Rubrik 2026 Q3 Earnings 51.2% Net Loss Reduction and 49.6% Revenue Growth

Rubrik (RBRK) reported its fiscal 2026 Q3 earnings on Dec 8, 2025, delivering a revenue beat and narrowing losses. The company trimmed its net loss by 51.2% to $63.83 million and raised full-year revenue guidance to $1.28–$1.282 billion. Subscription revenue surged 52% to $336.4 million, driving a 34% year-over-year increase in Annual Recurring Revenue (ARR) to $1.35 billion.

Revenue

Rubrik’s total revenue rose 49.6% to $337.90 million in Q3 2026, surpassing its $319–$321 million guidance. Subscription revenue led the growth at $336.39 million, reflecting strong demand for its cloud-based security and AI operations platform. Maintenance revenue contributed $1.51 million, while other revenue added $12.27 million. The company’s total revenue, including all segments, reached $350.17 million, underscoring its market expansion in cybersecurity and AI governance.

Earnings/Net Income

Rubrik reduced its net loss to $63.83 million in Q3 2026, a 51.2% improvement from $130.91 million in the prior-year period. Earnings per share (EPS) narrowed to -$0.32 from -$0.71, a 54.9% reduction in losses. While the company continues to operate at a loss, the significant improvement highlights progress in cost management and operational efficiency.

Price Action

Rubrik’s stock surged 29.88% in the latest trading week and 23.15% month-to-date, reflecting investor optimism about its earnings performance and strategic positioning in AI and cybersecurity.

Post-Earnings Price Action Review

A strategy of buying RBRK when it exceeds revenue expectations and holding for 30 days generated a 137.87% return, outperforming the 36.46% benchmark by 101.41%. The approach demonstrated robust risk-adjusted returns, with a Sharpe ratio of 1.09 and a 0.00% maximum drawdown, underscoring its effectiveness in leveraging positive earnings surprises.

CEO Commentary

Rubrik CEO Bipul Sinha highlighted “another exceptional quarter” marked by record net new subscription ARR and “strong free cash flow generation.” He emphasized the company’s role in addressing global AI transformation and cyber resilience needs. CFO Kiran Choudary noted improved operating efficiency, including a shift to positive contribution margins on subscription ARR. The leadership team remains focused on expanding market share in AI agent security and identity recovery, leveraging partnerships with AWS and Microsoft.

Guidance

Rubrik raised its full-year 2026 revenue guidance to $1.28–$1.282 billion and expects Subscription ARR to reach $1.439–$1.443 billion. Non-GAAP EPS is projected at -$0.20 to -$0.16, reflecting continued investment in growth initiatives while narrowing losses.

Additional News

1. Eggers Investments LP-Fund 2

   filed to sell 40,000 restricted shares of Rubrik via a Form 144 filing on Dec 8, 2025.

2. Product Launches: Rubrik announced Agent Cloud for Amazon Bedrock and Microsoft Copilot Studio integrations, enhancing AI agent governance and identity recovery capabilities.

3. Partnerships: Expanded collaborations with CrowdStrike and Cognizant to strengthen ransomware response and business resilience-as-a-service offerings.

Post-Earnings Analysis

The company’s Q3 results underscore its strategic alignment with high-growth sectors like AI and cybersecurity. Analysts have upgraded price targets, with a 12-month average of $113.06 (30–31% upside from current levels). Institutional ownership remains strong, though insider sales and short interest highlight valuation risks. Rubrik’s ability to generate free cash flow and expand margins will be critical for sustaining its premium valuation.