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Rubrik Crushes Earnings Expectations and Sends Shares Soaring 24%

MarketDash Editorial Team
2 days ago
Rubrik's stock surged after delivering a blowout third quarter that beat estimates across the board, with the company significantly raising its full-year outlook on strong demand for AI-driven security solutions.

Rubrik, Inc. (RBRK) delivered the kind of earnings beat that makes Wall Street take notice. The cloud data management company reported third-quarter results that didn't just edge past expectations—they demolished them—sending shares rocketing more than 23% higher.

The Numbers Tell the Story

Rubrik posted adjusted earnings per share of 10 cents for the quarter, a significant surprise considering analysts were bracing for a 17-cent loss. Revenue came in at $350.16 million, comfortably ahead of the $319.25 million consensus estimate. That's the kind of upside surprise that gets investors excited.

But the real story is in the subscription metrics. The company reported record net new subscription annual recurring revenue alongside 34% year-over-year growth in total subscription ARR, which reached $1.35 billion. Management emphasized that the quarter exceeded the high end of all guided metrics, supported by strong operating leverage and improved contribution margins.

What's Fueling the Growth

Management pointed to surging demand for data protection and AI-driven security offerings as the primary drivers. Recent product launches and expanded partnerships—including new capabilities for identity recovery, agent monitoring, and cyber resilience—helped attract new customers and deepen existing relationships.

Looking Ahead

For the fourth quarter, Rubrik expects an adjusted loss between 10 cents and 12 cents per share, better than the 13-cent loss analysts had penciled in. Revenue is projected to land between $341 million and $343 million, well above the $324.82 million consensus.

The company also significantly raised its full fiscal 2026 guidance. The adjusted EPS outlook improved from a loss of 44 cents to 50 cents to a much narrower loss of 16 cents to 20 cents—a massive upgrade from the 49-cent loss analysts expected. Revenue guidance jumped from $1.22-$1.23 billion to $1.28-$1.282 billion.

Wall Street Weighs In

Analysts scrambled to adjust their models following the results. Rosenblatt analyst Blair Abernethy maintained a Buy rating and raised his price target from $115 to $120. Baird analyst Shrenik Kothari kept an Outperform rating while bumping the target from $120 to $130. Not everyone was uniformly bullish on valuation—BMO Capital's Keith Bachman maintained an Outperform rating but lowered his target from $110 to $105, while Keybanc's Eric Heath kept an Overweight rating but trimmed his target from $117 to $113.

At last check, Rubrik shares were trading 23.67% higher at $87.11, as investors digested the strong results and upgraded outlook.

Back to News

Rubrik Crushes Earnings Expectations and Sends Shares Soaring 24%

MarketDash Editorial Team
2 days ago
Rubrik's stock surged after delivering a blowout third quarter that beat estimates across the board, with the company significantly raising its full-year outlook on strong demand for AI-driven security solutions.

Rubrik, Inc. (RBRK) delivered the kind of earnings beat that makes Wall Street take notice. The cloud data management company reported third-quarter results that didn't just edge past expectations—they demolished them—sending shares rocketing more than 23% higher.

The Numbers Tell the Story

Rubrik posted adjusted earnings per share of 10 cents for the quarter, a significant surprise considering analysts were bracing for a 17-cent loss. Revenue came in at $350.16 million, comfortably ahead of the $319.25 million consensus estimate. That's the kind of upside surprise that gets investors excited.

But the real story is in the subscription metrics. The company reported record net new subscription annual recurring revenue alongside 34% year-over-year growth in total subscription ARR, which reached $1.35 billion. Management emphasized that the quarter exceeded the high end of all guided metrics, supported by strong operating leverage and improved contribution margins.

What's Fueling the Growth

Management pointed to surging demand for data protection and AI-driven security offerings as the primary drivers. Recent product launches and expanded partnerships—including new capabilities for identity recovery, agent monitoring, and cyber resilience—helped attract new customers and deepen existing relationships.

Looking Ahead

For the fourth quarter, Rubrik expects an adjusted loss between 10 cents and 12 cents per share, better than the 13-cent loss analysts had penciled in. Revenue is projected to land between $341 million and $343 million, well above the $324.82 million consensus.

The company also significantly raised its full fiscal 2026 guidance. The adjusted EPS outlook improved from a loss of 44 cents to 50 cents to a much narrower loss of 16 cents to 20 cents—a massive upgrade from the 49-cent loss analysts expected. Revenue guidance jumped from $1.22-$1.23 billion to $1.28-$1.282 billion.

Wall Street Weighs In

Analysts scrambled to adjust their models following the results. Rosenblatt analyst Blair Abernethy maintained a Buy rating and raised his price target from $115 to $120. Baird analyst Shrenik Kothari kept an Outperform rating while bumping the target from $120 to $130. Not everyone was uniformly bullish on valuation—BMO Capital's Keith Bachman maintained an Outperform rating but lowered his target from $110 to $105, while Keybanc's Eric Heath kept an Overweight rating but trimmed his target from $117 to $113.

At last check, Rubrik shares were trading 23.67% higher at $87.11, as investors digested the strong results and upgraded outlook.