's dedication to innovation and strategic growth.