Rubrik Earnings Beat; Company Raises Guidance
Rubrik earnings posted a record quarter with revenue, ARR and EPS beats and raised full-year outlook while next-quarter margin warnings rattled shares.
KEY TAKEAWAYS
- Rubrik beat Q1 expectations with $387.1M revenue and $0.16 non-GAAP EPS.
- Raised FY2027 revenue guide to $1.6B and lifted ARR outlook to $1.9B.
- Management tied upside to AI cyber resilience but warned of next-quarter margin compression and lower EPS.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Rubrik, Inc. (NYSE: RBRK) reported a record first quarter for fiscal 2027 on June 4, 2026, with revenue and profitability exceeding expectations. The company raised its full-year guidance but warned of slower earnings per share (EPS) and margin compression in the second quarter, contributing to share volatility.
Record Quarter and Profitability
For the quarter ended April 30, 2026, Rubrik posted revenue of $387.1 million, up 39.0% year over year, and annual recurring revenue (ARR) of $1.57 billion, a 32.0% increase. Non-GAAP earnings per share reached $0.16, surpassing consensus estimates. Subscription revenue led growth with a 41.0% increase year over year. Free cash flow totaled $73.6 million, representing a 19.0% free-cash-flow margin. The company also expanded its non-GAAP gross margin by approximately 400 basis points, reflecting improved unit economics.
Guidance and Strategic Positioning
Rubrik set second-quarter guidance for revenue between $395 million and $397 million and non-GAAP EPS of $0.03 to $0.05, signaling a decline in near-term profitability despite ongoing revenue growth. The company raised its full-year fiscal 2027 revenue target to $1.638 billion–$1.648 billion and adjusted EPS guidance to $0.25–$0.35. It also increased its ARR outlook to about $1.86 billion, implying roughly 27% year-over-year growth, and set a free-cash-flow target near $300 million, about 18% of revenues.
Management described Rubrik as a "Security and AI Operations" platform focused on "agentic cyber resilience," integrating data, identity, and AI in a single architecture. The CEO said the company is in the early stages of the AI acceleration opportunity, linking the outlook to rising enterprise demand amid AI-driven cyber threats.
Despite adjusted profitability and cash-flow targets, Rubrik remains GAAP unprofitable on a trailing 12-month basis. The company did not disclose any new regulatory approvals, enforcement actions, or merger-related regulatory events around the earnings release.
