PALO ALTO, August 27, 2026, 17:00 (EDT) — Rubrik (RBRK.O) stock dropped 9.3% in after-hours trading, even as the company surpassed Wall Street revenue projections by $31 million.
- Rubrik declined 9.25% in after-hours trading to $97.12, having previously ended up 11.33% at $107.02.
- Revenue for the fiscal second quarter increased 38% to $427.3 million, with adjusted EPS coming in at $0.20.
- The midpoint for annual revenue climbed by $46 million, and the midpoint for free-cash-flow was up $30 million.
Rubrik shares fell significantly after the bell, even though the company reported much stronger earnings than expected. The reaction suggested investors had already anticipated the positive developments.
Rubrik Inc. (NYSE: RBRK) was last at $97.12 at 5:00 p.m. EDT, down 9.25% from its regular-session close of $107.02 after-hours quote.
The closing price marked an 11.33% increase. Trading volume was approximately 6.36 million shares, compared with a 65-day average of around 3.60 million market data.
Revenue totaled $427.3 million, surpassing the consensus of $396.3 million by approximately $31 million. Adjusted earnings came in at $0.20 per share, compared with the estimated $0.04.
Subscription annual recurring revenue climbed 33% to $1.66 billion, while cloud ARR advanced 39% to $1.48 billion, the company’s earnings release showed.
Rubrik’s customer base shifted toward larger clients. The company reported 3,084 customers with subscription ARR of at least $100,000, up 23%.
| Fiscal 2027 metric | Previous guidance | Updated guidance | Midpoint difference |
|---|---|---|---|
| Revenue | $1.638B-$1.648B | $1.685B-$1.693B | +$46M |
| Subscription ARR | $1.854B-$1.862B | $1.880B-$1.885B | +$24.5M |
| Free cash flow | $293M-$303M | $323M-$333M | +$30M |
| Adjusted EPS | $0.25-$0.35 | $0.47-$0.53 | +$0.20 |
Management raised all previously guided full-year metrics. Earlier figures were based on Rubrik’s first-quarter guidance.
Rubrik forecasts revenue between $429 million and $431 million for the October quarter, with the midpoint approximately $12 million higher than the pre-report consensus estimate of $418.3 million.
Cash conversion strengthened in dollar terms but declined relative to sales. Free cash flow increased 14% to $65.7 million, though its margin slipped to 15% from 19%.
Operating leverage improved in other areas. Subscription ARR contribution margin rose to 14.0% from 9.4%, marking a 4.6-point increase.
The move came after a sharp climb. The stock had risen about 85% over the previous six months, hitting an all-time intraday peak of $107.91 ahead of the earnings release market reaction.
This arrangement positions the higher cash-flow forecast as the clearer valuation indicator. The additional $30 million represents a 10.1% rise over the prior midpoint.
Analysts approached the report with an average price target of about $105.63, reflecting an 8.8% premium to the after-hours price at 5:00 p.m. analyst data.
Risks: Prices during extended trading hours may fluctuate due to limited liquidity. Rubrik continues to post GAAP losses, its gross margin reduced, and high expectations could sustain volatility in the stock.
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