Key Highlights

● Subscription annual recurring revenue reached $1.66 billion, up 33%.

● Total revenue was $427.3 million, up 38% from $309.9 million.

● Free cash flow was $65.7 million, a 15% margin.

● Fiscal 2027 revenue guidance is $1,685 million to $1,693 million.

Rubrik, Inc. (NYSE:RBRK) announced its second-quarter fiscal 2027 results on 27 August 2026, for the quarter ended 31 July 2026. The data security company reported subscription annual recurring revenue (ARR) of $1.66 billion, up 33% year on year, and raised every guided metric for the full fiscal year.

Business and sector

Rubrik sells cyber resilience and data security software through its Rubrik Security Cloud platform, protecting data across on-premises, cloud and software-as-a-service environments. It competes in the data protection and cybersecurity markets, where enterprises are weighing ransomware recovery against the growing use of artificial intelligence. The company says it was named a Leader in the 2026 Gartner Magic Quadrant for Backup and Data Protection Platforms for the seventh consecutive year.

During the quarter Rubrik launched Rubrik AI, an agentic layer across Rubrik Security Cloud and Rubrik Agent Cloud, and introduced Rubrik Agent Cloud for Anthropic's Claude Code. It also unveiled Project Hourglass, an alliance with systems integrators Cognizant (NASDAQ:CTSH), Deloitte, HCLTech, NTT DATA and Wipro (NYSE:WIT), and acquired Strata.io to add identity recovery capabilities. Separately, it announced a £375 million ($500 million) investment in the United Kingdom and named London its EMEA headquarters.

Latest results

Total revenue for the quarter was $427.3 million, up 38% from $309.9 million a year earlier. Subscription revenue was $407.2 million, up 37%. Revenue normalised for material rights, which fell to $4.7 million from $14.2 million, rose 43%. Cloud ARR reached $1.48 billion, up 39%, and net new subscription ARR grew 35%. The company had 3,084 customers with subscription ARR of $100,000 or more, up 23%.

Financial performance and industry context

Rubrik's GAAP gross margin was 78.4%, compared with 79.5% a year earlier, and its non-GAAP gross margin was 81.0%, against 81.6%. The GAAP net loss per share narrowed to $0.30 from $0.49, while non-GAAP diluted net income per share was $0.20, against a loss of $0.03. Subscription ARR contribution margin improved to 14.0% from 9.4%.

Operating cash flow was $76.8 million and free cash flow was $65.7 million, a 15% margin. Cash, cash equivalents and short-term investments totalled $1.75 billion.

For the third quarter, Rubrik guided to revenue of $429 million to $431 million and non-GAAP earnings per share of $0.07 to $0.09. For fiscal 2027 it now expects subscription ARR of $1,880 million to $1,885 million, revenue of $1,685 million to $1,693 million, non-GAAP earnings per share of $0.47 to $0.53 and free cash flow of $323 million to $333 million.

Risks and uncertainties

Rubrik remains loss-making on a GAAP basis, and its non-GAAP profitability excludes items such as stock-based compensation. Adjusted net new cloud ARR grew 20%, slower than the headline subscription figures, which shows that growth is not uniform across measures. Gross margin edged lower, and the company operates in a competitive market against established backup vendors and cybersecurity platforms. Newer agentic artificial intelligence products are at an early stage of commercial adoption, and the Strata.io acquisition adds integration work.

Raised targets and agent traction

The next report, covering the third quarter of fiscal 2027, will show whether revenue lands within the guided range and whether subscription ARR remains on course for the raised full-year target. Readers may also watch cloud ARR trends, contribution margin progress towards the roughly 15.5% full-year guidance, and the commercial traction of Rubrik Agent Cloud and its integrator alliance, together with growth in $100,000 customers.