Rubrik Inc (NYSE:RBRK) surged more than 17% in premarket trading on Friday after delivering quarterly results that comfortably surpassed Wall Street estimates and lifting its full-year forecast. Investor optimism strengthened as the company highlighted accelerating subscription growth and improving profitability across its AI-enabled security platform.
For the fiscal third quarter ended October 31, Rubrik reported adjusted earnings of $0.10 per share—an impressive $0.27 above consensus expectations. Revenue climbed 48% from a year earlier to $350.2 million, outperforming forecasts thanks to robust demand for its subscription-driven offerings.
Key performance indicators continued to show strong momentum. Subscription annual recurring revenue (ARR) rose 34% year-over-year to $1.35 billion, while subscription revenue reached $336.4 million, up 52%. Rubrik also expanded its high-value customer base to 2,638 organizations generating at least $100,000 in ARR, a 27% increase. Subscription net new ARR (NNARR) totaled $95 million.
“Rubrik had another exceptional quarter, with record net new subscription ARR and free cash flow generation,” CEO Bipul Sinha said. CFO Kiran Choudary added, “Q3 was another strong quarter where we exceeded the high end of all of our key performance metrics with 34% year-over-year growth in subscription ARR and over $76 million in free cash flow.”
The company’s improving financial profile was also evident in its margins. Subscription ARR contribution margin reached 10.3%, up from -3.3% a year earlier, while non-GAAP gross margin improved to 82.8% from 79.2%. Free cash flow jumped to $76.9 million, compared with $15.6 million a year ago.
Guggenheim analyst John DiFucci described the print as “a very strong” quarter, emphasizing the $95 million NNARR figure, which he said was “likely near the high end of legitimate buyside expectations.” He and his team reaffirmed confidence in Rubrik’s execution: “We believe that Mr. Sinha and his team are up to the task,” they wrote, raising their price target to $110 from $108.
Rubrik continued to broaden its product suite over the quarter. Notable launches included Rubrik Agent Cloud, designed to strengthen risk management for enterprise AI models, and Okta Recovery, aimed at improving identity provider resilience. The company also advanced strategic partnerships with integrations such as CrowdStrike identity protection services and a BRaaS model developed with Cognizant.
Headquartered in Palo Alto, Rubrik has carved out a strong position at the intersection of artificial intelligence, cybersecurity, and cloud data protection—a combination attracting heightened corporate demand amid rising cyber threats. Its recent recognition as a leader in IDC’s 2025 Cyber-Recovery Vendor Assessment further solidified its market standing.
With its updated fiscal 2026 outlook calling for revenue up to $1.282 billion and a narrower expected loss per share, Rubrik signaled confidence in ongoing growth, expanding margins, and operational discipline. Investors appear to agree, rewarding the company’s accelerating cloud ARR and traction in enterprise AI resilience solutions.