Key Highlights

● Total Revenue rose 38% year on year to $427.3 million in the quarter.

● Subscription ARR reached $1.66 billion, up 33% from a year earlier.

● Rubrik had 3,084 customers with Subscription ARR of $100,000 or more.

● Full-year Subscription ARR guidance was raised to $1,880 million to $1,885 million.

Rubrik, Inc. (NYSE:RBRK) published its results for its second fiscal quarter of 2027 on 27 August 2026, and the figures explain why the company raised its outlook. For the quarter ended 31 July 2026, total revenue was $427.3m, an increase of 38% from $309.9m a year earlier. Rubrik said the results exceeded all of its guided metrics, and it raised its full-year guidance on every measure it provides.

A data security business

Rubrik describes itself as the Security and AI Operations company. Its platform covers data protection, cyber resilience and the security of artificial intelligence agents. In practical terms, organisations use software of this kind to back up critical data, detect attacks on it and restore operations after an incident such as a ransomware event.

The company sells mainly on a subscription basis, so annual recurring revenue, or ARR, is the measure that management and investors watch most closely. Cloud-delivered products are an increasing share of that base. Rubrik's financial year ends on 31 January, which is why the quarter to July is labelled the second quarter of fiscal 2027.

What the quarter showed

Subscription ARR reached $1.66bn, up 33% year on year, while Cloud ARR reached $1.48bn, up 39%. Net new Subscription ARR grew 35% on the year, whereas adjusted net new Cloud ARR grew 20%, so the two measures differed. The release gave no dollar figure for net new ARR. The company also reported that revenue normalised for material rights grew 43%.

Rubrik had 3,084 customers with Subscription ARR of $100,000 or more, an increase of 23% from a year earlier.

The quarter produced Operating Cash Flow of $76.8m, compared with $64.7m a year earlier, and free cash flow of $65.7m, compared with $57.5m. Cash, cash equivalents and short-term investments totalled $1.75bn. The company still reported a loss under US generally accepted accounting principles, with a net loss of $0.30 per share compared with $0.49 per share a year earlier.

Outlook as stated by management

For the third quarter, Rubrik guided to revenue of $429m to $431m, non-GAAP Net Income of $0.07 to $0.09 per share and a Subscription ARR contribution Margin of roughly 14%, on about 230 million weighted-average shares.

For the full year, it now expects Subscription ARR of $1,880m to $1,885m, revenue of $1,685m to $1,693m, non-GAAP net income of $0.47 to $0.53 per share, a Subscription ARR contribution margin of about 15.5% and free cash flow of $323m to $333m. These are management forecasts rather than reported results, and actual outcomes may differ.

Risks and uncertainties

Rubrik operates in a competitive market that includes established data protection vendors, large cloud providers and a growing number of security specialists. Demand depends partly on corporate spending on cybersecurity, which can be affected by wider economic conditions, and on the company's ability to win and keep large customers.

The company is also still loss-making on a GAAP basis, so its path to sustained profitability depends on continued revenue growth and cost control. Its push into AI agent security is a newer area where product demand and competition are harder to judge. Differences between GAAP and non-GAAP measures, including the treatment of share-based compensation, are set out in the company's filings and should be read alongside the headline figures.

Rubrik's Raised Bar for the Second Half

The next developments to follow are the third-quarter results, due after the quarter ending 31 October 2026, and whether the company delivers on its raised full-year targets for ARR and free cash flow. Further evidence on the growth rate of Cloud ARR, the number of large customers and the progress of its AI security offering will help show how the Business is developing.