Rubrik’s Quarterly Performance Exceeds Market Expectations

Data management firm Rubrik has delivered a standout performance for its third fiscal quarter of 2026, surpassing analyst forecasts across key metrics. The results signal a pivotal shift toward sustainable profitability, a development that was immediately rewarded by investors with a significant surge in the company's share price.

For the quarter ending October 31, Rubrik posted revenue of $350.2 million. This figure represents a substantial 48 percent year-over-year increase and came in above market expectations. Perhaps more striking was the earnings turnaround. The company reported an adjusted profit of $0.10 per share, a notable reversal from the anticipated loss of $0.17 per share. This shift underscores the increasing maturity and financial viability of its business model.

The company's subscription-based revenue, a critical growth driver, soared by 52 percent to reach $336.4 million. Furthermore, Rubrik expanded its enterprise footprint, with the count of customers generating over $100,000 in annual recurring revenue climbing 27 percent to 2,638. This growth indicates successful adoption of its Security Cloud platform among larger organizations.

Should investors sell immediately? Or is it worth buying Rubrik?

Accelerating Path to Profitability and Upward Revision

Operational metrics showed marked improvement, reinforcing the positive trajectory. The adjusted gross margin expanded to 82.8 percent. Notably, Rubrik achieved a positive adjusted operating income for the first time, recording $10.1 million. A particularly powerful indicator of financial health was the free cash flow, which surged to $76.9 million—nearly five times the level seen in the same quarter last year.

In response to this robust performance, management has raised its full-year guidance. For fiscal 2026, the company now anticipates a significantly smaller adjusted loss per share. The revenue outlook has also been upgraded, with projections now set between $1.28 billion and $1.282 billion.

Market Position and Forward-Looking Statements

Looking ahead to the current fourth quarter, Rubrik forecasts revenue in the range of $341 million to $343 million. The company's growth strategy is being bolstered by recent recognition as a leader in an IDC report on cyber recovery and through new product integrations, such as with Amazon Bedrock. The next key milestone will be the release of its Q4 results, which are expected in March 2026.